Pakistan Seeks Post-Facto Approval for Record Rs3.6 Trillion Overspending
Pakistan's Finance Minister, Muhammad Aurangzeb, has requested parliamentary approval for a record Rs3.684 trillion in supplementary grants. This request is for expenditure overruns and re-appropriation during parts of fiscal years 2024-25 and 2025-26. The amount is over four times higher than the Rs895 billion regularized by parliament last year, raising questions about the government's stated claims of austerity and fiscal discipline.
Finance Minister Muhammad Aurangzeb has sought post-facto parliamentary approval for a record Rs3.684 trillion in supplementary grants. These grants are intended to cover expenditure overruns and re-appropriation for the periods spanning May 17 to June 30 of fiscal year 2024-25 and July 1 to May 15 of fiscal year 2025-26.
This requested amount significantly exceeds the Rs895 billion in supplementary grants regularized by parliament last year, marking an increase of more than four times. The substantial overspending has led to scrutiny regarding the government's budgetary estimates, expenditure processes, and claims of maintaining austerity and tight fiscal discipline.
Budget documents presented to parliament highlight several key areas that exceeded their initial allocations. For fiscal year 2024-25, over Rs3.2 trillion in regular supplementary grants are proposed for regularization. Major components include Rs2.6 trillion for debt servicing, Rs430 billion for the power sector, Rs38 billion for grants and subsidies, Rs23 billion for the Defence Division, and Rs22 billion for capital outlay on civil works.
For fiscal year 2025-26, approximately Rs485 billion in supplementary grants are pending approval. Significant allocations include Rs127.5 billion for grants and subsidies, Rs112 billion for the power sector, Rs57 billion for federal education and professional training, Rs34 billion for the Defence Division, Rs30 billion for national health services, Rs20 billion for the interior ministry, and Rs22.4 billion for poverty alleviation and social safety.
Additional grants include Rs14 billion for the information ministry, Rs10 billion for the Federal Board of Revenue (FBR), Rs7.9 billion for civil works, and Rs6.6 billion for railways' capital expenditure. Other notable grants covered compensation for land for the Defence Complex Islamabad, purchase of helicopter spare parts, border fencing, and security duties.
Supplementary grants typically cover expenditures not foreseen during the finalization of grant demands and often place an additional burden on the budget. Many are classified as 'charged expenditure' from the federal consolidated fund, meaning parliament is informed but generally cannot reject them as the funds have already been utilized, as per articles 80-84 of the Constitution.
According to Dawn Pakistan, the ministry's written statement indicated that these expenditures could not be met from existing budgetary resources nor legitimately postponed during the respective financial years.
