Prime Minister Datuk Seri Anwar Ibrahim has warned all ministries to exercise greater discipline in managing public expenditure and said the Government cannot respond to every problem simply by increasing allocations.
Anwar’s warning is particularly relevant to the Ministry of Rural and Regional Development. The Government is already carrying approximately RM40 billion in subsidies. KKDW cannot treat public funds as an unlimited source of money whenever its original allocation becomes insufficient.
My review of the Supplementary Supply Bills and supplementary development estimates for 2023, 2024 and 2025 found no direct supplementary appropriation for KKDW under B.22 or P.22.
Article 101 of the Federal Constitution provides the parliamentary mechanism for supplementary and excess expenditure. Section 15(5) of the Public Finance and Fiscal Responsibility Act 2023 also requires the Finance Minister, when tabling a Supplementary Supply Bill, to disclose the purpose and source of funding for such expenditure.
The absence of KKDW from the supplementary estimates leaves two possible explanations. The increased JALB allocations were either financed through authorised transfers within KKDW’s existing P.22 appropriation, or KKDW’s total P.22 expenditure exceeded the amount authorised by Parliament.
If the money came from internal transfers, Zahid must publish the Treasury warrants, transfer approvals and the programmes or projects whose allocations were reduced.
If KKDW’s total P.22 expenditure exceeded the parliamentary appropriation, the Government must explain why KKDW was not included in the supplementary or excess estimates presented under Article 101.
The Public Finance and Fiscal Responsibility Act does not make overspending an automatic criminal offence. However, the absence of a criminal penalty does not remove the Government’s duty to disclose, explain and account to Parliament.
Zahid is also a member of the Fiscal Policy Committee established under the Act. He must set an example by ensuring that KKDW’s expenditure is consistent with the fiscal discipline demanded by the Prime Minister.
MOF and KKDW must also disclose the legal mechanism and funding source for the additional RM300 million provided in 2026.
Zahid should publish a complete reconciliation showing the original and final P.22 appropriations, all authorised transfers and the actual expenditure charged to P.22 for each year.
If these documents are not disclosed, the Public Accounts Committee and Auditor-General should investigate whether the allocation adjustments complied with the Federal Constitution and the relevant financial laws.