ISLAMABAD: Finance Division has directed all principal accounting officials (PAOs) to explain the reasons of excess expenditure, non-surrender of funds and unjustified demand of budget for fiscal year (2023-24).
In a communication of the Finance Division to all the PAOs, the meeting of the Departmental Accounts Committee (DAC) held on 12-11-2024 to discuss the Certification Audit of the Appropriation Accounts for the fiscal year 2023-24 was referred. Audit raised observations on non-surrender of funds, excess expenditure and unjustified demand of budget.
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The Public Finance Management Act, 2019 enacted to strengthen management of public finances in federal government where the authorities/ PAOs are responsible for compliance under Sections 12 and 23 for timely surrender of funds and incur expenditure, respectively.
The Finance Division said that Section 12 states that “all PAOs are responsible to surrender all anticipated savings to the Finance Division by 31st of May each year.” Section 23 states that, “no authority shall incur or commit any expenditure … from the Federal Consolidated Fund until the same has been sanctioned by a competent authority duly empowered and the expenditure has been provided for the financial year through- a) schedule of authorized expenditure or b) supplementary grant and technical supplementary grant as per Article 84 of the Constitution or c) re-appropriation”. It is; therefore, requested that PAOs may observe legal obligations under PFM Act, 2019 as mentioned above and explain the reasons of excess expenditure, non-surrender of funds and unjustified demand of budget before PAC, the Finance Division added.
Copyright Business Recorder, 2025
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