New austerity measures for the current fiscal year 2023-24 are currently being submitted to the Prime Minister for approval, aimed at managing and controlling current expenditures, official documents of the Finance Division revealed.
Documents noted that measures like a ban on procuring durable goods and vehicles are still in vogue and being implemented.
Last year (fiscal year 2022-23), the federal cabinet, unlike in the past, curtailed expenditure ensuring rational utilization of public money, banned the purchase of durable goods, purchase of vehicles, and creation of new posts by the ministries/divisions/departments of the federal government, 15 percent annual budget cut, serving only tea and biscuits in government meetings or single dish meals only in case of government events, ban on treatment abroad, purchase of furniture, promoting use of Zoom/video links to avoid travel expenses, the Division stated.
It further stated that the federal government takes measures to reduce expenditure through austerity measures, adequate release of recurrent budget every quarter, utilizing saved funds of the ministries/divisions budget using appropriation/supplementary grants meeting the financial demands of areas where funds are needed, and Financial Management and Powers of Principal Accounting Officers Regulations, 2021.
In addition, under the Public Finance Management Act and Financial Management and Powers of Principal Accounting Officers Regulations, 2021, the funds release strategy for the Recurrent Budget, is also being followed. Under the said strategy ministries/divisions and departments are bound to spend the allocations every quarter i.e. 25 percent each quarter for payment of salaries and pensions.
For operational spending, the expenditure limits are 15 percent for 1st Quarter, 25 percent for 2nd Quarter, and 30 percent each for the remaining two quarters, the Division noted.
