Govt likely to table expansionary Budget 2026, deficit seen narrowing gradually

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid

KUALA LUMPUR: The government is expected to table an expansionary Budget 2026, with the fiscal deficit projected at around 3.6 per cent of gross domestic product (GDP), compared with an estimated 3.8 per cent this year, according to an economist.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the government is likely to prioritise allocations for key sectors such as education, healthcare and infrastructure.