ISLAMABAD: The Finance Ministry has directed all ministries, divisions, departments, and autonomous bodies to surrender unspent funds within 10 days as the government finalizes revised estimates for FY2025-26 and prepares the upcoming FY2026-27 budget.
According to an official directive, principal accounting officers must submit anticipated savings under all major expenditure heads by May 10. Furthermore, they must report these surrendered amounts to the Budget Section for timely system entry. The categories include civil government expenses, grants, subsidies, and development allocations under the Public Sector Development Programme.
Previously, ministries were required to surrender savings by May 31 under the Public Finance Management Act 2019. However, authorities advanced the deadline following instructions from the Public Accounts Committee to strengthen fiscal discipline and ensure better fund allocation.
Meanwhile, development spending continues to face pressure. The government has reduced the Public Sector Development Programme by Rs 173 billion, roughly 20 percent of its allocation, to support subsidy measures amid rising petroleum prices.
In addition, overall utilisation of development funds has remained weak. During July to March, federal entities spent Rs 415 billion, or 41.5 percent of the Rs 1 trillion allocation. Although this marks slight improvement from last year, spending levels remain below expectations.
However, allocations for parliamentarian schemes showed higher utilisation, reaching nearly 70 percent. Similarly, the Sustainable Development Goals Achievement Programme recorded strong disbursement activity.
As of March 31, total sanctioned funds stood at Rs 589 billion, with expenditures at Rs 414.96 billion. Consequently, authorities have urged stricter compliance, warning departments against seeking additional funds without fully utilising existing allocations.
