Avoid hasty year-end spending, says Chief Secretary

The Star

07-05-2025

PUTRAJAYA: The practice of hasty year-end spending in the civil service, which often leads to waste of resources, must be avoided entirely, says the Chief Secretary to the Government.
Tan Sri Shamsul Azri Abu Bakar ( pic ) said poor expenditure management undermines the efficient use of resources and risks creating negative perceptions about the government's integrity and governance.
He added that, although the Auditor-General's Report continues to raise issues about the government's financial management, misappropriation and wastage of public funds still occur.
'If left unaddressed, this issue could become increasingly complex, and, without firm solutions, it will affect the credibility and public perception of civil servants in general,' he said at the opening of the 2025 Management Accounting Seminar here yesterday, Bernama reported.
The event was organised by the Accountant General's Department.
The text of his speech was read out by Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi.
According to Shamsul Azri, civil servants must ensure that transparency, integrity and accountability remain central principles of governance and ethics.
He said the government is focused on optimising public spending by reviewing expenditure policies and allocating limited resources to ensure efficiency, effectiveness and value for money.
'Continually implementing policies geared towards targeted subsidies allows the government to reduce waste and leakage while creating fiscal space to improve assistance for vulnerable groups.'
He added that the government has taken a positive step forward by amending the Audit Act 1957, which will broaden the audit scope concerning the management of public funds.
This effort also ensures that audit recommendations are taken seriously and acted upon appropriately by all relevant parties, including ministries, departments, agencies, and any entities or companies that receive public funds,' he said.
Shamsul Azri also said the Accountant General's Department, as the lead agency for management accounting across ministries, has introduced the Treasury Circular PS 1.3 – Implementation of Management Accounting.
He said the circular outlines the policy and implementation of management accounting via the introduction of Strategic Management Accounting and Reporting (SMARt).
'This initiative directly enhances the efficiency, effectiveness and accountability of ministries in managing finances, risks, resources and performance by ensuring optimal resource utilisation,' he added.
As such, Shamsul Azri urged all ministry secretaries-general, who also serve as controlling officers, to ensure the effective implementation of management accounting and SMARt in order to improve transparency and accountability in all financial decisions.