The government has unveiled Budget 2026 with a total allocation of RM470 billion, an increase from RM452 billion in 2025. The announcement marks the fourth Belanjawan MADANI and the first under the 13th Malaysia Plan (RMK13), reflecting continued efforts to strengthen fiscal discipline while supporting rakyat-focused programmes.

Strengthening Fiscal Discipline

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the government remains committed to prudent and transparent financial management under the Fiscal Responsibility Act (FRA). Malaysia’s economy is projected to grow between 4.0% and 4.5% in 2026, following a 2025 growth range of 4.0% to 4.8%.

The fiscal deficit is expected to decline to 3.5% in 2026, from 4.1% in 2024, in line with the government’s medium-term fiscal consolidation plan.

Budget Allocation Breakdown

Of the RM470 billion total, RM338.2 billion is allocated for operating expenditure, RM81 billion for development expenditure, and RM50.8 billion for investments through government-linked investment companies (GLICs), statutory bodies, and public–private partnerships.

Emphasis On Transparency And Enforcement

To enhance governance, the Government Procurement Bill will be tabled to complement the FRA, ensuring stronger oversight of public spending. Enforcement agencies, including the Malaysian Anti-Corruption Commission (MACC), the Royal Malaysia Police (PDRM), and the Royal Malaysian Customs Department, will receive over RM700 million to strengthen anti-corruption measures and curb revenue leakages.

Focus On Sustainable Growth

Budget 2026 maintains the government’s strategy of targeted subsidies and efficient spending rather than new taxes. This approach aims to ensure sustainable growth while prioritising economic stability and the well-being of Malaysians.

Stay tuned for more updates from Budget 2026.

Follow us on our official WhatsApp channel for the latest money tips and updates.

• TAGS:
• budget 2026