The Ministry of Finance has instructed all ministries, divisions, departments, and autonomous bodies to surrender unutilised and anticipated savings within 10 days to support timely finalisation of revised budget estimates for FY2025-26 and preparation of FY2026-27.
Strict Deadline Set
According to the directive, principal accounting officers must:
- Surrender expected savings by May 10
- Issue formal surrender orders
- Report amounts to the Finance Division for system entry
The instruction covers all major spending heads, including:
- Civil government expenditures (salaries and operational costs)
- Grants and subsidies
- Public Sector Development Programme (PSDP) funds
Policy and Oversight
Under the Public Financial Management Act, ministries are required to surrender unused funds by May 31 each year. However, the deadline has been advanced following directions from the Public Accounts Committee to improve fiscal discipline and budget efficiency.
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PSDP Spending and Adjustments
The PSDP has already been reduced by Rs173 billion, with funds redirected to fuel subsidy support amid rising energy costs.
So far, PSDP utilisation remains below full capacity, with:
- Rs415 billion spent during July–March (41.5% of allocation)
- Faster spending observed in parliamentarians’ development schemes (SAP)
Officials noted that overall spending trends remain uneven across ministries.
Fiscal Management Push
Authorities say the early surrender mechanism is aimed at reallocating unused funds to priority areas and improving overall budget management.
The Finance Ministry has also emphasized adherence to quarterly release patterns to ensure better planning and accountability in public spending.
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