KUALA LUMPUR: Only Selangor and Penang contributed more in tax revenue than they received in federal spending between 2023 and 2025, says Prime Minister Datuk Seri Anwar Ibrahim.
Speaking during Prime Minister's Question Time in the Dewan Rakyat on Tuesday (June 30), Anwar said official figures refuted claims that certain states were being sidelined and that every state had received higher allocations under his administration despite differences in tax contributions.
He said Selangor and Penang's contributions exceeded federal spending due to their strategic economic positions.
"Every state has received higher allocations than before and, in most cases, allocations exceeded the average tax revenue collected, with the exception of Selangor and Penang.
"Selangor and Penang are exceptions because, owing to their strategic economic positions, they generate significantly higher tax revenues, while federal government expenditure in those states is comparatively lower.
"For example, the average tax revenue (collected) from Selangor between 2023 and 2025 amounted to RM43.6bil, while federal government expenditure in the state over the same period totalled RM15bil.
"For Penang, the federal government collected an average of RM10.7bil in tax revenue between 2023 and 2025, while the expenditure amounted to RM7.9bil. This clearly contradicts claims that Penang has received disproportionately higher allocations," he said.
During the same period, he said Kelantan generated an average of RM946mil in tax revenue, while federal expenditure in the state amounted to RM8.9bil.
For Kedah, average tax revenue stood at RM3.7bil, compared with RM9.5bil in federal spending.
“In Terengganu, tax revenue totalled RM1.2bil, but rose to between RM2.2bil and RM2.4bil after taking into account petroleum revenue.
“Even so, federal expenditure in the state reached RM7.8bil over the same period.
“Meanwhile, Perlis contributed RM419mil in tax revenue but received RM2.2bil in federal spending and Johor generated about RM14bil in tax revenue against RM16bil in federal expenditure,” he said.
He added that Putrajaya has maintained the increase in allocation for every state due to urgent needs, including poverty eradication programmes, upgrading school facilities and infrastructure, and improving public amenities, particularly for poor and marginalised communities.
He also said the government has increased allocations to the states through initiatives such as the ecological fiscal transfer (EFT) and higher capitation grants.
“I hope this explanation will encourage further views and constructive suggestions. However, it is entirely untrue to claim that certain states have been neglected or marginalised.
“If comparisons are to be made, let me stress that it is under the Madani government that states such as Kedah, Terengganu and Kelantan have received their highest-ever allocations compared with previous administrations.
“I hope this explanation will, in itself, put to rest the baseless allegations and slander.”
