KUALA LUMPUR, Feb 11 — The Capitation Grant Act was tabled for its first reading in the Dewan Rakyat today.
Deputy Finance Minister Liew Chin Tong, when presenting the bill, said the second reading would be held during the current sitting.
The blue paper distributed in Parliament outlines proposed amendments to Part I of the 10th Schedule of the Federal Constitution. These amendments aim to update the rate of per capita grants for each state according to a new structure.
“The purpose of the revision is to increase the per capita grants allocated to the states and to ensure fairer treatment for less populous states, while at the same time enabling more populous states to receive higher allocations,” the blue paper stated.
The act will come into force on April 1 and is expected to involve additional government expenditure of up to RM548 million.
