No expenditure sans available budget, PAOs warned

ZAHEER ABBASI

ISLAMABAD: The Finance Ministry has directed all the ministries and divisions to ensure that no expenditure (employees related or others) is incurred without the available budget and for excess expenditure Principal Accounting Officer (PAO) would be responsible.

An office memorandum (OM), uploaded by its website regarding “expenditure in the absence of budget provision,” asked the PAO that if there is any shortfall, the funds may be provided through re-appropriation or technical supplementary grants for the purpose. The PAOs will be responsible in case of any excess payment over the allocated budget and will also be answerable before the PAC in this regard.

The Finance Ministry, while referring to the Public Finance Management Act, 2019, stated that the PFM Act has been enacted to strengthen management of public finances in the federal government, which clarifies institutional responsibilities related to financial management and strengthening budgetary management.

As per definition of the PFM Act, the PAO is responsible for exercising financial propriety in management of public funds and having accountability to Parliament for the economic, efficient and effective use of resources.

The authority administering a grant is ultimately responsible for watching the progress of expenditure on public service under its control and for keeping the expenditure within the grant.

In the light of law and rules, the PAO is responsible to administer the demand and firstly charge the allocated budget for employees-related expenses against the sanctioned posts and to ensure that no shortfall occurs in the relevant head.

All PAOs are requested to transit business in accordance with provisions of the PFM Act and General Financial Rules in true spirit.