AG Report: Govt subsidy expenditure falls 40.1pc to RM23.43bil in 202
KUALA LUMPUR: The government’s subsidy expenditure fell 40.1 per cent to RM23.43 billion in 2025 from RM39.10 billion in 2024.
KUALA LUMPUR: The government's subsidy spending dropped 40.1% to RM23.43 billion in 2025, down from RM39.10 billion in 2024, according to the Auditor General's Report 2/2026 on the federal government's financial statements for 2025. The reduction was primarily due to lower crude oil prices and reforms targeting diesel and petrol subsidies.
Petroleum product subsidies declined from RM34.91 billion to RM19.11 billion, while petrol subsidies fell 46.5% year-on-year to RM10.51 billion, and diesel subsidies decreased 48.2% y-o-y to RM5.98 billion. LPG subsidy expenditure also dropped 29.1% y-o-y to RM2.63 billion. In contrast, welfare grants and assistance for communities, individuals, and families rose 380.8% to RM20.36 billion in 2025, partly due to the distribution of various assistance programs. The report is made up of 15 documents covering government finances and activities.
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