Independent grant council proposed for fairer state funding


KUALA LUMPUR: An independent grant council could ensure that allocations for states are distributed objectively, says Datuk Seri Dr Ahmad Samsuri Mokhtar (Perikatan-Kemaman).

He said it was time for the federal government to introduce a new mechanism similar to practices in Australia and Pakistan to allocate budgets without political bias.

"It is time for the government to introduce a new mechanism, such as an independent grant council to ensure that allocations to states are made objectively," he said while debating the Budget 2025 Bill in the Dewan Rakyat on Monday (Oct 28).

The Terengganu Mentri Besar also said he welcomed the allocations provided for his state under next year’s Budget but claimed that performance-based conditions were applied to certain states.

"However, there was no condition set for some other states," he added.

To address these issues, Samsuri said a clearer method or formula should be introduced to ensure that less developed states are not neglected.

"To ensure transparency in every allocation to the states, it is appropriate for the Federal Government to implement reporting functions on all allocations disbursed, including special allocations. Most importantly, each report should be accessible to the public," he said.

He added that the government could implement reforms on the National Finance Council to ensure the equal development of states.

"In achieving fiscal federalism balance, it would be better to implement reforms at the functional and operational levels of the National Finance Council, so that it becomes a forum and space for the states to develop and progress," he added.

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