KUALA LUMPUR, Jan 20 (Reuters) - Malaysia has increased its fiscal deficit target to 3.2 percent of gross domestic for 2015 as the government needed to adjust its budget due to a sharp fall in earnings from oil and gas, Prime Minister Najib Razak announced on Tuesday.

He said the revised budget would assume a global oil price of around $55 a barrel. The original budget had targeted a reduction in the fiscal deficit to 3.0 percent this year, from 3.5 percent in 2014.

Najib said Malysia was not facing an economic crisis, but the government needed to adjust to the change in circumstances due to the fall in global oil prices.

(Editing by Simon Cameron-Moore)