PUTRAJAYA: The Federal Government has disbursed 'wang ihsan’ (goodwill grants) amounting to RM172.3 million to the Terengganu government and RM58.6 million to Kelantan last week to finance the state governments’ emolument commitments.
The Ministry of Finance (MOF) said that, in addition, a total of RM103.1 million was also given to the Terengganu for the state government's obligations to its contractors.
The statement added that any remaining money would still be used for Terengganu and Kelantan through projects or programmes for the benefit of the people, such as poverty eradication and basic infrastructure projects for the well-being of the people in the states.
“The MADANI government has always been fair and equitable in matters of giving to all state governments.
“This is reflected through the increase in Federal Government grants to state governments as well as development allocations for all states for 2023 and 2024,” it said, adding that the grants are channelled to all states simultaneously every month.
Prime Minister Datuk Seri Anwar Ibrahim said, in the same statement, that the MADANI Government is committed to ensuring the goodwill payments are earmarked for the benefit of the states of Terengganu and Kelantan, with priority given to spending that really helps the people of the two states.
“The government is always open to discussions and suggestions from the Terengganu and Kelantan state governments concerning the use of the payments so that it can be used effectively to help the people directly,” said Anwar, who is also Finance Minister.
According to the statement, last year, the MADANI government channelled petroleum goodwill grants amounting to RM786 million to the Terengganu state government and RM200 million to the Kelantan state government.
The statement also said that the grants from the Federal Government are not enshrined by law.
