The Finance Division (FD) has revised released strategy for funds allocation for the Public Sector Development Programme (PSDP), while saying that no formal release would be made after May 15, 2020, besides no funds would be released for new service/new item of expenditure during the 4th quarter of 2019-2020.
The Finance Division has issued an office memorandum (OM), which stated that the release policy for the last quarter of the current financial year stands amended. The PSDP funds up to 3rd quarter of the current financial year were authorized by the Planning and Development Division and were released by Principal Accounting Officers (PAOs) without referring the same to the Finance Division for ways and means clearance.
However, releases for 4th quarter of fiscal year 2019-2020 will require ways and means clearance by the Budget Wing and endorsement by the Expenditure/Development Wing. Further Expenditure/ Development Wing, Finance Division will closely monitor and analyse the requirements of various divisions/ departments/ organizations/projects keeping in view, among others, the spending trends and needs, and then cases will be forwarded along with recommendations to the Budget Wing for ways and means clearance.
All payment will be made either through the pre-audit system of the Accountant General Pakistan Revenue (AGPR), or through Assignment Account procedures issued by the Finance Division.
The office memorandum stated that no formal release would be made after 15th May, 2020: (a) All proposals for supplementary grants/technical supplementary grants shall have to be routed through Budget Wing prior to submission for approval of finance secretary/adviser to the prime minister on finance as contained in policy/strategy for release of funds 2019-2020. Expenditure Wing, Finance Division will ensure the same.
(b) Proposals for release of current expenditure for 4th quarter of fiscal year 2019-2020 will also be closely monitored/analysed by the Expenditure Wing, Finance Division on the basis of previous spending trend and needs.
Funds should not be demanded/recommended for releases just to avoid savings.
During 4th quarter no funds would be released for new service/new item of expenditure.
According to the OM issued on November 7, 2019 funds for the PSDP expenditure for each project will be released at the level of 20 percent for quarter 1, 30 percent each for quarter 2 and 3, and 20 percent for quarter 4 against budget allocation 2019-2020.
No ways and means clearance of the Finance Division would be required for quarters Ql, Q2 and Q3 in respect of the PSDP releases as authorised by Ministry of Planning, Development and Reforms, while remaining with the prescribed limit.
However, the PSDP releases for 4th quarter of financial year would require ways and means clearance from the Finance Division.
However, in the latest OM, it has been stated that no formal release would be made after May 15, 2020.
Another addition is that proposals for release of current expenditure for 4th quarter of fiscal year 2019-2020 will also be closely monitored/analysed by the Expenditure Wing, Finance Division on the basis of previous spending trend and needs. Funds should not be demanded/recommended for releases just to avoid savings. During 4th quarter no funds would be released for new service/new item of expenditure. These points were also not included in the first OM issued on November 7, 2019.
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