Rural and Regional Development Minister Datuk Seri Ahmad Zahid Hamidi has rejected claims that his ministry overspent by RM2.1 billion, saying the figure reflects the gap between its original allocation and its revised spending ceiling over three years.
Winding up the Budget 2027 debate for his ministry in the Dewan Rakyat on 26 October, Zahid said the ministry spent RM6.108 billion from 2023 to 2025, against a revised allocation of RM6.143 billion after additional funding was approved. Compared with the amended allocations, he said, the ministry had in fact underspent.
The claim was raised last month by Lim Guan Eng (DAP-Bagan), who called on the Malaysian Anti-Corruption Commission to investigate what he described as excess spending by the ministry.
Treasury secretary-general Datuk Johan Mahmood Merican had earlier attributed delays in paying contractors to the ministry’s spending commitments, saying most of this year’s rural road allocation had already been used.
According to the Treasury, rural road spending was RM1.8 billion in 2023 against RM1.1 billion approved, RM2 billion in 2024 against RM1.3 billion, and RM2.3 billion in 2025 against RM1.6 billion, a total of RM2.1 billion above approved amounts.
Zahid had earlier voiced concern over late payments to contractors, some of whom he said had to stop operating because of cash flow problems even after completing their work. His figures cover the ministry as a whole, while the Treasury’s cover rural road projects only.