Government Reserve Balance Shows Steep Decline, Hits Negative Rs 116.93 Billion

The latest records from the Office of the Auditor General (OAG) reveal a concerning decline in the reserve balance of all three levels of government, which stood at a negative Rs 116.93 billion in the last fiscal year (FY). This represents a sharp deterioration from the previous FY, when the reserve fund was recorded at a negative Rs 38.20 billion.

The significant plunge in the cumulative reserve balance highlights the growing fiscal challenges faced by the government. Experts have expressed concern over the implications of such a large deficit, which may affect the government’s ability to meet financial obligations and invest in essential public services.

Officials from the OAG have called for a closer examination of the government’s financial management practices and suggested that measures should be taken to address the negative balance and ensure long-term fiscal stability.