Budget 2026 Formulated With Comprehensive Fiscal Approach – Amir Hamzah

KUALA LUMPUR, Nov 4 (Bernama) -- The fiscal approach for Budget 2026 has been formulated comprehensively, covering federal operating and development expenditures as well as catalytic investments by government-linked entities, said Finance Minister II Datuk Seri Amir Hamzah Azizan.

He stated that these entities include government-linked investment companies (GLICs), government-linked companies (GLCs), federal statutory bodies (FSBs), and Minister of Finance Incorporated (MOF Inc) companies. He said this approach optimises the nation’s resources under a coherent and unified direction, aligning with national priorities to ensure that economic impact and public well-being are maximised.

He added that the budget’s total amount of RM470 billion represents a more comprehensive picture of public expenditure, as it includes RM50.8 billion in public investments by entities such as Khazanah Nasional Bhd, Retirement Fund (Incorporated), Pengurusan Aset Air Bhd, and Prasarana Malaysia Bhd.

“The public expenditure for 2026 amounts to RM470 billion, an increase from RM452 billion in 2025. The expansionary fiscal policy aims to support economic growth momentum, especially amid global economic uncertainties.

“For parliamentary approval purposes, the total estimated Budget 2026 allocation is RM421.2 billion, comprising RM338.2 billion for operating expenses and RM83 billion for development expenditure, including RM2 billion in contingency reserves,” he said when winding up the debate on the Supply Bill 2026 (Budget 2026) at the policy stage in the Dewan Rakyat today.

Regarding development expenditure (DE), Amir Hamzah emphasised that the Madani government remains committed to supporting growth momentum through an expansionary fiscal policy, despite claims by some members of parliament that there is a decline in the 2026 DE allocation.

“The allocation for Basic DE projects in 2026 increased to RM57.6 billion or 71 per cent, compared to RM55.67 billion or 65 percent in 2025,” he pointed out. “The 2026 DE allocation for all states has increased compared to 2025 to ensure balanced and inclusive distribution. The 13th Malaysia Plan (13MP) has also approved projects that take into account the priorities of each state.”  

He explained that the first year of the 13MP typically focuses on project planning and approval, with 18.8 percent of the total five-year allocation allocated for 2026 - higher than 16.5 percent under the 12th Malaysia Plan (12MP).

Amir Hamzah highlighted that with the country’s gross domestic product (GDP) projected to grow between 4.0 and 4.5 percent next year, the development allocation of RM50.8 billion from public investments by GLICs, FSBs, and MOF Inc, will continue to be a key driver of national economic growth.

The parliamentary sitting will resume tomorrow.

-- BERNAMA