PUTRAJAYA : Prime Minister Datuk Seri Najib Razak has urged all states to use the State Road Grant to maintain state roads for users' safety and comfort.
He said the National Finance Council had reviewed the overall performance in accessing the grant which had been for awhile, but the expenditure was still unsatisfactory.
"For instance, in 2013, the state governments have used 82.1 per cent of the grant, which is lower than the amount used the year before at 91.2 per cent
"The Federal Government likes to stress it is crucial for all states to improce their utilisation of the grant," he told reporters after chairing the National Finance Council meeting today.
The prime minister added the National Financial Council had agreed to form a State Revenue Committee, which would be chaired by the Treasury secretary-general.
Najib said the committee would look at ways to improve revenue collection and to plug any leakages at state-level.
On the State Reserve Fund, Najib said the National Finance Council had agreed that the Federal Government would contribute RM470 million to the fund for 2016 to support states that had insufficient fund in their operating account.
Najib said the council had also agreed to provide additional RM50 million to the 2015 State Reserve Fund, amounting to a total of RM480 million.