The Economic Coordination Committee of the Cabinet has sanctioned approximately Rs 272 billion as technical supplementary grants (TSGs) for the current fiscal year 2023-24. Contrary to the ongoing International Monetary Fund (IMF) program commitments, no disbursements have been made under supplementary grants.
A regular supplementary grant involves an increase in the approved budget grant, whereas a technical supplementary grant entails reallocating funds from one budget grant to another. Importantly, a technical supplementary grant does not augment the overall government expenditure, according to an official.
The eleven-party coalition government, led by PM Shehbaz Sharif, had committed in the Memorandum of Economic and Financial Policies (MEFP) released on July 18, 2023, to refrain from approving supplementary grants for any additional unbudgeted spending beyond the parliamentary-approved level in fiscal year 2024. This commitment stands until the formation of a new government after the elections, unless necessary to respond to a severe natural disaster.
The caretaker government reiterated this commitment in the latest MEFP released on January 19, 2024, ensuring that supplementary grants would not be permitted for any additional unbudgeted spending over the parliamentary-approved level in fiscal year 2024, except in response to a severe natural disaster.
Business Recorder’s data disclosed that on October 23, 2023, the ECC approved a summary from the Earthquake Reconstruction and Rehabilitation Authority (ERRA) for a technical supplementary grant of Rs 484 million to cover expenses for pay and allowances of 415 contract and project employees from July 2023 onwards. The ECC directed the Ministry of Planning, Development, and Special Initiatives to identify savings for financing the ERRA employees’ salaries.
On November 10, 2023, the ECC approved a summary from the Ministry of Interior for a technical supplementary grant of Rs 47.45 million within the sanctioned budget, allocated for repair and maintenance during the current fiscal year 2023-24. Additionally, the ECC endorsed a summary from the Ministry of Information Technology & Telecommunication for the release of Rs 5 billion as bridge finance from the Research and Development (R&D) fund for the Digital Information Infrastructure project.
On November 15, 2023, the ECC approved a summary put forward by the Ministry of Energy (Petroleum Division) for the provision of funds amounting to Rs 423.726 million as a technical supplementary grant for PSDP projects of the Petroleum Division.
On December 20, 2023, the ECC also approved a summary presented by the Power Division to release Rs 262.075 billion to public sector power plants through a technical supplementary grant.
Finally, on January 9, 2024, the ECC sanctioned a Rs 250 million TSG for the upgradation, technical enhancement, and field activities of the Intelligence Bureau, along with Rs 3,568.719 million in favor of the Federal Directorate of Immunization (FDI), and Rs 100 million TSG for the Ministry of Inter-Provincial Coordination for the fiscal year 2023-24.
