Efforts To Reduce Deficit Expected To Be Priority In Budget 2026 – Johari

PUTRAJAYA, Oct 8 (Bernama) -- Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani has hinted that Budget 2026 will prioritise efforts to reduce the country's fiscal deficit.

He said this is in line with the government's aim to maintain a sustainable fiscal position, especially as the global economy faces challenges arising from the United States' tariff policies and market uncertainties that also affect Malaysia.

"This government is working hard to reduce the deficit. As a country directly involved in open trade, these developments will inevitably affect us.

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"So, in the government's budget-making process, I believe it will focus on the same things — how we can balance the deficit as a country," he said.

Budget 2026 is scheduled to be tabled by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim, on Oct 10.

CIMB Investment Bank Bhd recently reported that Malaysia's cumulative fiscal deficit narrowed by 10.6 per cent year-on-year (y-o-y) to RM49.4 billion as of August 2025, indicating that the government is on track to achieve its full-year target of RM80 billion or 3.8 per cent of gross domestic product (GDP).

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It noted that the country recorded a smaller monthly deficit of RM2.7 billion in August, the lowest in 11 months, driven by a 0.3 per cent y-o-y decrease in revenue and a 0.8 per cent y-o-y increase in expenditure.

Regarding Budget 2026, the bank said the government is expected to balance accommodative measures with continued fiscal consolidation and a smaller deficit projection of 3.6 per cent of GDP.

-- BERNAMA