The federal government will release a 20 percent of the development budget for the projects during first quarter of the current fiscal year 2021-22.
The Ministry of Finance issued the strategy for the release of funds for development budget finance year 2021-22.
According to the details, the Ministry of Planning, Development and Special Initiatives shall release the funds for Development Budget for the projects at the level of 20% for Quarter 1,30% each for Quarter 2 & Quarter 3 and 20% for Quarter 4.
The Finance Division shall limit or place conditions on budget appropriation in terms of Section 24 of the Public Finance Management Act, 2019 in case of actual expenditure less than 40% of the approved appropriation in the first two quarters (July-December),
The MoPD&SI while executing the development projects shall ensure implementation of the provisions contained under Chapter-III of the Public Finance Management Act, 2019.
In addition, the Ministry of Planning, Development and Special Initiatives shall devise sector wise/project-wise/Division-wise strategy for the release of funds for the Public Sector Development Program (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.
Besides this, Any relaxation to the above limits shall be considered by the Budget Wing, Finance Division on case to case basis and shall require prior approval of the Finance Secretary.
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, the document stated.
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 the schedule of authorized expenditure in terms of Article 83 of the Constitution, supplementary grant or technical supplementary grant as per Article 84 of the constitution duly approved by the federal government, or re-appropriation as per section 2 (u) and 11 of the Public Finance Management Act, 2019.