Auditor General of Pakistan expresses grave concerns over financial management
The Auditor General of Pakistan (AGP) has raised alarms over the country’s financial situation, with only 4% of the Rs38.67 trillion budget allocated for socio-economic services in FY23. A staggering 91.4% of the budget went towards debt servicing, leaving minimal funds for essential services. Additionally, the majority of supplementary grants worth over Rs8 trillion were not approved by parliament, leading to a loss of public resources.
The AGP highlighted several financial management issues faced by the federal government, including unnecessary allocation of supplementary grants and a lack of proper budget management. Debt servicing costs have been steadily rising, crowding out spending on crucial services and impacting citizens’ living standards.
The AGP’s annual audit report, mandated by the Constitution, emphasized the need for corrective measures and recoveries. With a significant portion of expenditure directed towards debt servicing and other government expenses, there is little room for investment in socio-economic functions.
The financial statement for FY23 revealed a rise in domestic debts while foreign debt receipts declined. The government paid off substantial amounts of debt during the fiscal year, further straining the budget.
This report underscores the urgent need for improved financial management and accountability to ensure better allocation of resources and sustainable economic growth.
Published in Dawn, August 26th, 2024
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