KUALA LUMPUR, March 6 — The National Financial Council 2025 today agreed to increase the capitation grant rate for state governments by 25 per cent, from RM109 million to RM548 million.
This is the first time the capitation grant raise has been revised since 2002, Tunku Nashrul Abaidah, the press secretary to Prime Minister Datuk Seri Anwar Ibrahim, announced during the Prime Minister’s Office daily evening briefing.
“Overall, the federal government’s grant to the state government has been further increased to RM9.8 billion for 2025, compared to RM9.3 billion last year.
“The prime minister said this increase in allocation is important to help the state governments deliver services to the people.
“He also stressed that the Madani government remains committed to ensuring that relations with all state governments remain intact for the good and well-being of the Malaysian people as a whole,” Nashrul said.
Anwar, who is also the finance minister, had chaired the annual meeting of the National Financial Council today, attended by chief ministers, menteri besar and other state officials.
The annual meeting is a platform for negotiations on financial matters between the federal and state governments.
