He said the payment in 2019 involved RM425.70 million through a 25% cut from the oil royalty payment made by Putrajaya, followed by RM31.86 million in 2020 through a 5% cut from the same.

“In 2021, the state government paid RM15.20 million in cash,” he said in response to an oral question from Hilmi Harun (PAS-Manir) in the state assembly.

According to Samsuri, the balance in debt still owed by the state government to the federal government as of June 30 is RM267.09 million.

“Of that amount, the highest is for the water supply project (RM226.7 million), followed by low-cost public housing (RM37.16 million) and development projects under the Terengganu State Economic Development Corporation totalling RM3.2 million,” he said.

To a supplementary question from Hilmi on the state’s debt burden, Samsuri said it was a challenge for the state government to develop new projects because of its fiscal position.

“However, we are still able to deliver services to the people by setting priorities in our expenditures and spending prudently,” he said.

“Job opportunities can still be created and people’s housing projects and affordable houses can continue to be built for the well-being of the people.”