Austerity committee to curb ‘wastage’ of public funds

Departments told to hold committee meetings regularly and ensure internal audits

LAHORE: The Punjab government has constituted a seven-member austerity committee for the Fiscal Year 2017-2018.

According to a notification issued by the Punjab Finance department, the provincial government has decided to implement financial austerity measures for ‘target-based’ and ‘cost-efficient’ public fund management.

Moreover, special measures were ordered to ensure that all departments remain within the budgetary allocations. A ban was imposed on the placement of funds in commercial bank accounts of companies, authorities and autonomous bodies, while the finance department would release any such funds to the relevant departments.



Furthermore, a ban has been placed on foreign visits by ministers, MPAs and government officials on public money. However, the aforementioned austerity committee could, after review, approve foreign travels.

The notification also barred medical treatment of government functionaries abroad on public funds and a ban was been placed on the procurement of vehicles out of the current and development budgets. However, the austerity committee could allow the acquisition of the vehicle.

Generators and air conditioners shall not be procured except with the prior concurrence of the austerity committee. “However, the generators required for sewage disposal and water supply schemes will be exempt from the ban.”

The finance department also barred grants to provincial ministers to furnish their houses and said that “discretionary grants shall remain withdrawn during the current Financial Year 2017-18.” As per the new austerity measures, a complete ban on recruitment has been placed against vacant posts except with the approval of chief minister. All departments have been told to hold departmental and special departmental accounts committee meetings regularly after intimation to the Finance Department so as to ensure internal audits.

Exemption from austerity measures

Only a few departments of the provincial government have been exempted from the austerity measures, while restrictions have been made on the local government.

The exempted departments included Specialized Health Care and Medical Education Department, Primary and Secondary Health Department, School Education Department, Higher Education Department, Literary and Non-Formal Education Department and Special Education Department, Infrastructure Development Authority Punjab (IDAP), Punjab Food Authority and Punjab Agriculture, Food & Drug Authority (PAFDA).



The only restriction placed on these departments was that they were not allowed to purchase vehicles, which could only be procured after clearance from the austerity committee and approval from the chief minister.

Austerity Committee

The seven-member committee has been tasked with examining and recommending procurement of vehicles and cases for foreign visits.

It will also look into and decide the procurement of equipment such as generators and air conditioners by provincial administrative departments and their attached entities as well as autonomous bodies, corporations and local governments.

Published in The Express Tribune, September 17^th, 2017.