He said Budget 2022 provided an allocation of RM48.8 billion for projects at the state level, representing a significant increase in line with the 12th Malaysia Plan.
“Development expenditure data for each state over the 2010-2020 period on average, show a mixed trend due to factors such as the performance of the state development projects as well as the identification and approvals of new projects in each rolling plan.
“The development expenditure spent is also influenced by the requirements for high-impact projects and the people’s urgent needs.
“Examples include the Pan-Borneo Highway in Sabah and Sarawak, the Kota Bharu-Kuala Krai Expressway in Kelantan, and the Central Spine Road in Pahang, as well as the Gemas-Johor Bahru double-tracking rail project,” he said in reply to a question from Chow Kon Yeow (PH-Tanjong) in the Dewan Rakyat today.
Chow, who is also Penang chief minister, wanted the government to list the annual development expenditure allocations for each state from 2010 to 2020 and to provide details on the income tax revenues collected by states for the same period.
On the tax revenues, Yamani said Inland Revenue Board (LHDN) branches that receive the tax payments from individuals and companies may not be located in the states where the taxpayers resided or carried out their economic activities.
“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 those on petroleum are directly taken by and recorded at headquarters rather than the various states.
Replying to Chow’s supplementary question on whether the federal government would consider a new financial policy to assist the states, Yamani said the ministry would take note of the matter, which Chow could raise at the next National Finance Council meeting.
“Maybe (Chow) can also discuss a new method with other states and chief ministers so that state needs can be prioritised by the federal government,” he added.