Malaysia is not facing an economic crisis nor a technical recession, Prime Minister Datuk Seri Najib Tun Razak said today.

Prime Minister Datuk Seri Najib Tun Razak today tabled the recalibrated Budget 2016, with the changes aimed at making it more realistic to reflect the current economic scenario.

The recalibrated Budget 2016 to be unveiled by PM Najib Thursday is expected to be geared towards two main directions: to increase cash flow and government revenue.

The government needs to take measures to boost investor and consumer confidence in the 2016 Budget recalibration, an analyst said.

Affin Hwang Capital expects the government to cut operating expenditure by RM4.4 billion to RM210.8 billion under its Budget 2016 recalibration from RM215.2 billion budgeted earlier.

The recalibration of Budget 2016 must be positive, market-friendly and meet the people's expectations, said Minister in the Prime Minister's Department, Datuk Seri Abdul Wahid Omar.

The recalibration of Budget 2016 to reflect the current economic climate will see "a minor cut" in the operating expenditure and shelving of non-priority development projects, said Treasury secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah.

What social justice to talk about if even our people cannot be adequately fed?

Najib says adjustments to Budget 2016 will be tabled soon, taking into account the current economic scenario to reflect the realistic situation of a challenging new year.

The government will not revise the newly-tabled Budget 2016 despite Petroliam Nasional Bhd (Petronas) reducing its dividend payout.