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SHAH ALAM – The 2027 Budget must deliver lasting improvements in household welfare, public services and economic productivity rather than focus solely on immediate financial assistance.
Economists said the effectiveness of the RM459.8 billion budget should be measured by its outcomes, including whether households experience sustainable relief from living costs and whether public spending strengthens the country’s long-term economic resilience.
Economist Professor Emeritus Dr Barjoyai Bardai said the increase in government spending could be justified if it addressed genuine structural needs, including the rising cost of living, pressure on public services and the need to strengthen Malaysia’s economic capacity.
However, he said the size of the budget alone did not determine whether the spending was necessary or effective.
“The key question is not whether the budget is politically popular. It is whether its benefits remain meaningful after the immediate financial assistance has been spent.
“A credible budget should deliver both short-term relief and long-term improvements in incomes, productivity and economic resilience,” he told Sinar Daily.
Barjoyai said targeted assistance could help vulnerable households manage essential expenses such as food, housing and transport, while investment in healthcare, education and public infrastructure could improve living standards and productivity over time.
However, he cautioned that cash assistance and tax relief might not address the underlying causes of high living costs, including weak wage growth, housing affordability and productivity constraints.
He said government spending should be assessed based on whether assistance reached those who needed it most, improved the quality of public services and remained sustainable without undermining fiscal stability.
Meanwhile, Universiti Teknologi Mara Department of Economics and Financial Studies senior lecturer Dr Mohamad Idham Md Razak said higher government spending could be justified when it addressed economic and social needs, supported essential services and contributed to productive investment.
However, he stressed that a larger budget would not automatically translate into better outcomes for the public.
“The government must demonstrate that additional allocations deliver measurable improvements in household welfare, education, healthcare, infrastructure and economic productivity.
“Rather than speculating about electoral motivations, the more useful assessment is whether spending is evidence-based, transparently implemented and fiscally responsible,” he said.
Idham said clear performance indicators and regular reporting would help the public assess whether government programmes were producing lasting improvements rather than temporary relief.
He added that public spending should be evaluated against measurable outcomes, including improvements in household welfare, the quality of public services and the sustainability of government finances.
Both economists emphasised that the 2027 Budget should be assessed not merely by the amount allocated, but by what the spending achieves in practice.
They said the government's ability to translate allocations into tangible improvements would be crucial in ensuring that immediate assistance was complemented by stronger household finances, better public services and sustainable economic growth.
