KUALA LUMPUR: The Finance Ministry has approved an additional RM500 million for the Rural and Regional Development Ministry after it exceeded its allocations for rural projects this year.
Finance Minister Datuk Seri Anwar Ibrahim said the additional allocation was approved by identifying savings from development expenditure in other ministries.
He said the Finance Ministry had also directed the Rural and Regional Development Ministry on Sept 10 to suspend the issuance of new letters of acceptance for rural road projects to prevent further accumulation of payment arrears.
"The Rural and Regional Development Ministry has made commitments and spent beyond the original allocations approved under the annual Budget for rural road projects over the past few years, resulting in outstanding payments and delays in payments to contractors," he said in a written parliamentary reply.
