The FBR has introduced tougher financial controls for Inland Revenue and Customs field formations requesting recurrent budget allocations for the fiscal year 2026–27. The new measures are aimed at preventing unauthorized spending, improving financial discipline, and ensuring that government funds are used according to approved budget limits.
According to an official directive issued on Monday, the FBR has made heads of departments and field offices personally responsible for managing their approved budgets. Officials have been instructed to ensure that all expenditures strictly comply with the country’s financial laws, rules, and government regulations. The tax authority emphasized that budget allocations must be utilized carefully and transparently to avoid financial irregularities.
The instructions require all offices to follow the provisions of the Public Finance Management Act, 2019, General Financial Rules, Financial Regulations, Treasury Rules, and other directives issued by relevant regulatory authorities as well as the FBR headquarters. The Board stated that strict adherence to these rules is essential to maintain financial accountability across all tax and customs offices.
The decision follows a review of the SAP Budget Execution Report for the fiscal year 2025–26. The report revealed that several field formations had incurred expenditures beyond their approved budget allocations under different heads of account. These unauthorized expenses resulted in overdrafts, prompting the FBR to tighten its financial monitoring procedures.
Under the new policy, the heads of departments, controlling officers, and Drawing and Disbursing Officers (DDOs) will be held personally accountable for any violations of the financial framework. The FBR warned that failure to comply with the prescribed rules could lead to disciplinary proceedings under the Efficiency and Discipline Rules in addition to financial accountability.
The directive also states that offices responsible for unauthorized expenditures will not be considered for budget reappropriation or additional funding until all excess payments have been adjusted or recovered. This measure is intended to discourage overspending and ensure better financial planning.
To further strengthen oversight, the FBR has instructed all Inland Revenue and Customs field formations to establish an effective monthly budget monitoring system. The reconciliation process must include original budget allocations, approved reappropriations, surrendered funds, supplementary grants, monthly and cumulative expenditures, and the remaining available budget before financial reports are submitted to the Board. These steps are expected to improve transparency, strengthen fiscal discipline, and promote responsible management of public funds throughout the new financial year.
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