Fiscal consolidation: Ministries, divisions asked to strictly adhere to funds release strategy

ISLAMABAD: Secretary Finance, Imdad Ullah Bosal has asked ministries and divisions to strictly adhere to the funds release strategy 2023-24 for fiscal consolidation.

A letter to all the principal accounting officers/ federal secretaries/ additional secretaries in-charge, seeks their attention to $ 3.0 billion 9-month Stand-by Arrangement (SBA) with the IMF, which requires the Government of Pakistan to curtail fiscal deficit and primary balance at levels agreed with the IMF through revenue mobilization, expenditure controls and fiscal discipline.

Bosal replaces Yaqoob as finance secretary

According to Secretary of Finance, in this regard, the government has committed not to allow supplementary grants for any unbudgeted spending over the parliamentary approved levels in FY2023-24, at least until the formation of a new government after the elections. The only exception provided for unbudgeted spending are natural disasters.

He has further requested all PAOs to observe strict control while incurring expenditures, adding that for prudent fiscal management, Finance Division has issued funds release strategy for FY2023-24 which sets quarterly release limits both for employee and non-employee related expenditures. This strategy may be strictly adhered to.

Furthermore, a check on non-essential expenditures may also be kept to ensure that the Government meets its international commitments, he added. Similarly, it is important to enhance efforts towards optimal resource mobilization.

He has advised that tax and non-tax revenue targets set in FY2023-24 budget may be regularly monitored and reviewed, and reported to Finance Division on monthly and quarterly basis.

Copyright Business Recorder, 2023