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THE Rural and Regional Development Ministry (KKDW) has repeatedly spent well above its approved allocations for rural road projects, with the Federal Treasury warning that such commitments could place further pressure on the country’s finances.
Chief Secretary to the Treasury Tan Sri Johan Mahmood Merican said KKDW’s actual expenditure had exceeded its approved allocation every year since 2023.
In 2023, the ministry spent RM1.8 billion against an approved allocation of RM1.1 billion, while its expenditure rose to RM2 billion in 2024 compared with an allocation of RM1.3 billion.
The gap widened further in 2025, when KKDW spent RM2.3 billion against an approved allocation of RM1.6 billion.
For 2026, the ministry has been allocated RM2.1 billion, but its actual expenditure had already reached RM1.9 billion as at June.
Angkatan Muda Keadilan chief Muhammad Kamil Abdul Munim criticised the practice, saying spending beyond approved allocations was unacceptable and could jeopardise the country’s financial position.
"How can we make ends meet if we spend more than the allocation that has been set? The tail is wagging the dog. The country will be ruined like this," said the Political Secretary to the Finance Minister in a Facebook post last night.
Johan said the Ministry of Finance was working with KKDW to address the issue, including restructuring the ministry’s allocations according to priorities.
The disclosure comes amid heightened scrutiny of government spending and the need to ensure ministries remain within approved allocations while delivering development projects.
The repeated overspending also raises questions over how project commitments are made and managed when the expenditure eventually exceeds the sums approved through the annual Budget. - September 3, 2026
