Putrajaya can tap into federal funds without any approval

Putrajaya can tap into federal funds without any approval

The new ordinance under the Emergency comes into effect today.

The federal government and state governments can now tap into consolidated funds without having to go through their respective legislative assemblies.
PETALING JAYA:
A new Emergency Ordinance has been gazetted allowing the prime minister, chief ministers or menteris besar to pass a supplementary budget and use consolidated funds without having to go through the legislature during the emergency period.

They had previously been expected to seek the respective legislature’s approval before touching the funds.

The ordinance, now available on the Attorney-General’s Chambers website, states that the federal treasury, menteri besar or chief minister can use the budget from their respective consolidated funds without approval of legislation from today.

This is seen in two new sections (10A and 10B) to the Emergency (Essential Powers) Ordinance 2021 which allows the government to bypass the prior approval.

The ordinance allows the authorities to bypass paragraph 4(b) of the Government Funding Act 1983 and paragraph 2(2)(b) of the Treasury Bills (Local) Act 1946 on the approval of money by the Dewan Rakyat.

Both paragraphs 4(b) and 2(2)(b) of the respective Acts say money received for various purposes from the Treasury funds shall be applied and appropriated for payment, “with the prior approval of the Dewan Rakyat”.

The emergency ends on Aug 1, unless the executive can convince the King that an extension is necessary.

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