KUALA LUMPUR: The government will table amendments to the Capitation Grant Act in the next Parliament sitting to enable higher allocations for state governments, says Datuk Seri Anwar Ibrahim.
The move follows the decision to raise the Capitation Grant rate by 25%, with the new rate expected to take effect in 2026.
Anwar, who is also the Finance Minister, said the proposal involves additional financial implications of RM547.6mil, agreed in principle at the 2025 National Finance Council on March 6.
“The proposed revision involves financial implications amounting to RM547.6mil, representing a 25% increase,” he said.
“The amendment will also require changes to Part I, Tenth Schedule of the Federal Constitution under the Capitation Grant Act,” added Anwar.
He said this is to enforce the new rate in 2026 while repealing the existing rate.
“The Finance Ministry is taking the necessary steps and will table the Capitation Grant Bill in the next Parliament sitting,” he said.
He was replying in writing to Datuk Che Mohamad Zulkifly Jusoh (PN–Besut).
Che Mohamad Zulkifly asked about plans to table an official motion on the 25% increase announced in March.
Anwar said the Capitation Grant under Article 109(1)(a) aims to help states manage operating expenditures.
“This grant has been amended several times,” he said.
He said the current rate is under the Capitation Grant Act 2002 (Act 622), effective 1 Jan 2002.
At the 2025 National Finance Council on March 6, chaired by the Prime Minister, the council agreed in principle to review and revise Capitation Grant rates.
The meeting was attended by all Mentris Besar, Chief Ministers and the Premier of Sarawak.
The National Finance Council meets annually as a platform for federal state financial negotiations.
