KUALA TERENGGANU - The Terengganu government has assured that incentives and the people's welfare will not be affected by the state's budget review.
The current global oil price slump means that oil-rich Terengganu will receive less royalty from the Federal Government, forcing the state to review its expenditure.
Mentri Besar Datuk Ahmad Razif Abd Rahman said the state would not stop giving out aid or incentives meant for education and welfare as pledged in the 2015 state budget.
"Funds for youth development, incentives for straight-A students, aid for university entrants … we are not going to take away any of these.
"The state government will only review non-high-impact projects and government overseas trips," said Ahmad Razif after chairing the weekly state executive council meeting.
He said the state government was still waiting for the Federal Government to inform it of how much oil and gas royalty the state would receive before the adjustments could be made.
"The situation is not so bad and our government is not badly hit. It could also a blessing in disguise as it encourages us to be prudent in our spending," he said.
Ahmad Razif also said that the 17,000 families affected by the recent floods in the state would receive RM1,000 (S$370) each.
The money, which would be given out from Sunday, consists of RM500 from the National Security Council and RM500 from the state government.
He also said that the state government had approved a Cabinet decision to rebuild five houses that were destroyed in the floods.
"There are also 408 houses which suffered some form of damage. The Public Works Department will study the damage and we will repair the houses at a cost of RM5,000 to RM10,000 each," said Ahmad Razif.