Zahid explains rural development ministry ‘overspend’, says revised allocations not taken into account

KUALA LUMPUR — The Rural and Regional Development Ministry spent RM6.108 billion for the 2023–2025 period on its Rural Roads Programme (JALB), well within the revised allocation of RM6.143 billion. Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who is also Rural and Regional Development Minister said JALB’s original allocation for that period had been RM3.982 billion before it was revised to RM6.143 billion. With the revised allocation, claims that the ministry had overspent by RM2.1 billion are unfounded as the approved adjustment was not taken into account. “We must be clear about what these figures represent. A RM2.1 billion variance from the original allocation is not, in itself, evidence of missing funds, leakages or misappropriation. Such adjustments to allocations also occur in other ministries,” he said in the Dewan Rakyat today. Zahid was winding up the debate on the Supply Bill 2027 (Budget 2027) at the policy stage for the Ministry of Rural and Regional Development in the Dewan Rakyat today. For 2026, JALB also received an amended allocation of RM3.02 billion, with about RM2.48 billion spent as of Sept 30, he added. Zahid said rural road projects typically took several years to complete, making it important to distinguish the total project cost from the funding required in any given year. He explained that when work progressed faster than expected or verified claims from previous projects required settlement, annual allocations had to be adjusted to meet payment obligations. However, he stressed that the need for additional funding did not give the ministry the authority to increase allocations arbitrarily or make payments outside established procedures. “Any adjustment must go through the ‘Notice of Change’ (NOC) mechanism and involve the reallocation of funds, depending on the nature of the change and the required level of approval,” he said. On September 2, Treasury secretary-general Tan Sri Johan Mahmood Merican’ had flagged the ministry for overspending for the years from 2023 to 2025. Johan said the actual spending by ministry’s rural roads programme had exceeded approved allocations. Zahid, however, today said actual spending must be considered against revised or amendment allocations. - October 26, 2026 The post Zahid explains rural development ministry ‘overspend’, says revised allocations not taken into account appeared first on Scoop .