ISLAMABAD: The Ministry of Planning, Development and Special Initiatives has conveyed the provisional Indicative Budget Ceiling (IBC) of Rs 215.998 billion under Public Sector Development Programme (PSDP) for Power Division for FY 2024-25, including foreign aid allocation, well-informed sources told Business Recorder.
The Ministry of Planning, Development and Special Initiatives, has requested Power Division to finalize project-wise budgetary proposals by meeting the following NEC approved priority/guidelines for the preparation of PSDP 2024-25: (i) priority should be accorded to allocation of development funds to strategic and core ongoing projects, with particular focus on water resources, transport and communications, and energy sectors; (ii) priority should be accorded to projects with 80% plus expenditure in all sectors with the aim of completing them during FY2024-25; (iii) Ministries/Divisions may ensure allocation according to annual phasing of on-going projects while remaining within the Indicative Budget Ceiling (IBC) as per PFM Act 2019; (iv) due to fiscal constraints and huge throw forward, inclusion of new projects in infrastructure sector should be minimized; (v) only 10% of development budget FY2024-25 should be considered for allocation to new projects, with particular focus on supporting exports, enhancing productivity, fostering competitiveness, deepening and spreading digital infrastructure, innovation driven enterprises, industrial development, agro industry and seed development, blue economy, science & technology, R&D and innovation reforms; (vi) while making allocations for PSDP projects, DDWP approved projects will only be allocated resources after full needed allocations; (vii) there will be a moratorium on approval/budgeting of projects involving O&M and recurring nature expenditures; (viii) Economic Affairs Division (EAD) will provide firmed up foreign aid estimates to be disbursed during FY2024-25, with further two years’ projection in consultation with all stakeholders; (ix) Ministries/Divisions should prioritize and allocate adequate rupee cover to the foreign funded projects within the IBC for smooth execution of foreign funded projects and uninterrupted inflow of foreign exchange and to honor international obligations; (x) Provincial nature projects shall not be considered for approval/financing except those in least developed districts as approved by the NEC and as determined by Planning Commission; (xi) Principal Accounting Officers should ensure placement of full-time Project Directors as per applicable guidelines and put in place qualitative quantitative monitoring indicators to avoid time and cost overruns; and (xiii) priority will be given to PPP projects, where PSDP funding is either used as equity or as viability gap.
Finance Div earmarks Rs573.9m provisional IBCs for FY24-25
All PAOs have asked to fully comply with the provisions of the Public Finance Management (PFM) Act, 2019 particularly Chapter-III on development projects, guideline procedures contained in Financial Management & Powers of PAOs Regulations, 2021 Management & Treasury Single Account (CM&TSA) Rules, 2020, Budget Manual 2 instructions issued along with the Budget Call circular dated 7th February 2024 while allocating funds for development projects within the indicated IBC, priorities to foreign aided (rupee cover) and core projects (list approved by CDWP) along with projects near completion (80 per cent progress) be assigned. In case of remaining funds availability, allocations may be made for other ongoing and new projects subsequently.
Copyright Business Recorder, 2024