Why is RM648 million being reallocated from the Consolidated Fund?

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RM648 Million Reallocation Approved for Ministry Reorganisations

The Supply (Reallocation of Appropriated Expenditure) Bill 2024 has been passed by the Dewan Rakyat, authorising the reallocation of RM648,537,400 from the Consolidated Fund. This significant financial adjustment is primarily necessitated by a comprehensive reorganisation of government ministries, including renaming, establishing new entities, and transferring functions between departments, all in response to the formation of the new Cabinet on December 12, 2023. The reallocation also covers the necessary restructuring of agency programmes to align with these ministerial changes.
Reorganisation Driven by Cabinet Reshuffle

The formation of a new Cabinet on December 12, 2023, triggered a cascade of structural changes within the government. This involved the reorganisation and renaming of several existing ministries, alongside the establishment of entirely new ministries. Crucially, these changes necessitated the transfer of specific functions and responsibilities from one ministry to another, thereby altering the operational landscape of government administration. The Supply Bill directly addresses the financial implications of these shifts.
Funding for Transferred Agency Programmes

Beyond the broad ministerial restructuring, the reorganisation also entails the transfer of various agency programmes between these reshuffled ministries. Each original ministry, from which programmes were moved, requires a subsequent reorganisation of its remaining functions to accommodate these new allocations. This process ensures that government operations continue effectively, with programmes appropriately situated within their new ministerial frameworks.
Specific Allocations Detailed

The approved reallocation provides specific funding envelopes for various government departments and ministries. The Prime Minister's Department is set to receive RM64,912,200, while the Public Service Department has been allocated RM21,673,000. The Ministry of National Unity receives RM1,433,200, and the Ministry of Entrepreneur and Cooperatives Development is allocated RM783,700.
Substantial Funds for Energy and Digital Portfolios

A considerable portion of the reallocated funds is directed towards specific portfolios. The Ministry of Energy Transition and Water Transformation is allocated RM340,087,300, reflecting significant adjustments in this sector. Furthermore, the Ministry of Communications receives RM37,382,400, and the newly established Ministry of Digital is allocated RM182,265,600, underscoring the government's focus on these areas.

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Why is RM648 million being reallocated from the Consolidated Fund?

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