Finance Ministry Unveils FY25 Budget Funds Release Strategy

The Finance Ministry issued a strategy for the release of recurrent budget funds for the 2024-25 fiscal year with 20 percent for Q1, 25 percent for Q2 and Q3 each, and 30 percent for Q4. The Finance Ministry said that in pursuance of the provisions of the Public Finance Management Act, 2019, and Financial Management, the funds release strategy for the recurrent budget for the fiscal year 2024-25 is being issued for implementation with immediate effect and until further orders. Allocated funds for the recurrent budget to Divisions/Attached Departments/Subordinate and other offices i.e. Autonomous Bodies, Authorities, Commissions, etc. shall be released for fiscal year 2024-25 by the Finance Division under Demands for Grants and Appropriations at 20 percent for Quarter 1, 25 percent for Quarter 2 & Quarter 3 each, and 30 percent for quarter 4. Employees Related Expenses (ERE) and Pension payments at 25 percent for each quarter, non-employees-related expenditures at 15 percent for Q1, 25 percent for Q2 and Q3 each, and 35 percent for Q4. Rent of Office and Residential Buildings, commuted value of pension, encashment of LPR and PM Assistance packages at 45 percent during 1st half of the current fiscal year and 55 percent in 2nd half of the ongoing fiscal year. Subsidies, grants, and lending shall be released by the Finance Division to the Principal Accounting Officer (PAO) on a case-to-case basis. The cases relating to international and domestic contractual and obligatory payments beyond the above-prescribed limits shall be considered on a case-to-case basis by the Finance Division. The PAO or Head of Department or Head of Sub-ordinate Office shall not make any re-appropriation of allocated funds from ERE to any other head of account (Non-ERE) without prior concurrence of the Finance Division. The PAOs have been provided additional funds to meet the funding requirements of Adhoc Relief Allowance 2024, announced in the budget for the fiscal year 2024-25, under a separate cost center in each demand for grants and the Finance Division shall release 100 percent of these funds in Quarter 3. PAOs are advised to re-appropriate these funds, in consultation with Expenditure Wing, Finance Division, only for the purpose of Adhoc Relief Allowance 2024, to cost centers of Divisions/Attached Departments/ Subordinate Offices within respective Demands for Grants.