The federal government will allocate RM10 million in annual special contributions to the Kedah government beginning this year, Finance Minister Lim Guan Eng announced today.

This was decided by the cabinet on July 4, he told Mukhriz Mahathir (Harapan-Jerlun) – the Kedah menteri besar – during the question and answer session in the Dewan Rakyat today.

As Lim explained, this special contribution will be reviewed every 10 years or at an appropriate time.

It would also be in addition to the RM10,000 lease payment for Penang and Seberang Perai that Kedah receives annually from the federal government, which the finance minister affirmed would be continued.

"This is the unilateral undertaking by the federal government," he said, adding the special allocation will be given from this year onward. 

This is in line with the Article 167(7) of Federal Constitution, which stipulates that equal amounts should be given to all the states in the federation.