The Capitation Grant Act, involving RM548 million, was tabled to revise state allocations for fairer distribution, effective April 2026.
KUALA LUMPUR: The Capitation Grant Act was tabled for its first reading in the Dewan Rakyat.
Deputy Finance Minister Liew Chin Tong presented the bill, confirming its second reading will occur during the current parliamentary session.
The bill proposes amendments to Part I of the Tenth Schedule of the Federal Constitution. Its objective is to update the per capita grant rate for each state under a new structure.
“The purpose of the revision is to increase the per capita grants allocated to the states and to ensure fairer treatment for less populous states, while at the same time enabling more populous states to receive higher allocations,” stated the bill’s explanatory paper.
The new grant rates are scheduled to come into force on April 1, 2026. The revision is expected to involve additional government expenditure of up to RM548 million.
