FROM JAIYA ANSWER

Parliament is a highest positioned bicameral body under the legislative branch of the Federal
Government that consists of the House of Senate and House of Representatives. Parliament
exercises its power throughout all the aspects of country development including financial
matters. Parliament has the authority to raise or impose taxes & and authorise public
expenditures. There can be no taxation or loans without the consent of Parliament. Under
section 96 of Malaysian Federal Constitution (MFC) 1957, it is clearly stated that ‘no
taxation shall be levied by or for the purposes of the Federation except by or under the
authority of federal law’

Besides, Parliament limits public agencies expenditure through approved allocation.

All public money must be put in one consolidated fund and no payment can be issued out of
the consolidated fund except as authorised by Parliament. Consolidated fund is referred to as
all revenues and money however raised or received under section 97(1).

Moreover, parliament is responsible to table and pass the prepared and audited federal
accounts. In order to make the process go smoothly, parliament will authorise executives to
make expenditures, borrow and administer programs in accordance with any relatable laws
that affect them such as section 102. On the other hand, parliament’s one of the main tasks is
sanctioning the overall public sector financial plan or also known as an annual budget.
Annual budgets must be tabled and approved by Parliament in accordance with section 99 (2)
of MFC 1957.

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After that, Parliament also has the power during ‘Budget Approval Phase’ which
happens on October until November and the budget bill legislative procedure (table, debate,
vote in parliament (House of Representatives and House of Senate This can be proven after
the budget has been formulated by the executive, the proposed budget need to be submitted to
parliament for approval. At this phase, all the process and procedure at parliament must be
fulfilled. This phase ends with the issue of a general warrant by the minister of Finance. The
government has the authority to withdraw the money from the Consolidated Fund for the
particular purposes; charged expenditure (article 98); supply expenditures (article 100);
excess supply expenditures (article 101); unspecified expenditures (article 102); and
Contingencies fund (article 103). Charged expenditures by their nature are not subject to the
Parliament approval, while it is necessary for the proposed supplies expenditure to obtain the
parliament approval before being implemented. Whereas, proposed supplies expenditures to
be met from the consolidated fund is known as Supply Bills and once it is approved by the
Parliament, it becomes the Supply Act. In the case where the amount is appropriated and
approved through the Supply Act is insufficient a supplementary supply expenditures budget
can be prepared and submitted to the Parliament. Beside the money from the Consolidated
Fund also can be used for the unspecified expenditures and Contingencies Fund. Unspecified
expenditures derived for the unusual urgency but not included in the approved budget and to
relate with the power of Parliament in financial management it needs the approval of
Parliament before being implemented. Contingencies Fund is a fund created by the
Parliament and controlled by the Ministry of Finance can only be used as advances for the
expenditure and the amount used need to be replaced by a supplementary budget.

Aside from that, Parliament also has the power in financial management pertaining to
supply expenditure that can be identified as code (B) as Parliament approval is needed
through supply act (article 100) before any supply expenditure can be allocated and expense
off. All charges to budgetary expenditures for services and products, as well as transfer
payments to statutory funds, state governments, and public companies, were provided and
governed under the supply act. In contrast, for Charged expenditure that will be identified
with the code (T) is unnecessary to ask for approval of parliament, for Charged Expenditure it
is an obligatory payment under the law and do not require to be appropriated annually
(approval from parliament not necessary) and Charged directly to the consolidated fund under
Article 98 of FC other than that Charged Expenditure also a repeated expenditure and Fixed
in nature & main priority in allocation of the fund. These both Supply Expenditure and
Charged expenditure are categorized under Operating Expenditure (Maintenance
Expenditures)for example, costs incurred by the government for keeping the daily operation
of government departments & agencies, such as Ministry of Health, Ministry of Education,
Ministry of Tourism, and so on so forth and is a consumption expenditure (not generated
future income) Among others includes general administration, Emoluments (salaries of
public workers & government officers), Pensions & Gratuities for pensioners, Supplies &
Services, and Debt Services Charges.

Finally, in accordance to Treasury Instruction (BNPK CR 8.15/July 2008) to further

relate the power of Parliament in the financial management it explains that the Public
Accounts Committee is made up of a Chairman and Vice-Chairman who are selected by the
House, as well as six to twelve members who are proposed by the Committee of Selection as
soon as possible after the start of each Parliament. The Public Accounts Committee is
established at the start of each Parliament to examine the Federation's accounts and to
appropriate the funds allocated by Parliament to satisfy public spending. In addition, any
accounts of public authorities and other entities in charge of public monies that may be
presented to the House of Representatives. Aside from that, according to Article 107 of the
Federal Constitution, the Auditor-report General's must be placed before the House of
Representatives by the Public Accountant Committee constituted by Parliament. Parliament
also has the power to grant a mandate to the Public Accounts Committee to examine the
accounts of the Federation and the appropriation of the sums to meet the public expenditure.