KUALA LUMPUR, Oct 13 — Opposition Leader Datuk Seri Hamzah Zainudin has raised concerns over the government’s RM470 billion budget, questioning whether parts of it truly constitute public spending.
Hamzah pointed out that although the Budget aims for a Gross Domestic Product (GDP) growth of 4 to 4.5 per cent, just RM420.2 billion funded directly by the government, while the remaining RM50.8 billion came from government-linked investment companies (GLICs), federal statutory bodies, and companies linked to the Ministry of Finance.
“The question arises, can this RM50.8 billion truly be classified as public spending when it is not recorded in the consolidated revenue accounts and is not included in the official government debt figures?
“Since these funds do not come from government revenue, are they existing investments being repurposed for government projects, or new borrowing that will add to future liabilities?” he said during the debate on Budget 2026 in Dewan Rakyat, today.
He then further suggested that the figures presented in the Budget may be part of a deliberate scheme to make the deficit appear lower than it is.
He described the practice as a potential “sleight of hand” (silap mata) by the government, noting that it could mislead the public about the true scale of financial obligations.
“I seek clarification. When referring to the RM420 billion and the RM50.8 billion from GLICs, is this practice an error, or is it a form of ‘sleight of hand’?
“In other words, is it a trick by the government to make the deficit appear lower than it actually is? It seems designed so that the public cannot easily discern the real liabilities,” he added.
Hamzah stressed that the government must be transparent and should not categorise these funds as public spending simply to maintain a lower deficit figure.
He noted that while the government projects the deficit to fall to 3.5 per cent in 2026, down from 3.8 per cent in 2025 and 4.1 per cent in 2024, this reduction is not due to increased revenue or more efficient spending.
Instead, he said it results from shifting financial responsibilities to GLICs, statutory bodies, and government-linked companies.
Hamzah also expressed concern that given the uncertain economic climate, it is unclear whether the government can achieve its targeted revenue collection of RM343 billion for 2026.
“At the same time, the government must be transparent about its actual debt and liabilities. It should not focus solely on new borrowing,” he said, adding that the latest fiscal survey shows that total government debt and liabilities as of the end of June 2025 already amounted to RM1.69 trillion, or 84.1 per cent of GDP.
On Friday, Prime Minister Datuk Seri Anwar Ibrahim today announced a RM470 billion federal Budget for 2026.
According to the government’s Fiscal Outlook and Federal Government Revenue Estimates report, total revenue for 2026 is forecast to grow by 2.7 per cent to RM343.1 billion, a slight moderation from the 2.9 per cent growth seen in 2025.
The Budget allocates RM338.2 billion for operating expenditure, a 1.8 per cent increase from 2025.
