by AFIQ HANIF / pic BERNAMA

KEDAH has received the third-highest capitation grant after Kelantan and Sabah.

Deputy Finance Minister Steven Sim Chee Keong said Kedah has received an increase of 1.04% compared to the previous year to provide the state with additional assistance.

Sim highlighted the significance of the capitation grant as a financial assistance measure for state governments, in accordance with Article 109(1)(a) of the Federal Constitution.

“This grant is to help states to manage their expenses with funds being directly allocated from the federal government,” he said during the Ministers’ Question Time (MQT) in the Dewan Rakyat today.

He said over time, the capitation grant has undergone various amendments, with the current rate being determined by the Capitation Grant Act 2002 (Act 622), which has been in effect since January 1, 2002.

“The allocation provided to the state has steadily increased each year, reflecting the current rate,” Sim said.

He emphasised that the federal government conducts comprehensive scrutiny of all grants provided to states, rather than solely focusing on one specific grant.

“In 2023, the federal government has introduced improvements to three significant grants allocated to states, namely grants based on levels of economic development, infrastructure and living wellbeing (increased from RM330 million to RM400 million); the road maintenance grant (RM5.2 billion from RM5.05 billion); and the ecological fiscal transfer (RM150 million from RM70 million),” he elaborated.

These grants enhancements were collectively agreed upon during the 2023 National Finance Council Meeting, which was chaired by Prime Minister Datuk Seri Anwar Ibrahim and attended by all chief ministers and Mentri Besar.