ISLAMABAD: The country's armed forces have reportedly sought M.Phil allowance for its personnel from July 1, 2016- the date when this allowance was approved by the then Cabinet for civilians, well informed sources in Finance Ministry told Business Recorder.
Joint Staff Headquarters (JSHQ) in consultation with Services Headquarters has proposed extension of M.Phil Allowance @ Rs. 2500/- per month to Armed Forces personnel, presently admissible to civilian employees. Finance Division (Regulations Wing) vide O.M. dated 01 Jul 2016 authorized grant of M.Phil Allowance @ Rs. 2500/- per month to all those civilian employees who acquire/possess the degree of M.Phil recognized by Higher Education Commission (FIEC) with effect from 1st Jul 2016 subject to the conditions mentioned therein.
Finance Division (Military Finance Wing) has recommended grant of the said allowance to armed forces personnel at the same rate and conditions as applicable to the civil side. Financial advisors of army, navy and air force have cleared/vetted the proposal. The financial effect involved in the subject proposal is Rs. 12.300 million per year.
Break-up of the financial effect is as follows; (i) Pak Army- Rs 5.1 million, Pak Navy- Rs 4.890 million and Pak Air Force (PAF) Rs 2.310 million. The total amount has been calculated at Rs 12.300 million.
On February 7, 2020, Finance Division intimated that the competent forum to grant M.Phil allowance to armed force personnel is Cabinet. In case, Ministry of Defence wants to grant M.Phil allowance to the armed forces personnel then a summary to the Cabinet may be initiated to this effect. Further, Finance Division, in its O.M of July 5, 2020 intimated that the announcement for grant of M.Phil allowance to the civil employees was made with the decision of the Cabinet at the time of budget 2016-17, when the budget proposals were submitted to the Cabinet under Rule 16(c) of the Rules of Business, 1973. Finance Division was of the view that any change in the Cabinet decision requires approval of the Cabinet. Hence, authorization of M.Phil allowance at Rs 2500 per month with effect from July 1, 2016 can be made mutatis mutandis to the armed forces only with the approval of Cabinet.
The office of the Military Accountant General (MAG) has vetted the draft corrigendum to JSI 2/97 from audit point of view. Ministry of Defence has supported the proposal of JSHQ for extension of M.Phil allowance @ Rs 2500 per month to armed force personnel as per the draft JSI from July 1, 2016.
Copyright Business Recorder, 2020