Lahore: The Punjab government on Saturday disallowed the parking of development funds in commercial banks with regard to the austerity measures for Fiscal Year (FY) 2020-21, a news source reported.
The provincial government issued a notification after finalising the economy and austerity measures for FY2020-21. The notification barred the parking of funds provided by the Punjab government in commercial bank accounts of companies, authorities, and autonomous bodies.
The notification stated that the Punjab Finance Department would release the development funds in relevant Special Drawing Accounts (SDAs) or via a normal release mode. From the SDAs, the funds would go into the commercial bank accounts of companies, authorities, and autonomous bodies as per cash flow requirements to avoid unnecessary parking of funds.
The austerity measures FY2020-21 finalised apply to all government departments, local government, Lahore High Court, public sector companies & authorities, autonomous bodies, attached departments, and special institutions.
The austerity measures also include a complete ban on foreign visits by government officials on government funding (with some exceptions). All ministers and civil servants allowed on official tours will use economy class on domestic flights and for international flights, they will use the category one class blow their entitlement. Similarly, there will be no medical treatments abroad on government’s expense except that the Punjab chief minister allows under an inevitable situation. Furthermore, there will no procurement of locally-assembled new and imported vehicles using current and development budgets. Vehicles used for public relief like ambulances are not part of this ban.
A ban has also been placed on conducting workshops and seminars in five-star hotels with government funds. The departments concerned would meet the marketing expense of a project from the cost allocated to the project. Additionally, there will be no purchase of air conditioners except by prior approval of the austerity committee