Core services, public aid protected under RM10b spending cut, says Finance Ministry


KUALA LUMPUR: The Finance Ministry remains open to reviewing urgent funding needs for ministries and agencies, despite a directive slashing RM10bil from the government's 2026 Operating Expenditure.

The directive was issued on April 29.

In a parliamentary written reply dated July 15, the ministry stated that the expenditure controls, triggered by the global economic crisis, allow ministries flexibility to reprioritise spending so public services are not disrupted.

The ministry clarified that the cuts target non-critical spending, such as seminars, official functions, and overseas travel, and are temporary until the country's fiscal position stabilises. Core public services will continue as planned.

For the Health Ministry, funding persists for public healthcare delivery, facility maintenance, and medical procurement. For the Higher Education Ministry, operations for public universities, student welfare, scholarships, and high-impact programmes remain prioritised.

Furthermore, the budget realignment will not impact critical public aid, including the Rahmah Cash Assistance, Rahmah Basic Assistance, social welfare, and agricultural incentives.

The ministry was responding to Tan Sri Muhyiddin Yassin, who had asked about the status of the April 2026 cuts and sought assurances that core healthcare and education sectors would not be compromised.

 

 

 

 

 

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