ISLAMABAD   -  The Ministry of Finance on Monday said that cases relating to the international and domestic contractual/obligatory payments, which are beyond the above limits would require the approval of the finance secretary. 

The ministry of finance has released the strategy for release of funds for recurrent budget financial year 2021-22. Under the strategy, the funds for recurrent budget shall be released by Finance Division for the approved Demands for Grants / appropriate Ins relating to employees related and operational expenditure of the ministries and departments at the level of 30 per cent for each first  and second quarters and 20 per cent each for third and fourth quarters of available.

In case of actual expenditure less than 40 per cent of the approved appropriation in first two quarters (July-December), 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 shall be released on the basis of actual verified claims, commitments and targets,” it added. 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. “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”.

According to the strategy, 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 11 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 S (d) of the Financial Management and Powers of Principal Accounting Officers Regulations, 2021. Principal Accounting Officers shall keep adequate appropriation of funds in all the heads of account during Financial Year 2021-22. All PAOs and the Accounting Offices shall ensure that in case of no budgetary allocation and no release of funds, there shall be no expenditure in any head of account.

The provisions of Public Finance Management Act, 2019 and the Financial Management and Powers of Principal Accounting Officers Regulations, 2021 shall 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.

Strategy for development funds

Funds for Development Budget shall be released by Ministry of Planning, Development and Special Initiatives for the projects at the level of 20per cent for Quarter 1, 30per cent each for Quarter 2 & Quarter 3 and 20per cent for Quarter 4. In case of actual expenditure less than 40per cent of the approved appropriation in first two quarters (July-December), Finance Division shall limit or place conditions on budget appropriation in terms of Section 24 of the Public Finance Management Act, 2019.

Ministry of planning, development and special initiatives while executing the development projects shall ensure implementation of the provisions contained under Chapter-III of the Public Finance Management Act, 2019.