Kuala Lampur, June 22 -- Article 109(1)(a) of the Federal Constitution provides for a grant known as capitation grant to be payable to each state in respect of a financial year. The capitation grant must be calculated in accordance with the provisions of Part I of the Tenth Schedule.

Section 1(1) of Part I of the Tenth Schedule sets out the rates of the capitation grant. In 1963, the rates were as follows:

The rates were stated in dollars ($) then.

Pursuant to Article 109(2) which allows Parliament from time to time by law to vary the rates of the capitation grant, the rates were amended vide the Capitation Grant Act 1977 (Act A392) which was deemed to have come into force on January 1, 1976.

The rates from that date were as follows:...