KUALA LUMPUR, Oct 9 — Federal allocations to states will be determined by their respective development needs rather than distributed equally, Prime Minister Datuk Seri Anwar Ibrahim said during the tabling of Budget 2027 today.
Anwar said the approach was intended to bridge the gap between developed, developing and lagging states.
“This is the principle reflected in the allocation of funds to the states: enabling more developed states to continue making great strides, giving states that are still developing room to accelerate their progress, and empowering regions that have fallen behind to close the development gap,” he said.
He attributed the approach to American philosopher John Rawls, who in his 1971 book A Theory of Justice questioned whether justice should be judged solely by the greatest benefit to society or built upon arrangements genuinely fair to every individual.
“That is the meaning of equality in this context. It does not mean that everyone receives the same things, but that each state receives what is reasonable and appropriate to enable its people to progress alongside others,” he said.
