K-P govt unveils cost cutting measures

Finance Department bans new posts as part of austerity policy

PESHAWAR:

The Khyber-Pakhtunkhwa government has issued an austerity policy for the current fiscal year 2024-25.

According to the policy issued by the Finance Department, there will be a ban on the creation of new posts to cut costs and save money, however, posts will be established with the permission of the Chief Minister for development projects.

The purchase of vehicles other than ambulances, fire brigades, tractors, trucks, buses, passenger vehicles, prisoner vehicles and rescue vehicles will be strictly prohibited.

Restrictions will be imposed on official expenditures for foreign education workshops and seminars. Hosting workshops and seminars in five-star hotels will be also prohibited.

Restrictions will also be imposed on seeking provincial funding for medical treatment abroad. Contract extensions for contract employees will not be granted without valid reasons.

As per austerity policy, all departments will keep spending within their allocated budgets and will not ask for any supplementary or additional grants.

To increase provincial revenue, the Provincial Revenue Review Committee meeting will be regularly held under the chairmanship of the Minister of Finance.

Temporary employees will only be hired during the current year with the prior approval of the Finance Department. No recruitment will be made for the positions of employees on leave.

Recruitment for vacant positions will not take place without an NOC from the surplus pool and no development project will be considered without prior clearance from the Finance Department.

The Planning and Development Department will formulate district and departmental plans for the next three years.

On Wednesday the K-P government also revealed the funds release policy for the current financial year.

According to the policy, 25 per cent of funds will be released at the beginning of the financial year for the ongoing approved projects. Release of maximum funds for cold and hilly areas should be ensured so that more work can be done on the projects before snowfall.

Interdepartmental funds cannot be exchanged in the first two quarters. In case of administrative approval, 25 per cent of the funds will be released to the new schemes of each department at the beginning of the year, while the balance will be released later.

According to the finance department, funds will be released after administrative approval for the revised schemes, while 100 per cent funds will be released for salaries and utility bills and fuel in ongoing expenses.

Funds for wheat subsidy and maintenance will be released on a case-to-case basis. 25 per cent funds will be released to medical teaching institutions in every quarter, while funds will be released in the last quarter when funds are available.

Funds will be provided to district governments on a quarterly basis, however, the release of development funds from the second quarter will be subject to 60 per cent utilization.