Treasury approves RM500 million supplementary allocation for Zahid's ministry

The Ministry of Rural and Regional Development has received Treasury approval for a RM500 million supplementary allocation to cover budget deficits, according to official announcements.

The additional funding comes as the ministry, headed by Deputy Prime Minister Ahmad Zahid Hamidi, faced significant spending overruns in its current fiscal cycle. The supplementary grant aims to address shortfalls in operational and development expenditure across the ministry's portfolio.

Alongside the funding approval, the Treasury has directed the ministry to implement stricter controls on new project commitments. The directive requires the ministry to halt issuance of new letters of acceptance for rural road development schemes until further notice, effectively freezing the approval pipeline for new infrastructure initiatives.

The move reflects broader Treasury efforts to maintain fiscal discipline while ensuring critical government functions continue. Rural road development remains a priority for national connectivity, though the temporary suspension suggests a need for closer budget scrutiny before committing to additional projects.

The ministry has been instructed to review ongoing projects and streamline expenditure to prevent similar budget pressures in future fiscal periods.