Islamabad: The Ministry of Finance directed all federal ministries and departments to return the surplus of development funds allocated under the Public Sector Development Program (PSDP) for the fiscal year 2024-25, in a move aimed at avoiding fears of audit before the upcoming federal budget.
The guidance follows a declining review of the federal development budget of 1.4 trillion rupee, originally accredited to 1.1 trillion rupee. The ministries have submitted their financing requirements based on the previous higher ceiling. To reconcile the contradiction, the Ministry of Finance requested immediate surrender or amending funds that exceed the revised allocation.
In an official call issued this week, the Ministry urged all departments to give priority to issuing surrender orders in favor of the Finance Department. According to officials, the amendment is necessary to maintain financial discipline and ensure that the development budget is compatible with the revised limits. They warned that any imbalance of the imbalance could call for audit objections for the current fiscal year.
This development comes at a time when the government seeks to tighten spending before the new budget cycle amid high financial pressure.
