What financial autonomy will Parliament gain under the new Act?

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Parliament to Gain Enhanced Financial Autonomy Under Proposed Act

Parliament is set to achieve greater autonomy in managing its finances and administration with the proposed revival of the Parliamentary Service Act (PSA). This legislation aims to empower Parliament by allowing it to receive funds directly from the Finance Ministry and have the discretion to determine its expenditure. An internal audit mechanism, subject to the auditor-general's scrutiny, will be implemented to oversee these financial operations.
Direct Funding and Expenditure Control

Under the proposed amendments, Parliament will receive its allocated funds directly from the Finance Ministry. This direct disbursement mechanism is intended to provide Parliament with increased control over its financial resources, enabling it to manage its budget more effectively and independently. The Act will grant Parliament the freedom to decide how these funds are allocated and spent, aligning expenditures with parliamentary needs and priorities.
Establishment of a Parliamentary Service Commission

A key component of the revived Act is the establishment of a Parliamentary Service Commission. This commission will be responsible for the management of parliamentary personnel, thereby removing it from the purview of the Public Services Department. This change will allow Parliament to recruit its own officers, further enhancing its administrative independence and operational flexibility.
Oversight and Accountability Mechanisms

While granting greater financial autonomy, the proposed Act also incorporates mechanisms for oversight and accountability. An internal audit will be conducted to monitor how parliamentary funds are spent. Furthermore, these internal audits will be subject to the scrutiny of the auditor-general, ensuring transparency and adherence to financial regulations. A council, chaired by the Dewan Negara President and Dewan Rakyat Speaker, will also be established to oversee parliamentary affairs.
Timeline for Revival and Implementation

The revival of the Parliamentary Service Act, which was repealed in 1992, is a significant development after decades of advocacy by civil society groups since 2005. A draft Bill is currently being prepared for Cabinet approval, with the intention of tabling it in the Dewan Rakyat during the October session. Should the Bill be passed, a six-month transition period will be provided for its full implementation.

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What financial autonomy will Parliament gain under the new Act?

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