ISLAMABAD: In a step towards holding free and fair elections in the country, the government has slapped ban on re-appropriation of funds for the current financial year 2017-18 with immediate effect but this ban will not become applicable on constitutional bodies such as Supreme Court of Pakistan, Auditor General of Pakistan, Federal Ombudsman, Tax Ombudsman, Election Commission of Pakistan and others.
According to circular issued by Finance Ministry’s Expenditure Wing which was sent out to all ministries/divisions and departments stating that there would be complete ban on re-appropriation of funds with immediate effect.
“All those constitutional bodies which have been delegated financial powers by the Finance Division to exercise the powers of re-appropriation and those statutory bodies empowered to exercise the power of re-appropriation through their statue will continue to exercise these powers,” the Office Memorandum (OM) sent out by Finance Division to all ministries states.
The official sources said that only the constitutional bodies were allowed to make re-appropriation of funds while all other ministers were banned to exercise these powers. One top official of Finance Division said that this ban was imposed in haste and without undertaking proper homework. Now the ministries and divisions will have to get clearance of Finance Ministry if they want to adjust their expenditures heads within the allocated budget of the current fiscal year.
The technical supplementary grant is big monster but the government preferred to ban re-appropriation of funds with immediate effect. The Finance Ministry high-ups say that this ban will be effective for all kinds of expenditures including development and non-development for the remaining period of FY 2017-18.
When contacted to top official of Planning Commission, they argued that they had not yet sought clarification from Finance Division whether this ban would become applicable on development funds or not. The diversion of funds from project to another priority area is considered routine for running the affairs of the government so curtailing of such powers is considered important step towards stopping influence of using funds for the alleged purpose of pre-poll rigging just ahead of next elections.
Earlier, the Supreme Court of Pakistan had slapped ban on re-appropriation of funds through one of its verdict that had created difficulties for the PML-N led regime in first couple of years after wining 2013 elections. Then the government had filed review petition and pleaded before the court that the ban on re-appropriation of funds was creating problems for the executive to run the state affairs effectively thus permission be granted to undertake this exercise.
After witnessing severe difficulties for running the affairs of ministries/divisions during the year 2014, then government had filed a review petition before the Supreme Court of Pakistan and challenged its verdict for imposing ban on appropriation of funds and supplementary grants without seeking prior approval of the Parliament.
The apex court, in its order in the suo moto case of diversion of funds by the former prime minister Raja Pervez Ashraf, had directed the government to follow Article 80 to 84 of 1973 Constitution related to approving of the budget process from the Parliament in its true letter and spirit. Then the government granted permission with certain pre-requisites and allowed appropriation of funds and use of supplementary grants.
