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The government has failed to implement the monetization of transport facility for grade 20 and above government officials designed for saving more than Rs 3 billion current expenditure. Sources said that a summary for implementation of the decision announced in the budget by the Minister for Finance Dr Abdul Hafeez Sheikh was sent to Prime Minister Syed Yousuf Raza Gilani two month ago for approval to go ahead along with other measures to rationalise the current expenditure.
An official said that rationalisation of current expenditure in every head was critical to manage the fiscal deficit and timely implementation of monetization of transport facility and other such decision would be of great help to the economic team.
But a decision by the Prime Minister on the summary of Finance Ministry is still awaited and at least 15 days would be required after the approval for fulfilment of procedural requirements such as assessment of vehicles and taking consent from the concerned official whether he intend to keep the vehicle and drivers or not. The implementation of the announced measure would give Rs 200 million saving to the government in fuel and maintenance cost and Rs 3 billion budgeted for purchase of new vehicles for official of grade 20 and above.
The government has budgeted Rs 1 billion for oil and maintenance and monetization of the transport facility would reduce the budgeted cost to Rs 820 million, thereby saving Rs 180 million. The government would no longer require purchase of new vehicles and save Rs 3 billion budgeted for this head.
The decision announced by the Finance Minister in budget was meant to be implemented from July 2011 along with other decisions of increase in salary and allowances but was delayed for reason best know to the concerned officials till October, 1 2011. Ministry of Finance has forwarded summary to the prime minister for approval in Ramazan with the objective to implement the monetization of transport facility for government officials from October 1, 2011 but no decision has yet been taken by him.

Copyright Business Recorder, 2011

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