States to get a total of RM8.16b in federal allocation this year

PUTRAJAYA: All states in the country will be receiving a total of RM8.16 billion in federal allocation for this year, with the annual allocation to be continued as usual.
According to the Finance Ministry, the National Finance Council has agreed that the federal government will be providing contributions to the respective State Reserve Fund (KWRN) for the year 2020 at RM430 million.
"For the record amount of contributions approved for 2019 is RM290 million and this year (RM330 million)," the ministry stated in a statement today following the National Finance Council meeting at the ministry today.
The ministry also stated that fund allocations (Deficit Grant) to KWRN for the year 2020 is to finance the estimated allocation to states that are in deficit of RM150 million in their management accounts.
"The approval of the RM430 million allocation has to be applied two years earlier as the National Financial Council Meeting is held annually and that the amount can be taken into account in the preparation of the federal budget of that year.
"This is to ensure that KWRN funds are at an adequate level and are available to assist states facing a deficit and financial problems."
In 2017, the state which received this Deficit Grant is Kelantan with RM 54.8 million and Perlis with RM38.4 million as both states experienced a Managing Account deficit in 2016.
"While the remaining contribution of RM280 million is to finance the Economic Development, Infrastructure and Livelihood Development (TAHAP) grant.
"This grant is to help the states increase their development expenditure to offset development throughout the country.
"In 2018, the TAHAP grant awarded to seven states namely Kedah with RM24.4 million, Kelantan (RM28.5 million), Sarawak (RM23.8 million), Terengganu (RM27.7 million), Perlis (RM23.3 million) , Penang (RM13.5 million) and Perak (RM21 million).
"Grants to other states will be disbursed upon receipt of claims from the respective state government by the Finance Ministry," it added.
The National Finance Council meeting was chaired by Prime Minister Tun Dr Mahathir Mohamad.
Also present were Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail, Finance Minister Lim Guan Eng, Chief Secretary to the Government Tan Sri Dr Ali Hamsa, Auditor-General Tan Sri Madinah Mohamad as well as all Mentri Besar and Chief Ministers.