The federal government has imposed a ban on supplementary grants for additional expenses as part of its ongoing austerity measures.
According to a recent office memorandum by the Finance Division, no additional funds will be released except those already approved by parliament. The ministry has introduced a new strategy for reallocating or transferring funds between various heads, and this policy will be in effect for the current fiscal year 2024-25.
A letter has been sent to all federal ministries and divisions outlining the new rules, which also set a deadline of May 31 for any adjustments in fund allocation. The competent authority will be allowed to transfer released funds from one place to another within this framework.
The memorandum explicitly states that no grants for additional expenditures will be approved. All ministries and departments are required to operate within the funds allocated in the budget.
However, exceptions will be made for situations involving natural disasters. In such cases, the Ministry of Finance will have the authority to release additional funds, provided the Principal Accounting Officer (PAO) certifies that all other financial options have been exhausted, leaving no alternative to supplementary grants. The approval of the Finance Ministry’s Expenses Wing will also be mandatory.
