Kuala lumpur: Budget 2026 has been formulated based on the current economic realities rather than purely on economic theory, in line with the government's commitment to ensuring prudent fiscal management that prioritises the people's well-being. Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, emphasized that the current budget cannot be compared to the 1990s era when Malaysia experienced rapid economic growth with a low deficit.
According to BERNAMA News Agency, Anwar highlighted that the budget framework must accurately reflect the economic situation. He noted the importance of considering debt levels, the deficit, and revenue to achieve balance, stressing that the approach must differ from the past due to inherited debts and a high deficit. Anwar spoke on the significance of strengthening governance and administrative integrity, citing systemic issues like leakages and corruption.
Anwar announced that stronger enforcement and governance by agencies such as the Inland Revenue Board, Customs, Malaysian Anti-Corruption Commission, and the Royal Malaysia Police have enabled the government to recover RM15.5 billion over two years. This amount was collected through asset seizures, recovery of taxes, and efforts to combat smuggling and fraud.
The Prime Minister clarified that the increased revenue resulted from improved governance rather than new taxes. He emphasized the government's fiscal policy aims to balance reducing the national deficit and debt while safeguarding people's welfare. Anwar pointed out that the deficit was reduced from 5.6 to 3.8 percent, highlighting the need for balance to avoid negative impacts on the populace.
In his address, Anwar expressed gratitude to the Finance Ministry staff for their dedication in preparing Budget 2026. He acknowledged their exceptional commitment, noting their hard work and dedication, often working late into the night, as a mission rather than just a job. Anwar extended his heartfelt thanks to the entire Treasury team for their extraordinary effort leading up to the budget.