Business & Finance Print edition: 2026-06-25

AGP findings: About 92pc of supplementary grants remain unapproved by parliament

Published June 25, 2026 Updated June 25, 2026 05:32am

4 min

By Tahir Amin

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ISLAMABAD: The Auditor General of Pakistan (AGP) has revealed that 92 percent of the total supplementary grants, amounting to Rs3,177.68 billion out of Rs3,454 billion, remained unapproved by the Parliament.

According to the Audit Report on the Accounts of the Federal Government (Civil) for Audit Year 2025-26, the government incurred excess expenditure of Rs1,833.38 billion on principal loan repayments through supplementary grants issued without proper needs assessment.

The report also highlighted excess expenditure of Rs187.68 billion beyond the approved final grants and pointed to an unjustified budget demand of Rs3,809.19 billion made without adequate assessment of actual requirements.

The audit is of the view that non-placement of supplementary grants before the National Assembly constitutes a contravention of Article 84 of the Constitution of the Islamic Republic of Pakistan.

Further non-utilisation under 115 Cost Centers resulting in to lapse of Rs87.34 billion and non-utilisation of supplementary Grant - Rs41.68 billion.

Irregular Transfer of Funds from the Federal Consolidated Fund to the Public Account in Contravention of Article 78 of the Constitution - Rs7.50 billion.

The report noted that, as per the Appropriation Accounts for the financial year 2024-25, there was a total provision of Rs43,438.86 billion, however, after the surrender and supplementary grants, final allocation was Rs39,345.23 billion. The actual expenditure was Rs41,335.73 billion with Rs1,990.50 billion (5.06 percent) excess, greater than the final allocation.

Overall appropriation figures revealed that the Federal Government granted supplementary grants of Rs3,461.83 billion, of which Rs3,177.68 billion were not approved by Parliament. In four (4) grants, there was a saving of Rs8,003.22 billion after supplementary grants of Rs5,589.56 billion, showing non-utilisation of 100 percent supplementary grant. In 9 Grants, there was excess expenditure of Rs187.68 billion against the final appropriation of Rs11,235 billion without obtaining any supplementary grant.

There was a slight increase in the share of total expenditure on current and development grants during the financial year 2024-25 as compared to the financial year 2023-24. As per Appropriation Accounts of the Federal Government, for the financial year 2024-25, the total expenditure of Rs41,335.73 billion was booked by the AGPR and its subordinate offices. A high percentage of expenditure, i.e. 95.76 percent was expended on General Public Service, which includes 84.31 percent on repayment of debt and interest payments during 2024-25, which was 86.69 percent during 2023-24. Therefore, the Federal Government was left with a meager 15.69 percent of total expenditure for socio-economic functions (other than debt), which is slightly higher than last year’s percentage of 13.31 percent.

As per the Financial Statements of the Federal Government, for the financial year 2024-25, the Government expended Rs43,590.09 billion against the total receipts of Rs42,886.75 billion out of the Federal Consolidated Fund.

As per the Financial Statements of the Federal Government for the financial year (FY) 2024-25, there was an increase in receipts of domestic-floating and permanent debts to Rs14.93 trillion and Rs14.64 trillion, respectively, as compared to last year’s receipts of Rs21.69 trillion and Rs10.65 trillion, respectively. However, receipt of foreign debt was a bit increased to Rs3.20 trillion as compared to the previous year’s receipts of Rs2.36 trillion. The retiring of debt shows that during the financial year 2024-25, the Federal Government paid off Rs16.50 trillion and Rs7.07 trillion of floating and permanent domestic debts, as well as Rs2.28 trillion of foreign debt. Resultantly, the Federal Government decreased its debts by Rs6.91 trillion during 2024-25, which is 17 percent decrease from the last year, 2023-24.

To meet its expenditures, the Federal Government mainly relied on borrowings in the shape of public debt (domestic and foreign debt), which contributed Rs32,766.06 billion (76.40 percent) of the total receipts. There is a bit less reliance on borrowings as compared to last year, when public debt to the tune of Rs34,710.80 billion was part of the total receipts.

During the financial year 2024-25, tax receipts of the Federal Government were Rs11,674.64 billion as compared to Rs9,246.17 billion for the previous financial year, which represents an increase of 26.26 percent. Out of the total tax collections for the financial year 2024-25, the Federal Government has transferred Rs6,583.98 billion to the provinces. These transfers are made from all heads of taxes in accordance with the NFC Award. The net tax reported after the transfers leaves the Federal Government with a tax revenue of Rs5,090.66 billion against Rs4,170.47 billion in comparison with the previous financial year.

In 2024-25, there was a huge growth in Income Tax, including nominal growth in the Sales Tax, Federal Excise, Custom Duty and others taxes which in total have increased by Rs920.18 billion (from Rs4,170.47 billion in the FY 2023-24 to Rs5,090.66 billion in the FY 2024-25) as compared to the previous financial year 2023-24.

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