PETALING JAYA: The budget recalibration for ministries only involves non-critical expenditure, says the Finance Ministry.
“All core expenditures, including essential services, security, healthcare and education, will continue as approved under Budget 2026,” it said in a statement on Thursday (Apr 30).
“This also includes core expenditure, including the Health and Education ministries, which received the highest allocations in this year’s budget,” it added.
The expenditure adjustment guidelines include measures such as postponing events, limiting overseas visits and training, reducing utility usage, optimising agency reserve funds, and deferring the hiring for non-critical positions.
“These adjustment measures create fiscal space for targeted assistance and subsidies aimed at protecting vulnerable groups and sectors affected by the global supply crisis,” it said.
The ministry also clarified that these adjustments will not affect frontliners, including essential healthcare services.
“Expenditure for these services will continue as approved under Budget 2026,” the ministry said.
It was reported on Wednesday that the Treasury has issued guidelines to ministries and agencies to reorganise their priorities for operating expenditures, in line with the challenges posed by the ongoing global energy supply crisis and the increase in subsidy burdens.
It was reported that the Treasury has suggested a RM5.4bil cut in operational expenditure for the health and higher education ministries.
