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Barjoyai Bardai of Universiti Tun Abdul Razak told FMT that Johor topped the list of budget allocations to states. It received an allocation of RM865 million, more than Selangor, which received RM852 million.
“So, Johor has not been sidelined in the budget allocation,” he said, adding that the states that received the lowest allocations were Perlis at RM138 million and Kelantan at RM331 million.
Another economist, Yeah Kim Leng of Sunway University, said the federal government allocates funds to the states based on their per capita income.
“Poorer states such as Sabah and Sarawak receive a higher allocation to enable them to catch up with the richer states such as Selangor, Penang as well as Johor, which are among the more industrialised states,” he said.
However, he suggested that Putrajaya look into the request for a bigger allocation for Johor, made by the ruler, Sultan Ibrahim Sultan Iskandar.
He said the government should consider investments with high multiplier effects, such as the creation of high-value industries and high skills employment.
Alternatively, the federal and state governments could jointly finance projects and public-private partnerships.
Yeah said development projects, on essential infrastructure and facilities should be prioritised, and state governments given greater flexibility in taking loans.
He also suggested decentralisation and devolving greater responsibilities for development to the state and district levels.
On Friday, Sultan Ibrahim had said he felt as if Johor was being treated like a stepchild in terms of federal allocations which he said were “starkly disproportionate” to the RM13 billion that Johor contributed to the federal coffers annually.
He was also unhappy with the state of federal buildings and facilities, and unfulfilled promises about expanding the North-South Expressway and the Senai-Desaru Highway.
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