Pakistan interim govt plugs additional grants, except for natural calamities
Aug 28, 2023
Islamabad [Pakistan], August 28 : The Pakistan caretaker government has banned the provision of supplementary grants except in the case of severe natural calamities, reported Dawn.
The interim government has tightened the fiscal policy and has set firm conditions for diverting funds to other objectives until an elected government takes charge.
The Ministry of Finance told all ministries, divisions and associated departments and entities in a memorandum, "No Supplementary Grants for any additional unbudgeted spending over the parliamentary approved level in FY24 (current fiscal year) will be approved in order to remain within the approved budgetary allocation, at least until the formation of a new government after the elections (except if needed to respond to a severe natural disaster)."
It said cases for supplementary grants, even in severe natural disasters, would be considered where no funds could be made available through reappropriation. In that case, the technical supplementary grants would be taken up once the principal accounting officer leading the entity concerned provides a certificate that all avenues had been exhausted and this would need to be verified by the relevant accounting organisation, reported Dawn.
Moreover, such supplementary grants would be provided if the principal accounting officer provides valid justification and potent reasons for demanding the grant and the finance ministry's expenditure supports the justifications.
The expenditure wing will further examine cases in detail and submit recommendations for consideration by the budget wing which will then process the cases and products in a data process report along with fiscal space available for the approval of funds for diversion.
Then the finance secretary will process such requests for approval of the cabinet and its Economic Coordination Committee (ECC).
Once the federal cabinet approves this, the principal accounting officer will submit a schedule for the grants duly endorsed by the expenditure wing.
All entities and ministries have been directed that if the amount authorised for a particular service for the current financial year is insufficient or that a need has arisen for expenditure upon some new service not included in the approved budget documents, the principal accounting officers would follow a tight mechanism for the reassigning of funds, Dawn reported.
It further said that the principal accounting officers have been provided additional funds to meet the funding requirements of this year's ad-hoc relief allowance announced in the budget for the current fiscal year under a separate cost centre in each grant demand.
Moroever, these officers have been directed to reappropriate funds in consultation with the finance ministry only for ad-hoc relief allowance to cost centres of divisions, attached departments and subordinate offices within respective demands for grants no later than Aug 31.
