KUALA LUMPUR (March 22): Malaysia's tabling of a supplementary supply bill seeking an additional RM3.08 billion yesterday is a sign the government is expecting additional revenue, opposition lawmaker Rafizi Ramli said, noting that crude oil prices have rebounded from the US$45 per barrel figure that was used as the basis for Budget 2017.
PKR's Pandan member of parliament Rafizi Ramli said crude oil prices have risen to touch US$58 per barrel in the first two months of this year, but has since fallen to US$51 per barrel.
He said this means that the federal government would probably see a windfall gain due to the better prices, and said the tabling of the RM3.08 billion supplementary supply bill supports this.
"When the government tabled the supply bill, it gives a clear connotation that the government has (earned) or is expecting additional revenue," Rafizi told reporters at the Parliament media centre today.
"Most are expecting crude oil prices to average about US$60 per barrel this year, which translates to a gain of US$15 or RM60 per barrel. Malaysia makes about 600,000 barrels per day, translating to RM18 million to RM20 million per day of unbudgeted income," he said.
Rafizi also questioned the largest allocation of RM2.25 billion — earmarked for statutory funds — out of the total RM3.08 billion requested through the supplementary supply bill.
Based on documents he sighted, Rafizi said the bulk of the RM2.25 billion, which is sourced from the development fund, has not been approved yet.
He explained that a warrant must be issued for any overspending of the budget for the year, with the additional funding to be acquired from the various statutory funds, which include the consolidated fund and the development fund.
"However, no warrants were issued for a big portion of the RM2.25 billion. Although the amount is supposed to be spent in 2016, this means that the money has not been disbursed yet as there is no warrant.
"If the money has not been disbursed, then you must not spend it. The government cannot just overspend to create projects," added Rafizi.