10-05-2025
- Business
- Business Recorder
Rs757m allocated as provisional IBCs for PD
ISLAMABAD: Finance Division has reportedly allocated Rs757.336 million as provisional Indicative Budget Ceilings (IBCs) for Employees' Related Expenses (ERE) and non-ERE expenses for Power Division for the financial year 2025-26.
Of the total amount of 757.336 million, Rs 399.004 million are related to ERE whereas Rs 358.322 million for non-ERE.
Documents available with this correspondent say that 'ERE and Non-ERE allocation is for main Division, attached Departments and Subordinate Offices. Any allocations for Grant-in-Aid to Autonomous Bodies and Entities shall be kept at bare minimum only to meet their budgetary shortfall for a limited period of time as non-recurring expenditure.
As per approved policy and in line with sound budget making principles, Finance Division shall consider any requests for increase in any allowance of any other benefit, perk and privileges only as part of annual federal budget making process. Non-ERE allocation takes into account impact of inflation, exchange rate and other specific factors on operating expenses.'
According to Finance Division, following mandatory instructions shall be strictly and fully followed by all PAOs, Heads of Departments and Bodies/ Entities while preparing budget estimates for each cost centre and head of accounts in the form of Budget Orders(BOs) and New Item Statements (NlSs): (i) PAOs are required to comply with the provisions of the PFM Act, 2019 regarding performance-based budgeting and expenditures by formulating well-defined plans; (ii) guidelines and procedures contained in Financial Management and Powers of PAOs Regulations, 2021 and the BCC for FY 2025-26 shall be adhered to; (iii) ensure adoption of Treasury Single Account (TSA) as per Section 30 of the PFM Act, 2019 read with Cash Management & TSA Rules, 2024; (iv) IBCS for development budget, where applicable, will be shared separately by the Planning, Development & Special Initiatives Division; (v) Employee-Related Expenses (ERE) for the cost centres/ heads of accounts of the main Division, Attached Departments and Sub-ordinate Offices shall be protected for the full financial year within the respective IBCs in BOs/ NISs; (vi) ERE expenditure shall only include the budget estimates against filled posts as there is a ban on creation of new posts and all the posts lying vacant for three years shall be abolished forthwith; (vii) for Gender Responsive Budgeting, PAOs, Heads of Departments and Bodies /Entities are required to fill the respective forms including BOs/ NISs, whereby, specifying gender wise, planned expenditure based on gender budget tagging; (viii) for Climate Sensitive Budgeting/ Green Budgeting the information has to be filled for both current and development budget as per the typology defined in Form-IV. The cost centres related to green component shall also be identified based on climate budget tagging for RoCG, PSDP, Grants, Subsidies and Revenues while submitting the BOs/ NISs; (ix) KPIs related to gender and climate may also be identified separately in Performance-Based Budgeting (Form-1); (x) PAOs, Heads of Departments and Bodies/ Entities shall submit Quarter-wise Budget Estimates (Form-XV) for FY 2025-26; (xi) PAOs shall make expenditures keeping in view the budgetary allocations without any assumption of additional allocation during the financial year. Supplementary budget, regular and technical, shall not be provided except in exceptional circumstances after approval of the ECC and the Cabinet; (xii) PAOs, Heads of Departments and Bodies/ Entities shall ensure approval of budgets, both revenue and expenditure, as provided for in respective laws in case of autonomous bodies and other entities.
PAOs shall also ensure that autonomous bodies and other entities generate sufficient revenues from sources defined in their respective statutes and curtail expenditure for financial self-sustainability; (xiii) Autonomous Body's Budget for FY 2025-26 is required to be submitted under following detailed object heads as these are purely related to autonomous bodies; (xiv) no allocations shall be made for keeping any head of account operative, both ERE and Non-ERE; (xv) austerity measures, as issued by Finance Division from time to time, shall be fully adhered to. No allocations shall be made for banned heads of expenditures.
Such allocation, if made, shall be released after approval of the austerity committee; ( xvi) ensure full allocation of rupee cover against all anticipated foreign grants and loans during the financial year. Any allocation subsequently requested for will be adjusted from within the funds provided; and (xvii) sufficient funds shall be allocated from Non-ERE budget for essential payments like court cases, assistance to families of employees who die in service, capacity building and trainings, maintenance of assets and for clearance of liabilities; Review international subscriptions, contributions; etc., to prevent unnecessary outflow of foreign exchange.
Secretaries of all Divisions have been asked to prepare Budget Orders (BOs)/New Item Statements (NISs) and Post Performa and submit the same to Director (Budget Computerization), Budget Wing, Finance Division for entry into SAP system along with Forms related to Performance Based Budgeting from May 10, 2025 (today).
Copyright Business Recorder, 2025
