Taxation and the social contract in Malaysia – Unpacking Budget 2026

Avid: People at a shopping centre in Petaling Jaya watching the live telecast of Anwar delivering Budget 2026 in Parliament on Oct 10, 2025. — IZZRAFIQ ALIAS/The Star

BUDGETS are annual supply Bills proposed by the government to fund expenditure for the coming year. But more than that, they are a signal of intent, telling us what a government values, the priorities it sets, and the direction in which the nation is heading.

From a philosophical stand point, budgets ideally embody the social contract between the people and the state, reflecting collective values and priorities in resource distribution. More than mere financial blueprints, they are moral statements about what a society deems important.