KUALA LUMPUR: The government expects the country's fiscal deficit to continue to shrink to 3.5 per cent in 2026, close to achieving the medium-term target of 3.0 per cent under the Public Finance and Fiscal Responsibility Act (FRA) 2023, reflecting increasingly strong fiscal discipline.
Finance Minister II Datuk Seri Amir Hamzah Azizan said fiscal discipline was implemented in stages to ensure a balance between deficit reduction and expansionary fiscal policy to support economic growth and national development.
