Sources close to the minister say that he highlighted to the prime minister that unless cabinet members follow austerity measures sincerely, efforts to control government expenses will go waste.
The State Bank of Pakistan, in a report released late last month, described the government’s expenditure as the “principal structural problem” pointing out that, “the fiscal deficit bounced back to 6.3 per cent of GDP in FY10” having climbed 110 basis points since last year.
Reportedly, the finance minister is particularly upset over hefty expenditure incurred on the use of more than one official vehicle by cabinet members. Sources disclosed that staff members and certain blue-eyed individuals were even grossly violating the law by using official vehicles. It has also been learnt that some departments were offering vehicles to ministers just to please them.
Shaikh, sources maintain, has received reports that a few cabinet members were enjoying the use of vehicles offered by attached departments. This, ultimately, is harming the national kitty.
Furthermore, some ministers, under the pretext of security, also enjoy a motorcade consisting up to four vehicles.
Sources say that the finance minister was astonished to see a luxury car waiting for him outside New York arranged by a bank, when he was visiting the United States to attend an official meeting. Shaikh was again offered a luxury vehicle when he landed at Karachi airport by the same bank sometime back, which he again refused politely.
The Public Accounts Committee (PAC) has already taken notice of unauthorised use of official vehicles by cabinet members, secretaries and other top bureaucrats. Through a letter circulated to all government departments, the PAC chairman warned all principal accounting officers of stern action if misuse of official vehicles was proven in their respective ministries.
No unauthorised vehicle shall be allowed to remain in use after October 31, read the letter issued by the PAC secretariat to all federal secretaries and heads of government departments.
The committee warned that expenditure on petroleum and maintenance of vehicles shall be recovered from the respective principal accounting officers in case any unauthorised vehicles remain operational after the said date.
The government has received much flak from various quarters for failing to control inflation, which was recorded above 15 per cent (October) for the second month in a row. It has been blamed for focusing solely on the interest rate while not doing much to control expenditure.
The tabling of the reformed general sales tax bill has also received criticism from both, political parties and the civil society as it has been pointed out that the common man was being burdened while the political elite has been enjoying all sorts of exemptions.
Published in The Express Tribune, November 13th, 2010.
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