Finance Ministry Restricts Allocation of Supplementary Grants During FY23

Due to the limited fiscal space, the Federal Government has restricted the allocation of supplementary grants for all the Ministries and Divisions. In a document released by the Finance Division regarding allocation and re-appropriation of funds during the fiscal year 2023, the government has put forward its strategy to allocate funds for different departments during the current fiscal year. It stated that during the first quarter of FY23, the government would not consider the allocation of Technical Supplementary Grants. Alongside, no supplementary grants would be considered by the government during the current fiscal year except for the ones allocated in Finance Bill 2022-23. However, the document states that Finance Ministry could only approve Supplementary Grants under extreme and exceptional circumstances during FY 2023. In this regard, Principal Accounting Officer would have to fulfill all the compulsory conditions. The document also highlights that the funds would be re-appropriated merely from the grants accepted by Ministries and Divisions. The departments have been bound not to use Employees Related Expenses for any other purpose except for employees. Alongside, the departments have also been bound to utilize their funds after approval from the concerned authority. As per the document, departments must provide documents concerning the expenditure of funds to the Budget Wing of the Finance Ministry.