ISLAMABAD: The government claims it has taken measures to curtail expenditure but held the Punjab government responsible for Rs 115 billion unbudgeted spending for commodity operations.
This was revealed in the first review of the Stand-By-Arrangement documents which noted that the Punjab government has pledged (via a signed non-binding Memorandum of Understanding) to curtail Rs 115 billion in expenditure for the rest of the fiscal year to achieve the earlier committed surplus (under an earlier MoU) associated with the federal budget.
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The government’s claims to curtail expenditure are limited to:(i) directions to all the Ministries/Divisions not to allow supplementary grants for any unbudgeted spending in 2023-24 including federal grants over the parliamentary approved levels in the current fiscal year until the formation of a new government after the elections; (ii) to avoid the practice of issuing new preferential tax treatments or exemptions; (iii) commit not to grant further tax amnesties; and (iv) not to introduce any subsidy or cross-subsidy scheme in fiscal year 2024 and beyond.
A senior finance ministry official told this correspondent on condition of anonymity that the proposal to drop all 137 non-starter projects with zero financial progress from the public sector development programme (PSDP) 2023-24 has been given go ahead by the Special Investment Facilitation Council, however, the final approval would be solicited from the federal cabinet. This would enable a saving allocation of Rs116 billion in the current fiscal year.
The recommendations include: (i) all 137 non-starter projects with zero financial progress may be dropped from the PSDP 2023-24 to save allocation of Rs116 billion; (ii) no further release to SDGs achievement program (SAP) that would save balance allocation of Rs29 billion; (iii) all 49 projects having financial progress front 0-20 per cent may be shifted to respective provinces for further financing through respective ADP or postponed which would save allocation of Rs29 billion; (iii) 20 projects with 80 percent plus progress may be completed during current fiscal year on priority through re-appropriations/adjustment; (iv) as many as 150 projects having financial progress between 2I-80 percent may be critically reviewed by provinces and may be completed subject to availability of resources including provincial contribution.
Copyright Business Recorder, 2024
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