ISLAMABAD (Newsman): The International Monetary Fund (IMF) has found big faults in the budget-making practices in Pakistan, explaining that significant modifications are seen in the volume and composition of spending as against the actual approved budget by the parliament.
This change has seen in almost half of the approved budget in fiscal year 2022-23 compared to the actual expenditure through technical supplementary grants (TSA) and supplementary grants.
The IMF issued its Pakistan’s Technical Assistance Report which suggested that these findings were revealed during the study of the Pakistan’s recent budgetary outcomes from planned exercises of budget making.
While, these are mainly due to an unlikely external environment and political uncertainties in the country. The stronger financial institutions can help make a more credible budgets, robust execution and to control policy slippages.
According to the report, the government has made these alterations in the planned budget through technical supplementary grants and supplementary and excess grants.
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The total volume of these supplementary grants more than half of the budget spending.
The Pakistani authorities have altered worth Rs 1910 billion, equivalent to 21.9 per cent of the approved budget during the financial year, the report suggested.
The authorities have changed the size of development and current budget in the original budget exercise.
The authorities use their powers through Article 84 of the Constitution that allows to approve these grants without the prior approval of the National Assembly.
The country goes through from tight financial constraints, which will need stringent control over the budget in the coming years.
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The government debt has surged with skyrocketing speed and 60 percent of total revenue is used in interest payments.
Multiple external shocks and heavy floods have forced economic managers to amend the budget allocations including unbudgeted subsidies and delays in implementing revenue measures.
This report suggests several ways to strengthen budget preparation, execution, and controls through digital technologies. The government is also making progress on PFM to monitor the state enterprises, cash and debt management, the Treasury Single Account (TSA), and public investment management.