PUTRAJAYA has promised fair treatment in allocations given to state governments, the Dewan Rakyat heard today.

Finance Minister Lim Guan Eng said the federal government has agreed to re-evaluate allocations given to state governments to ensure equitable development between states.

“Of course the new government’s policy is to ensure that all state governments are given fair treatment, especially the states left behind (in terms of development).

“But at the same time, we want to see that they can improve in terms of management and administration, to ensure that they can practise CAT (competency, accountability and transparency) governance so that they will not depend on federal allocations,” he said in the Dewan Rakyat during the question-and-answer session today.

Lim was responding to a supplementary question by Mukhriz Mahathir (Jerlun) who asked if the government will review laws governing federal allocations to states, as some of these laws are outdated.

Mukhriz had earlier asked the Finance Ministry if the financial relationship between the states and Putrajaya would be reviewed, following the changes in several state governments and the federal government after the 14th general election.

Pakatan Harapan won all states except Perlis, Pahang, Kelantan, Terengganu and Sarawak.

Lim said any amendment to federal allocations to states is subject to Article 109 (1) of the federal constitution, and any proposal on the matter must be brought to the National Financial Council.

He said the federal government is open to proposals, but reminded Mukhriz of the country’s fiscal limitations as Putrajaya is working to reduce the debt incurred under the previous administration.

“Our focus now is on how we can save our fiscal situation, so that we can recover.” – July 18, 2018.