The Finance Division has formally notified the continuation of federal financial controls through fiscal year 2026-27. Sanctioned by the federal cabinet during budget framework discussions, the directive maintains spending limits that originated in Cabinet Division guidelines from February 2023 and subsequent Finance Division restrictions introduced in September 2024.
Key Spending Restrictions
The extended directive maintains strict prohibitions across several key operational areas. Federal institutions remain prohibited from buying vehicles of any category, purchasing new machinery or equipment, creating new employment posts, and conducting unapproved international trips.
Covered Institutions and Legal Reach
The mandate covers all federal ministries, divisions, attached departments, autonomous bodies, statutory authorities, and regulatory organizations. For State-Owned Enterprises (SOEs), these operational directives constitute binding statutory instructions under Section 35 of the State-Owned Enterprises (Governance and Operations) Act, 2023.
Implementation and Exception Process
Federal institutions must distribute the directive throughout their administrative networks to guarantee full compliance. Should critical operational needs arise, entities can submit formal requests for specific exemptions to the Finance Division's Austerity Committee, which holds the authority to review and approve case-by-case waivers upon sufficient justification.