PH ad­min­is­tra­tion can meet monthly ex­pen­di­ture of RM8b, says Guan Eng

New Straits Times - - NEWS -

THE Pakatan Hara­pan (PH) govern­ment is able to meet all its monthly fi­nan­cial com­mit­ments, in­clud­ing the RM8 bil­lion in salaries and pen­sions of civil ser­vants, de­spite be­ing left with only RM450 mil­lion by the pre­vi­ous ad­min­is­tra­tion, says Fi­nance Min­is­ter Lim Guan Eng.

He said yes­ter­day that it had not been an easy five months since May 9, when PH took over the govern­ment.

“The Con­sol­i­dated Rev­enue Ac­count has dropped dras­ti­cally from RM11.86 bil­lion in De­cem­ber last year to RM5.73 bil­lion in Jan­uary this year, RM5.34 bil­lion in Fe­bru­ary, RM3.91 bil­lion in March, and only RM450 mil­lion in April,” he said.

This was a drop of 96 per cent, or RM11.41 bil­lion, in only four months, he noted.

“Clearly, this ex­ces­sive spend­ing by the pre­vi­ous Barisan Na­sional govern­ment amount­ing to bil­lions of ring­git was car­ried out in the months pre­ced­ing the 14th Gen­eral Election.”

He said Ac­coun­tant Gen­eral Datuk Saat Esa had con­firmed that only monies in the Con­sol­i­dated Rev­enue Ac­count could be spent for govern­ment ex­pen­di­ture, and not from the Con­sol­i­dated Fund.

Saat had con­firmed that there was only RM450 mil­lion left to spend on April 30, and this was the amount when BN handed power to PH on May 9, Lim said.

“There are those who claim oth­er­wise, cit­ing as proof the funds in the Cash Ac­count that BN left PH with bil­lions of ring­git as of April 30.

“This is un­for­tu­nately not true. Not all monies in the Cash Ac­count can be used for govern­ment ex­pen­di­ture.

“The Cash Ac­count, to­gether with the In­vest­ment Ac­count, form a com­mon pool of cash col­lected, de­posited/in­vested, and held in three sep­a­rate ac­counts, i.e. Con­sol­i­dated Rev­enue Ac­count, Con­sol­i­dated Loan Ac­count and Con­sol­i­dated Trust Ac­count,” he said.

Lim added that the Cash Ac­count and In­vest­ment Ac­count could not be used for govern­ment ex­pen­di­ture be­cause they did not be­long en­tirely to the Con­sol­i­dated Rev­enue Ac­count, point­ing out that only the Con­sol­i­dated Rev­enue Ac­count could be used for govern­ment ex­pen­di­ture.

Lim Guan Eng

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