FD moves to strengthen public finance management, budgeting

Business Recorder reported that the Finance Division has launched measures aimed at sharper public money management, with a focus on forecasting, budget implementation and results-linked budgeting. Specialised experts are to be brought in to carry out changes to federal budget practices. Officials said the goal is to boost the government's capacity to project revenues and spending, examine fiscal figures and tighten allocation and expenditure controls.

Under the proposed setup, expert support would cover yearly, half-year and quarterly projections of income and spending, along with preparing fiscal figures that international credit rating agencies need. The Finance Division also wants deeper scrutiny of budgets for federal ministries and divisions, plus their attached departments and autonomous bodies, with attention to indicative limits for defence, subsidies, civil government, pensions, grants, net lending and the PSDP. Monthly and quarterly reviews are planned to track implementation, and the Budget Manual will be revised under the Public Finance Management Act.

Greater openness in budgeting comes through disclosure of fiscal risks, along with output-based and performance budgeting across federal ministries. Budget officers are to receive training and technical help, and a Public Finance Management Specialist post requiring 10 years or more of experience in the field has been outlined. The reforms are described as a way to modernise budgeting and make better use of public resources.