ISLAMABAD: Former chairman Senate Mian Raza Rabbani Monday said after the Governance and Corruption Diagnosis Assessment (GCDA) report by the IMF, which identified a series of weaknesses of Pakistan’s internal financial controls, internal and external audit system, and now the fiscal data released by the Ministry of Finance, indicates a 13% increase of the federal government expenditure in the first quarter (Q1FY2025-26).
“In these circumstances, the federal government is in no position to ask for a reduction in the share of the provinces in the NFC Award,” he said in a statement. Rabbani said the civil administration costs for the federal government had gone up by 13%. Pension Bill, which includes military pensions, soared to 125% over 5 years. “Over two lack jobs have been cut.
He said the Jobs that had been cut belong to grades 1 to 16, while the perks and privileges of grade 20 and above including, MP-1 and above, had been increased manifold. He said the federal government had failed to meet the tax collection targets, while the provinces had shown better collection in tax devolved under the 18th Amendment.
In view of these facts, he suggested that the federal expenditure be overseen by the Council of Common Interest (CCI) and any new increase in the expenditure shall not be authorized till approved by the said forum.
He further suggested that all taxes being collected by the federal government should be devolved to the provinces for collection. He demanded that the federal expenditure should place before the CCI and after approval of the provinces such expenditure be authorized.
