Prime Minister Datuk Seri Anwar Ibrahim has tabled a total allocation of RM510 billion for Budget 2027, up from RM470 billion for Budget 2026. Anwar said the budget, the fifth under the MADANI government, continues an expansionary fiscal policy.
How The RM510 Billion Is Split
Federal operating and development spending make up RM459.8 billion of the total. The rest comes from investment by government-linked investment companies (GLICs), public-private projects, statutory bodies and Minister of Finance Incorporated (MKD) companies.
Revenue Expected To Rise To RM380.8 Billion
Federal revenue for 2026 is now projected at RM363.6 billion, higher than the original estimate of RM343.1 billion. For 2027, the government expects revenue to rise further to RM380.8 billion, an increase of RM17.2 billion.
Fuel Subsidies Push 2026 Deficit To 3.6%
Anwar said the crisis in West Asia raised fuel subsidies to RM40 billion this year. As a result, the 2026 fiscal deficit is now projected at 3.6% of GDP, slightly above the original target of 3.5%.
He added that the deficit remains on a downward trend, from 5.5% in 2022 and 3.7% last year. The government expects it to fall to 3.3% in 2027, with a target of 3% by 2028. Along with controlled new borrowing, this is expected to bring federal government debt down from 65.2% of GDP in 2025 to 64.0% in 2026 and 63.7% in 2027.
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The post Budget 2027: Government Allocates RM510 Billion, Deficit Targeted At 3.3% appeared first on RinggitPlus.
