Covid-19: National Finance Council meeting approves infrastructure boosts, loan restructuring

To ensure state roads are properly maintained, the federal government has agreed to improve the Malaysia Road Record Information System by expanding its budget and increasing the existing limit to 20 per cent, or RM50 million. — Picture by Miera Zulyana
To ensure state roads are properly maintained, the federal government has agreed to improve the Malaysia Road Record Information System by expanding its budget and increasing the existing limit to 20 per cent, or RM50 million. — Picture by Miera Zulyana

KUALA LUMPUR, May 22 — The National Finance Council’s meeting earlier today has resulted in several measures to boost infrastructure and offset the impact of Covid-19, among others.

The Finance Ministry said the council has agreed to approve RM350 million in contributions to the State Reserve Fund for 2022, to fund the Economics, Infrastructure and Welfare Development-Based Grants (Tahap).

“The council has also agreed for Tahap contributions to be made directly to all state governments at the start of every year, beginning in 2021. This initiative is part of the federal government’s commitment to assisting low-income states in carrying out projects to benefit the rakyat,” it said in a statement.

To ensure state roads are properly maintained, the federal government has agreed to improve the Malaysia Road Record Information System (Marris) by expanding its budget and increasing the existing limit to 20 per cent, or RM50 million.

This will go to works including the maintenance of federal roads and culverts, preparing or moving utilities, as well as caring for shrubbery along roadsides, whichever is the lowest.

“In light of the Covid-19 pandemic’s impact, the federal government had decided to ensure the Marris contributions for 2021 will be fully channeled to state governments, even if the expenditure does not reach or surpass 85 per cent in 2020.

“It is also ready to consider state governments’ applications to restructure or reschedule loans, to assist those who are facing fiscal difficulties in repayment,” said the ministry.

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