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 expenditure has been set at RM83 billion, compared with RM81 billion this year.

The Finance Ministry’s fiscal outlook report said operating expenditure would cover essential public services and targeted assistance for Malaysians, including social aid and subsidies.

Taxes and non-tax revenue are expected to finance 82.8% of the budget, with the remaining 17.2% coming from borrowings and the use of government assets. - October 9, 2026