Development budget for the financial year 2022-23: the Finance Division publishes a strategy for the release of funds
ISLAMABAD: The Finance Division has issued a strategy for releasing funds for the development budget for the financial year 2022-23, under the Public Finance Management Act and stated that these guidelines must be strictly adhered to.
In line with the strategy, funds for the development budget will be released by the Ministry of Planning, Development and Special Initiatives from the Public Sector Development Program (PSDP) allocation for the current fiscal year for projects approved at the level of 20 percent for the first quarter, 25 percent for the second quarter, 30 percent for the third quarter and 25 percent for the fourth quarter.
The Finance Division has issued a notification in this regard stating that pursuant to the provisions of the Public Financial Management Act 2019, Rule 3(9) of the Cash Management Rules and the Treasury Single Account of 2020 and the Financial Management and Authority of Principal Accountants Regulations, 2021, the Development Budget Release Strategy for the Current Financial Year (CFY) 2022-23 is released for implementation with immediate effect and until at new order.
The Ministry of Planning, Development and Special Initiatives and the Principal Accountants (PAO) concerned during the execution of development projects shall ensure the implementation of the provisions contained in Chapter III of the 2019 Law on the Management of Public finances.
In addition, the Ministry of Planning, Development and Special Initiatives develops a quarterly strategy by sector/project/department for the release of PSDP funds within the limits of the appropriations approved by the National Assembly and included in the schedule of authorized expenditures . under Article 83 of the Constitution of Pakistan. These documents will be shared with the Finance Division.
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Any proposed changes to the limits prescribed above will be reviewed by the Budget Wing, Finance Division on a case-by-case basis and will require the prior approval of the Finance Secretary.
All payments must be made through the pre-audit system by all accounting bodies and offices or through the appropriation account procedure or any other procedure issued by the Finance Division. A separate allocation account will be opened for each project.
Further, no direct payment through the State Bank of Pakistan (SBP) shall be made by any office except with the prior approval of the Finance Secretary in accordance with Rules 3(2) and 3(3). ) of the cash and cash management single account. Rules, 2020. Section 23 of the Public Financial Management Act 2019 provides that no authority shall incur or commit expenditure from the “Consolidated Federal Fund” until such expenditure has been approved by the National Assembly and that the expenses have not been planned for the financing. year up to: (i) schedule of authorized expenditures in accordance with Article 83 of the Constitution of Pakistan; (ii) an additional grant or additional technical grant pursuant to Section 84 of the constitution duly approved by the Federal Government, or (iii) a reallocation pursuant to Section 2(u) and 11 of the public financial management. Allocations for the foreign exchange component (Rupee hedge) are provided by all relevant PAOs and forwarded to the Economic Affairs Division and the Finance Division.
The provisions of the Public Finance Management Act 2019, the Financial Management and Powers of Principal Accountants Regulations 2021 and the instructions issued by the Planning Commission must be strictly adhered to by all PAOs and accounting offices.
In accordance with the strategy, instructions for additional grants will be issued separately by the Budget Wing, Finance Division.
The Development Wing of the Finance Division coordinates and oversees matters relating to the release of funds for the development budget and other ancillary matters.
There will be no requirement for ways and means approval from the budget wing of the Finance Division for the release of the development budget, he added.
Copyright Business Recorder, 2022