ISLAMABAD: The federal government has notified Cash Management and Treasury Single Account Rules, 2024 that requires government offices and public entities to provide on a quarterly basis a complete list of bank accounts to the Finance Division.
A notification of the Finance Division said that these rules shall apply to all government offices and notified entities and shall have effect notwithstanding anything contrary contained in federal treasury rules.
As per the Finance Division, these rules would ensure timely availability of funds for settling authorised expenditures and the Budget Wing and Debt Management Office shall project an estimate of cash buffer requirement on a regular basis; (ii) Finance Division may, in coordination with the State Bank of Pakistan, utilize surplus funds, if any, to retire public debt; (iii) By 56 day of each month, Accountant General of Pakistan Revenues shaft provide revenue and expenditure data, after end of each quarter, to secretaries of all divisions for review; (iv) Secretaries of all divisions shall provide a three-month forecast of revenue and expenditure to Finance Division by the 206 day of the month following end of each quarter; (v) Debt Management Office shall prepare quarterly projections of debt servicing, principal and interest; (vi) Finance Division shall prepare cash forecast reports every month on the basis of data provided by divisions and Debt Management Office.
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The report shall be on a rolling basis and cover a period of three months. (vii) Each division shall prepare a variance statement for the previous quarter showing variation, and reasons thereof if variation is more than 10 per cent, between projected and actual revenue and expenditure.
The government offices and public entities will open, maintain and operate bank accounts only in accordance with Section 31 of the Act and these rules.
Request for opening of a bank account shall be submitted to the Finance Division containing any legal provision or approval granted by the federal government or clear justification for opening a bank account.
Bank accounts opened before these rules take effect shall be jointly reviewed by the Finance Division and the division concerned, and those accounts which are found non-essential for functioning shall be closed and balance, therein, shall be transferred to the Federal Consolidated Fund or the Public Account in accordance with the procedure prescribed in the Federal Treasury Rules. The SBP shall provide a quarterly report to Finance Division of all bank accounts and balances therein operated and maintained by government offices and public entities. The report shall be on a format agreed between Finance Division and the SBP.
The government offices and public entities shall provide on quarterly basis a complete list of bank accounts to Finance Division. On the basis of information provided by the State Bank of Pakistan, government offices and public entities, Finance Division shall maintain an inventory of these bank accounts and bank accounts of government offices shall be operated by at least two signatories, in BS-17 or above, nominated by the concerned Principal Accounting Officer. Finance Division may also authorise opening of additional bank accounts in the SBP or domestic and foreign commercial banks to act as transitory bank accounts to facilitate collection of revenues and processing of payments. Balances in these accounts shall be kept to a minimum with deposition in Non-food Account-I. No authority shall transfer public money in contravention of Subsection 2 of Section 23 of the Act.
The Finance Division shall from time to time notify government offices and public entities which are required to be part of the treasury single account. Bank accounts holding private money shall not be part of the treasury single account. Public money for investment, equity, loan, grant, subsidy, local or foreign aided projects or schemes shall be provided through assignment accounts. The SBP shall host and maintain treasury single account on behalf of the federal government, and shall provide monthly reports to Finance Division. It shall also explore the possibility of digital integration with commercial banks for provision of such information. The SBP shall open a sub-account titled, “TSA Sweeping Deposit Account” in the Non-food Account No. I of the federal government for the purpose of implementing sweeping arrangements. At the close of banking hours every day, the available balances in notified bank accounts shall be consolidated in a transitory account at the main PRISM/RTGS branch by the banks bolding these accounts. The PRISM/RTGS branch shall transfer the balance consolidated in the transitory account to the SBP through PRISM/RTGS for onward credit to the ISA Sweeping Deposit Account. At the start of banking hours every day, the deposit in TSA Sweeping Deposit Account shall be sweep out by the SBP and corresponding balances shall be credited to respective bank accounts.
Copyright Business Recorder, 2024
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