Govt Spent Rs. 3.2 Trillion Without Parliament’s Approval: Report

The federal government’s financial management has come under renewed scrutiny after audit reports for the audit year 2025-26 revealed widespread budget irregularities, weak financial controls, unapproved spending worth trillions of rupees, and cases involving embezzlement of public funds.

One of the most significant findings was that supplementary grants amounting to Rs. 3,177 billion, or 92 percent of the total Rs. 3,454 billion obtained during FY25, had not been approved by parliament. The Auditor General questioned the government’s compliance with constitutional and parliamentary requirements governing public expenditure.

The reports also showed that supplementary grants worth Rs. 1,833 billion were obtained for repayment of loan principal without proper assessment of actual requirements, resulting in excess expenditure. In addition, spending exceeding the final grant authorized by parliament amounted to Rs. 187 billion.

Auditors found that federal entities sought budgetary allocations totaling Rs. 3,809 billion without adequately assessing their needs. Despite requesting substantial funds, 115 cost centers failed to utilize Rs. 87 billion, which eventually lapsed, while supplementary grants worth Rs. 41 billion remained unspent.

The Auditor General identified several constitutional and financial management violations, including the transfer of Rs. 7 billion from the Federal Consolidated Fund to the Public Account in violation of Article 78 of the Constitution and the failure to transfer Rs. 24 billion in unclaimed deposits from dormant accounts to the government account.

The audit reports also highlighted weaknesses in accounting and reporting systems, including the absence of debt and losses reports, non-maintenance of fixed asset and liabilities registers, and missing General Provident Fund subscriptions in individual accounts.

According to the Auditor General, many federal entities lack functional internal audit units and have yet to appoint Chief Internal Auditors. The reports uncovered two cases involving embezzlement, misappropriation of public money, and fictitious payments, along with 82 recovery cases and 78 instances of weak internal controls.

The Auditor General recommended that cases involving serious embezzlement be referred to investigation agencies, while the findings are expected to reignite debate over fiscal discipline, parliamentary oversight, and accountability in public spending.