Recurrent budget, expenditures for 2026-27: FBR issues strict procedure for fund release

ISLAMABAD: The Federal Board of Revenue (FBR) has issued a strict procedure for heads of field formations (Inland Revenue/Customs) seeking release of funds for recurrent budget and expenditures for 2026-27.

According to the FBR’s Admin Wing instructions to the field formations on Monday, the FBR has referred to Budget Orders (BO) signed by the chief finance and accounts officer (CFAO) and deputy secretary (Expenditure), Finance Division for the Financial Year 2026-27 in respect of recurrent budget of the field offices of FBR.

The FBR has also quoted strategy for Release of Funds for Financial Year 2026-27 issued by the Finance Division OM dated July 1, 2026 and Austerity measures OM dated 2nd July, 2025 for strict compliance.

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All the heads of the departments/field offices of FBR are personally responsible for monitoring, execution and achievements of the objectives of the approved budget along with strict adherence to the prescribed statutory framework including provisions of Public Finance Management Act-2019, General Financial Rules, Financial Regulations, Treasury rules, directives of all the regulatory bodies and FBR headquarters, the FBR said.

The FBR’s directive stated that an analysis of SAP/Budget Execution report of FY 2025-26 revealed that a few offices incurred inadmissible expenditure resulting in over-draft (O.D) against budgetary allocation under various heads of accounts.

The concerned plead of the department/office, controlling officer and DDO shall be held personally responsible for any violation of the legal framework and may be proceeded under E&D Rules.

Consequently, no request of those office(s) for re-appropriation or additional funds will be considered till the adjustment/recovery of such overpayments.

For monitoring and reconciliation of expenditure, the FBR directed that an effective system for monitoring of monthly expenditure along with the budget appropriations may be established.

The focus of reconciliation should not only be on the recording of expenditure but the original budget, re-appropriations approved by the board, surrenders, supplementary grants, expenditure for the month/up to the month and balance of available budget must also be reconciled before reporting tothe Board, the FBR added.

Copyright Business Recorder, 2026