Article 108 — Federal Constitution

(1)

There shall be a National Finance Council consisting of the Prime Minister, such other Ministers as the Prime Minister may designate, and one representative from each of the States, appointed by the Ruler or Yang di-Pertua Negeri.

(2)

The National Finance Council shall be summoned to meet by the Prime Minister as often as he considers necessary and whenever the representatives of three or more States demand a meeting, but there shall be at least one meeting in every twelve months.

(3)

At any meeting of the National Finance Council the

Prime Minister may be represented by another Minister of the

Federation, and the Prime Minister or, if he is not present, the

Minister representing him, shall preside.

(4)

It shall be the duty of the Federal Government to consult the National Finance Council in respect of—

(a)

the making of grants by the Federation to the States;

(b)

the assignment to the States of the whole or any portion of the proceeds of any federal tax or fee;

(c)

the annual loan requirements of the Federation and the

States and the exercise by the Federation and the States of their borrowing powers;

(d)

the making of loans to any of the States;

(e)

the making of development plans in accordance with

Article 92;

(f)

the matters referred to in Item 7(f) and (g) of the Federal

List;

(g)

any proposal to introduce a Bill for such a law as is mentioned in Clause (2) of Article 109 or Clause (3)

or (3a) of Article 110;

(h)

any other matter in respect of which this Constitution or federal law makes provision for consultation with the

National Finance Council.

(5)

The Federal Government may consult the National

Finance Council in respect of any other matter, whether or not 98

[Article 108]

Federal Constitution

Art. 108

Clause (1)

a. The words “other Ministers” substituted for the words “other Minister” by Act A354, section 22, in force from 27-08-1976.

b. The words “Yang di-Pertua Negeri” substituted for the word “Governor” by Act A354, section 42, in force from 27-08-1976.

Clause (4)

The words “or (3a)” at end of paragraph (g) were inserted by Act 14/1962, section 32, in force from 21-06-1962.

See Art. 112d(7).

Federal Constitution it involves questions of finance, and the Government of a State may consult the said Council in respect of any matter which affects the financial position of that State.