ISLAMABAD: The finance ministry has amended its policy for releasing recurrent and development budgets for the current fiscal’s second half (January-June), stating that all employee-related costs will be released promptly.
On the development front, the government will distribute 30pc of funding in the third quarter (January-March) and 40pc in the fourth quarter (April-June) of 2022-23. According to the ministry’s office memorandum (OM) titled “Changed Plan for Release of Funds for Q3 and Q4 of Recurrent and Development Budget for Financial Year 2022-23,” the strategy for the release of both sides of the budget for 2022-23 was revised and published for execution.
For recurrent expenditures, the funds’ release strategy for Q l was 17pc of each approved Demand for Grant and Appropriation & for Q2, it was 23pc of each approved Demand for Grant and Appropriation (40pc for the first half) of CFY. For Employee Related Expenses (ERE), the heads of accounts namely “Pay & Regular Allowances”, 100pc of the final budgetary allocation shall release immediately. For the head of account namely “Other Allowances”, 25pc of the final budgetary allocation for Q3 and 35pc of the final budgetary allocation for Q4, shall be released in respective quarters for CFY.
No re-appropriation of funds shall be made from ERE to non-ERE except with the prior approval of the finance division through the expenditure wing. All Principle Accounting Officers (PAOs) are required to meet any shortfall in ERE by re-appropriation of funds from non-ERE. No additional funds shall be provided through SG/TSG for meeting any shortfall in ERE as well as non-ERE during CFY.
PAOs shall not approach the finance division for meeting any expenses of public entities, organisations, authorities, and bodies, which are provided grant-in aid, by ensuring proper distribution and adequate allocation of funds to such public entities, organisations, authorities, and bodies out of the total funds placed at their disposal during CFY.
Grant-in-aid to public entities, organisations, authorities, and bodies for ERE and pension expenses shall be released as per the procedure. Non-Employees Related Expenses (Non-ERE): Twenty-five percent of the final budgetary allocation for Q3 and 35pc of the final budgetary allocation for Q4, shall be released for CFY.
Funds in respect of rent of office and residential buildings commuted value of pension, encashment of LPR, and PM’s assistance packages shall continue to be released 50pc of final budgetary allocations for the second half of CFY. Funds under the head of accounts, “utilities and POL charges” shall be released 30pc of the final budgetary allocation for Q3 and 30pc of the final budgetary allocation for Q4, for CFY.
The federal government’s drive for the adoption of austerity measures issued by the expenditure wing of the finance division shall continue to be adhered to by all the PAOs.
All other provisions of the funds’ release strategy issued by the finance division on July 7, 2022, and August 24, 2022, shall remain in force. Consequently, expenditures through subsidies and grant-in-aid to public entities, organisations, authorities, and bodies shall be made with the prior concurrence of the relevant wings of the finance division.
Development Expenditures: Funds release strategy for Q1 was 10pc of each approved Demand for Grant and Appropriation and Q2, it was 20pc of each approved Demand for Grant and Appropriation (30pc for the first half) of CFY. All other clauses of the strategy for the release of funds in respect of the development budget issued by the finance division on July 07, 2022, and August 24, 2022, shall remain in force.
Therefore, 30pc of the approved Demand for Grants and Appropriations will be released in Q3, and 40pc of the approved Demand for Grants and Appropriations will be released in Q4 during CFY. Since, the development budget is released to the Planning, Development, and Special Initiatives Division, therefore, PAOs may approach it for any issues related to authorisation as well as distribution of funds between the approved projects/schemes.
