Govt decides to abolish budgetary allocations for ‘gifts’

ISLAMABAD: In continuation of its austerity drive, the government has decided in principle to put an end to budgetary allocation of around Rs516 million for gifts and entertainment.

The proposal to abolish the fund was floated during the recent cabinet meeting and the members decided in unison to stop the practice.

This allocation had been made by the previous Pakistan Muslim League-Nawaz (PML-N) government, which was later approved by parliament.

Of the Rs 516 allocation, Rs3.5 million had been fixed under the head of entertainment and gifts at the disposal of the Prime Minister House.

The cabinet was informed that the Finance Division had been directed to work out in detail the funding for ministries and divisions that could be termed discretionary and present it before the cabinet within a week.

In his first address as premier on August 19, PM Imran had said the country would begin an austerity drive to reduce debt, a campaign he kick-started by announcing to sell his office’s fleet of bullet-proof cars.

Khan set out his vision for a “New Pakistan” and spoke at length about the need to reshape the country by introducing an Islamic welfare system, reducing poverty and slashing high debt levels.

“No country can prosper like this. A country must stand on its own feet.”

Criticizing what he called the colonial-era mindset and lavish lifestyles of Pakistan’s ruling elite, Khan had also announced he would live in a small three-bedroom house instead of the palatial prime minister’s residence. And days later he materialized his announcement.

Khan had also appealed to overseas Pakistanis to invest in the country and urged the wealthy to start paying taxes, a perennial problem in a nation famous for tax dodging and where less than 1 percent of the population files income tax.