Finance Ministry to consider review of laws over grants to states

KUALA LUMPUR: The Finance Ministry is willing to consider proposals to review laws no longer relevant pertaining to the grants to state governments, the Dewan Rakyat was told yesterday.

Finance Minister Lim Guan Eng said it was indeed the policy of the new government to ensure that all state governments were accorded fair treatment while improving governance to a more efficient, responsible and transparent level.

“The proposals to consider the grants to the states are subject to Article 109(1) of the Federal Constitution on Grants to States. The proposals have to be brought to the National Finance Council for discussion.

“I agree with the view on the need for us to relook this matter and, in this aspect, the federal government is willing to consider the proposals,” he said during Question Time in the House.

Lim was replying to a supplementary question, from Datuk Seri Mukhriz Mahathir (PH-Jerlun) on the proposal to review the grants to the state governments on the sharing of revenue from the collection of taxes. - Bernama

The Finance Minister said that in 2017, the federal government had channelled RM6.9 billion to the 13 state governments, which included allocations for maintenance of state roads and making up the shortfalls in the operating expenditure.

He also said that the state government debts to the federal government up to April this year amounted to RM17.64 billion. Bernama