ISLAMABAD - The ministry of finance has announced the strategy to release the funds for recurrent budget during the current fiscal year.
According to the notification, employees related expenses (ERE) and pensions payment would be released at the level of 25 percent for each quarter of the current fiscal year (CFY). However, non-ERE expenditure would be disbursed at the level of 20 percent for first two quarters each and 25 percent for last two quarters of the ongoing financial year. Meanwhile, release of funds in respect of rent of office and residential buildings, commuted value of pension, encashment of LPR and PM assistance packages will be made at 50 percent during each half of CFY.
Under the strategy, subsidies shall be released by Finance Division to the PAOs (principal accounting officers) on case to case basis. Meanwhile, grants and lending would be released at the level of 20 percent for first two quarters, 25 percent for third quarter and 35 percent for fourth quarter. However, the strategy with regard to Public Sector Development Programme (PSDP), interest payment, repayments of domestic and foreign loans and Supplementary Grants for CFY shall be issued by Finance Division separately.
The ministry of finance has also issued guidelines and instructions to keep prudent fiscal discipline and sanctity of the budgetary allocations. It has directed that guidelines and instructions shall be strictly followed by all principal accounting officers, head of departments, head of sub-ordinate offices and autonomous bodies and all accounting organizations and offices. Under the instructions, Finance Division has provided one line budget to PAOs with the responsibility to keep available funds in all heads of accounts especially ERE. Inadequate allocation has been made in ERE by the PAO in the budget for CFY, necessary re-appropriation from non-ERE budget will be made forthwith as no additional funds for ERE shall be provided during the course of the financial year.
There shall be no excess expenditure and no spending without budgetary allocations. Allocations under various Adhoc Relief Allowances which have been merged into basic pay scales w.e.f. 0l .07 .2022 shall be re-appropriated to the head of account “Basic Pay” and “Adhoc Relief Allowance 2022” not later than 31st August, 2022.
The PAO or Head of Department or Head of Sub-ordinate Office shall not make any reappropriation of allocated funds from the ERE to any other head of account (Non-ERE) except with the prior concurrence of Finance Division through Expenditure Wing.
The cases relating to international and domestic contractual and obligatory payments which are beyond the above prescribed limits shall be considered on case to case basis by the Budget Wing, Finance Division and shall require prior approval of the Finance Secretary.
The PAOs concerned shall prepare quarterly funds requirement plans within allocated budget for CFY and shall share with relevant Wings of Finance Division before start of each quarter. Finance Division may review the quarterly requirement plan for subsidies and may convey its views and comments to the PAO concerned within two weeks. While firming up its views and comments Finance Division shall consider, inter-alia, fiscal space as well as cash balances availability. Release of funds by the PAO for subsidies shall be made in accordance with the funds requirement plans, as modified in light of Finance Division’s comments.
The sanction for expenditure will be issued by PAO concerned and copy will be sent to Budget Wing, Finance Division for entry in SAP System.
According to the notification, employees related expenses (ERE) and pensions payment would be released at the level of 25 percent for each quarter of the current fiscal year (CFY). However, non-ERE expenditure would be disbursed at the level of 20 percent for first two quarters each and 25 percent for last two quarters of the ongoing financial year. Meanwhile, release of funds in respect of rent of office and residential buildings, commuted value of pension, encashment of LPR and PM assistance packages will be made at 50 percent during each half of CFY.
Under the strategy, subsidies shall be released by Finance Division to the PAOs (principal accounting officers) on case to case basis. Meanwhile, grants and lending would be released at the level of 20 percent for first two quarters, 25 percent for third quarter and 35 percent for fourth quarter. However, the strategy with regard to Public Sector Development Programme (PSDP), interest payment, repayments of domestic and foreign loans and Supplementary Grants for CFY shall be issued by Finance Division separately.
The ministry of finance has also issued guidelines and instructions to keep prudent fiscal discipline and sanctity of the budgetary allocations. It has directed that guidelines and instructions shall be strictly followed by all principal accounting officers, head of departments, head of sub-ordinate offices and autonomous bodies and all accounting organizations and offices. Under the instructions, Finance Division has provided one line budget to PAOs with the responsibility to keep available funds in all heads of accounts especially ERE. Inadequate allocation has been made in ERE by the PAO in the budget for CFY, necessary re-appropriation from non-ERE budget will be made forthwith as no additional funds for ERE shall be provided during the course of the financial year.
There shall be no excess expenditure and no spending without budgetary allocations. Allocations under various Adhoc Relief Allowances which have been merged into basic pay scales w.e.f. 0l .07 .2022 shall be re-appropriated to the head of account “Basic Pay” and “Adhoc Relief Allowance 2022” not later than 31st August, 2022.
The PAO or Head of Department or Head of Sub-ordinate Office shall not make any reappropriation of allocated funds from the ERE to any other head of account (Non-ERE) except with the prior concurrence of Finance Division through Expenditure Wing.
The cases relating to international and domestic contractual and obligatory payments which are beyond the above prescribed limits shall be considered on case to case basis by the Budget Wing, Finance Division and shall require prior approval of the Finance Secretary.
The PAOs concerned shall prepare quarterly funds requirement plans within allocated budget for CFY and shall share with relevant Wings of Finance Division before start of each quarter. Finance Division may review the quarterly requirement plan for subsidies and may convey its views and comments to the PAO concerned within two weeks. While firming up its views and comments Finance Division shall consider, inter-alia, fiscal space as well as cash balances availability. Release of funds by the PAO for subsidies shall be made in accordance with the funds requirement plans, as modified in light of Finance Division’s comments.
The sanction for expenditure will be issued by PAO concerned and copy will be sent to Budget Wing, Finance Division for entry in SAP System.