Home »Stocks and Bonds » Pakistan » FY2017-18: Government regularizes Rs 354.2 billion excess expenditure
The federal government has regularized excess expenditure of Rs 354.2 billion during financial year 2017-18 and supplementary grants of over Rs 39 billion for the financial year 2018-19, official sources told Business Recorder. According to the Finance Ministry, Article 84 of the Constitution of Pakistan, 1973, lays down the procedure for supplementary grants and excess grants. It provides that the federal government shall have power to authorize expenditure in case the amount authorized for a particular service is found insufficient or a need has arisen for expenditure upon some new service not included in budget, or money has been spent in excess of amount granted for that financial year.

It also provides that the federal government shall cause to be laid before the National Assembly the statement of such expenditures in accordance with articles 80 to 83 as they apply to annual budget statement.

The article 84 is as follows: supplementary and excess grants, - if in respect of any financial year it is found; (a) that the amount authorized to be expended for a particular service for the current financial year is sufficient, or that a need has arisen for expenditure upon some new service not included in the annual budget statement for that year; or (b) that any money has been spent on any service during the financial year in excess of the amount granted for that service for that year.

The federal government shall have power to authorize expenditure from the federal consolidated fund, whether expenditure is charged by the Constitution upon that fund or not, and shall cause to be laid before the National Assembly Supplementary Budget Statement or, as the case may be, an excess budget statement, setting out the amount of that expenditure, and the provisions of articles 80 to 83 shall apply to those statements as they apply to the annual budget statement'.

The supreme court in its judgment in civil appeal number 1428-1436 of 2016 defined the "federal government "as cabinet". The interpretation of the court, necessitated approval of the federal cabinet in respect of various cases where the term "federal government' has been in vogue in Acts, Ordinances, Laws, Rules and Regulations.

In February 2017, the cabinet on a summary moved by the Finance Division authorized the Finance Secretary for supplementary grant up to Rs 100 million and to Finance Minister for more than that. The supplementary grants were administered accordingly.

But on August 29, 2018, the federal cabinet while considering the removal of President/ CEO, National Bank of Pakistan decided that Minister for Law and Justice would analyze the case from legal perspective and give his considered opinion on delegation or powers by cabinet. Law Division has opined that the said delegation is void ab initio and of no legal effect.

Of 354.2 , repayment of domestic debt is Rs 348.1 billion, servicing of domestic debt Rs over 31 billion, pensions, Rs 12 billion and external development loans by the federal government slightly less than Rs17 billion. The sources said, current expenditure was over Rs 35.164 billion of which technical grant amounted to Rs 22.842 billion whereas regular grants were Rs 10.322 billion. The grant for development expenditure amounted to Rs 3.9 billion, of which Rs 3.637 billion was under the head of technical grant whereas Rs 263.502 million was regular grant. The sources said, of total grant of Rs over 39 billion, Rs 29.479 billion were released as technical grants and Rs 10.585 billion as regular grant.

Copyright Business Recorder, 2019

the author

I did graduation from the Government Murray College Sialkot and MSc in Psychology from the University of Punjab. I am in journalism since 1990. I worked in Daily Nawa-i-Waqt as sub editor and staff reporter in Daily Pakistan and Daily Din prior to joining Daily Business Recorder. I have been associated with this newspaper since 2000 as staff reporter. Energy Sector, Commerce / Trade and Industries are key areas of my interest. I have also the credit of exposing number of scams like Rental Power Plants (RPPs), LNG, sugar import, etc.