Sources in the Finance Ministry on condition of anonymity told this correspondent that around 85 percent of the total current expenditure is earmarked for debt servicing and defence and the remaining 15 percent is earmarked for subsidies, salaries, pensions and other expenses.
The current expenditure component for the current fiscal year comprises of: (i) mark up payment on domestic and foreign debt of Rs 1100 billion; (ii) pension military Rs 259 billion; (iii) grants to provinces and others Rs 418 billion;(iv) allocation for subsidies Rs 170 billion;(v) running of civil government Rs 463 billion with Rs 242 billion for salary and allowances and Rs 218 billion for non-salary expenditure.
Sources said that debt servicing cost is likely to increase by Rs 500 billion due to upward adjustment in the discount rate as with each 1% increase in the discount rate debt servicing rises by around Rs 150 billion.
Finance Ministry is yet to upload budgetary operation data for July-December 2018-19 on its website however sources maintain that saving of no more than Rs 21.8 billion has been effected on account of entertainment, stationary, petrol and other expenses.
The government imposed a complete ban in December 2018 on purchase of all types of vehicles by ministries and divisions, and directed them to reduce their expenditure by 10 percent by Dec 15 under the austerity drive in the current fiscal year.
A circular to this effect issued by Finance Division, titled 'Austerity measures for fiscal year 2018-19,' stipulated that there will be complete ban on purchasing all types of vehicles excluding motorcycles both for the current and development expenditure, except operational vehicles of law enforcing agencies for which no objection certificate (NOC) from Finance Division would be required.
There will be a ban on creation of new posts except those required for development projects and approved by the competent authority and entitlement of periodical, magazines, newspapers, etc, of entitled officers will remain restricted to only one.
Additionally, the delegations for foreign visits will be restricted to least number consisting of most relevant delegates only and in consideration of financial constraints, keeping in view the austerity drive of present government and to save public money, it has been decided to effect a saving of 10 percent in current expenditure.
All principal accounting officers (PAOs) are requested to work out details of savings of 10 percent under the heads operating expenses, physical assets and repairs & maintenance in current expenditure from their allocated budget and the amount so worked be surrendered. Relevant financial advisors/deputy financial advisors will work with the ministries/ divisions and will ensure 10 percent savings latest by December 15, 2018.
With regard to notification, for a vehicle purchase/creation of posts, a committee has been formed in Finance Division with the composition of additional finance secretary (expenditure) in chair and representative of the concerned ministry member of BS-20 to review the proposals seeking relaxation of ban for purchase of vehicles.