Zahid denies ministry spent beyond approved allocation

Ahmad Zahid Hamidi, the Rural and Regional Development Minister, categorically denied that his ministry overspent its approved budget allocations, refuting claims from the Treasury. Despite this, Zahid acknowledged that the ministry sometimes had to cover expenses without specific allocations. He emphasized that no ministry would exceed the funds allocated in the annual budget.

Speaking at a joint event with the Communications Ministry in Cyberjaya, Zahid stressed that success should not be solely measured by the number of programs or participants, or the extent of budget utilization. The minister clarified that the ministry relies on existing allocations and pays for necessary expenses even if they fall outside the allocated budget.

Zahid affirmed that his ministry would not dare to spend beyond what is stated in the budget. Previously, Zahid had complained about contractors completing rural projects but facing payment delays, with some experiencing cash-flow issues or even closure. Treasury Secretary-General Johan Mahmood Merican countered by stating that most of the year's allocation for rural road projects had already been spent, leading to payment constraints.

He noted that the allocation had been fully disbursed, and the ministry had consistently exceeded its approved annual allocation for rural road projects in recent years.