FBR tightens budget controls, warns field offices against overspending in FY27

The Federal Board of Revenue (FBR) has issued fresh guidelines for the release of recurrent budget funds for FY2026-27, warning Inland Revenue and Customs field offices against unauthorised expenditure and budget overruns, according to a news report. 

In instructions issued by its Admin Wing, the FBR directed all heads of field formations to strictly follow budget orders issued by the Finance Division, along with the government's fund release strategy for FY2026-27 and existing austerity measures.

The FBR said heads of departments, controlling officers and Drawing and Disbursing Officers (DDOs) would be personally responsible for budget execution and compliance with the Public Finance Management Act, 2019, General Financial Rules, Financial Regulations, Treasury Rules and directives issued by the Finance Division and FBR Headquarters.

According to the FBR, an analysis of the FY2025-26 SAP/Budget Execution Report found that some offices incurred inadmissible expenditure, resulting in overdrafts against their approved budget allocations.

It warned that officials responsible for such violations could face disciplinary action under the Efficiency and Discipline (E&D) Rules. The FBR also said requests for re-appropriation or additional funds from offices with outstanding overdrafts would not be considered until the excess payments were adjusted or recovered.

The tax authority further directed field offices to establish an effective system for monthly expenditure monitoring and budget reconciliation. It said the reconciliation process should cover original budget allocations, approved re-appropriations, surrendered funds, supplementary grants, monthly spending and remaining budget balances before reports are submitted to the Board.