LAHORE: The Punjab government has disallowed parking of funds, provided by the provincial government, in the commercial bank accounts of companies, authorities and autonomous bodies which is a part of the austerity and economy measures for the fiscal year 2020-21.
In this connection, a notification was issued after the Standing Committee of the Cabinet on Finance and Development finalised the austerity and economy measures for the ongoing fiscal year in a meeting held recently.
As per the notification, the Punjab Finance Department will release funds in relevant Special Drawing Accounts (SDAs) or through normal release mode. These funds will be further transferred from SDAs into commercial bank accounts as per cash flow requirements of companies, authorities and autonomous bodies to avoid unnecessary parking of funds.
The provincial government decided to observe austerity in the usage of public money through prudent financial management, observance of financial discipline, judicious reduction of the expenditures without compromising the essential and core organizational functions/activities.
Thus, it decided to introduce the measures that will be applicable to all government departments, Lahore High Court, local governments, public sector companies and authorities, autonomous bodies, attached departments and special institutions with immediate.
Among the other measures include a complete ban on foreign visits of ministers, MPAs and government officials through government funding. However, certain cases for foreign visits will be placed before the austerity committee for its recommendations and subsequent approval of the Punjab Chief Minister. The ministers and civil servants permitted for official tours will travel economy class on domestic flights and for international visits ministers will travel in one class below their entitlement.
Moreover, medical treatment abroad at government’s expense is banned. However, under ‘inevitable situation’, approval of the Punjab Chief Minister will be required for treatment abroad on government’s expense.
The government has also placed a complete ban on the procurement of locally assembled new and imported vehicles out of the current and development budgets. However, ambulances for hospitals, buses and coasters for educational institutions, tractors, dumpers, water bowsers, fire-fighting vehicles, flood relief and rescue equipment and vehicles, and motorcycles are exempted from the ban.
Moreover, purchase of air conditioners will not be allowed except with the prior approval of the Austerity Committee and the ban on furnishing of houses and discretionary grants to the ministers will continue. The government permitted hiring of contingent paid staff only in emergent cases; however, the departments will remain within the budgetary allocations. Moreover, no additional funds as a supplementary grant will be provided for this head during the financial year 2020-2021. The government has also banned up-gradation of posts except the powers delegated under Delegation of Financial Powers Rules 2016.
The government also decided to place a complete ban on holding workshops and seminars in five-star hotels through government funds. Moreover, departments and autonomous bodies have been instructed to meet the expenses of advertisement for development projects from the project cost; they will not draw money from the non-development budget for this purpose.
Copyright Business Recorder, 2020