Federal State Funding Follows Constitution, Says MP

Federal financial allocations to Malaysian states, including Johor, are not arbitrary but are strictly governed by written laws and provisions within the Federal Constitution, according to Pasir Gudang Member of Parliament Hassan Abdul Karim.

Karim explained that Article 109(1) of the Federal Constitution mandates the Federal Government to provide per capita grants to each state annually. These grants are allocated based on the provisions outlined in Part I of the Tenth Schedule of the Constitution. Furthermore, Article 110(1) establishes that each state is entitled to revenue from taxes, fees, and other sources as specified in Part III of the Tenth Schedule.

For any state government dissatisfied with the financial allocations received, Karim suggested that the matter can be brought before the National Finance Council. He highlighted that Article 108(4) of the Federal Constitution requires the Federal Government to consult with the National Finance Council regarding allocations made to the states.

"Based on the existing legal provisions, any state government formed after the Johor state election can bring issues related to the Federal Government's allocations to that state to the National Finance Council if there are disputes," Karim stated in a press release.