ISLAMABAD – The Civil government’s expenditure has reduced by Rs. 9 billionin the first quarter of the current fiscal year (2019-20) compared to thesame period of the last fiscal year (2018-19) claims the Ministry ofFinance.
According to the report by the local newspaper, the expenditure of thecivil government for the first quarter of the fiscal year (2019-20) hasfallen by Rs. 9 billion.
The report quoted its sources saying: The efforts are underway to make thegrants and subsidies more effective through targeted dispensation. Thedevelopment expenditure for the current fiscal year will be impact-basedinfrastructure spending in the neglected domains of power sectorconnectivity, renewable energy as well as regional connectivity and otheravenues.
They further stated that the recommendations to prioritize PSDP’s spendingfor completion of ongoing projects will be implemented during the currentand next financial year.
In order to revamp the entire Public Financial Management System, FinanceDivision has presented the Public Finance Management (PFM) law which hasbeen approved and enacted.
This law has put several controls and monitoring mechanisms on federalspending units, the cabinet, and the parliament.
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The committee under the PFM Act will oversee the implementation andsecondary legislation has been notified. Finance Division is working on theintroduction of pre-audit and internal audit systems within ministries.
Financing accounting and budgeting system (FABs) – IT enabler of financialtransactions – is being upgraded to introduce asset accounting, projectsand program accounting, commitment accounting and payroll management withinthe financial system.
The report said that the Treasury Single Account (TSA) policy and frameworkhave been approved and recently, the Fiscal Advisory Department of IMFextended technical facilitation to achieve structured implementation of TSAwhich revolves around efficient cash management, treasury management, anddebt management.
