Anwar tables a RM510 billion federal 2027 budget, against a projected revenue of RM380.8 billion

KUALA LUMPUR, Oct 9 2026: Prime Minister Anwar Ibrahim explained that the federal 2027 budget will continue the expansionary fiscal policy by leveraging the nation's collective strength, totaling RM510 billion compared to RM470 billion. 

He said a sum of RM376.8 billion is for federal operating expenditure; RM83 billion for federal development expenditure; RM25 billion for GLIC investments; RM11 billion for public-private investments; and RM14.2 billion for investments by Federal Statutory Bodies and Minister of Finance Incorporated (MKD) companies. 

"This year, federal revenue is projected to be higher at RM363.6 billion, compared to the original estimate of RM343.1 billion," he said, adding that for the coming year, revenue is expected to rise further to RM380.8 billion.

He explained that the West Asia crisis has driven fuel subsidies up to RM40 billion, pointing out that the fiscal deficit for 2026 is now projected at 3.6 percent, compared to the original target of 3.5 percent.

"However, this rate remains on a downward trajectory from 5.5 percent (2022) and 3.7 percent last year," he added, noting that the 2027 deficit will decrease further to 3.3 percent, moving towards the 3 percent target by 2028. 

Anwar said the reduction in the deficit and controlled levels of new debt enable the federal government debt-to-GDP ratio to decline consistently: 65.2 percent (2025), 64.0 percent (2026), and a projected 63.7 percent (2027).