Kuala lumpur: The federal government's statutory debt level, after taking into account borrowing requirements for 2026, is projected to remain below 65 per cent of gross domestic product (GDP).

According to BERNAMA News Agency, the Ministry of Finance (MOF) stated that, from a debt management perspective, the government consistently ensures that the debt level remains below the statutory limit. The Ministry highlighted their ongoing monitoring efforts in response to the geopolitical conflict in West Asia through weekly engagement sessions conducted by the Crisis Management Task Force (PPPK) under the National Economic Action Council (MTEN). Their focus is to secure energy supplies and essential goods, prevent sharp public cost increases, and enhance the country's long-term economic resilience.

The Ministry also noted the implementation of several cost-control measures aimed at optimizing spending across various ministries and government agencies. This statement was part of a written reply to the Dewan Rakyat, published on the parliament website today, in response to a query from Datuk Seri Hamzah Zainudin (PN-Larut). The query sought details on the projected fiscal position of the federal government through the end of 2026, including estimates on government revenue, the fiscal deficit, debt commitments, and total subsidy expenditure.

Regarding the 2026 fiscal outlook, the MOF indicated that a revised fiscal projection for 2026 would be announced during Budget 2027. This projection will consider the latest economic indicators, as well as revenue collection and expenditure performance through the first half of 2026.