PUTRAJAYA: Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani has indicated that Budget 2026 will prioritise efforts to reduce the country’s fiscal deficit.
He stated this aligns with the government’s goal of maintaining a sustainable fiscal position during global economic challenges.
“This government is working hard to reduce the deficit,“ he said.
“As a country directly involved in open trade, these developments will inevitably affect us.”
Johari believes the budget-making process will focus on balancing the national deficit.
Budget 2026 is scheduled for tabling by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim on October 10.
CIMB Investment Bank reported Malaysia’s cumulative fiscal deficit narrowed by 10.6% year-on-year to RM49.4 billion as of August 2025.
This indicates the government is on track to achieve its full-year target of RM80 billion or 3.8% of gross domestic product.
The country recorded its smallest monthly deficit in 11 months at RM2.7 billion in August.
This resulted from a 0.3% year-on-year decrease in revenue and a 0.8% year-on-year increase in expenditure.
Regarding Budget 2026, the bank expects the government to balance accommodative measures with continued fiscal consolidation.
It projects a smaller deficit target of 3.6% of gross domestic product for the upcoming budget. – Bernama