Development schemes: MoPD has given powers of reappropriation of allocated funds to concerned officials

ISLAMABAD: The Ministry of Planning, Development and Special Initiatives (MoPD) has given the powers of reappropriation of budgeted funds of development schemes to the Secretaries of concerned Ministries.

In a letter to all the Secretaries/ Principal Accounting Officers (PAOs), Accountant General of Pakistan and Control General of Accounts, issued on the instructions of deputy chairman Planning Commission Jahanzeb Khan, Chief Public Programming Investment Chief Planning Commissio' Sohail Hanif wrote that he has been directed to inform all relevant personnel of Financial Management and Powers of PAOS Regulations, 202l issued by the Finance Division during March 2021, wherein, powers for appropriation of budgeted funds, from one development scheme to another, which are duly approved by the competent forum and included in the demand(s) for grant, have been delegated to the Secretary of Division concerned while observing all general instructions/ restrictions required before re-appropriating the funds.

According to the letter, regulations clearly indicate that if some urgent need arises, ministries/divisions concerned may only re-appropriate PSDP funds to budgeted approved projects with the approval of the secretary concerned.

However, ministries / divisions, have also been advised to observe following guidelines while re-appropriating funds: (i) re-appropriation of funds among the budgeted projects in PSDP may be discouraged during the first half of the financial year; (ii) no reappropriation may be allowed for un-approved projects; (iii) re-appropriation may be allowed only to the heads of accounts / provisions given in approved PC-Is / PC-IIs by the respective competent forum; (iv) funds should preferably be re-appropriated for completion of ongoing projects and consideration may be made that timelines of ongoing projects may not delay due to any re-appropriation; (v) cost / time over run may be avoided while allowing re-appropriation of funds from the on-going projects; and (vi) regional and sectoral allocations may be protected while allowing re-appropriation of funds.

According to the Ministry of Planning, Development and Special Initiatives Ministries/Divisions are not allowed to re-appropriate funds under PSDP to un-budgeted projects (both left over on-going and new projects). However, under un-avoidable circumstances, such case(s) may be referred to M/o PD&SI for consideration on case to case basis in light of National Economic Council (NEC decision(s) taken in its meeting held on June 7, 2021.

Finance Division may also consider to not allow/open new Cost Centre/Project lD for un-budgeted PSDP projects without prior consent of M/o PD&SI for budgeting of such projects through re-appropriation during the currency of fiscal year.

Ministries/ divisions have been requested to endorse the re-appropriation orders while following the guidelines/instructions to the Ministry of Planning, Development and Special Initiatives for maintaining /updating the PSDP data before issuance of financial sanctions etc.

Copyright Business Recorder, 2021