Rs3,809bn sought in budgetary allocations without proper need assessment, reveal reports.
The federal government’s financial management has come under intense scrutiny after audit reports for 2025–26, covering federal accounts for FY2024–25, revealed extensive budgetary irregularities, weak internal controls, unapproved spending running into trillions of rupees, and instances of embezzlement of public funds, The News reported.
A key concern highlighted in the report is that 92% of supplementary grants—worth Rs3,177 billion—were not approved by parliament, despite the government securing a total of Rs3,454 billion in supplementary grants during the year. The audit raises serious questions about adherence to constitutional and parliamentary requirements governing public spending.
The reports further revealed that federal entities sought Rs3,809 billion in budgetary allocations without proper need assessment, raising concerns about the credibility of the budgeting process. Ironically, despite demanding huge allocations, 115 cost centres failed to utilise Rs 87 billion, which ultimately lapsed, while supplementary grants worth Rs41 billion also remained unspent.
The Auditor General also pointed to constitutional and financial management violations. These include the irregular transfer of Rs7 billion from the Federal Consolidated Fund to the Public Account in contravention of Article 78 of the Constitution, as well as the failure to transfer Rs24 billion in unclaimed deposits from dead accounts to the government account.
Latest reports shared with The News by a parliamentary source show that supplementary grants worth Rs1,833 billion were approved for repayment of loan principal without a proper assessment of actual requirements, resulting in excess spending. In another instance, expenditures exceeded the final grant authorised by parliament by Rs187 billion.
The reports also indicate that federal entities sought Rs3,809 billion in budget allocations without adequate need assessment, raising concerns about the credibility of the budgeting process. Despite these demands, 115 cost centres failed to utilise Rs87 billion, which later lapsed, while supplementary grants worth Rs41 billion also remained unspent.
The Auditor General has also flagged several constitutional and financial management violations, including the irregular transfer of Rs7 billion from the Federal Consolidated Fund to the Public Account in breach of Article 78 of the Constitution, as well as the failure to transfer Rs24 billion in unclaimed deposits from dormant accounts to the government account.
The audit findings highlight serious weaknesses in government accounting and reporting systems, including the non-preparation of debt and loss reports, non-maintenance of fixed asset and liabilities registers, and missing GP Fund subscriptions in individual accounts.
According to the Auditor General, most federal entities lack functional internal audit units, while Chief Internal Auditors have not been appointed in several organisations. This lack of internal oversight has contributed to control failures, irregularities, and losses of public funds.
The reports also revealed two cases involving embezzlement, misappropriation of public money, and fictitious payments, along with 82 instances where auditors identified recoveries and 78 cases reflecting weak internal controls.
The Auditor General has recommended that serious embezzlement cases be referred to relevant investigation agencies for further action.
The findings are expected to intensify debate over fiscal discipline, parliamentary oversight, transparency in public spending, and the effectiveness of accountability mechanisms within the federal government.
