Austerity plan to cover all expenditures, except salary

ISLAMABAD: As part of the government’s austerity drive, the finance ministry has decided to freeze all current expenditures of ministries, divisions and projects that do not pertain to employees. The move is aimed at saving Rs3.8 billion.

In a circular issued to all federal secretaries and principal account officers, the ministry said on Wednesday the revised budget indicative ceilings for all ministries and divisions had been compiled and savings as worked out on account of “freezing of non-employee-related current expenditures” be surrendered as per rules to the budget wing of the ministry.

The circular noted that while approving the budget proposals for the fiscal year 2010-11, the parliament had resolved that all the ministries in the federal government would ensure that their non-salary expenditures, necessary for running the daily affairs, did not exceed the limits for 2009-10.

The Cabinet Secretariat has been asked to surrender Rs1 billion which is the highest among all ministries and divisions.

The Cabinet Division’s expenditures cover Prime Minister’s Secretariat, National Accountability Bureau (NAB), National Reconstruction Bureau (NRB), Establishment Division, Federal Public Service Commission, Emergency Relief and Repatriation, Board of Investment, Prime Minister’s Inspection Commission and the Atomic Energy Commission.

The Ministry of Information Technology has been asked to surrender Rs468 million, followed by Education Rs401.5 million; Commerce Rs309 million; Finance and Planning Rs236 million; and Communication Rs207.9 million.

The Ministry of Culture will surrender Rs36.8 million; Defence Rs259 million; Economic Affairs Division Rs52.9 million; Environment Rs24.2 million; Agriculture Rs1.48 million; Foreign Affairs Rs768,000; Health Rs91.9 million; Housing and Works Rs79.9 million; Human Rights Rs38 million; Industries and Production Rs36 million; Information and Broadcasting Rs95 million; Inter-provincial Coordination Rs1.96 million; Interior Rs168.9 million; Law and Justice Rs219 million; Narcotics Division Rs137.6 million; Parliament Rs104.1 million; Science and Technology Rs194.8 million and Auditor-General Pakistan Rs123.7 million.

In view of a difficult financial situation, the government has decided at the federal cabinet level to take austerity measures and minimise its expenditure, and officials said that freezing the non-employees related current expenditure is the first step in this direction.