Government agencies cannot overspend without approval, says auditor

The National Audit Department (NAD) has reinforced that government agencies cannot spend beyond their allocated budgets without securing appropriate approval, according to established financial regulations.

The clarification addresses misconceptions about how public funds are managed across Malaysian ministries and departments. According to the NAD, the government's financial framework contains safeguards to ensure spending decisions follow official procedures and remain within authorized limits.

"Government agencies do not have the discretion to spend freely without proper authorization," a NAD spokesperson said, reaffirming that departmental budgets are controlled through established mechanisms that require oversight at each stage of expenditure.

The statement underscores the importance of fiscal discipline across the civil service. All government spending must comply with treasury regulations and obtain necessary approvals before funds are disbursed, ensuring accountability in the management of public resources.

The NAD's clarification serves as a reminder to all government bodies of their obligations to adhere to financial procedures and maintain transparency in budget utilization.