The budget should be driven by policy objectives rather than merely being a numerical exercise: Finance Adviosr
Peshawar
Advisor to the Chief Minister on Finance Muzamil Aslam on Thursday held comprehensive joint budget review meeting with almost line departments to ensure that government policies and priorities are effectively translated into the budget.
These sessions were attended by Khuda Bakhash Special Secretary Finance, Mr. Waqas Paracha from SNG and senior officials from the Finance Department, Planning and Development Department, and representatives from line departments.
This was comprehensive Joint Budget Review Committee Meetings to Align Budget with Government Policies, Fiscal Priorities, and Efficiency Measures while the primary objective was to discuss and evaluate 2024-25 total budget and prioritize public welfare projects and ensure the alignment of budgetary allocations with key performance indicators for service delivery.
During the sessions, the Finance Advisor emphasized several critical points including Policy-Driven Budgeting, Austerity Measures, Investment in Service Delivery, addressing Financial Losses, detailed Variance Analysis, Public Welfare Priorities etc.
Muzammil Aslam insisted that the budget should be driven by policy objectives rather than merely being a numerical exercise. This approach ensures that budget allocations reflect strategic priorities, such as improving education quality and healthcare access, rather than just expanding physical infrastructure.
Advisor on finance mandated strict austerity measures to achieve budgetary efficiency. This involves cutting unnecessary expenses and focusing resources on essential projects, thus ensuring the optimal use of public funds. The goal is to bring efficiency savings into the budget through prudent financial management.
Emphasizing the completion of high-impact and near-completion projects, the Advisor highlighted the importance of projects that directly enhance public welfare and service delivery. This aligns with broader governmental goals of improving infrastructure and public services efficiently. A shift in investment focus was recommended, moving away from constructing new buildings for schools and hospitals to enhancing the quality of services provided. This includes the introduction of policies for renting school buildings, which allows for a more flexible and immediate response to educational needs without the delays and costs associated with new construction.
The Advisor noted the financial losses incurred due to the delayed completion of projects, which have resulted in millions of rupees in losses annually. To mitigate this, he recommended completing these projects swiftly to start generating revenue and enhance service delivery.
A detailed variance analysis was advised to understand the increases from the previous year’s revised estimates to identify areas where additional steps can be taken to reduce costs.
The Advisor stressed that the budget must be closely linked to policy outcomes to ensure that every allocation supports the government’s strategic goals.
The Advisor highlighted the need to reduce subsidies by identifying potential savings during the review process. This approach aims to ensure fiscal sustainability and efficient allocation of resources, redirecting funds to areas that provide the most significant public benefit.
Advisor on Finance said that All public sector entities including universities , WSSCs are mandated to submit the required data to the Finance Department. No grants or subsidies will be issued without meeting this data requirement. The Finance Department has informed the forum about the development of an online portal designed to enhance the governance of Public Sector Entities (PSEs) by facilitating the collection of necessary data. This initiative aims to streamline processes and ensure greater transparency and accountability within the sector.By incorporating these measures, the budget review process aims to create a more efficient, policy-driven financial plan that addresses immediate public needs and long-term strategic goals. These steps will help ensure that the government’s priorities are effectively translated into actionable and impactful budgetary decisions.
