ISLAMABAD: The Finance Division has issued a strategy for release of funds for development budget for financial year 2024-25 with 15 percent for Quarter 1, 20 percent for Quarter 2, 25 percent for quarter 3 and 40 percent for Quarter 4.
According to Finance Division funds for development budget shall be authorized by Planning, Development and Special Initiatives (PD&SI) Division out of the PSDP allocation for current fiscal year for approved projects at 15 percent for Quarter 1, 20 percent for Quarter 2, 25 percent for quarter 3, and 40 percent for Quarter 4.
While executing development projects PD&SI Division and the principle accounting officers (PAOs) concerned shall ensure implementation of the provisions of the Public Finance Management Act, 2019 and planning division shall devise quarterly sector wise, project wise and Division-wise strategy for release of funds for Public Sector Development program within the approved appropriations.
Any proposal for change to the limits prescribed shall be considered by the Budget Wing, Finance Division on case to case basis and shall require prior approval of the Finance Secretary.
The PAOs shall ensure availability of sufficient funds for Employees Related Expenses (ERE) for each project. PAOs, heads of attached department, heads of sub-ordinate office or project director shall not make any re-appropriation of funds from ERE to Non-ERE heads of account except with the prior concurrence of PD&SI Division.
Adequate budgetary allocations on account of Foreign Exchange component (Rupee Cover) shall be ensured by all relevant PAOs and conveyed to Economic Affairs Division and Finance Division and funds for foreign exchange payments shall require prior approval of External Wing of Finance Division.
All payments shall be made through the pre-audit system by all the Accounting Offices or through Assignment Account procedure or any other procedure issued by the Finance Division. Separate Assignment Account shall be opened for each project. No direct payment through the State Bank of Pakistan (SBP) shall be made by any office, except with the prior approval of Finance Secretary as per Rules of the Cash Management & Treasury Single Account Rules, 2024.
The instructions with regard to Supplementary Grants, Technical Supplementary Grants and Re-appropriations shall be issued by the Budget Wing, Finance Division, separately. There shall be no requirement of ways and means clearance from Budget Wing of Finance Division for the release of development budget and no payment shall be made over and above the limits by any accounting office except with the prior written approval of the Finance Division.
The Development Wing of Finance Division shall coordinate and oversee the matters relating to release of funds for development budget and other ancillary matters. The PAOs may approach PD&SI Division for any issues related to authorization as well as distribution of funds between the approved projects/schemes.
Copyright Business Recorder, 2024