EDGEPROP. 16TH DECEMBER: Total development expenditure (DE) for state-level projects rose from RM28.9 billion in 2010 to RM30.6 billion in 2020, excluding DE for projects spanning multiple states, said Deputy Finance Minister II Yamani Hafez Musa.
He said Budget 2022 provides an allocation of RM48.8 billion for projects at the state level, representing a significant increase in line with the 12th Malaysia Plan.
“DE data for each state over the 2010-2020 period on average showed a mixed trend due to factors such as the implementation performance of state development projects as well as the identification and approvals for new projects in each rolling plan. The DE spent was also influenced by the requirements for high-impact projects and the people’s urgent needs.
“Examples included the Pan Borneo Highway in Sabah and Sarawak, the Kota Baru-Kuala Krai Expressway in Kelantan and the Central Spine Road in Pahang, as well as the Gemas-Johor Baru Electrified Double-Tracking rail project,” he said in reply to an oral question from Chow Kon Yeow (Pakatan Harapan-Tanjong) in the Dewan Rakyat on Thursday (Dec 16).
Chow, who is also the Penang chief minister, wanted the government to list the annual DE allocations for each state from 2010 to 2020 and to provide details of income tax revenues collected by state for the same period.
On tax revenues, Yamani Hafez said the Inland Revenue Board branches that received tax payments from individuals and companies may have been in different locations from the states where the taxpayers actually carried out their economic activities or resided in.
“Therefore, state-level tax collections do not give a true picture as to whether the taxes are actually contributed by the respective states’ economic activities,” he said, noting also that major taxes such as that on petroleum are directly taken by and recorded at the headquarters rather than the various states.
Replying to Chow’s supplementary question about whether the federal government would consider a new financial policy for assisting the states, Yamani Hafez said: “We take note of this and it can be raised by the person who is asking himself in the National Finance Council meeting which, I believe, will take place next year. Maybe [he] can also discuss with other states and chief ministers possibly on a new method, so that state needs can be prioritised by the federal government,” Yamani Hafez added.