Govt forms austerity committee in bid to rein in runaway expenditure

Govt forms austerity committee in bid to rein in runaway expenditure :

The government has set up an advisory committee of 10 members to oversee the implementation of the austerity measures in order to cut spending to reduce the fiscal burden, it was announced on Friday.

This move comes as Pakistan is seeking to resume the use of the IMF’s expanded fund facility and , to achieve that it has pledged to cutting down the deficit in its fiscal budget.

As per the Finance Division notification dated July 7 and a copy of which is on display at Dawn.com, the finance minister will serve as chairman of the committee.

The committee will also comprise the minister of planning, the minister of communication minister of commerce, minister of maritime affairs, and Minister of State for Finance. Secretaries from the ministers of industries, finance, planning, and planning will also make up the committee along with the financial secretary who is an additional member.

Govt forms austerity committee in bid to rein in runaway

The mandates of the committee are monitoring and ensuring the execution of austerity measures and other issues for the financial year 2022-23.

The committee will also solicit suggestions from the principal accounting executives to reduce expenses, and also accept suggestions to relax the measures that have been approved.

It will be an independent committee to review the necessity and value of autonomous entities, state-owned enterprises as well as authorities, corporations and corporations.

The government made public various austerity measures efforts to save energy amid a massive shortage. The plan to cut back on spending was approved by an assembly of the cabinet, which was presided by the prime minister Shehbaz Sharif.

The most important of these measures was the announcement that foreign official travel will be severely restricted, while the fuel quotas for employees of government will be cut by 40 percent.

There was a consensus that purchases of vehicles, excluding utilitarian vehicles, such as school buses and ambulances at the level of government is to be restricted unnecessary foreign travel such as visits to foreign countries to receive medical treatment, will be banned for government officials.

It was also agreed that priority should be set for government meetings to be held online until the energy conservation plan has been approved by the cabinet of the federal government. Cabinet members also determined to reduce the usage of utilities at the level of government and within offices to 10.

Govt forms austerity committee in bid to rein

In the meantime, the Finance Division issued an office memo also in effect on July 7, stating that extraordinary measures must be taken to ensure “rational utilisation of public money” and also limiting spending to lower fiscal debt.

The announcement reiterated the ban on the purchase of all kinds of vehicles, as well as treatment in foreign countries at the expense of the government. The notification also prohibited the establishment of new posts or the scheduling daily wagers with the exception the ones required to support development projects.

The restriction also is applicable to the purchase of office furniture, machinery , and equipment as well as unneeded official trips abroad by officials of the government.

Principal accountants have also been instructed to cut down on consumption of utility services by 10 percent and that unnecessary travel should be reduced by encouraging online meetings.

Federal government also made a decision to reduce the fuel consumption of ministers’ vehicles by 40 percent and the security vehicles for cabinet ministers by 50 percent in the memorandum.

For more Details , visit our site Ofwpinoytv

Leave a Reply