The Finance division has banned supplementary grants until the formation of a new government. According to the memorandum “Strategy for additional allocation and Re-Appropriation of funds during the Current Financial Year 2023-24” issued on Friday, the Finance Division will not approve any supplementary grants for additional unbudgeted spending over the parliamentary approved level in FY24.
This was done to remain within the approved budgetary allocation until the formation of a new government after the elections (except if needed to respond to a severe natural disaster).
Regarding the re-appropriation of funds, principal accounting officers (PAOs) have been provided additional funds to meet the requirements of Adhoc Relief Allowance 2023 announced in the budget for CFY 2023-24, under a separate cost center in each demand for grants.
PAOs have been advised to re-appropriate these funds, in consultation with Expenditure Wing, Finance Division, only for the purpose of Ad hoc Relief Allowance 2023, to cost centers of divisions/attached departments/subordinate offices within respective demands for grants no later than 31st August 2023.
In addition, the re-appropriation of funds shall be allowed, within an approved demand for grant and appropriation, from one “Head of Account” to another “Head of Account” provided that no re-appropriation shall be made from employee-related expenses (ERE) to any other “Head of Account”(Non-ERE).
In case of a shortfall in ERE allocation during the CFY, re-appropriation of funds from the non-ERE “Head of Accounts” may be made on a priority basis.
The OM states that re-appropriation orders, duly approved by the competent authority shall be provided to the accounting organizations/offices for entry into the SAP system, however, re-appropriation of funds shall remain within the prescribed quarterly limits given by the Finance Division in the strategy for release of funds of CFY.
With regard to the technical supplementary grant, Any request for the provision of funds through TSG shall only be submitted by PAOs, with identification of resources under other demand(s) and a certificate regarding equivalent surrender from the concerned PAO.
The expenditure wing shall examine the TSG cases in detail and submit recommendations for consideration by the budget wing and Finance Division.
The budget wing of the Finance Division shall process the cases in light of the SAP system report, recommendation of the expenditure wing, and available fiscal space before submission to the finance secretary for consideration.
TSG cases relating to PSDP, after meeting the requirements contained in the above-mentioned sub-paras, shall be processed through the Planning, Development, and Special Initiatives Division.
On approval of funds through TSG from the federal cabinet, the PAO shall submit the schedule of TSG, duly endorsed by the expenditure wing, Finance Division, along with copies of the approved summary and decision of the economic coordination committee (ECC) of the cabinet, ratification of the cabinet and surrender order to the director (budget computerization), budget wing, Finance Division for entry in SAP system.
Funds approved through TSG shall be released by the Finance Division keeping in view the funds availability and in line with the released strategy.
Source: Pro Pakistani