The contribution for the KWRN for the year 2020 were for the states which were facing a deficit in their operating accounts amounting to RM150 million. — AFP pic

PUTRAJAYA, June 7 — The National Finance Council has agreed that the federal government would contribute RM430 million to the State Reserve Fund (KWRN) in 2020.

The Finance Ministry said the first meeting of the National Finance Council chaired by Prime Minister Tun Dr Mahathir Mohamad today also approved a contribution of RM290 million to the KWRN in 2019 and RM330 million in 2018.

It said the contribution for the KWRN for the year 2020 were for the states which were facing a deficit in their operating accounts amounting to RM150 million.

“The approval application for the contribution of RM430 million must be made two years earlier, as the National Finance Council Meeting is held once a year, so that the amount can be taken into account in the preparation of the federal budget for that year.

“This is also to ensure that there will be sufficient funds in KWRN to help the states which face a deficit budget and financial problems,” the ministry said in a statement here today. — Bernama