The federal government has taken a principled decision to make government financial assistance to all state institutions conditional on performance and a new funding formula for institutions has been proposed in this regard.

According to the report, the federal Ministry of Finance has proposed a new model of performance-linked funding.

The document issued by the Ministry of Finance states that under the proposed model, state institutions will have to meet specific targets for funding, financial assistance will not be provided until the institutions meet specific targets.

The report further stated that the purpose of results-based funding is to promote financial discipline and, in addition to improving operational performance, to bring institutions out of financial loss and towards value addition.

According to the report, financial assistance will be reduced in case of failure to achieve the targets. The new funding model is a long-term strategy that seeks to make institutions self-sufficient by removing them from the financial patronage of the state.

The report further said that the aim of this initiative is to ensure that every rupee of government money is used for the development of the country. This is a clear message........

© The Patriot