Rs2.6tr federal spending on devolved health, education ministries misuse of taxpayers’ money: Senate panel

ISLAMABAD  –  A Senate panel has noted that the federal government has spent around Rs2.6 trillion in 16 years on two ministries — health and education — devolved to the provinces in 2010, terming it a misuse of taxpayers’ money. The Sub-Committee of the Senate Functional Committee on Devolu­tion, which met under Convener Senator Zamir Hussain Ghumro, took up reports of the Auditor General of Pakistan (AGP) and Accountant General on federal spending on provincial subjects.

The chairman stressed par­liamentary oversight to en­sure compliance with the 18th Amendment, noting that 16 years after its passage, concerns persist over federal spending on devolved subjects including health and education. Refer­ring to Articles 168 and 169, he questioned the constitutional basis for spending Rs2.6 trillion on health and education in the last 16 years. “This whopping expenditure of Rs2.6 trillion by the federal government on just two ministries devolved in 2010 is a misuse of taxpayers’ money as the federal government can spend only on its own sub­jects,” he said, adding that the amount would run into many trillions when expenditure on all ministries created on pro­vincial subjects is included. He expressed concern that details sought by the committee were not submitted within the stipu­lated time. He said Parliament is the primary authority for authorizing public expenditure — and that too only on federal subjects — as public funds be­long to the people and require proper scrutiny by the AGP. The AGP officials said their audit is guided by budgets approved by Parliament. The chairman said that under Section 8 of the AGP (Functions and Powers) Ordinance and Article 169, it was the AGP’s duty to see that expenditure was authorized for a service to be provided by the federal government under the Constitution, adding that expenditure from the Federal Consolidated Fund cannot be authorized for devolved pro­vincial matters. He directed of­ficials to furnish information on a prescribed proforma. The AGP assured that data would be provided within two weeks. On compliance reports by the CCI Secretariat, Cabinet Division, Privatization Commission and Establishment Division, the CCI Secretariat informed the com­mittee that in compliance with its directions, a summary had been moved to the Prime Minis­ter and a response was awaited.

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Officials said a CCI meeting scheduled for Oct 9 could not be held. The committee then examined the proposed priva­tization of power distribution companies (DISCOs) in the con­text of Article 157, provincial responsibilities and the role of the CCI. The chairman ques­tioned whether the privatiza­tion was consistent with the constitutional distribution of powers, noting that electricity distribution involves provincial interests. He referred to previ­ous judicial decisions and said the matter should be examined for referral to the CCI. The min­ister for privatisation said legal and procedural requirements had been fulfilled. He said the National Electricity Policy 2021 was formulated after ob­taining provincial recommen­dations and the privatization programme was subsequently approved. Referring the mat­ter back to the CCI now would cause delays, affect investor confidence and worsen the fi­nancial position of DISCOs, he said, highlighting losses due to theft and inefficiencies.

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The chairman, however, said the constitutional position and CCI’s role could not be over­looked. He stressed transparen­cy and protection of provincial interests and sought the rele­vant five-year record on DISCOs privatization, along with CCI de­cisions and any provincial res­ervations. Officials informed the committee that the CCI had tak­en 11 relevant decisions and no province had formally recorded reservations. They assured that relevant documents would be shared. The chairman directed the authorities to furnish the decisions and supporting record so the committee could assess the matter in light of the Consti­tution, judicial pronouncements and the responsibilities of the Federation and provinces.

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