PUTRAJAYA, Oct 13 - The government has the capacity to provide greater benefits to the people through Budget 2026 without increasing taxes, thanks to savings from improved governance and efforts to curb leakages over the past two years.
Prime Minister Datuk Seri Anwar Ibrahim said the government is aware that higher taxes would burden the people, which is why his administration has focused on enhancing efficiency and addressing leakages as its key principles.
“So before we even think about raising taxes, which may burden the people, we must first correct the weaknesses within our own administration.
“We must reflect on our work and the systems we inherited and are now managing. Are they efficient? Are we effectively controlling leakages, corruption or smuggling?” he said during a gathering with staff of the Prime Minister’s Department here today.
Also present were Minister in the Prime Minister’s Department (Federal Territories) Datuk Seri Dr Zaliha Mustafa, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar and Public Service Department director-general Datuk Seri Wan Ahmad Dahlan Abdul Aziz.
Anwar emphasised the importance of curbing leakages within the government, noting that the resulting savings would enable more benefits and facilities to be channelled to the people.
He said that if the government maintains its current momentum in reducing expenditure by at least RM10 billion a year, savings could reach up to RM100 billion over 10 years, and these funds could be used to enhance the universities, healthcare, and education systems.
“In two years, the Madani government has saved RM15.5 billion. That’s only what has been detected, imagine the amount that goes undetected. So if we can achieve RM100 billion in 10 years, just imagine the universities, schools, clinics and other facilities we could build for our children.
“There are so many opportunities to strengthen and elevate our nation’s standing,” he said.
On Friday, the prime minister tabled Budget 2026, which allocates RM470 billion in total resources to strengthen economic resilience and support small businesses amid continued global uncertainties.
Themed 'Belanjawan Madani Keempat: Belanjawan Rakyat', Budget 2026 consolidates and optimises national resources, including funds from government-linked investment companies (GLICs), federal statutory bodies, and Minister of Finance Incorporated (MOF Inc), through total public expenditure of RM470 billion compared with RM452 billion last year.
Anwar, who is also finance minister, said the amount comprises RM338.2 billion for Federal operating expenditure, RM81 billion for federal development expenditure, RM30 billion in GLIC investments, RM10 billion in public-private investments and RM10.8 billion in investments by Federal statutory bodies and MOF Inc companies.
