Here Is How Govt Will Spend on Development Projects This Fiscal Year

The Finance Division has issued a strategy for the release of funds for the development budget for the financial year 2024-25 with 15 percent for Q1, 20 percent for Q2, 25 percent for Q3, and 40 percent for Q4. According to the Finance Division, funds for the development budget shall be authorized by the Planning, Development, and Special Initiatives (PD&SI) Division out of the PSDP allocation for the current fiscal year for approved projects at 15 percent for Q1, 20 percent for Q2, 25 percent for Q3, and 40 percent for Q4. While executing development projects PD&SI Division and the principal accounting officers (PAOs) concerned shall ensure implementation of the provisions of the Public Finance Management Act, 2019 and the planning division shall devise quarterly sector-wise, project-wise, and Division-wise strategies for the release of funds for Public Sector Development program within the approved appropriations. Any proposal for change to the limits prescribed shall be considered by the Budget Wing, Finance Division on a case-to-case basis and shall require prior approval of the Finance Secretary. The PAOs shall ensure the availability of sufficient funds for Employee Related Expenses (ERE) for each project. PAOs, heads of the attached department, heads of the sub-ordinate office, or project director shall not make any re-appropriation of funds from ERE to Non-ERE heads of account except with the prior concurrence of PD&SI Division. Adequate budgetary allocations on account of the Foreign Exchange component (Rupee Cover) shall be ensured by all relevant PAOs and conveyed to the Economic Affairs Division and Finance Division and funds for foreign exchange payments shall require prior approval of the External Wing of Finance Division. All payments shall be made through the pre-audit system by all the Accounting Offices or through the Assignment Account procedure or any other procedure issued by the Finance Division. A separate Assignment Account shall be opened for each project. 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 of the Cash Management & Treasury Single Account Rules, 2024. The instructions with regard to Supplementary Grants, Technical Supplementary Grants, and Re-appropriations shall be issued by the Budget Wing, Finance Division, separately. There shall be no requirement of ways and means clearance from the Budget Wing of the Finance Division for the release of the development budget and no payment shall be made over and above the limits by any accounting office except with the prior written approval of the Finance Division. The Development Wing of the Finance Division shall coordinate and oversee the matters relating to the release of funds for the development budget and other ancillary matters. The PAOs may approach the PD&SI Division for any issues related to authorization as well as the distribution of funds between the approved projects/schemes.