PCB and Finance Ministry to review SOE budgets

Privatisation and Corporatisation Board (PCB) has mandated that all state owned enterprises (SOEs) to submit their annual budgets to the board and Ministry of Finance for review.

PCB said in a statement today that it has formulated the "PCB's policy on the formulation of annual budgets of state owned enterprises" to ease and standardise the review of SOE budgets. The board also notified all applicable companies to put together their budgets in accordance with the policy.

However, considering companies have already started the process of formulating next year's budgets, PCB said budget formulation requirements of the policy may be followed from 2026 onwards. Despite this, budget review, changes and internal audit functioning would have to be in accordance with the new regulations, the board also said.

The PCB has been stepping up measures to strengthen the management of SOEs and reduce their operational costs, while other SOEs have been dissolved or merged. This is also in line with the government's efforts to improve the country's fiscal sustainability through reduced expenditure.