High govt expenditure: Supplementary grants blocked except for severe natural calamities

Finance ministry also sets stringent conditions on diverting allocated funds

ISLAMABAD (Web Desk) – Amid severe financial crisis and high non-development government expenditure, the caretaker government decided to ban supplementary grants barring in case of severe natural disasters, until an elected government assumes office after general elections.

The move also includes imposition of strict conditions for diverting allocated funds to other objectives as people are protesting the unprecedented rise in electricity price, forcing Islamabad to review how the financial resources are being spent.

Last week, Caretaker Prime Minister Anwaarul Haq Kakar had described “our expenditure habit” and “the way we generate revenue” as the real foe – a clear reference to the non-development government spending and taxation system which burdens the people through indirect taxes.

In this context, he had stressed the need for rationalising expenditure and the methodology applied for revenue generation.

A memorandum issued by the Ministry of Finance says no supplementary grants for any additional unbudgeted spending over the parliamentary approved level in in the current fiscal year will be approved in order to remain within the approved budgetary allocation.

It explained to the all the ministries and quarters concerned that the order would remain effect at least until the formation of a new government after the elections except the country faces a severe natural disaster

Moreover, supplementary grants, even in severe natural disasters, would be considered where no funds could be made available through re-appropriation. In that case, the technical supplementary grants would be taken up once the principal accounting officer of the entity concerned provides a certificate that all avenues had been exhausted and this would need to be verified by the relevant accounting organisation.

On Sunday, Caretaker Prime Minister Anwaarul Haq Kakar sought more time to decide on exorbitant electricity bills, triggering massive protest across the country.

آج منعقدہ اجلاس میں پاور ڈویژن نے بریفنگ دی، مخلتف وفاقی وزراءسمیت سیکٹریز نے شرکت کی۔ اجلاس میں عوام کو بجلی کے بلوں میں ریلیف دینے کے لئے وزارت توانائی اور وزارت خزانہ کو مل کر لائحہ عمل بنانے کی ذمہ داری دی گئی ہے۔ مختلف سرکاری ملازمین کو مفت یونٹس کے معاملہ پر بھی تفصیلی… https://t.co/soXBVtLScK

— Anwaar ul Haq Kakar (@anwaar_kakar) August 27, 2023

According to a statement issued by Prime Minister Office after an emergency meeting, it was decided that no step would be taken in haste which would harm the country.

Kakar directed the authorities to take “concrete steps” for a reduction in inflated electricity bills and present the plan to him within the next 48 hours, as another meeting is scheduled for today (Monday) for discuss the situation.

پریس رلیز نگران وزیراعظم انوار الحق کاکڑ کی زیر صدارت بجلی کے بِلوں میں اضافے پر ہنگامی اجلاس کا پہلا دور* *اجلاس میں وزیرِ اعظم کو جولائی کے بجلی کے بلوں میں اضافے پر تفصیلی بریفنگ دی گئی.* *آئندہ 48 گھنٹوں میں بجلی کے زائد بلوں میں کمی کیلئے ٹھوس اقدامات مرتب کرکے پیش کئے…

— Murtaza Solangi (@murtazasolangi) August 27, 2023

The meeting was held as protests have erupted across the country after people received extravagant monthly bills amid electricity tariff hike and the taxes imposed on consumers as they are already hit hard by a record-high inflation and cost of living crisis.