The federal government’s arrears increased by 15.6 percent to Rs 10.68 billion in FY 2025/26, up from Rs 9.24 billion in the previous fiscal year, according to the Financial Comptroller General Office (FCGO).
Capital expenditure accounted for the largest share, with Rs 5.78 billion in arrears against Rs 409 billion allocated. The FCGO attributed the rise to expanded budget spending, procedural lapses, negligence and damage to public assets during the Gen-Z movement.
The Ministry of Physical Infrastructure and Transport recorded the highest arrears at Rs 4.19 billion, followed by the Ministry of Energy, Water Resources and Irrigation at Rs 3.23 billion. The FCGO audited 3,985 government offices during the fiscal year.
