This was agreed to during the National Finance Council meeting chaired by Prime Minister Tun Dr. Mahathir Mohamad today.
“It has been agreed upon in principle. The quantum will be discussed later. Most importantly it will be given directly to the state governments.
“It is a promise from the federal government. The people of Terengganu would like to thank the federal government for its commitment to directly channel the royalty,” Mentri Besar Dr. Ahmad Samsuri Mokhtar said after the meeting.
Samsuri said the state had not received oil royalty since 2000 and instead given compassionate payment which was channelled to federal government agencies in the state.
Sabah and Sarawak have been receiving five per cent oil royalty while Kelantan was also given compassionate payment since 2010.
On the allocation provided for members of parliament announced yesterday, Samsuri thanked the federal government.
“Whether the amount is small or big, we have to respect it. We really appreciate the federal government’s commitment to help state governments regardless of political parties, said Samsuri, who’s from PAS.
Mahathir announced that Pakatan Harapan members of parliament would get RM500,000 while opposition MPs are to be paid RM100,000 before Hari Raya.
Asked if Terengganu will provide an allocation for Barisan Nasional assemblymen, Samsuri said this would depend on the financial position.
In Putrajaya, Deputy Prime Minister Datuk Seri Dr. Wan Azizah Wan Ismail said the allocations to the states will be done in a fair manner by taking into account the financial capacity of each state.
“Some rich states can accommodate (the expenses) compared to poorer states,” she said, adding that the federal government adopts a fair policy towards the opposition-led state governments. — Bernama