Govt allocates RM459.84bil for 2027 budget

The Malaysian federal government has allocated RM459.84 billion for the 2027 budget, marking a RM40 billion increase from the RM419.2 billion set aside for 2026. Operating expenditure accounts for a significant 82% of the budget, with RM376.8 billion allocated for this purpose, reflecting a 3.8% increase from the RM338.2 billion in 2026.

Development expenditure, a slight 18% increase from this year, totals RM83 billion. The finance ministry's 2027 fiscal outlook report outlines that the operating expenditure will primarily support essential public services and targeted aid for Malaysians, including social assistance and subsidies. The social sector receives the largest share of operating expenditure, RM161.6 billion, followed by the economy (RM59.4 billion), security (RM46 billion), and general administration (RM23.4 billion).

The Treasury report predicts that social sector expenditures will predominantly fund education, health, and defence ministries, comprising 30.2% of the total allocation. The economic sector, receiving RM37.7 billion from the development expenditure, will prioritize national competitiveness through strategic infrastructure expansion and investment activities.