Ministries asked to submit budget execution plan by 27 Oct

The Ministry of Finance has asked various ministries and divisions to submit their budget implementation plans for the 2024-25 fiscal year by 27 October this year, along with the budget implementation monitoring reports within one month after the end of each quarter.

These measures aim to avoid unplanned government loans, reduce borrowing costs, ensure financial discipline, and maintain a balance between government income and expenditure.

In the instructions signed by Bilquis Jahan Rimi, additional secretary (Budget-1) of the Finance Division, the ministry has also sought plans for securing foreign loans and grants for the current fiscal year.

The Finance Division has also directed that all utility bills for the previous month be paid by the third week of each month and that a consistent level of maintenance and repair work be completed in each quarter of the fiscal year.

Reflecting on past experiences, the Finance Division noted that ministries typically implement the budget at a slower pace during the early months of the fiscal year. 

Apart from salaries and allowances, spending in other areas is notably low at this time. Payments for utility bills, repairs and maintenance, construction, public works, and procurement are often postponed until the fiscal year concludes.

This delay can hinder the quality of government expenditure, leading the government to incur unplanned debt by the year's end, which complicates efforts to maintain financial discipline, according to the directive.

Emphasising that timely and effective budget implementation remains a significant challenge, the Finance Division pointed out that several initiatives announced over the past three years are still in progress. 

Similar initiatives have been included in this year's budget, reinforcing the need for clear and timely planning at the start of the fiscal year to ensure the proper execution of these programmes.