KEDAH WANTS DEBTS TO BE CHANGED INTO GRANTS
I will abolish state’s credit towards federal government, says Mukhriz
THE Kedah government is urging the federal government to change the debts that the former had incurred from water supply upgrading projects in rural areas, to be turned into grants.
Menteri Besar Datuk Seri Mukhriz Mahathir said such a request had been mulled by both governments in the past, but no consensus had been reached.
“I hope the federal government would consider this move as it will reduce our (the state government’s) debt.
“It will abolish our credit towards the federal government.
“During my previous tenure as menteri besar, discussions were held with the Finance Ministry to detail the state government’s debts.
“We discussed that if the debts were related to water supply projects, it should be given in the form of grants,” Mukhriz said in reply to a question from Datuk Dr Mohd Hayati Othman (PasTokai) during the state assembly session here yesterday.
Hayati wanted to know if the Federal Government would give a discount on the debts the state government owed.
In a reply to a question from Teh Swee Leong (Pakatan Harapan-Kota Darul Aman) on the state government’s debt, Muhkriz said the figure stood at RM2.54 billion.
He said the amount included a loan for the Kedah water supply plan, of which the interest rate was set between zero and two per cent.
“The state government will repay the debts based on its capability and financial status. It is exploring new sources of revenue to boost its capacity to repay debts.”
Mukhriz said the state government would seek federal funds under a new allocation that was announced in the 2019 Budget.
“The 2019 Budget allocated funds for states which decide to cancel logging activities. We are considering this,” he said, referring to the cancellation of timber concessions in the Ulu Muda area in Kedah.