Budget: Anwar set to end 37 years of govt overspending in 2025

BUDGET 2026 | Prime Minister Anwar Ibrahim is on track for a major feat - ending a streak of government overspending that has been going on for at least 37 years.

While the budget continues to run at a deficit, revised estimates for spending this year show that the government will spend RM412.1 billion in 2025 - RM8.9 billion less than what Putrajaya budgeted for.

The government said it was able to save on spending due to the optimisation of emoluments and lower debt service charges.

Development spending was also RM6 billion less at RM80 billion.

Parliament’s online archive, which stretches back more than three decades, shows that the government has been overspending since at least 1988 - necessitating the tabling of supplementary supply bills.

Previously in 2021, the successive Muhyiddin Yassin and Ismail Sabri Yaakob governments were on track to spend about RM2 billion less than the budget for that year, but ultimately ended up spending RM12 billion more.

The RM8.9 billion buffer created by the current administration gives more room for emergency spending without bursting the budget, should the need arise.

However, it’s not all good news for Anwar as the government revenue projection for 2025 is also RM5.6 billion lower than expected this year, ending a three-year streak of surplus.

Find out more in our Budget 2026 visualised report.

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