KUANTAN: The Federal government has disbursed 'wang ihsan" (compassionate money) amounting RM172.3 million to Terengganu and RM58.6 million to Kelantan last week to finance the emolument commitments of the respective state governments.
Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance minister, said the federal government had also paid-out RM103.1 million as the Terengganu government's obligations towards its contractors.
"Any balance in the 'wang ihsan' will still be utilised for Terengganu and Kelantan through projects or people-oriented programmes including to eradicate poverty (programmes) and basic infrastructure projects for the well-being of the people in the state.
"In connection with the 'wang ihsan', it is not grants from the Federal government enshrined by law but the Madani government had channeled "wang ihsan" payment made for petroleum amounting RM786 million to Terengganu and RM200million to Kelantan last year," he said in a statement today.
Anwar said the Madani government is committed in ensuring that the 'wang ihsan' earmarked for the benefit of Terengganu and Kelantan with priority for expenditures that will benefit the people of both states.
"The government is always open to discussion and suggestions from the Terengganu and Kelantan governments regarding the use of the 'wang ihsan' so that it can be utilised effectively by the people of Terengganu and Kelantan.
"The Madani government has always been fair and equal when "giving" to all the state governments. This is reflected through increased Federal government grants to the state governments including development allocations for all states in 2023 and 2024," he said, adding state grants are simultaneously channeled to all states every month.