ISLAMABAD      -            The government has revised the strategy for releasing funds for Public Sector Development Programme (PSDP), as no formal fund release would be made after May 15, 2020.

The Ministry of Finance has issued notification that stated no funds would be released for new service/new item of expenditure during the 4th quarter of the fiscal year.

The PSDP funds up to 3rd quarter of the current financial year were authorised by the Planning and Development Division and were released by Principal Accounting Officers (PAOs) without referring the same to the Finance Division for ways and means clearance.

However, fund releases for 4th quarter of fiscal year 2019-2020 will require clearance by the Budget Wing and endorsement by the Expenditure/Development Wing.

According to notification, the PSDP funds up to 3rd quarter of current financial year were authorised by Planning and Development Division and were released by PAOs without referring the same to Finance Division for clearance.

This was done to implement Prime Minister’s vision of speedy and effective development in the Public Sector. Releases for 4th Quarter of FY 2019-20 shall require clearance by Budget Wing and endorsement by Expenditure/Development Wing. Expenditure/Development wing of Finance Division will closely monitor and analyse the funds requirement of various Divisions/Departments and Organisations keeping in view the spending trends and needs. After scrutiny cases will be forwarded along with recommendations to Budget Wing for clearance.

All payment shall be made either through the pre-audit system of the Accountant General Pakistan Revenue (AGPR), or through Assignment Account procedures issued by the Finance Division.

No formal release would be made alter 15th May, 2020: (a) All proposals for supplementary grants/technical supplementary grants shall have to be routed through Budget Wing prior to submission for approval of Finance Secretary/Adviser to the Prime Minister on Finance as contained in policy/strategy for release of funds 2019-20. Expenditure wing of Finance Division will ensure the same.

(b) Proposals for release of current expenditure for 4th Quarter of FY 2019-20 shall also be closely monitored /analyzed by Expenditure Wing of Finance Division on the basis of previous spending trend and needs. Funds should not be demanded / recommended for releases just to avoid savings during 4th quarter, further no funds would be released for the service/ new items.