ISLAMABAD: The Ministry of Finance has directed all federal ministries and divisions to return surplus development funds allocated under the Public Sector Development Program (PSDP) for the fiscal year 2024-25, in a move aimed at averting audit concerns ahead of the upcoming federal budget.
The directive follows a downward revision of the federal development budget from the originally approved Rs1.4 trillion to Rs1.1 trillion. Ministries had submitted their funding requirements based on the earlier, higher ceiling. To reconcile the discrepancy, the Finance Ministry has asked for immediate surrender or adjustment of funds exceeding the revised allocation.
In an official communication issued this week, the Ministry urged all departments to prioritise issuing surrender orders in favour of the Finance Division. The adjustment, according to officials, is essential for maintaining fiscal discipline and ensuring that the development budget conforms to revised limits. Any misalignment, they warned, could invite audit objections for the current fiscal year.
The development comes as the government seeks to tighten spending ahead of the new budget cycle amid rising fiscal pressures.
