PUTRAJAYA, March 5 — The National Finance Council (NFC) has agreed to increase the grants provided by the federal government to state governments, with the total amount expected to reach RM10.5 billion this year, said Prime Minister Datuk Seri Anwar Ibrahim.
Previously, federal government grants increased to RM10.3 billion last year from RM8.1 billion in 2022.
Anwar, who is also finance minister, said the hike reflects the Madani Government’s commitment to strengthening state governments’ financial positions to support nationwide socio-economic development and infrastructure.
He added that the increase involves, among others, shared list grants, state road maintenance grants, and the distribution of tourism tax revenue.
“This increase follows the rise in the capitation grant rate (known by its Malay acronym PMBO) from 2026, as outlined by the Madani Government,” Anwar said today in a statement after chairing a National Finance Council meeting here today.
