ISLAMABAD: The Ministry of Finance (MoF) is said to have linked releases of fourth quarter of current fiscal year, with surrender of 5 percent amount of non-ERE funds in its favour as per austerity measures approved by the Federal Cabinet.

RanaObaidullah Anwar, Joint Secretary Budget-III, in a communication with all the Federal Secretaries/Additional Secretaries Incharge/ Principal Accounting officers of respective Ministries, stated that in pursuance of approval of the Federal Cabinet in its meeting held on February 22, 2023, the following decision, inter alia, was conveyed to all Principal Accounting Officers for compliance through Finance Division’s Expenditure Wing O.M. of February 27, 2023” l5% cut (on an annualised basis) shall be applied in current expenditure (non-ERE) of all Ministries/Divisions/Attached Departments/Sub-ordinate Offices/Autonomous Bodies, etc except Ministry of Foreign Affairs expenditure on diplomatic missions abroad owing to currency depreciation effect. Necessary adjustment in their budget shall be made by the concerned Principal Accounting Office

Uplift budget for Q3, 4: Finance Div revises fund release strategy

According to Finance Ministry many queries have been received from PAOs/Divisions/Offices in this regard.

Accordingly, Finance Division has clarified that this cut is applicable from March 1, 2023 on annual budget (non-ERE) @ 5% [equivalent to annualized 15% on four months ‘ budget].

The Finance Ministry in communication has requested all the PAOs in the Divisions/Attached Departments/Sub-ordinate Offices/Autonomous Bodies etc. to make adjustment in various cost centers/heads of accounts of Non-ERE and surrender the 5% amount in favor of Finance Division as anticipated savings March, 2023.

The Finance Ministry has also made it clear that releases for 4th quarter will be allowed only after surrender order is received in its Budget Wing.

Copyright Business Recorder, 2023