• In order to bring clarity about the budget and expenditure figures for Prime Minister Office, Finance Division presents following facts, with a view to address certain misconceptions in Media: • During the Current Financial Year 2018-19, PM Office had a budgetary allocation of Rs. 986 million. However, owing to ongoing austerity drive and with a view to set the example from the top, PM Office has successfully managed to squeeze its expenditures up to Rs. 675 million, which is 32% reduction that is unprecedented. • Further analysis reflects that the expenditure of PM Office (Public) has been curtailed from Rs. 514 million (budgeted) to Rs. 305 million (actual till end June), thereby reflecting the saving of 41%. • Similarly, PM Office (Internal) brought down its expenditures up to Rs. 370 million, against the budgetary allocation of Rs. 472 million, which reflects the expenditure squeeze of 22%. • To achieve this goal of expenditure rationalization and austerity, PM Office slashed 35% HR and massively reduced expenditure on refreshments, fuels, Procurement of Equipments and Machinery and adoption of a basic economical non lavish style of official working. • The budgetary allocation for PM Office (Public + Internal) for next financial year 2019-20 is Rs. 862.9 million which is again 12% less than budgetary allocation for FY 2018-19. In spite of rising inflation, increase in salaries and demand for replacements of physical assets and refurbishment etc, budgetary allocations for PM Office have been kept to bare minimum levels, to set an example for other Federal Ministries / Divisions & Departments. • For further clarity, it is informed that the Printed Budget for PM Office has been reflected in the Volume-I of Federal Budget 2019-20 (Current Expenditure). The relevant pages are 302-310. • Electronic Media has been flashing page 302 of this book which reflects the PM Office Budget worth Rs. 1172 million for financial year 2019-20 against the existing budgetary allocation of Rs. 986 million for FY. 2018-19. As elaborated in the table, the PM Office budget of Rs. 1172 million also includes the budgetary allocation (Rs. 309 million) for National Disaster Management Authority (NDMA). NDMA, although autonomous with its own budget line has been parked under the PM Office. Previously it was under the Ministry of Climate Change. Hence, the budget of NDMA must not be and should not be confused with the distinct budget items of PM Office. Data table may be referred for more clarity on this. Contd….p/2 -:2:- • For purpose of budget preparation, revised budget estimates comprise of 8 months actual expenditure plus 4 months anticipated expenditures. The budget book page No. 302 reflects revised estimate of Rs. 820 million against the budget of Rs. 986 million for the PM Office. However, PM office went through further belt tightening and has successfully been able to close the financial year at an actual expenditure of approximately Rs. 675 million which is even 18% lesser than the revised expenditure estimates. • The budgetary allocation for PM Office for next financial year 2019-20 is approximately Rs. 863 million which is 12% lesser than budget allocation for FY 2018-19. This existing spending level of PM Office (Rs 675 million) is actually touching the expenditure levels in FY 2014-15, which speaks volumes about the austerity drive in the PM office. In nutshell, Finance Division clarifies that PM office has actually reduced its expenditure by 32% during the CFY 2018-19. Its next year budgetary allocation is 12% less than the budget for 2018-19. The coordinated effort to bring austerity through rationalization of current federal expenditures would continue in future under the high standards set by the PM Office, based on the PM’s vision of cutting down expenditures. Following is the complete budget analysis of the Prime Minister Office:- Prime Minister’s Office Budget & Expenditure Analysis (2018-19) (Rs millions) Budget 2018-19 Revised 2018-19 Est.Actuals 2018-19 * Savings (%) ** (Actual/Budget) Budget 2019-20 Saving (%) (Budget/Budgeted PM Office (Internal) 472 449 370 -22% 389 -18% PM Office (Public) 514 371 305 -41% 474 -8% Sub total 986 820 675 -32% 863 -12% National Disaster Management Authority 273 309 Grand Total 986 1,093 1,172 * Revised budget is estimated on eight months actual expenditure+ 4 month anticipated ** Estimated Actual is actual expenditure during the year. It carries actual data for eleven months (up to 31-05-2019) + 1 month anticipated AS/NR ***** ?
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