Ahead of polls, govt to release Rs131bn for MPs’ schemes

ISLAMABAD: Under devised strategy for development funds, the government has authorized the release of Rs131 billion, as much as 15 percent of the allocated funds, in the first quarter (July-September) only for Parliamentarians’ discretionary schemes of the Sustainable Development Goals Achievement Programme me (SAP).

It will be quite unique that development funds of the SAP programme as discretionary funding for Parliamentarians remains the top priority of the PDM-led regime which would complete its constitutional term on August 12, 2023.

The Office Memorandum (OM) issued by the Ministry of Finance said that in pursuance of the provisions of the Public Finance Management Act, 2019, Rule 3(9) of the Cash Management and Treasury Single Account Rules, 2020 and Financial Management and Powers of Principal Accounting Officers Regulations, 2021, the funds release strategy for Development Budget for the Current Financial Year (CFY) 2023-24, the funds for Development Budget shall be released by Planning, Development and Special Initiatives (PD&S|) Division. Out of the PSDP allocation for CFY for approved projects, 15 percent of funds will be released in quarter one, 20 percent for the quarter, 25 percent for quarter 3, and 40 percent for quarter 4.

The Public Sector Development programme (PSDP) stands at Rs950 billion out of which Rs131 billion or 15 percent will be released in the first quarter of the current fiscal year. The funds released against surrendered amount for SDGs during FY 2022-23 will be standing at Rs20.26 billion. The Parliament had passed a resolution at the time of approval of the budget for making SAP funds non-lapsable. The funds released for approved SDGs Schemes for FY 2023-24 stand at Rs41 billion which will also be released in the first quarter of the current fiscal year. The available funds for remaining PSDP Schemes during Q1 of FY 2023-24 will be released at Rs69.74 billion so in totality, Rs131 billion will be released. Besides there has been misuse of powers as there is one retired officer who was re-hired on a project but he was given an honorarium in alleged violation of all rules in the Ministry of Planning.

While executing development projects PD&SI Division and the Principal Accounting Officer (PAOs) concerned shall ensure implementation of the provisions contained under Chapter-lll of the Public Finance Management Act, 2019. The PD&Sl Division shall devise quarterly sector-wise / project-wise/division-wise strategies for the release of funds for the Public Sector Development Programme (PSDP) within the appropriations approved by the National Assembly and included in the Schedule of Authorized Expenditure in terms of Article 83 of the Constitution of Pakistan.

Any proposal for change to the limits prescribed at (i) above shall be considered by the Budget Wing, Finance Division on case to case basis and shall require prior approval of the Finance Secretary. The release of funds for approved projects in a Demand for Grant and Appropriation shall be made by the PAO in each Quarter within the above limits. The PAO shall ensure the availability of sufficient funds for Employees Related Expenses for each project. PAOs / Heads of Attached Department / Heads of Sub-ordinate Office or project Director shall not make any Re-appropriation of funds from Employees Related Expenses (ERE) to Non-ERE heads of account except with the prior concurrence of Ministry of Planning, Development and Special Initiatives.

Adequate budgetary allocations on account of the Foreign Exchange Component (Rupee Cover) shall be ensured by all relevant PAOs and conveyed to Economic Affairs Division and Finance Division. Funds for foreign exchange payments shall require prior approval of the External Finance Wing of the Finance Division. While examining requests for such funds, the External Finance Wing shall consider the availability of Foreign Exchange. Section 23 of the Public Finance Management Act, 2019 provides that no authority shall incur or commit any expenditure from the “Federal Consolidated Fund” until the same has been sanctioned by the National Assembly and the expenditure has been provided for the financial year through: a) Schedule of authorized expenditure in terms of Article 83 of the Constitution of Pakistan; b) Supplementary grant or technical supplementary grant as per Article 84 of the constitution duly approved by the Federal Government; or c) Re-appropriation as per section 2 (u) and 11 of the Public Finance Management Act, 2019. No direct payment through the State Bank of Pakistan shall be made by any office, exception with the prior approval of the Finance Secretary as per Rules 3(2) and 3(3) of the Public Finance Management and Treasury Single Account Rules, 2020.