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Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,135
6324hr
Pakistan Cases
1,221,261
2,51224hr
4.4% positivity
Sindh
449,349
Punjab
420,615
Balochistan
32,722
Islamabad
103,923
KPK
170,738

ISLAMABAD: The Ministry of Finance (MoF), on Monday, notified the strategy for release of funds for development projects and recurrent budget for the financial year 2021-22.

According to the Ministry of Finance’s notification, the Ministry of Planning, Development and Special Initiatives will release funds at the level of 20 percent for quarter 1, 30 percent each for quarter 2 and quarter 3, and 20 percent for quarter 4.

The ministry also notified, the Finance Division would release funds for the approved demands for grants/appropriation relating to employees, related and operational expenditure of the ministries/divisions/departments at the level of 30 percent each for quarter 1 and quarter 2, and 20 percent each for quarter 3 and quarter 4, respectively of available (final budget).

According to two separate notifications, the budget release strategy for recurrent budget and development projects for financial year 2021-22 would be followed with immediate effect.

Funds for development budget in case of actual expenditure less than 40 percent of the approved appropriation in first two quarters (July-December), Finance Division will limit or place conditions on budget appropriation in terms of Section 24 of the Public Finance Management Act, 2019.

Further, Ministry of Planning, Development and Special Initiatives, while executing the development projects will ensure implementation of the provisions contained under Chapter-III of the Public Finance Management Act, 2019.

The Ministry of Planning, Development and Special Initiatives will devise sector-wise/project-wise/division-wise strategy for release of funds for Public Sector Development Programme (PSDP) within the appropriations approved by the National Assembly and included in the Schedule of Authorized Expenditure in terms of Article 83 of the Constitution of Pakistan.

Any relaxation to the above limits will be considered by the budget wing, Finance Division on case to case basis, and will require prior approval of the finance secretary.

All payments will be made through the pre-audit system of the Accountant General Pakistan Revenues/Military Accountant General/Accounting Offices/Sub-Offices, or through Assail Assignment Account Procedure 2020 issued by the Finance Division.

No direct payment through the State Bank of Pakistan will be made, except with the prior approval of the finance secretary as per Rules 3(2) and 3(3) of the Cash Management and Treasury Single Account Rules 2020.

As per Section 23 of the Public Finance Management Act, 2019, no authority will incur or commit any expenditure from the "Federal Consolidated Fund" until the same has been sanctioned by the National Assembly and the expenditure has been provided for the financial year through (a) schedule of authorised expenditure in terms of Article 83 of the Constitution (b) supplementary grant or technical supplementary grant as per Article 84 of the constitution duly approved by the federal government, or (c) re-appropriation as per section 2 (u) and 11 of the Public Finance Management Act, 2019.

There will be no requirement of ways and means clearance from Budget Wing of Finance Division for the releases of funds.

The provisions of Public Finance Management Act, 2019 and the Financial Management and Powers of Principal Accounting Officers Regulations, 2021 will be strictly adhered to by all the PAOs and the accounting offices.

The instructions with regard to all of supplementary grants shall be issued by the Budget Wing, Finance Division, separately.

The Development Wing of the Finance Division shall coordinate and oversee the matters relating to release of funds for development budget and other ancillary matters.

According to another notification in case of actual expenditure less than 40 percent of the approved appropriation in first two quarters (July-December), the Finance Division shall limit or place conditions on budget appropriation in terms of Section 24 of the Public Finance Management Act, 2019.

Funds for subsidies, grants, procurements, etc., will be released based on actual verified claims, commitments and targets.

The cases relating to international and domestic contractual obligatory payments, which are beyond the above limits shall be considered on case to case basis and relaxation to the above limits shall be considered by the Budget Wing, Finance Division and shall require prior approval of the finance secretary.

The release of funds in respect of detailed Object Heads "A03403-Rent of Residential Building", "A04102-Commuted value of pension", "A04114-Encashment of LPR" and "A05216, A05219, A05224, A05225 (Assistance Packages)" shall be exempted from quarterly limits.

All payments shall be made through the pre-audit system of the Accountant General Pakistan Revenues/Military Accountant General/Accounting Offices/ Sub-Offices, or through Assan Assignment Account Procedure 2020 issued by the Finance Division.

No direct payment through the State Bank of Pakistan shall be made, except with the prior approval of the finance secretary as per Rules 3(2) and 3(3) of the Cash Management and Treasury Single Account Rules 2020.

As per Section 23 of the Public Finance Management Act, 2019, no authority shall incur or commit any expenditure from the "Federal Consolidated Fund" until the same has been sanctioned by the National Assembly and the expenditure has been provided for the financial year through (a) schedule of authorised expenditure in terms of Article 83 of the Constitution of Pakistan (b) supplementary grant or technical supplementary grant as per Article 84 of the constitution duly approved by the federal government, or (c) re-appropriation as per section 2 (u) and II of the Public Finance Management Act, 2019.

Sanction for expenditure, issued to the Accountant General Pakistan Revenue or Accounting Office with the approval of Principal Accounting Officer or any other competent officer, shall not require endorsement from Expenditure Wing of Finance Division as per Regulation 8(d) of the Financial Management and Powers of Principal Accounting Officers Regulations, 2021.

Copyright Business Recorder, 2021

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