Finance Division Extends Expenditure Restrictions Across Federal Entities for FY2026-27

Continuation of Spending Controls

The Ministry of Finance has formally notified the continuation of federal expenditure controls for the 2026-27 fiscal year. Issued on July 21, 2026, the decision follows approval by the Federal Cabinet during considerations of the Annual Budget Statement.

Affected Entities and Statutory Coverage

The policy applies to federal ministries, divisions, attached departments, autonomous bodies, and statutory regulatory authorities. For state-owned enterprises, compliance is mandatory pursuant to Section 35 of the State-Owned Enterprises (Governance and Operations) Act, 2023.

Core Spending Restrictions

The directive maintains explicit bans on purchasing vehicles, procuring new machinery and equipment, and establishing new employment posts. Additionally, administrative bodies are required to eliminate positions that have remained vacant for three or more years.

Implementation and Exemption Procedures

Federal departments must disseminate the notification throughout their subordinate offices. Where compelling justifications exist, entities may submit exemption requests to the Finance Division's Austerity Committee, which holds authority to evaluate and grant exceptions on a case-by-case basis.