00:01The Malaysian government has allocated a record RM510 billion under budget 2027.
00:08When tabling the National Spending Plan in the Day 1 Rakyat on Friday,
00:12Prime Minister Datuk Seri Anwar Ibrahim said the fifth budget under the Madeni Unity Government
00:17will continue an expansionary fiscal policy, mobilising the full strength of the nation
00:22with total expenditure and investment amounting to RM510 billion,
00:26compared with RM470 billion previously.
00:30Anwar said RM376.8 billion will be allocated for operating expenditure
00:36and RM83 billion for development expenditure.
00:39He said another RM25 billion will come from investments by government-linked investment companies,
00:46RM11 billion from public-private investments
00:48and RM14.2 billion from investments by federal statutory bodies and companies.
00:53For federal revenue this year, he said it is projected to be RM363.6 billion,
01:00higher than initially estimated, with the upward trend expected to continue next year.
01:05He said revenue is expected to rise to RM380.8 billion next year.
01:10He said the Middle East crisis had pushed the fuel subsidy bill to RM40 billion.
01:15As a result, the fiscal deficit for 2026 is projected at 3.6% of GDP,
01:22compared to the original target of 3.5%.
01:25He said the government aimed to narrow the deficit further to 3.3% in 2027 and 3% by
01:322028.
01:34This reduction, together with the controlled level of new borrowing,
01:37has enabled the federal government's debt-to-GDP ratio to decline from 65.2% in 2025 to 64%
01:45in 2026,
01:46and is expected to fall further to 63.7% in 2027.
