The Khyber Pakhtunkhwa government has directed all provincial departments to remain within their allocated budgets for the fiscal year 2026-27, as the Finance Department raised concerns over requests for additional funds at the start of the financial year.
The provincial Finance Department has issued a circular to enforce financial discipline and control government expenditure, instructing departments not to exceed their approved budgets.
According to the circular, departments must not create financial liabilities unless the necessary funds are available. The department also stated that requests for additional grants without strong justification would not be entertained.
Departments Told to Prioritise Spending and Savings
The Finance Department has instructed departments to utilise their available resources before seeking additional funds. They have also been asked to postpone unnecessary spending, identify potential savings and reassess their expenditure priorities.
Autonomous institutions have been advised to meet their financial requirements through their own resources wherever possible.
The circular clarified that additional funding would only be considered for genuine and unavoidable needs.
Departments requesting extra allocations must provide details of their proposed expenditure, available budgets and potential savings.
They must also identify alternative sources of funding and explain whether resources can be reallocated within their existing budgets.
Strict Austerity Measures Ordered
The Finance Department has directed all provincial government departments to strictly implement austerity measures and maintain financial discipline throughout the fiscal year.
The move aims to keep government spending within approved limits and ensure that available funds are directed towards essential requirements.
