Govt bans supplementary grants under austerity policy

ISLAMABAD: The federal government has banned the payment of supplementary grants for additional expenses under its austerity policy. The Finance Division has issued an office memorandum in this regard.

No additional funds will be released except those approved by parliament. The Ministry of Finance has issued a new strategy for the transfer of additional funds and funds from one place to another. The Ministry of Finance has written a letter to all the federal ministries and divisions. This order will be applicable to the current financial year 2024-25.

The rule has also been set for the transfer of funds so that the competent authority can transfer released funds from one place to another. The deadline for changing the allocation of funds will be May 31.

Grants for additional expenditure will not be sanctioned, it said. Expenditures will be made within the funds allocated in the budget. In case of natural calamities, the Ministry of Finance will have the authority to release additional funds. For this, the Principal Accounting Officer (POA) will give a certificate that all other avenues have been closed and there is no alternative to supplementary grants. Recommendation of the Expenses Wing will also be mandatory.