RM42bil of allocation went to fuel subsidies

FUEL subsidies took a large chunk of the RM60.17bil supplementary expenditure sought by the government last year, says Datuk Seri Ahmad Maslan.

The Deputy Finance Minister said the RM42bil for fuel subsidies came from the RM52.77bil meant for the Treasury’s general services.

“I acknowledge this is the first time in history that such a large amount was sought under a supplementary Bill.

“The additional amount was for subsidies,” he said when wrapping up his ministerial replies on the Supplementary Supply Bill 2023.

He was asked by Sim Tze Tzin (PH-Bayan Baru) why an additional RM60.17bil was sought by the government for expenditure last year, particularly the RM52.77bil by the Treasury.

Ahmad said Budget 2022’s initial forecast was based on the price of crude oil at US$60 (RM265) per barrel.

“But by the year’s end, the price of crude oil had shot up to US$110 (RM486) per barrel.

“An extra allocation was needed for fuel subsidies,” he said.

Out of the additional RM42bil allocation for fuel subsidy, he said RM20.4bil was for diesel.

“That is why we are currently looking at diesel as a targeted subsidy.

“However, the government assures schoolbus operators that they would not be affected by the targeted subsidy,” he added.

Ahmad said the additional allocation was also used for electricity subsidies (RM5bil), chicken and chicken eggs subsidies (RM1.8bil), special Hari Raya payments for civil servants (RM1bil) and RM1.2bil for contract doctors, among others.

Under the Supplementary Bill, additional allocations were sought for the Election Commission (RM84.4mil), Treasury (RM1.19bil), the Treasury’s general services (RM52.7bil), and Consolidated Statutory Fund (RM2.24bil).

Also included under the Bill were allocations for the National Unity Department (RM14.09mil), Agricultural and Food Industry Ministry (RM24.53mil), Domestic Trade and Consumer Ministry (RM2.05bil), Health Ministry (RM676mil), Defence Ministry (RM303mil), and Education Ministry (RM803mil).

The Dewan Rakyat passed the Supplementary Supply Bill (RM60.17bil) through a majority voice vote.