All this while states has their own tax mechanism to collect money, so federal tax return is not the only revenue they get. So while he made it sounds like 1.4 billion is all they ever get from tax, it is not true entirely.

https://belanjawan.mof.gov.my/pdf/belanjawa...kutuan_2025.pdf

Civil servants pensions, all paid by federal government, currently it stands at 37 billion in 2025.

Civil servants salaries, all paid by federal government (unable to determine due to overlap, lets say 30 billion exclude those spent in Health care and Education). Health care and Education budget (110 billions), all paid by federal government. Interest payment for existing debts, all paid by federal government (55 billions).

After all these biggies, how much money is left for federal government to pay to each state? Total expenditure is 335 billions, and these biggest spending already cover almost 70% of it.

Maybe federal government can say subsidies for petrol remains for all, but each state can decide how much they want to take back from the subsidies, and then the savings will be given to the state government. Essentially each state decides how much petrol subsidies they want to provide, if they say no subsidies then all the subsidies money which would have been spent in that state will be given to the state.

This post has been edited by vhs: Dec 1 2024, 05:08 PM