Budget 2027 Strengthens Fiscal Position, Supports Long-term Growth -- MARC
KUALA LUMPUR, Oct 9 (Bernama) -- Budget 2027 reflects the government's commitment to supporting economic growth while advancing fiscal consolidation, Malaysian Rating Corporation Bhd (MARC) said.
A narrowing fiscal deficit and sustained development expenditure are also expected to strengthen Malaysia’s economic resilience and long-term growth prospects, its group chief executive officer Arshad Mohamed Ismail said in a statement today.
Arshad said the government’s continued efforts to broaden revenue sources, improve the efficiency of targeted subsidies and enhance the quality of public spending would further strengthen the country’s fiscal position.
These measures would also ensure that resources remain available for strategic investments and national development priorities.
“We welcome the higher allocation for development expenditure at RM83 billion. Continued investment can help strengthen Malaysia’s productive capacity, while also creating opportunities for greater private sector participation.
“The focus should therefore not only be on the size of the allocation, but also on the quality and effectiveness of spending and its ability to generate longer-term economic returns,” he said.
The gradual shift towards a broader and more sustainable revenue base should strengthen Malaysia’s fiscal position over time, he said.
He noted that government revenue had become more diversified, with contributions from both petroleum-related and other taxes.
On subsidy reforms, he said efforts to streamline subsidies were accompanied by measures to safeguard household welfare.
He said the continued shift towards more targeted assistance would improve the efficiency of government support while reducing leakages.
Earlier, Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, tabled Budget 2027, which amounts to RM459.8 billion, comprising RM376.8 billion in federal operating expenditure and RM83 billion in federal development expenditure.
-- BERNAMA