Federal allocations to states to reflect development needs, not equal distribution, says PM

KUALA LUMPUR, Oct 9 — In Budget 2027, Prime Minister Datuk Seri Anwar Ibrahim emphasized that federal allocations to states will be based on their individual development needs rather than an equal distribution, according to the wire material. Anwar aimed to address the disparities between developed, developing, and lagging states.

The allocation principle reflects the provision of support to more developed states to maintain their progress, offers developing states the opportunity to expedite their advancements, and empowers underdeveloped regions to bridge the development gap, stated Anwar. The approach finds its basis in the philosophy of American philosopher John Rawls, as explored in his 1971 book A Theory of Justice.

Rawls questioned whether justice should be measured solely by the overall benefit to society or should be based on arrangements that are genuinely fair to every individual. In this context, equality means that each state receives what is reasonable and appropriate to enable its people to progress alongside others, according to Anwar.