Provisional budget ends on Feb 29

Sparks fears of financial crisis before new govt takes the reins

RAWALPINDI:

The provisional budget of Punjab for the fiscal year 2023-24 is set to expire on February 29, sparking fears of a financial crisis in the province.

The development has posed a significant challenge to the bureaucracy.

According to sources, failure to form a new Punjab government before the deadline will render the use of government funds illegal starting March 1. Currently, all development funds and special expenditure funds are in a state of suspension.

Except for salaries, no funds can be utilised without specific approval from the chief minister. Even the disbursement of salaries on March 1 is anticipated to encounter difficulties.

As per constitutional provisions, a caretaker government is restricted to presenting an interim budget for a maximum of four months.

Read Uncertainty looms over K-P’s budget

The interim budget for Punjab was initially presented by the caretaker government in June 2023, covering the period from July 1 to October 31.

Upon the end of the date, the Punjab cabinet once again introduced a fresh interim budget for the subsequent four months, spanning from November 1, 2023, to February 29, 2024.

This second interim budget is poised to expire at midnight on February 29, making all expenditures unlawful in Punjab thereafter.

To address this looming crisis, the finance ministry has suggested the presentation of a third interim budget for four months to the caretaker government. Approval for this budget is contingent upon the consent of the Punjab cabinet and the caretaker chief minister.

This proposal aims to provide the newly formed Punjab government with an opportunity to present a budget aligned with the party's policy in June.

Published in The Express Tribune, February 20^th 2024.