The second finance minister Johari Abdul Ghani said the country was unlikely to meet its target for 2020 as it struggles to meet its objectives.

He said at a conference on Thursday: “I don’t think by 2020 [the government] can achieve a balanced budget because if you do that, basically you will squeeze the economic development.

“We will try to extend it to 2022-23.”

Since prime minister Najib Razak came to power in 2009, he has been able to lower the country’s fiscal deficit every year and maintain its investment-grade sovereign credit ratings.

But ratings agencies warned late last year that the government would struggle to meet its objective within the timeframe due to a run up in spending.

The prime minister, who is also finance minister, announced in October a $66bn spending plan for the final budget before elections take place.

The plan included benefits for civil servants and increased medical and education-related benefits.