Budget 2027: Federal spending rises to RM459.84 billion
THE federal government has allocated RM459.84 billion for Budget 2027, up from RM419.2 billion in 2026. Of the total, RM376.8 billion will go towards operating expenditure, a 3.8% increase from the RM338.2 billion allocated in 2026. Development expen...
The Finance Ministry has forecast federal revenue to increase 4.7% to RM380.8 billion in 2027, with tax collections driving growth. Tax revenue is set to rise 5.8% to RM297.1 billion, constituting 78% of total revenue. Non-tax revenue is expected to grow 1.1% to RM83.7 billion. Petroleum revenue is projected to reach RM61.2 billion, or 16.1% of total revenue, driven by a RM32 billion dividend from Petronas.
Indirect tax revenue, including sales and service tax, is anticipated to increase 8.3% to RM97.2 billion. The ministry attributes the projected revenue growth to robust economic performance, higher global crude oil prices, and improved tax collections through measures like e-invoicing and enhanced enforcement.
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