Allowing free access to federal funds a bad idea, says think tank

Allowing free access to federal funds a bad idea, says think tank

IDEAS chides govt for going against constitution with new emergency law on withdrawals from consolidated funds.

A new Emergency Ordinance now allows the prime minister to unilaterally pass a supplementary budget and tap into consolidated funds without the approval of the Dewan Rakyat.
KUALA LUMPUR:
The Institute for Democracy and Economic Affairs (IDEAS) feels that while it recognises the immediate need for fiscal assistance to cushion the negative impact of the movement control order (MCO), completely abandoning the relevant constitutional provisions under the emergency period is unnecessary.

“The Federal Constitution envisions Parliament playing an important role in providing checks and balances when it comes to the use of the people’s money.

“It mandates the government to seek parliamentary approval for expenditures or withdrawals from consolidated funds, except for charged expenditures, statutory loans, and some trust fund-related expenditures,” IDEAS said.

Expressing concern with the new Emergency Ordinance gazetted yesterday, the non-profit research institute said indeed, Article 104 of the Constitution states that with the exception of these three types of expenditures, “no money shall be withdrawn from the Consolidated Fund unless they are authorised by a Supply Act”.

IDEAS chief executive officer Tricia Yeoh.

The Emergency Ordinance now allows the prime minister, chief ministers or menteris besar to unilaterally pass a supplementary budget and tap into consolidated funds without the approval of Parliament or respective state assemblies.

IDEAS chief executive officer Tricia Yeoh said with such flexibility already built into the Constitution, there was no need for the government to issue the amendment to the ordinance and sideline Parliament in decision-making concerning the fund.

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