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Print Print 2023-12-20

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
Published December 20, 2023

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

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Ather Dec 20, 2023 07:09am
@Faraz, mufti sahab. Ap k fatway ka shukriya. Konsi hadith se nikala hy apne ye fatwa?
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Ash Chak Dec 20, 2023 09:31am
How about we start implementing austerity measures with the PM and his cabinet’s foreign jaunts?
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KU Dec 20, 2023 09:50am
There are many dreams that are impossible, austerity in government is one of them. Tea and biscuits cut is not austerity, but dolling out billions of rupees new cars to the Raj could have been stopped. Same is true for other perks that BR has not mentioned.
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Usman Dar Dar Dec 20, 2023 12:44pm
Need a ticketna57
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Salman Mahmud Dec 20, 2023 01:22pm
First and foremost government needs to see how to reduce spending on development projects that are not creating any revival in the economy in the form of distribution of wealth and re-investment of spent money.
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Xavier Dec 20, 2023 11:23pm
We have to be serious and austre in our spending for one and all generally.
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