KUALA LUMPUR (Oct 9): The federal government's allocation for grants to statutory bodies is expected to increase by 13.7% to RM17.09 billion in 2027, compared with RM15.04 billion in 2026, according to the Ministry of Finance (MOF).
The allocation will account for 4.5% of the government's total operating expenditure (opex) of RM376.84 billion in 2027, up from 4.1% of the revised RM363.01 billion opex in 2026, according to the latest Fiscal Outlook and Federal Government Revenue Estimates report by the Ministry of Finance (MOF).
The government said the grants are mainly intended to support statutory bodies involved in rural development, higher education and socioeconomic assistance programmes.
In 2026, the allocation was largely directed towards the operations of public universities, as well as regional and rural development agencies.
The higher allocation for 2027 comes after the government introduced measures this year to rationalise grants and transfers to statutory bodies and agencies with sufficient revenue-generating capacity and reserves.
The measures formed part of wider spending adjustments, including tighter controls on supplies and services, which the MOF estimated would generate RM5 billion in savings in 2026.
Meanwhile, grants and transfers to state governments are expected to edge up to RM11.5 billion in 2027 from RM11.4 billion in 2026.
The 2026 allocation represented a 16.3% increase from 2025, mainly reflecting higher grants and special grants provided under the Federal Constitution, including those associated with Sabah and Sarawak.