Bigger grants, allocations for state govts

The government has increased allocations and grants provided to each state this year, said Prime Minister Datuk Seri Ismail Sabri Yaakob.

He said this includes the provision of additional relaxation to state governments to utilise funds totalling RM5 billion allocated under the Malaysian Road Records Information System (Marris).

He added the decision to improve the allocations and grants for state governments was taken at the National Finance Council meeting, which he chaired yesterday.

The meeting was attended by mentris besar and representatives of chief ministers.

He said the relaxation in the use of allocations under the Marris funds was mainly to finance all maintenance, repair, replacement and modification of roads, bridges, drains, sewers and slopes along state roads, which were damaged by floods, including in local authority areas.

“The federal government is always committed to ensuring that its relationship with state governments is at the best level possible.

“This aspiration is manifested through the increase in allocations channelled in various forms of grants to the state governments every year,” he said in a statement yesterday.

Ismail Sabri said the government agreed to review the Marris funds and was ready to amend the relevant guidelines and legislation.

He said this was to ensure that the allocations could be fully utilised by state governments by expanding the scope of Marris funds to include road maintenance under the Agricultural Development Authority.

He added that the Ecological Fiscal Transfer allocation would also be increased from RM70 million to RM100 million as a specific incentive to states that gazette new areas for protection.

“The incentive is to increase preservation efforts and conservation of terrestrial and marine biodiversity areas.”

Ismail Sabri said a contribution of RM330 million was made to the State Reserve Fund to finance the Economic, Infrastructure and Welfare Development-Based Grants (Tahap), to further strengthen the momentum of the Malaysian Family’s economic recovery.

He said a committee chaired by the Treasury secretary-general will be set up to review the calculation formula, criteria and distribution method for Tahap.

“This proves the federal government’s commitment to give state governments the opportunity to implement development projects according to their priorities and needs.”