Govt to release Rs120bln to ministries for development spending in July-Sept

ISLAMABAD: Government will disburse more than Rs120 billion to ministries and divisions under public sector development programme (PSDP) during the first three months of the current fiscal year of 2017/18, meeting around 30 percent of the annual allocation of Rs377.9 billion for them, officials said on Tuesday. 

“The releases made by the Planning Commission stood at around Rs60 billion till August 16, 2017 and it is expected that total released amount would cross Rs120 billion for the first quarter of the current financial year,” a senior official confirmed with The News.

Federal PSDP for 2017/18 was estimated at Rs1,001 billion, out of which Rs377.9 billion was earmarked for federal ministries/divisions. Total PSDP size was estimated at Rs2,113 billion for FY18. 

The officials said government has curtailed the role of financial advisors and particularly finance ministry in releases of development funding. 

In the past despite sanctioning of releases by Planning Commission, finance ministry’s budget wing approved the disbursals only after taking revenue position into consideration, so ways and means clearance was required prior to releasing of financial resources for development schemes.

Officials said the abolishing of ‘ways and means’ ahead of elections next year will minimise the control of finance ministry, paving the way for acceleration in funds releases during the current fiscal year.

“Ways and means clearance for any amount would not be required for the first quarter releases,” read a letter sent by the commission to all the concerned departments.

Federal PSDP and utilisation stood at Rs747 billion during the fiscal year ended June 30, 2017 against the allocation of Rs800 billion, out of which Rs282 billion was allocated for federal ministries/divisions.

The total PSDP size was Rs1,675 billion for FY17. 

The planning ministry also decided to hold review meeting of last fiscal year’s funding and prepare strategy for the current fiscal year’s budget from August 21 to August 30.

The Planning Commission, in the letter, authorised the development funds of up to 20 percent each for quarters one and two and 30 percent each for quarters three and four. 

Release of funds is authorised only for approval projects. Copies of authorised, administrative approval and valid implementation period of the projects may be furnished with first quarter release request, said the letter.

Financial advisors would continue to endorse sanction letters issued by ministries/division/executing agencies.

The commission said the projects for which allocation has been made equivalent to their throw-forward would be allowed full release of funds by March 31, ensuring completion by June 30.

Releases are subject to project-wise information update in project monitoring and evaluation (PME) system. Cases for authorising releases of funds would only be considered after ensuring that the projects authorised have updated the progress in PME system.

“Incomplete/sketchy release proforma or proforma not signed by the PAO (principal accounting officer) will not be considered and no further action, including any response, will be taken,” the commission said.

“All ministers/divisions are required to furnish cash/work plan to the projects wing of ministry of planning, development and reforms. Endorsement of FA’s (financial advisors) Organisation is not necessary.”