What happens to Budget 2023 when Parliament is dissolved? — Matilda George and Hafiz Hassan

Parliament is now dissolved, the federal budget or the supply bill that was tabled on October 7 is suspended and will be re-tabled after the General Election-15(GE-15).

It is important to note that a similar situation happened in 1999. This was during the leadership of Tun Dr Mahathir Mohamad. Parliament was dissolved unexpectedly while it was, debating on Budget 2000. When enquired on the Budget in the Dewan Rakyat, the Speaker was recorded by Hansard saying the following:

“Pada flkiran saya, oleh sebab Budget ini belum diluluskan,............. kerajaan baru yang akan dilantik selepas daripada pilihan raya ini akan mengemukakan satu Budget baru untuk kerajaan yang baru itu.”

Budget 2023 will remain a supply bill since it is yet to be passed by Parliament, and it needs to be re-tabled when the new government takes over the country.

Prime Minister Datuk Seri Ismail Sabri Yaakob and Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz arriving to present the 2023 budget at the parliament building in Kuala Lumpur on October 7, 2022. — Picture by Firdaus Latif

But importantly, as it is now, there is no authorised spending for the new government post GE-15 in 2023 until a supply bill is passed before the year ends.

However, just as the Federal Constitution provides for the Consolidated Fund, and safeguards its usage, similarly it also provides for the creation of a Contingencies Fund.

Article 103 of the Federal Constitution, states as follows

(1) Parliament may by law provide for the creation of a Contingencies Fund and for authorising the Minister charged with responsibility for finance, if satisfied that there has arisen an urgent and unforeseen need for expenditure for which no other provision exists, to make advances from the Contingencies Fund to meet that need.

(2) Where any advance is made in accordance with Clause (1), a supplementary estimate shall be presented, and a Supply Bill introduced as soon as possible for the purpose of replacing the amount so advanced.

A government cannot run a country without funds. As such, when there are unforeseeable circumstances, the Minister in charge can be authorised to make advances from the Contingencies Fund to meet that need. However, a supplementary supply bill must be presented, via Article 101 which states as follows:-

If in respect of any financial year it is found —

(a) that the amount appropriated by the Supply Act for any purpose is insufficient, or that a need has arisen for expenditure for a purpose for which no amount has been appropriated by the Supply Act; or

(b) that any moneys have been expended for any purpose in excess of the amount (if any) appropriated for that purpose by the Supply Act,

a supplementary estimate showing the sums required or spent shall be laid before the House of Representatives and the purposes of any such expenditure shall be included in a Supply Bill.

Reading together with, Articles 103 and 101 allow the government to table supplementary supply bills for the estimated amount needed,

As such, Article 102 of the Constitution empowers the Parliament:-

(a) before the passing of the Supply Bill, to authorise by law expenditure for part of the year;

(b) to authorise by law expenditure for the whole or part of the year otherwise than in accordance with Articles 99 to 101, if owing to the magnitude or indefinite character of any service or to circumstances of unusual urgency it appears to Parliament to be desirable to do so.

In short, even though Parliament has been dissolved, the Federal Constitution provides for the authorised spending by the government to meet the needs arising from unforeseeable circumstances.

How? By Parliament passing a supplementary supply bill or a new supply bill 2023. - malaymail

*This is the personal opinion of the writer and does not necessarily represent the views of MMKtT.