- 115 cost centers do not utilize the allocation of Rs 87 billion.
- The Auditor General points out two cases of embezzlement and misappropriation.
- Most federal entities lack functional internal audit units.
The federal government’s financial management has come under serious scrutiny after audit reports for the audit year 2025-26, covering the federal government’s accounts for fiscal years 2024-25, revealed widespread budget irregularities, weak financial controls, unapproved expenditure worth trillions of rupees and cases of misappropriation of public money. The news reported.
One of the most alarming findings is that 92% of supplementary grants worth Rs 3,177 billion were not approved by parliament, even though the government obtained total supplementary grants of Rs 3,454 billion during the year. The audit report questions the government’s compliance with constitutional and parliamentary requirements governing public spending.
Latest reports, shared with The news According to a parliamentary source, he also highlighted that supplementary grants worth Rs 1,833 billion were obtained for repayment of loan principal without proper assessment of actual needs, resulting in overspending. In another case, expenditures exceeding the final subsidy authorized by parliament amounted to Rp187 billion.
The reports further revealed that federal entities requested Rs 3,809 billion in budget allocations without proper needs assessment, raising concerns over the credibility of the budget process. Ironically, despite demanding huge allocations, 115 cost centers did not utilize Rs 87 billion, which eventually lapsed, while supplementary grants worth Rs 41 billion also went unspent.
The Auditor General also noted constitutional and financial management violations. These include the irregular transfer of Rs 7 billion from the Federal Consolidated Fund to the Public Account in contravention of Article 78 of the Constitution, as well as the failure to transfer Rs 24 billion in unclaimed deposits from dead accounts to the government account.
The audit reports identify serious deficiencies in the government’s accounting and reporting systems, including failure to prepare debt and loss reports, failure to maintain records of fixed assets and liabilities, and failure to subscribe to the General Provident Fund (GP Fund) in individual GP Fund accounts.
The Auditor General observed that most federal entities do not have functional internal audit units, while in many organizations no chief internal auditors have been appointed. According to the audit, the lack of effective internal oversight contributed to internal control failures, irregularities and losses of public funds.
The reports also revealed two cases of embezzlement, misappropriation of public money and fictitious payments, in addition to 82 cases in which auditors flagged recoveries and 78 cases that reflected weak internal controls.
Expressing concern over the findings, the Auditor General recommended that cases involving serious misappropriation of public money be referred to investigative agencies for appropriate action to be taken.
The audit findings are likely to spark renewed debate about fiscal discipline, parliamentary oversight, transparency in public spending, and the effectiveness of accountability mechanisms within the federal government.
