LOCAL GOVERNMENT FINANCIAL AFFAIRS
Preparation of the Malaysian Five (5) Year development budget for all programmes and projects under the Local Government.
Preparation of the yearly development budget.
Preparation of the yearly development budget for all local authorities.
Undertaking the planning and implementating efforts to enhance the local authorities' financial performance and to assist in identifying the sources of finance.
Execution of financial guidelines with respect to local authorities' affairs.
Policy implementation of the Federal Government's financial allocations to local authorities.
Disbursement of annual grants to local authorities.
Disbursement of financial allocations in lieu of Federal property assessment payments to the local authorities.
Compilation and analysis local autthorities' financial statements.
PROJECT MONITORING UNIT
Monitoring the execution and effectiveness of project implementation at the local authority's level.
Gathering the information and data of project implementation.
Preparation of performance report from the project monitoring system (SPP II) as well as various monthly and annual reports.
Updating database from the department's SPP II and Helpdesk systems with respect to the project's physical and financial performance.
Ensuring project implementation is carried out in accordance with government circulars/guidelines.
Conducting bi-annual meetings to monitor project implementation done according to the approved plan and scope of work.
Initiating impact studies to gauge the effectiveness and achievement of projects on the targetted masses.
BP.1 Local Government Small Scale Projects
Small scale projects are being implemented to help in the development of the physical and socio-economic well being of the local authorities. This is complemented with the existence of high quality services, efficient public utilities, recreational facilities and balanced economic opportunities rendered by the local authorities. All this is done in accordance with the national development process in line with the objectives of restructuring the local government entity. The implementation of projects under BP.1 especially those which are socio-economic in nature will benefit and become assets to the local authorities which can generate an alternative source of additional income.
Generally projects being implemented by local authorities are people-centric in nature for example:
- Infrastructure projects such as the building and upgrading roads, drains, pedestrian walkways and street lights.
- Public facilities such as multi-purpose halls, sports and recreational complexes, public toilets and bus shelters.
- Socio-economic projects such as the building and upgrading of markets, bazaars, food courts and small commercial premises.
This represents a certain amount of bursary being allocated to local authorities in accordance with Act 245 (Financial Grant To Local Authorities Act, 1981). The disbursement of annual grant is prescribed under clause 109(3) of the Federal Constitution. This facility is rendered to local authorities with the view of alleviating its financial constraints and providing an alternative source of additional income. In view of local authorities being the third tier of government, annual grant provided by the federal government is seen as an effort to support local authorities in discharging their duties and public responsibilities for the betterment of the public and local community.
FINANCIAL ALLOCATION IN LIEU OF PROPERTY TAX
The disbursement of financial allocations in lieu of federal property assessment paymentsto the local authorities is seen as a contribution under Article 156 of the Federal Constitution.It describes the responsibilities of the Federal Government to pay property tax with respect to its assets and properties such as government buildings which occupies the premises under the local authorities. These include those buildings and premises occupied by the Armed Forces and other uniform institutional services.The contribution precludes entities such as:
- State government buildings and properties
- Buildings and premises owned by statutory bodies
- National Railway Services (buildings and assets)
The procedures for making claims by the local authorities for payment of property tax by the Federal Government follows the circular instructions of the Ministry i.e. KPKT(01)77/5 dated 15 January 1986 and KPKT(02)(C)/143/2Jld.2(56) dated 1 July 1989.