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Higher DE of RM30.6 billion allocated for state projects in 2020

Source from: New Straits Times, Original Article

KUALA LUMPUR: Total development expenditure (DE) for state-level projects has risen from RM28.9 billion in 2010 to RM30.6 billion in 2020, excluding DE for projects than span multiple states, said Deputy Finance Minister II Yamani Hafez Musa.

He said the 2022 Budget provides an allocation of RM48.8 billion for projects at the state level, representing a significant increase in line with the 12th Malaysia Plan (12MP).

“DE data for each state over the 2010-2020 period, on average, show a mixed trend due to factors such as the implementation performance of the state development projects as well as the identification and approvals of new projects in each rolling plan.

“The DE 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 Baru-Kuala Krai Expressway in Kelantan, and the Central Spine Road in Pahang, as well as Gemas-Johor Baru Double-Tracking rail project,” he said in reply to an oral 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 DE allocations for each state from 2010 to 2020 and to provide details on the income tax revenues collected by state for the same period.

On the tax revenues, Yamani Hafez said the Inland Revenue Board branches that receive the tax payments from individuals and companies may be in different locations from the states where the taxpayers actually carry out their economic activities or reside.

“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 headquarters rather than the various states.

Replying to Chow’s supplementary question on 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 at 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,” he added. – Bernama

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