Bringing predictability to a volatile scenario.
PUNJAB plans to implement a rolling and gt; expenditure planning framework from the next financial year to manage its current spending barring its pay and allowances bills in a better, more predictable manner. The new rolling expenditure framework will help the provincial government cope with the impacts of the expected coronavirus-induced revenue shocks on its ability to meet the potential emergent expenditure without significant disruptions to its routine budgeted public service delivery assignments.
The Framework for Rolling Expenditure (FRE), according to the budget documents for 2020-21, is structured in a way as to cater to the exigent spending requirements of the government arising from a pandemic (like Covid-19) `above and beyond the budgeted expense for the year`. `The rolling expenditure model provides insight into requirements for future adjustments in case of releases lower than the budgeted amounts in a certain period,` the documents say. The new rolling expenditure mechanism is more demand-driven as compared to conventional supply-driven.
The new expenditure framework is being rolled out in view of the uncertain conditions amid the global health crisis that had infected nearly 169,000 and killed around 3,300 people across the country by Saturday morning. `It is difficult to make revenue and expenditure forecasts for the entire year in such uncertain times.
Hence, we`ve decided to implement the Framework for Rolling Expenditure in the new budget in order to cope with these uncertainties by monitoring and controlling expenditure on the basis of actual demand as against conventional...
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