- 115 cost centers fail to utilize Rs87bn. allocation.
- The Auditor General marks two cases of embezzlement and embezzlement.
- Most federal entities lack functional internal audit units.
The federal government’s financial management has come under serious scrutiny after audit reports for the financial year 2025-26, covering the federal government’s accounts for FY2024-25, revealed widespread budgetary irregularities, weak financial controls, unauthorized expenditure worth trillions of rupees and public embezzlement cases. The news reported.
One of the most alarming findings is that 92% of the supplementary appropriations of Rs 3.177 billion remained unapproved by Parliament, despite the government obtaining total supplementary appropriations of Rs 3.454 billion during the year. The audit report calls into question the government’s compliance with constitutional and parliamentary requirements for public expenditure.
Latest reports, shared with The news by a source in Parliament, also highlighted that additional grants worth Rs 1,833 billion were obtained for repayment of loan principal without proper assessment of actual needs, resulting in excess expenditure. In another case, expenditure exceeding the final grant approved by Parliament amounted to Rs 187 billion.
The reports further revealed that federal entities sought Rs3.809 billion in budget allocations without a proper needs assessment, raising concerns about the credibility of the budgeting process. Ironically, despite demanding huge allocations, 115 cost centers failed to utilize Rs87 billion, which ultimately lapsed, while supplementary grants worth Rs41 billion also remained unspent.
The Auditor General also pointed to constitutional and financial management breaches. These include the irregular transfer of Rs7 billion from the Federal Consolidated Fund to the Public Account in violation of Article 78 of the Constitution, as well as the failure to transfer Rs24 billion in unclaimed deposits from dead accounts to the Public Account.
The audit reports identify serious weaknesses in the state’s accounting and reporting systems, including failure to prepare debt and loss reports, failure to maintain records of fixed assets and liabilities, and failure to draw General Provident Fund (GP Fund) into individual GP Fund accounts.
The Auditor General noted that most federal entities do not have functional internal audit units, while chief auditors have not been appointed in many organizations. According to the audit, the absence of effective internal supervision contributed to internal control failure, irregularities and loss of public funds.
The reports also revealed two cases involving embezzlement, misappropriation of public funds and fictitious payments, in addition to 82 cases where recoveries were flagged by auditors and 78 cases reflecting weak internal controls.
The Auditor General expressed concern at the findings and recommended that cases involving serious embezzlement of public funds be referred to investigative bodies for appropriate action.
The audit findings are likely to trigger renewed debate on fiscal discipline, parliamentary oversight, transparency in public spending and the effectiveness of accountability mechanisms in the federal government.
