KUALA LUMPUR (July 18): Putrajaya is willing to reevaluate the fund allocation provided to the state governments, says Finance Minister Lim Guan Eng.

"The federal government has agreed to relook at the recommendations suggested (by Member of Parliament for Jerlun, Datuk Seri Mukhriz Mahathir, but the fiscal situation is somewhat restricted," he said during the ministers’ question and answer session in Parliament today.

"We are ready to weigh any given recommendation," he added.

"Our focus right now is on how we can improve the country's fiscal situation. We hope the state governments will give us some time to restore the country's fiscal condition in Putrajaya, due to the unprecedented expenditure of anti-corruption and bribery practices by the previous government," Lim noted.

Furthermore, any proposed allocation amendment given to state governments is subject to Article 109 (1) of the Federal Constitution and all proposals need consulting with the National Finance Council as stipulated in the Aritcle 109 (1), he said.

"The new government's policy is to ensure that all state governments receive fair treatment, particularly for the state which is left behind," he said.

At the same time, Lim urged state governments to improve their adminitrative management and practice efficient, accountable and transparent governance. 

"They (state governments) are not supposed to depend solely on the federal government (allocation) in terms of finance,” Lim said.

The federal government has also provided loan to 13 state governments with total amount owing to federal government at RM17.64 billion as of April 2018, of which Pahang was top borrower at RM3.12 billion, while Penang was the smallest at RM62 million, Lim said.

"The federal government will look for suitable methods so that the financially disadvantaged states can be enhanced and continue to develop in tandem with developed states like Selangor," he explained.