KUALA LUMPUR, October 10 — Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim today tabled Budget 2026, amounting to RM470 billion, marking a slightly smaller spending plan as Malaysia braces for slower revenue growth.
The Fiscal Outlook and Federal Government Revenue Estimates report projects total revenue to rise by 2.7% to RM343.1 billion, while operating expenditure will reach RM338.2 billion, driven by public service salaries, debt servicing, and pension payouts.
Development spending has been raised to RM81 billion, reversing previous cuts to support economic, social, and security projects, as the government targets a fiscal deficit of 3.4% of GDP next year.
A key feature of Budget 2026 is the continued rollout of targeted subsidy reforms, including the Budi95 programme, which allows Malaysian citizens to purchase RON95 petrol at RM1.99 per litre, while non-citizens pay market rates.
The initiative, along with Budi Madani, has helped generate over RM7 billion in savings since its implementation in mid-2024, exceeding initial projections.
These funds will be redirected toward social assistance programmes such as Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA), reinforcing the government’s fiscal prudence while ensuring continued support for lower-income households.
