Budget 2027 raises public spending and investment to RM510 billion, while Malaysia targets a 3.3% fiscal deficit in 2027 and 3% by 2028.
PETALING JAYA: Malaysia will deploy a record RM510 billion in total public spending and investment under Budget 2027, up RM40 billion from RM470 billion, as the government seeks to stimulate economic growth while bringing down the fiscal deficit.
Finance Minister Datuk Seri Anwar Ibrahim said the package comprises RM376.8 billion in federal operating expenditure, RM83 billion in development spending, RM25 billion in government-linked investment company (GLIC) investments, RM11 billion in public-private investments and RM14.2 billion from federal statutory bodies and Minister of Finance Incorporated companies.
“The fifth Madani Budget continues an expansionary fiscal policy by harnessing the nation’s full economic strength, amounting to RM510 billion compared with RM470 billion previously,” he said when tabling Budget 2027 in the Dewan Rakyat today.
Anwar said federal revenue was projected to rise to RM380.8 billion in 2027 from RM363.6 billion this year.
He also said that the fiscal deficit is expected to narrow to 3.3% next year from a revised 3.6% in 2026, with a target of 3% by 2028.
He added that the West Asia crisis had pushed fuel subsidies to RM40 billion, contributing to the upward revision of this year’s deficit from the original 3.5% target.
Meanwhile, federal government debt as a share of GDP is projected to decline from 65.2% in 2025 to 63.7% in 2027.
