39 govt departments exceed budget allocations by Rs2.85 trillion in FY2024-25

At least 39 federal government departments, particularly in the power and defence sectors, have exceeded their budget allocations for fiscal year 2024-25, with overspending reaching Rs2.85 trillion, according to budget documents. The power and defence ministries overshot their respective budgets by Rs129.5 billion and Rs61 billion.

The Defence Ministry, under the Defence Services Division, exceeded its allocation by Rs59.5 billion, largely in areas like ‘operating expenses’ and ‘physical assets.’ For example, the allocation for physical assets was revised from Rs730 million to Rs2.5 billion. 

Similarly, the Power Division exceeded its budget by spending Rs159 billion under the ‘investments’ head, despite no initial allocation for that purpose.

Other departments also saw overspending, including the National Health Services Division, which overshot its budget by over Rs24 billion, primarily due to increased ‘operating expenses.’ 

The Federal Board of Revenue (FBR) and Pakistan Post also exceeded their allocations by Rs6.57 billion and Rs6 billion, respectively.

While the government managed to save Rs1.77 trillion in foreign debt payments, domestic debt servicing saw an increase of Rs2.6 trillion, with the government paying Rs33.85 trillion for both foreign and domestic debts, slightly exceeding the allocated amount by Rs4 billion.

On the other hand, several departments failed to utilize their full budgets, including the Finance Division, which saved Rs216 billion in ‘Grants, Subsidies, and Miscellaneous.’ 

Similarly, the Economic Affairs Ministry saved Rs7.7 billion, and welfare initiatives, such as poverty alleviation and housing programs, were also underfunded. 

The Poverty Alleviation and Social Safety Division left Rs1.64 billion unspent, while the housing sector failed to utilize Rs2.1 billion despite a housing crisis in the capital.

In total, the government saved approximately Rs2 trillion, but departments that overspent exceeded their budgets by Rs2.85 trillion. The funds not utilised by certain ministries and departments will be addressed in the upcoming budget approval process under Article 82 of the Constitution.