KUALA LUMPUR, June 30 — Datuk Seri Anwar told Parliament today that all states except Selangor and Penang receive higher development allocation than the tax they contribute, as he again denied accusations of unfair treatment.
Taking questions during Prime Minister’s Question Time this morning, Anwar said Selangor and Penang get “more or less the same” development funds relative to their tax contributions.
The two states are the industrial hearts of the country, contributing the most in tax revenue.
“All states get more compared to previous (administrations) and relative to what they contribute in tax.
“So this counters the allegations that the two states get favourable allocation,” he said.
Selangor’s average tax revenue from 2023 to 2025 was RM43.6 billion.
During that same period, the federal government allocation spent on Selangor was RM15 billion, Anwar said.
For Penang, the average revenue obtained by the federal government from 2023 to 2025 was RM10.7 billion while the expenditure was RM7.9 billion.
Anwar has had to defend against allegations that his administration treats Perikatan Nasional-held states, even as data indicated increased funding as his administration looks to overturn decades of underdevelopment.
Kelantan, held by PAS for the past 36 years, recorded an average revenue of RM946 million from 2023 to 2025, but federal expenditure over the same period was RM8.9 billion.
Kedah, also under PAS administration, recorded RM3.7 billion in revenue from federal tax collection, while federal allocations to the state totalled RM9.5 billion.
Terengganu contributed RM1.2 billion over the same two years, with an additional RM1.2 billion from oil revenue, bringing total revenue collected to RM2.4 billion.
Anwar said the state received RM7.8 billion during the same period.
Perlis contributed RM419 million in tax collection while federal expenditure in the state was RM2.2 billion.
Johor, while was governed by Barisan Nasional and currently part of the federal ruling coalition, generated RM14 billion in tax collection, while federal expenditure in the state was RM16 billion.
“And this is an increase for all states, but we defend this decision based on urgent needs, namely those projects I have listed, including poverty eradication, upgrading infrastructure facilities, schools, and so on, especially for poor and marginalised communities,” Anwar said.
