KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim has clarified that nearly all states in Malaysia receive federal allocations higher than the total tax revenue they contribute. Speaking during Minister’s Question Time in the Dewan Rakyat today, he noted that only Selangor and Penang buck this trend by recording higher tax collections than the federal funding they receive.
Prime Minister Anwar explained that budget distributions are driven by regional development needs and public welfare, firmly rejecting claims that certain states are being marginalised or sidelined by the central government. The federal administration assesses financial distribution based on critical localized demands. These include urgent flood mitigation projects, upgrades to the Pan Borneo Highway, improved drainage systems, poverty eradication initiatives, and the construction of schools and basic infrastructure.
The Prime Minister emphasized that the current MADANI government has actually provided higher allocations to states such as Kedah, Terengganu, and Kelantan compared to what they received under previous administrations. His remarks were made in response to a parliamentary inquiry from Datuk Seri Doris Sophia Brodi regarding claims of unfair or insufficient federal distribution relative to state tax collections, and the ongoing efforts to optimize budget delivery channels.
