Mustapha urges Hamzah to present a detailed alternative to the 2027 budget

Mustapha criticised Hamzah for attacking the 2027 budget without offering a concrete alternative, insisting that the opposition chief should present a detailed plan to reduce the fiscal deficit while sustaining development programmes, especially in Sabah and Sarawak. He noted that the fiscal deficit has steadily fallen, from 5.0% of GDP in 2023 to 3.7% in 2025, and is projected to reach 3.3% by 2027. Correspondingly, new federal borrowing is expected to decline from roughly RM100 billion in 2021-2022 to RM75.6 billion in 2025.

The budget earmarks RM18.7 billion for Sabah and RM16.2 billion for Sarawak, raising total allocations to RM34.9 billion, an increase of RM2.2 billion over the prior year. Mustapha argued that these figures show prudent fiscal management can coexist with continued national development, and warned that the budget could burden strategic institutions such as Petronas, Tenaga Nasional Bhd and KWAP if not handled carefully.