ALOR SETAR, Sept 4 — The Kedah state government hopes the federal government will consider reviewing the policies of the previous government towards assisting states with low incomes but burdened with huge debts.
Mentri Besar Datuk Seri Mukhriz Mahathir said loans from the federal government for the provision of basic facilities for people in the rural or interior areas, for instance, should be turned into grants.
He said this was to ensure that state governments with low incomes would not continuously be burdened with huge debts.
“For example, the Kedah state government has to bear a debt of almost RM2 billion to upgrade a water treatment plant and other related facilities, and this is an impossible amount to repay. The state government’s income is very low, so we cannot afford to pay up... that is why we want the previous government’s practice to end.
“If can, we want to repay in small amounts by instalments while at the same time, the government needs to review the debts for projects that can be turned into grants, especially for projects implemented in rural areas,” he said at a news conference after chairing a state executive council meeting, here, today.
As such, Mukhriz said, the state government would continue to hold discussions with the relevant ministers including Water, Land and Natural Resources Minister, Dr Xavier Jayakumar as meeting from time to time was important for them to understand the real situation.
“Although we have managed to reduce our debt through discussions with the federal government, it has not reached the level that is acceptable to us. So, I hope the federal government could make some adjustments so as to assist the state government,” he added. — Bernama
