With a view to improve financial discipline and streamline the management of public accounts, the Ministry of Finance has decided to restrict the validity of cheques up to three months or 30th June whichever is earlier.
As per the ministry's decision, if the currency of the cheque expired, owing to its not being presented at the treasury or bank within the specified period, it may be received back by the drawer who should the destroy it and issue a new cheque in lieu of it provided that the validity of the fresh cheque shall expire on the 30th June.
According to a press release issued here on Saturday, necessary amendments in the relevant Federal Treasury Rules have been affected and notified by the Finance Division vide Notification No F.5 (3) Exp.III/2009, dated 31st March, 2010. Accordingly, Ministry of Finance has asked all ministries, divisions and departments to ensure observance of financial discipline by strictly adhering to the following instructions:
i. That the budgetary allocations placed at their disposal are expended uniformly as far as possible during the financial year. They should further ensure that all validly accrued liabilities are promptly cleared and are not postponed towards the end of the financial year.
ii. All releases of funds for development/non-development expenditure be completed by Ministries/Divisions by 15th May. Releases of inevitable nature, if any after the said date, would only be made by the Finance Division, after ensuring that the funds are likely to be expended well before the close of the financial year.
iii. There should be no re-appropriation/supplementary grant after 15th May to ensure timely processing of claim by the Ministries/ Division/Departments.
iv. All Ministries/Divisions/ Departments should submit and draw their claims from A.G. Office for all validly accrued liabilities against the Government on or before 10th June of that financial year. v. In case of requirement of any additional information by the Accounts Officer (Accountant General's Office/District Accounts Office/Agency Accounts Office), Account Office shall return the un-passed bill urgently and the concerned departments shall respond promptly and resubmit the bill/claim not later than 15th June.
vi. In order to adhere to the aforesaid schedule, all the concerned authorities shall ensure the issuance of sanctions, completion of Codal formalities and procurement of stores well in time so that the claims can be presented for pre-audit to the respective Accounts Office timely.
vii. All PLAs/Assignment Accounts holders should make necessary arrangements as detailed above to ensure encashment of their cheque well in time. All cheques drawn against PLAs/Assignment Accounts shall be cleared up to 30th June.
viii. The Pifra shall generate regular reports for information of all Principal Accounting Officers, apprising them of the latest funding positions in respective heads. This would facilitate PAOs to take timely action for making good of the shortfall.