ISLAMABAD: The Economic Coordination Committee of the Cabinet has approved around Rs 272 billion as technical supplementary grants (TSGs) in the current fiscal year 2023-24 while as pledged under the ongoing International Monetary Fund programme there have been no disbursements under supplementary grants.
A regular supplementary grant involves an upward change in the sanctioned budget grant, while a technical supplementary grant means surrender of funds from one budget grant and authorization into another grant. Technical supplementary grant does not increase overall government expenditure, the official added.
The eleven-party coalition government led by Shehbaz Sharif had committed to the IMF in the Memorandum of Economic and Financial Policies (MEFP) released on July 18, 2023 that it would not allow supplementary grants for any additional unbudgeted spending over the parliamentary approved level in fiscal year 2024 until the formation of a new government after the elections (except if needed to respond to a severe natural disaster).
Ministries, Divisions told: ‘Submit no summary contrary to IMF commitments’
The caretaker government reaffirmed this commitment in the latest MEFP released on January 19, 2024 that it would not allow supplementary grants for any additional unbudgeted spending over the parliamentary approved level in fiscal year 2024 (except if needed to respond to a severe natural disaster).
Data collected by Business Recorder revealed that on October 23, 2023, the ECC approved a summary submitted by the Earthquake Reconstruction and Rehabilitation Authority (ERRA) for provision of technical supplementary grant of Rs 484 million to meet expenditure on pay and allowances of 415 contract and project employees from July 2023 onwards. The ECC directed the Ministry of Planning, Development and Special Initiatives to identify the savings to finance the salaries of the ERRA employees.
On November 10, 2023, the ECC approved a summary submitted by the Ministry of Interior regarding technical supplementary grant amounting to Rs 47.45 million within the sanctioned budget, for repair and maintenance, during current fiscal year 2023-24. The ECC also approved a summary submitted by the Ministry of Information Technology & Telecommunication for release of Rs 5 billion as bridge finance from the Research and Development (R&D) fund for the Digital Information Infrastructure project.
On November 15, 2023, the ECC approved a summary moved by the Ministry of Energy (Petroleum Division) for provision of funds worth Rs 423.726 million for technical supplementary grant for PSDP projects of the Petroleum Division.
On December 20, 2023, the ECC also approved a summary moved by the Power Division to release Rs 262.075 billion to public sector power plants through a technical supplementary grant.
On January 9, 2024, the ECC approved Rs 250 million TSG for upgradation, technical enhancement and field activities of Intelligence Bureau, Rs 3,568.719 million in favour of Federal Directorate of Immunization (FDI) as well as Rs 100 million TSG in favour of Ministry of Inter-Provincial Coordination for the fiscal year 2023-24.
Copyright Business Recorder, 2024