The government has stopped the PSDP funds for unapproved project as it issues the policy to maintain fiscal discipline for the release of funds relating to current and development expenditures for the financial year 2019-20
Islamabad (Pakistan Point News / Online - 16th July, 2019) The government has stopped the PSDP funds for unapproved project as it issues the policy to maintain fiscal discipline for the release of funds relating to current and development expenditures for the financial year 2019-20.In this connection Ministry of Finance has issued a office memorandum in which all the ministries and divisions are directed to follow the policy strictly before making any payment with immediate effect.
The letter says that funds for the current and development expenditure shall be released at the level of 20 percent for the first quarter and second quarter and at 30 percent for the third and fourth quarter, except the funds required for the payment of salaries and pension to government servants , which would be issued 25 percent for the each quarter.The government has decided that policy regarding funds of Public Sector Development Programme (PSDP) will remains same, but in this connection funds would not released for unapproved projects .
The PSDP funds for Q-1 (first quarter ), less than Rs 500 million will be issued by Planning and Development Division. Amounts exceeding to Rs 500million would be referred to Finance Ministry for clearance .The funds on account of PSDP foe second quarter and onward will be recommended by the Planning and Development Division after due scrutiny and shall be forwarded to Finance Division along with cash book plan, utilization report of the funds by AGPR and approval of Principal Accounting Officer of the concerned ministry and sanction letter duly endorsed by Finance Division.
All the proposals for supplementary grant or technical supplementary grants shall be routed through budget wing of finance division for the approval of Finance Minister or advisor to Prime Minister on finance , and ten would be forwarded to Economic Coordination Committee(ECC) of the Cabinet.The cases relating to international and domestic contractual /obligatory payments that are beyond and above limits shall be considered on case to case basis and if any relaxation would be needed, the case would sent to Secretary Finance for prior approval.
The letter of Finance Division reads that organizations and entities that are provided single line budget shall submit their annual budget including head-wise expenditures and own receipts for current financial year and last financial year.The strategy announced by the government for financial discipline emphasis the government functionaries to make all the payments through pre audit system of the of AGPR or through assignment accounts procedure issued by Finance Ministry . Any direct payment will be made through State Bank of Pakistan with the advance approval of Secretary Finance .
