by ANIS ZALANI / pic MUHD AMIN NAHARUL

THE federal government has improved the grants and support for state governments this year through the National Finance Council. 

Prime Minister Datuk Seri Anwar Ibrahim said the government agreed to increase the grants based on the level of Economic Development, Infrastructure and Wellbeing amounting to RM400 million.

“As announced in the Madani Budget, the National Finance Council agreed to increase the allocation of the Ecological Fiscal Transfer (EFT) to RM150 million compared to RM70 million last year.

“The increment is an encouragement to the states that gazette a new protected area,” Anwar said in a statement today. 

He added that the government will also improve the allocations for states to maintain roads and other related works at the gated and guarded housing areas, as well as the replacement of road and lane name signs.

He also advised state governments to prioritise road maintenance to G1 to G4 contractors and not just focus on big concession companies. 

“This measure aims to help the economic cycle of small contractors and indirectly stimulate the country’s economic growth,” he said. 

Apart from that, Anwar also said the Finance Ministry (MoF) will increase the allocation of another RM250 million for the periodic maintenance of Federal Highway pavements to ensure the safety of road users.

This, he said, is to avoid potholes which are among the contributors of accidents, as well as to help small Bumiputera contractors. 

“The accumulated increment for the overall maintenance of federal road pavement increased to RM1 billion compared to RM750 million announced in Budget 2023,” he said. 

Anwar added that MoF will consider progressive payment involving new loans for development projects under the Rolling Plan. 

He said this can accelerate the allocation process provided as a loan, helping state governments with cashflow problems in implementing development projects.