SHAH ALAM, Nov 10 — An independent Grants Commission, similar to those in Canada or Australia, is being proposed by Tan Sri Khalid Ibrahim to ensure a fair distribution of tax payers’ money to all states including those held by Pakatan Rakyat (PR).
The Selangor mentri besar today lamented the distribution of funds by the Federal Government is made on the basis of political affiliation, rather than development needs, population numbers and poverty.
“As we head to a more mature democracy and a two party system in the Federal context, it would be ideal for an independent Grants Commission to be set up,” Khalid said at the state assembly.
During his budget speech, Khalid said Selangor contributes RM16 billion to the Federal coffers annually but this year only received RM408.26 juta in the form of grants.
However he said if they received just 20 per cent of what is contributed, the state would get RM3.2 billion which is double the current state budget.
He noted the changing political landscape in Malaysia has resulted in heated debate about administration especially in PR states.
Khalid said long term policies must take into account fairness and equality in financial distribution to all states.
“The mentality of ‘winner takes all’ which is practiced by Barisan Nasional can be avoided with better legislation,” he added.
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