ISLAMABAD (Faizan Matloob):- The Finance Ministry has decided to release subsidies allocated in the budget on case to case basis during the current fiscal year.
Finance Ministry has devised a strategy for release of funds for subsidies during the current fiscal year. Under the new strategy, the federal govt will releases subsidy amount on case to case basis during the current fiscal year.
According to the guidelines of the Finance Ministry, the Principle Accounting Officers (PAOs) concerned shall prepare quarterly funds requirement plans for subsidies within allocated budget for current fiscal year and shall share with relevant Wings of Finance Division before start of each quarter. Finance Division may review the quarterly requirement plan and may convey its views and comments to the PAO concerned within two weeks.
While firming up its views and comments Finance Division shall consider, inter-alia, fiscal space as well as cash balances availability. Release of funds by the PAO for subsidies shall be made in accordance with the funds requirement plans, as modified in light of Finance Division’s comments.
The sanction for expenditure will be issued by PAO concerned and copy will be sent to Budget Wing, Finance Division for entry in SAP System.
The federal government will release 20 percent of total allocated grants and lending during the first quarter (July-Sept), 25 percent each during second (Oct-Dec) and third quarters (Jan-March). However, the government will release 35 percent amount during the fourth quarter (April-June) of the current fiscal year.
Funds for foreign exchange payments shall require prior approval by the External Finance Wing of the Finance Division. While examining requests for such funds, the External Finance Wing shall consider availability of Foreign Exchange.
All payments shall be made through the pre-audit system by all the Accounting Organizations and Offices or through Assignment Account Procedure or any other procedure issued by the Finance Division.
No direct payment through the State Bank of Pakistan (SBP) shall be made by any office, 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.
Approved Direct Payments shall be booked and recorded by the Accounting Organizations and Offices and Federal Treasury Offices immediately after receipt of intimation from SBP.
The special purpose funds or any other fund established, managed or controlled by the Ministries, Divisions, Departments and Organizations of the Federal Government shall be regulated in accordance with the Cash Management and Treasury Single Account Rules 2020.