States to get revenue distribution from federal govt if there is increase in amount collected, Dewan Rakyat told

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KUALA LUMPUR (Nov 15): State governments will receive the distribution of the federal government’s revenue provided there is any increase in the revenue collected, Deputy Finance Minister II Yamani Hafez Musa said.


He said normally, the Ministry of Finance would provide an allocation of RM250 million a year to be distributed to all states after the Accountant-General’s Department confirms an increase in the federal government’s annual revenue and gross domestic product data received from the Economic Planning Unit.

Yamani Hafez said the distribution of the revenue increase would be made in accordance with the provisions of Akta Pemberian Pertambahan Hasil 1977 (Revenue Growths Distribution Act 2007) and Akta Pemberian Pertambahan Hasil (Pindaan) 2007 (Revenue Growths Distribution [Amendment] Act 2007).

“The distribution is based on the principle of revenue sharing. When there is an increase in the federal government’s revenue for a particular financial year compared to the previous year, the states will receive this amount.


“Hence, if there is an increase in revenue at the federal government level, even if it is only one ringgit, then the states will receive a revenue from the distribution of the allocation of RM250 million,” he said during a question-and-answer session in the Dewan Rakyat on Monday (Nov 15).

Yamani Hafez was responding to a question from Lim Kit Siang (DAP-Iskandar Puteri) who wanted to know whether the federal government intends to increase its revenue sharing with the states to enable them to reduce dependence on sales and opening up of land to cover their expenditure.-BERNAMA