MoF Sets April 30 Deadline for Surrendering Unspent Funds

The Ministry of Finance (MoF) has issued a stern mandate, ordering all ministries, divisions, departments, and autonomous bodies to surrender unspent or unused funds within a tight 10-day window, setting a new deadline of April 30. This unprecedented move aims to bolster fiscal responsibility and streamline efficiency, compelling principal accounting officers (PAOs) to finalize revised estimates for fiscal year 2025 and solidify budget proposals for the upcoming year.

Driven by the Public Accounts Committee’s (PAC) push for enhanced fiscal prudence, the MoF has advanced the deadline by a month from the traditional end-of-May, marking a historic shift in budgeting practices. Previously, ministries benefited from greater clarity on financing needs for the fiscal year’s final month, but this early cutoff demands swift action.

The directive covers all allocations, including civil government running costs, employee-related expenditures (ERE), non-ERE, grants, subsidies, and development funds under the revised Public Sector Development Programme (PSDP), now set at Rs 1.1 trillion for FY25. This slimmed-down PSDP reflects pressure from the International Monetary Fund (IMF), which prompted a reduction from the parliament-approved Rs 1.4 trillion.

The MoF stressed that updating the PSDP is critical to avoid future audit objections, urging ministries and institutions to align with the new fiscal discipline standards.