PESHAWAR: The Khyber Pakhtunkhwa government has directed all provincial departments to operate within their approved budgets for the fiscal year 2026-27, expressing concern over requests for additional funding at the beginning of the financial year.
The provincial Finance Department has issued a circular instructing departments to maintain financial discipline and control public expenditure by avoiding spending beyond their allocated funds.
According to the circular, departments have been barred from creating financial liabilities before ensuring the availability of funds. Requests for supplementary grants without sufficient justification will not be entertained.
The Finance Department has also directed departments to utilise their existing resources before seeking additional allocations. They have been advised to postpone unnecessary spending, identify potential savings and review their expenditure priorities.
Autonomous institutions have been encouraged to meet their financial requirements through their own resources wherever possible.
The circular stated that additional funding would only be considered for genuine and unavoidable needs. Departments requesting extra allocations must submit details of proposed expenditures, their available budgets and possible savings.
They must also identify alternative funding sources and explain whether funds can be reallocated within their existing budgets.
The Finance Department has instructed all provincial departments to strictly implement austerity measures and ensure compliance with the budgetary restrictions.