Guan Eng: Kelantan is biggest recipient of Federal Govt aid worth RM913mil

PETALING JAYA: Kelantan needs to improve its financial management and increase its revenues to reduce its dependence on the Federal Government, says Finance Minister Lim Guan Eng.

In a statement, Lim pointed out that Kelantan is the biggest recipient of the Financial Deficit Assistance (Bantuan Kewangan Defisit) and the Advance Financial Assistance (Bantuan Kewangan Pendahuluan) from the Federal Government, totalling RM913mil.

"The Federal Government hopes that the Kelantan state government can manage its financial affairs in a more responsible manner, as stated by Prime Minister Tun Dr Mahathir Mohamad," said Lim.

Kelantan, added Lim, "also needs to increase its revenues in a professional and systematic manner to reduce its dependence on the Federal Government."

.Lim said state governments are responsible for practising prudent financial management by ensuring that expenditure does not exceed state revenues.

"It is noticed that only the Kelantan state government has recorded a deficit in its management account (akaun mengurus) for more than five years in a row," he added.

Lim said that without the Financial Deficit Assistance from the Federal Government, the Kelantan government would not be able to afford emolument payments to state civil servants.

This year, Lim noted that only two states received the Financial Deficit Assistance, namely Kelantan and Perlis.

From 2013 to 2017, Kelantan received RM363mil.

Apart from the Deficit Assistance, the Federal Government also provides an advance to help states overcome cash flow problems, said Lim.

He explained that up to June 30, the amount of advance channelled to the Kelantan government totalled RM550mil, with Kelantan being the biggest recipient.

From this total, the amount which the Kelantan government has yet to repay is RM384mil.- Star