Auditors have unearthed financial irregularities worth more than Rs26.54 billion in Balochistan during the financial year 2022-23.
This was disclosed in the recently released Audit Report for the fiscal year 2022-23, which was prepared by the Auditor General of Pakistan.
The audit report found that in the financial year 2022-23, the Balochistan government earned more than Rs491.93 billion. However, the government ended up spending Rs503.944 billion, or Rs12 billion more than what it earned during FY 2022-23. This effectively meant that its annual budget was a deficit budget.
It further noted that 74% of the Public Sector Development Programme (PSDP) - which contains a budget for new schemes - was allocated for just four government departments, including the Public Health Engineering Department (PHED), the Communication and Works Department, the Local Government Department and the Irrigation Department. The remaining departments had to contend with just 26% of the funds - this meant that less than one percent of development funds had been allocated for other sectors.
"The absence of development schemes in these sectors raises concerns about their progress and growth," read the audit report.
To make matters worse, only 30% of the money allocated under the head of development funds could be spent in the fiscal year, stunting development in the province.
The audit report further uncovered financial irregularities worth Rs26.54 billion in Balochistan during the financial year 2022-23.
The audit report said that relevant officials of the Balochistan government did not present records for expenditures worth Rs10.7 million. In one case, the auditors detected fraud and embezzlement worth Rs7.29 million was unearthed.
Irregular expenditure or improperly utilised expenditures worth a cumulative of Rs123 billion in 180 cases. However, the audit authorities said these expenses were extracted from the province's total expenditure. There was an overpayment of Rs2.607 billion in 28 cases.
The audit report further found that in 12 cases, the government had suffered losses worth more than Rs1.484 billion. The report also identified 30 cases where taxes worth more than Rs3.31 billion were evaded, causing a loss to the exchequer.
The report also identified recoverables worth more than Rs5.977 billion in 31 cases.
Recommendations
The audit report recommended that the relevant authorities take disciplinary action against officials who were found to be responsible for not producing the relevant records for auditing. It added that not producing records was a serious irregularity that hindered audit activity.
Further, it recommended the provincial government inquire into the embezzlement detected by the Auditor General, take appropriate disciplinary action, and ensure strong internal controls to avoid its recurrence in the future.
The report recommended that inquiries be conducted to affix responsibility for causing a loss to the exchequer and for the irregular expenditures. However, it recommended that irregular expenditures may be regularised. It was suggested that the government should strengthen its internal controls to avoid the recurrence of repetitive irregularities.
The government was urged to make efforts to recover overpaid sums apart from promptly recovering government dues, wherever applicable, and then credit them in the government treasury.
The revenue-earning departments were urged to make serious efforts to collect due government receipts in a timely manner.