This article first appeared in The Edge Financial Daily on January 11, 2019

PUTRAJAYA: Starting this year, the government will minimise off-budget provisions, which was the practice of the previous administration, Prime Minister Tun Dr Mahathir Mohamad said yesterday.

The off-budget provisions, he said, had contributed to financial scandals, such as those involving 1Malaysia Development Bhd (1MDB) and special purpose vehicles (SPV).

“To improve the country’s budget management, the government will implement a pre-budget statement and mid-year review for all operating and development expenditures,” Dr Mahathir told reporters after chairing a meeting of the Special Cabinet Committee on Anti-Corruption.

“We will also ensure the accuracy and integrity of information related to the country’s debt and liability,” he added.

Putrajaya has said that the country’s debt amounts to RM1.087 trillion.

At the same time, Dr Mahathir said the government has found that certain ministries have large off-budget provisions, which is more than the original allocation of the actual budget tabled in Parliament.

“Now, the government will restrict the practice of off-budget provisions and will put in place special conditions such as determining the ceiling budget,” he said.

Dr Mahathir also said that Putrajaya will improve the governance of government-linked companies, particularly with regard to key appointments.

“All key appointments will have to go through strict integrity screening before the actual appointments of the candidate and not after the candidate has been appointed,” he said.