Moneys required to be paid into the Fund
There shall be paid into the Development Fund specified in the Second Schedule to the Financial Procedure Act 1957 (hereinafter referred to as “the Fund”)—
(a) moneys from time to time appropriated to and authorized to be paid into the Fund by this Act or by any other Federal law for any one or more of the purposes of the Fund;
(b) sums representing the proceeds of any loan raised by the Federal Government for any one or more of the purposes of the Fund and appropriated to such purposes by the written law authorizing the raising of the loan;
(c) where under section 4 any expenditure out of the Fund shall have been authorized to be made by way of loan, sums representing the repayment of the principal of any such loan;
(d) moneys received from the sale or realization of any asset paid for out of the Fund; and
(e) other moneys received by the Federal Government for any one or more of the purposes of the Fund.
Application of moneys in the Fund
The moneys in the Fund shall be applied only to the purposes or any one or more thereof specified in the First Schedule and in accordance with such resolutions as may from time to time be passed by the Dewan Rakyat under section 4 appropriating and directing the expenditure of such moneys:
Provided that as respects sums paid into the Fund under paragraph 2(b) (being sums representing the proceeds of any loan raised by the Federal Government for the purposes of the Fund as authorized by any written law) and as respects the moneys received by the Federal Government under paragraph 2(e), the appropriation shall only relate to the purposes specifically provided by the said written law or to the specific purposes for which the moneys have been received.
Development estimates
(1) The Yang di-Pertuan Agong shall in respect of every financial year cause to be laid before the Dewan Rakyat a statement of—
(a) the estimated opening balance and total income of the Fund for the year;
(b) the proposed expenditure, whether direct or by way of loan, to be met out of the Fund in the year;
(c) the sums necessary to meet each head and subhead of the proposed expenditure;
(d) the estimated total cost of projects, works and undertakings included under any head or subhead of such proposed expenditure, whether or not such projects, works or undertakings are to be completed in the year.
(2) If in respect of any financial year it is found—
(a) that the amount appropriated under any head of expenditure is insufficient or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by a resolution of the Dewan Rakyat; or
(b) that any moneys have been expended for any purpose in excess of the amount, if any, appropriated for that purpose by a resolution aforesaid,
a supplementary statement showing the sums required to be spent and the estimated total cost (or the actual cost) of the project, work or undertaking included under each subhead of expenditure shall be laid before the Dewan Rakyat.
(3) The Dewan Rakyat may by resolution approve all or any part of any expenditure shown in a statement or supplementary statement referred to in subsections (1) and (2), and shall by such resolution appropriate the sums necessary to meet such approved expenditure.
(4) The Yang di-Pertuan Agong shall cause to be laid before the Dewan Negara a statement of any expenditure approved by the Dewan Rakyat under subsection (3).
(5) The Yang di-Pertuan Agong may, in respect of any financial year, cause to be laid before the Dewan Rakyat a provisional statement showing the sums necessary to meet urgent expenditure until the statement referred to in subsection (1) is laid before the Dewan Rakyat; and it shall be sufficient to indicate in such provisional statement the heads of the proposed expenditure.
(6) Subsections (3) and (4) shall apply to a provisional statement laid before the Dewan Rakyat under subsection (5).
Virement
If it appears to the Minister necessary to alter the proportion assigned to the subheads under a head of expenditure shown in a statement of any expenditure approved by the Dewan Rakyat under subsection 4(3), he may by warrant under his hand direct that there shall be applied in aid of any subhead which may be deficient a further sum out of any surplus arising on any other subhead of the same head:
Provided that the amount appropriated under any head of expenditure by a resolution passed under subsection 4(3) is not thereby exceeded:
And provided further that the estimated total cost of any project, work or undertaking to which such subhead relates, as specified in the last preceding statement laid before the Dewan Rakyat pursuant to subsections 4(1) and (2) is not thereby exceeded.
Contingencies Reserve in Development estimates
(1) Notwithstanding anything in section 3 there may be included in any such statement as is referred to in subsections 4(1), (2) and
(5), provision for a Contingencies Reserve; and references in the said section 4 to expenditure shall include references to such provision as aforesaid.
(2) Moneys appropriated to the Contingencies Reserve shall be applicable, at the direction of the Minister, for making advances for meeting expenditure for a purpose falling within the terms of the First Schedule pending approval of a statement or supplementary statement under section 4.
(3) A schedule of any direction under subsection (2) shall be laid before the Dewan Rakyat at its next meeting.
Lapse of appropriation
Every appropriation made under section 4 shall lapse and cease to have any effect at the close of one calendar month following the financial year, and no payment shall be made of the appropriation during that month except in respect of work performed, goods received, services rendered or any other contractual arrangement made prior to the end of that year and properly chargeable to the accounts of that year.
Authority for issue of sums appropriated, etc.
The Minister may by warrant under his hand authorize the issue from the Federal Consolidated Fund of sums appropriated under section 4 or directed to be applied in accordance with section 6, and may limit or suspend any expenditure so authorized.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).
