Zahid denies ministry spent beyond approved allocation

Rural and regional development minister Ahmad Zahid Hamidi has refuted claims that his ministry overspent beyond its approved budget allocations. Despite Treasury officials stating that the ministry had exceeded its budget for rural road projects, Zahid insisted that no ministry would exceed the budget announced in the annual financial plan.

During a joint event with the communications ministry in Cyberjaya, Zahid emphasized that the ministry adheres to the principle of measuring success not solely by the number of programmes or participants, but also by the proper utilization of the allocated budget. He clarified that if any expenses arise that were not specifically allocated, the ministry would have to cover those costs.

Zahid expressed confidence that the rural and regional development ministry would not dare to spend beyond the limits set by the budget. He pointed out that contractors had completed some rural projects but were facing delays in receiving payments, with some even facing cash-flow issues or closure. In response to these challenges, Treasury secretary-general Johan Mahmood Merican revealed that most of the year's allocation for rural road projects had already been spent, leading to payment constraints.

According to Merican, the allocation for rural road projects had been fully disbursed, and the ministry had consistently spent more than its approved annual budget for such projects in recent years.