Finance Division allocates Rs 757.3 million for Power Division's budget, sets strict guidelines for 2025-26

The Finance Division has allocated Rs 757.336 million as provisional Indicative Budget Ceilings (IBCs) for the Power Division for the fiscal year 2025-26, covering both Employees' Related Expenses (ERE) and non-ERE expenses. The allocation includes Rs 399.004 million for ERE and Rs 358.322 million for non-ERE expenses, according to a news report.  

These allocations are meant to address the needs of the main division, attached departments, and subordinate offices, with a specific focus on minimizing grants for autonomous bodies and entities to cover budgetary shortfalls.

In line with established budget-making principles, the Finance Division emphasized that any requests for increased allowances or other benefits should be considered only during the annual budget process, not in the current allocations. 

Additionally, the Finance Ministry reiterated its commitment to ensuring that the tax and expenditure plans comply with the provisions of the Public Financial Management (PFM) Act, 2019, particularly in regard to performance-based budgeting.

The Finance Division also outlined strict directives for all Principal Accounting Officers (PAOs) and department heads regarding the preparation of Budget Orders (BOs) and New Item Statements (NISs). These include adherence to Treasury Single Account (TSA) provisions, the protection of ERE expenditures for the full financial year, and ensuring that no new posts are created, with vacant posts older than three years to be abolished immediately. 

The Ministry also instructed PAOs to incorporate gender and climate-sensitive budgeting, with all relevant data to be tagged accordingly in the BOs and NISs.