Finance Div revises fund release strategy

ISLAMABAD: The Finance Division has revised the strategy for release of funds of the recurrent and development budget for 3rd and 4th quarters of the current fiscal year (2022-23) and directed that any shortfall in the employees-related expenditure (ERE) will be met by re-appropriation of funds from non-ERE.

A circular issued to this effect by the Finance Division read that the strategy for the release of funds for recurrent and development budget for Q3 and Q4 is being revised and issued for implementation with immediate effect and until further orders. Funds release strategy for Q3 and Q4 for each approved demand for grant and appropriation will be for employees-related expenses namely, pay and regular allowances 100 per cent of final budgetary allocation would be released immediately.

The funds for the head of account namely other allowances 25 per cent of final budgetary allocation for Q3 and 35 per cent of final budgetary allocation for Q4 would be released in respective quarters for the ongoing fiscal year.

The Finance Division added that no re-appropriation of funds would be made from the ERE to non-ERE except with the prior approval of the Finance Division’s expenditure wing. All PAOs are required to meet any shortfall in the ERE by re-appropriation of funds from non-ERE as no additional funds would be provided through the supplementary grant, technical supplementary grant for meeting any shortfall in ERE, as well as, non-ERE.

The PAOs shall not approach Finance Division for meeting any expenses of Public Entities, Organizations, Authorities and Bodies, which are provided grant in aid, by ensuring proper distribution and adequate allocation of funds to such Public Entities, Organizations, Authorities and Bodies out of the total funds placed at their disposal during the current fiscal year. Grant-in-aid to public entities, organizations, authorities and bodies for the purpose of ERE and pension expenses would be released as per the procedure prescribed. Non-employees related expenses 25 per cent of final budgetary allocation for Q3 and 35 per cent of final budgetary allocation for Q4 would be released for current fiscal.

Funds in respect of rent of office and residential buildings, commuted value of pension, encashment of LPR and PM’s Assistance Packages would continue to be released 50 per cent of final budgetary allocations for 2nd half of the current fiscal year. Funds under the head of accounts, “utilities and POL charges” would be released 30 per cent of final budgetary allocation for Q3 and 30 per cent of the final budgetary allocation for Q4.

The federal government’s drive for the adoption of austerity measures issued by the Expenditure Wing of the Finance Division would continue to be adhered by all the PAOs and all other provisions of the funds release strategy issued by the Finance Division on 07.07.2022 and 24.08.2022 shall remain in force.

Consequently, expenditures through subsidies and grant-in-aid to public entities, organizations, authorities and bodies would be made with prior concurrence of the relevant wings of the Finance Division.

Funds release strategy for QI was 10 per cent of each approved demand for grant and appropriation and for Q2, it was 20 per cent with 30 per cent for the first halve.

Therefore, 30 per cent of the approved demand for grant and appropriation will be released in Q3 and 40 per cent of the approved Demand for Grant and Appropriation will be released in Q4 during.

Since, the development budget is released to the Planning, Development and Special Initiatives Division; therefore, the PAOs may approach the said division for any issues related to authorisation, as well as, distribution of funds between the approved projects/ schemes. —ZAHEER ABBASI