The Punjab government’s recent decision to spend over Rs612 million on luxury vehicles has sparked controversy, particularly as it comes amid a nationwide austerity drive aimed at reducing administrative expenditures. According to sources, this significant expenditure is intended to procure 76 luxury vehicles for parliamentary secretaries and provincial ministers’ protocol duties. The move has raised questions about the prioritization of funds in a cash-strapped country struggling to implement economic reforms and reduce its budget deficit.
Sources revealed that the additional chief secretary wrote a letter to the finance department requesting the release of funds for the procurement of these vehicles. Specifically, the plan includes purchasing 29 luxury vehicles worth Rs220 million for parliamentary secretaries and 15 vehicles valued at Rs90 million for the Services and General Administration Department (S&GAD). Additionally, 30 vehicles worth Rs200.90 million will be allocated for provincial ministers’ protocol duties, and two extra vehicles worth Rs30.61 million will be added to the S&GAD transport pool.
This development has emerged as the federal government, under the direct supervision of Prime Minister Shehbaz Sharif, is actively pursuing an austerity drive. The drive includes significant cost-cutting measures and economic reforms intended to alleviate the financial strain on the country. Last year, PM Shehbaz instructed his ministers and advisers to fly economy class, forgo luxury cars, and relinquish their salaries as part of an austerity initiative projected to save the government 200 billion rupees annually.
Despite these austerity measures, the budget for the fiscal year 2024-25 has placed immense pressure on the public and salaried class, who have seen little relief. Meanwhile, austerity measures for government officials appear to be inconsistently applied. This inconsistency has drawn criticism from various sectors, including economists who argue for a complete ban on luxury purchases by government entities during economic challenges.
In a related development, Finance Minister Muhammad Aurangzeb recently announced that the government would eliminate 150,000 vacant positions, dissolve one ministry, and merge two others to reduce administrative costs. Following the federal cabinet’s approval, the rightsizing committee decided to scrap 60% of the vacant seats, aiming to cut expenditures further. This decision underscores the federal government’s commitment to fiscal discipline, contrasting sharply with the Punjab government’s expenditure on luxury vehicles.
The situation in Punjab mirrors a similar move by the Sindh government, which planned to spend Rs2 billion on 138 luxury 4×4 vehicles for assistant commissioners across the province. These vehicles, primarily Toyota Hilux Revo models, are intended to facilitate the officers in performing their duties more effectively. However, this expenditure has also been criticized given the broader economic context.
Economists have repeatedly advised against the purchase of luxury items or vehicles for government-run entities, suggesting that such expenditures are inappropriate given the current economic challenges. They propose a stringent austerity regime that includes a ban on luxury purchases and a moratorium on creating new administrative units, such as districts or towns, until the economic situation improves.
The Punjab government’s decision to allocate substantial funds for luxury vehicles at a time when the federal government is enforcing strict austerity measures raises questions about fiscal responsibility and prioritization. It highlights a disconnect between the federal and provincial approaches to managing economic challenges. As the country grapples with budget deficits and the need for economic reforms, such expenditures on luxury items appear out of sync with the broader austerity goals and the financial realities faced by the nation.
