2027 Budget: RM510bil spending and investments, fiscal deficit targeted at 3.3pct
KUALA LUMPUR: The government has projected total spending and investments of RM510 billion under the 2027 budget, up from RM470 billion this year, while targeting a lower fiscal deficit of 3.3 per cent of gross domestic product (GDP).
The Malaysian government has forecasted a total spending and investment budget of RM510 billion for 2027, an increase from RM470 billion in the current year. Prime Minister Anwar Ibrahim announced that the budget will consist of RM376.8 billion for federal operating expenditure, RM83 billion for development expenditure, and additional funds from investments by government-linked companies, public-private partnerships, and federal statutory bodies.
Revenue for next year is expected to rise to RM380.8 billion from the estimated RM363.6 billion this year, surpassing the initial projection of RM343.1 billion for 2026. The fiscal deficit for 2027 has been set at 3.3 percent of GDP, down from the original target of 3.5 percent, and is projected to decrease to 3.3 percent in 2028.
However, the government anticipates a 3.6 percent deficit in 2026, higher than the initial estimate, due to increased fuel subsidies caused by the Middle East crisis. The government's debt is also expected to fall to 63.7 percent of GDP in 2027, down from 64 percent this year and 65.2 percent in 2025.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
