Cut-off date for release of PSDP funds extended

The Finance Division has extended the cut-off date for the release of Public Sector Development Programme (PSDP) funds as well as surrender of anticipated savings by the ministries and divisions for the current fiscal year in an effort to ensure maximum spending in infrastructure sector in the wake of the Covid-19.

An official on condition of anonymity said the Covid-19 appeared to have delayed the presentation of next fiscal year budget in the parliament against the tentative date of May.

He added that the extension in date for releases of the PSDP funds as well as surrender of saving by the ministries and divisions following the Covid-19 would make difficult for presenting budget in May, and now budget might now be presented in June 2020.

In January 2020, the Finance Division had issued a budget circular to all the ministries and divisions with timeline to complete all the necessary activities well before mid-May 2020, so that presenting budget to the federal cabinet and the parliament could be possible (with May as tentative date), most probably, in the last week of May.

On April 7, 2020, the Finance Division has reminded all the relevant departments through an office memorandum referring to its previous office memorandums March 3, 2020, and March 26, 2020, that the cut-off date for release of funds was set as May 15, 2020.

However, in view of the prevailing situation in the country due to the Covid-19, the above mentioned cut-off date for release of funds has been relaxed/extended up to 25th May, 2020.

Similarly, through another office memorandum all the principal accounting officers (PAO) of the federal government were informed that in continuation of this division's OM of even number, dated February 4, 2020, on the subject referred above, the cut-off date for surrender of anticipated savings was set as April 13, 2020.

However, in view of the prevailing situation in the country due to the Covid-19, the above mentioned cut-off date for surrender of anticipated savings has been relaxed/extended up to May 15, 2020.