Ministries, divisions: ECC can only issue supplementary grants on request, PAC told

ISLAMABAD: The Finance secretary apprised the Public Accounts Committee (PAC) on Wednesday that power to issue supplementary grants has been withdrawn from Finance Division and now Economic Coordination Committee (ECC) can only issue supplementary grants on the request of ministries and divisions.

Secretary/Principal Accounting Officer (PAO) of ministries and divisions, he said, however, has the authority to re-appropriate the grants.

The committee meeting held here with its Chairman Rana Tanvir Hussain. It directed federal government to introduce an efficient financial discipline by encouraging government departments to come up with true budgetary estimates of development and non-development expenditure of the whole financial year.

In another ruling, Chairman Committee Rana Tanvir Hussain directed Finance Division to provide list of recently recruited heads of public sectors like NTDC, Gas Companies and others on hefty salaries and other remunerations. He said the committee would examine whether their qualifications and specialties were matched with the package given by the government.

While, examining appropriation accounts of Interior Division for financial year 2018-19, the committee found that supplementary grant was taken during the period and 52 percent of final grant was lapsed despite surrendering substantial amount.

Chairman committee remarked that this shows poor budgeting and inefficient financial discipline. He observed that supplementary grants were sought in case of natural calamity like Covid-19 or earthquake and Supreme Court of Pakistan in 2013 had also given a strict ruling against supplementary grants. The departments were violating the sanctity of budget and reliance on supplementary grants for clear their electricity bills, purchase of vehicles etc was increasing, he added.

Secretary Finance Division Kamran Ali Afzal disclosed that the tendency in providing supplementary grants came down during last financial year 2019-20 and it would further come down in coming years after introduction of a set of reforms in public management system.

Citing few steps, he added, the Finance Division was no more authority to sanction supplementary grants. Now, he said, ECC and cabinet, democratic forums with elected members decide on request for supplementary grant.

He maintained that government departments asked for supplementary grants previously for their mandatory requirements and later government got ex post fecto approval from cabinet and National Assembly. However, he said this practice was diminishing.

He said the government also devolved the power of PAO from secretary to anyone in the division/ ministry. The reforms would help the government to make accountable to PAOs, he added.

Auditor General of Pakistan (AGP) Javaid Jehangir endorsed secretary finance statement. He said the three years audit of federal government was proving that tendency in giving supplementary grants was slowed by giving additional powers to PAOs and chief financial officers (CFOs).

The committee showed its dissatisfaction over the claims of secretary finance that they released funds quarterly and timely and their objections for delay in releasing funds were invalid.

Chairman PAC also expressed his displeasure over non-appearance of Chairman National Database & Registration Authority (NADRA), Chief Commissioner ICT Amer Ali Ahmad before the panel.

Secretary Interior Yousaf Naseem Khokhar apprised the committee that acting charge was given as chairman NADRA in February 2021 and process of selection of suitable candidate for the post was in progress. The committee was further informed that acting chairman NADRA proceeded to Kenya for signing of an MOU and chief commissioner ICT was not well.

Copyright Business Recorder, 2021