Development budget: Finance Division revises strategy for release of funds

ISLAMABAD: The Finance Division has revised the strategy for release of funds for development budget for the current fiscal year 2021-22 with release of 50 percent funds for Quarter 1 and 2, and 50 percent for Quarter 3 and 4.

Previously, the strategy was to release 20 percent development fund in the first quarter, followed by 30 percent each in second and third quarter, and 20 percent for Quarter 4.

An office memorandum issued by the Budget Wing of Finance Division, while referring to OM dated July 5, 2021 stated that the strategies for release of funds for development budget/Public Sector Development Programme (PDSP) for the current financial year (2021-2022) has been revised.

The funds for the PSDP would be released by the Ministry of Planning, Development, and Special Initiatives for the projects at the level of 50 percent for Quarter 1 and Quarter 2, and 50 percent for Quarter 3 and Quarter 4.

Development spending

The Finance Division further stated that the budget of Rs46 billion allocated for Sustainable Development Goals (SDGs) may be utilised anytime.

On July 5, 2021, the Finance Division issued an office memorandum with respect to strategy for release of funds for development budget financial year 2021-22 and stated that in pursuance of the provisions of the Public Finance Management Act, 2019, Rule 3(9) of the Cash Management and Treasury Single Account Rules, 2020, and Financial Management and Powers of Principal Accounting Officers Regulations, 2021, the budget release strategy for development budget for financial year 2021-22 would be followed with immediate effect and until further orders.

It further stated that the funds for development budget shall be released by the Ministry of Planning, Development, and Special Initiatives for the projects at the level of 20 percent for Quarter 1, followed by 30 percent each for Quarter 2 and Quarter 3, and 20 percent for Quarter 4.

Copyright Business Recorder, 2021