KUALA LUMPUR (Oct 9): Putrajaya is tapping into government-linked entities to lift its Budget 207 expenditure by RM50.2 billion to a total of RM510 billion, with half of this coming from government-linked investment companies meant to improve domestic economic resilience, Prime Minister Datuk Seri Anwar Ibrahim said.
The actual federal government outlay for 2027 is RM459.8 billion, according to the Economic Report 2026/2027, of which RM77.5 billion is derived from fiscal deficit.
"The fifth Madani budget continues an expansionary fiscal policy by mobilising the full strength of the nation," Anwar said during Budget 2027 tabling in the Dewan Rakyat.
Of the RM50.2 billion additional expenditure, RM25 billion will come from GLICs including Khazanah Nasional Bhd (RM1.2 billion) and Kumpulan Wang Amanah Pekerja (KWAP) (RM1 billion) for semiconductor sector development in Selangor.
Also announced previously was the New Economy Venture Fund involving Sime Darby Property Bhd (KL:SIMEPROP), the Employees Provident Fund (EPF) and the Armed Forces Fund Board (LTAT) involving RM1.25 billion to develop logistic and data centre assets in Elmina, Selangor.
The budget tabling also outlined RM11 billion from public-private partnerships, RM14.2 billion from statutory bodies and the Ministry of Finance, Anwar said.
In Budget 2026, the expenditure outside of federal government outlay was projected at RM30 billion.