Budget 2027: Reduction In Fiscal Deficit Proves MADANI Govt Prioritises Nation's Future– Mustapha

KOTA KINABALU, Oct 13 (Bernama) -- The continuous reduction of the national fiscal deficit, alongside increased development allocations for Sabah and Sarawak, demonstrates the MADANI Government's commitment under the leadership of Prime Minister Datuk Seri Anwar Ibrahim to safeguarding the interests of future generations.

Sabah Pakatan Harapan (PH) chairman Datuk Mustapha Sakmud said the national fiscal deficit was successfully reduced from 5.0 per cent of the Gross Domestic Product (GDP) in 2023 to 4.1 per cent in 2024 and 3.7 per cent in 2025, as a result of consistent fiscal discipline.

He noted that the deficit is projected to decline further to 3.6 per cent this year and 3.3 per cent in 2027, compared to 6.4 per cent in 2021 and 5.5 per cent in 2022.

"Figures do not lie. The national fiscal deficit reached 6.4 per cent of GDP in 2021 and 5.5 per cent in 2022. However, under the MADANI Government administration, the deficit has steadily declined from 5.0 per cent in 2023 to 4.1 per cent in 2024 and 3.7 per cent in 2025.

The deficit is projected to decrease further to 3.6 per cent in 2026 and 3.3 per cent in 2027," he said in a statement today.

Mustapha made these remarks in response to criticism from Opposition Leader Datuk Seri Hamzah Zainudin regarding the 2027 Budget which Hamzah had likened the MADANI Government’s move to involve strategic national institutions such as Petronas and the Retirement Fund (Incorporated) (KWAP) in the development agenda to "killing the goose that lays the golden eggs."

He noted that federal government new borrowing has also decreased from approximately RM100 billion annually in 2021 and 2022 to RM75.6 billion in 2025, reflecting the government's efforts to manage national finances prudently in order to reduce the debt burden on future generations.

Meanwhile, Mustapha who is also the Minister in the Prime Minister's Department (Sabah and Sarawak) said the MADANI Government continues to prioritise the development of Sabah and Sarawak despite facing geopolitical conflicts, global economic uncertainty, and the pressure of fuel subsidies.

He said the 2027 Budget allocates RM34.9 billion to the two states, RM18.7 billion for Sabah and RM16.2 billion for Sarawak marking the highest allocation in history, with an overall increase of RM2.2 billion compared to the previous year.

He added that this increase demonstrates that efforts to reduce the fiscal deficit and control new national borrowing have not compromised the government's commitment to infrastructure, education, and healthcare development, as well as economic opportunities in Sabah and Sarawak.

In this regard, he urged the Opposition Leader to present a clear and detailed alternative budget proposal, including approaches to reducing the fiscal deficit without undermining the national development agenda, particularly in Sabah and Sarawak.

-- BERNAMA