Anwar, who is also the finance minister, said today’s fiscal realities differed from those of the past, especially during the 90s which saw economic growth of up to 11%, allowing the government at the time to come up with a balanced budget.

“Times are different now. We have inherited a swollen debt and a high deficit,” he said at the ministry’s monthly assembly this morning.

“All of these factors must be taken into account when drawing up a budget that is in line with the times.”

Last Friday, Anwar tabled a budget of RM419.2 billion, a RM2 billion decrease from the RM421 billion allocated for 2025.

Anwar said his priority since becoming prime minister had been to improve governance and curb systematic leakage.

“If we want to develop the country, we must spend wisely,” he said.

He also said that leakages, corruption and misappropriation must be reined in before any talk of introducing new taxes.

Anwar recalled how he had rejected the introduction of the goods and services tax (GST) during his time as opposition leader, even though it was a more transparent and efficient system.

He said at that time, people were only earning between RM1,500 and RM3,000.

“Was it then morally sound to tax the abject poor, even though the GST was good? For me, it was not the right time,” he said.

He said that before introducing any new tax policies, the government must ensure that the target groups benefit from the budget.

It must also prevent syndicates and smugglers from taking advantage, he said, adding that many of the projects under the previous government had been plagued by corruption and mismanagement.