Opposition Leader Lim Kit Siang says Finance Ministry Parliamentary Secretary Hilmy Yahaya should explain how he had arrived at a set of government expenditure figures that were completely different from that announced later by Second Finance Minister Nor Mohamed Yakcop.

"A proper explanation is owed to Parliament and the nation for this gross discrepancy committed by Hilmy," said Lim, who is also Ipoh Timor MP.

On Saturday, Nor Mohamed ( photo ), in a statement to The Star , clarified that the government has RM49.4 billion left to spend under the Eighth Malaysia Plan (2001-2005), and not RM17 billion as originally announced by Hilmy.

Hilmy, who announced his figures to reporters at the parliament lobby last Friday, noted that ministries had spent their RM160 billion, allocated over five years, much 'too fast' and failed to stagger their expenditure until 2005.

According to Hilmy, ministries had been directed to scale back their 2004 spending in line with the government's move to reduce its budget deficit, targeted at RM18 billion for 2003 to 2004.

Due to shortfalls, the health ministry will, in particular, be applying for extra allocation from the supplementary budget in July, he said.

But the latest comment from the Finance Ministry noted that the government will not have problems implementing development projects this year as it has spent only RM110.6 billion out of RM160 billion allocated under the Eighth Malaysia Plan.

In saying this, Nor Mohamed added that with the amount left, the country's financial position is still at a comfortable level.

The health ministry, he said, has ample funds because only RM2.27 billion of its RM6.38 billion operating allocation had been spent as at May 31. Over the same period, the ministry only spent RM863.4 million out of its RM2.6 billion development allocation.

"The ministry still has enough funds to meet its commitments until the end of this year," said Nor Mohamed.

'Spend on education'

Lim, in a statement issued today, said he welcomed the clarification and the assurance that the government has ample funds to continue implementing its development projects.

However, he also said the government should explain the discrepancy in parliament when the 2004 supplementary budget estimates are debated.

"In any event, the assurance by Nor Mohamed should reinforce the case for the increase of an additional 4,000 university places to resolve the injustices of the university student intake, and match last year's 16 percent increase in student intake," Lim said.

It was revealed recently that scores of pre-university students had been either denied places in public universities this year - despite meeting the minimum 2.0 cumulative grade point average - or denied their choice of university studies or offered courses that had little to do with their STPM subjects.

Of the 85,966 students who applied to 14 public universities, 84 percent qualified for entry but only 45 percent were offered places.