Ahmad Zahid denies ministry overspent approved budget

Deputy Prime Minister and Minister of Rural and Regional Development, Ahmad Zahid Hamidi, has denied allegations that his ministry has spent beyond its approved government allocations. Speaking at a workshop in Cyberjaya, Zahid stated that the ministry adheres to the budget amounts announced in the Budget Speech and would not dare to exceed them.

He explained that while the ministry uses existing allocations, it occasionally must cover necessary expenses that may not have been specifically earmarked. Zahid also noted that some contractors involved in rural projects have faced cash-flow issues due to delayed payments.

These comments follow statements from Treasury Secretary-General Johan Mahmood Merican, who indicated that the ministry has consistently spent more than its approved annual allocation for rural road projects in recent years. According to Treasury data, the ministry's actual spending rose from RM1.8 billion against a RM1.1 billion allocation in 2023, to RM2 billion against RM1.3 billion in 2024, and reached RM2.3 billion against a RM1.6 billion allocation for 2025.