New austerity steps await govt nod
- Official documents of the Finance Division notes that measures like a ban on the procurement of durable goods and vehicles are still in vogue and being implemented
ISLAMABAD: Fresh austerity measures for the current fiscal year 2023-24 are under submission to the prime minister for approval to control current expenditure, official documents of the Finance Division revealed.
Documents noted that measures like a ban on the procurement of durable goods and vehicles are still in vogue and being implemented.
Last year (fiscal year 2022-23) the federal cabinet, unlike in the past, to curtail expenditure ensuring rational utilisation of public money, banned the purchase of durable goods, purchase of vehicles and creation of new posts by the ministries/ divisions/ departments of the federal government, 15 per cent annual budget cut, serving only tea and biscuits in government meetings or single dish meals only in case of government events, ban on treatment abroad, purchase of furniture, promoting use of Zoom/ video links to avoid travel expenses, the Division stated.
Austerity measures: MoF links Q4 releases with surrender of 5pc non-ERE funds
It further stated that the federal government takes measures to reduce expenditure through austerity measures, adequate release of recurrent budget on a quarterly basis, utilising saved funds of the ministries/ divisions’ budget by means of appropriation/ supplementary grants meeting the financial demands of areas where funds are needed and Financial Management and Powers of Principal Accounting Officers Regulations, 2021.
In addition, under the Public Finance Management Act and Financial Management and Powers of Principal Accounting Officers Regulations, 2021, funds release strategy for the Recurrent Budget, is also being followed.
Under the said strategy ministries/ divisions and departments are budgetary bound to spend the allocations on quarterly basis, i.e., 25 per cent in each quarter for payment of salaries and pensions.
For operational spending, the expenditure limits are 15 per cent for 1st Quarter, 25 per cent for 2nd Quarter, and 30 per cent each for the remaining two quarters, the Division noted.
Copyright Business Recorder, 2023
Comments
Comments are closed for this article.