The Finance Ministry has announced to release subsidies earmarked in the budget on a case-to-case basis during the ongoing fiscal year.
As per the sources, the government has reserved Rs.700 billion for subsidies to provide relief and assistance to the common man during the current fiscal year.
The Ministry of Finance has already formulated a strategy for the release of funds for recurrent and development purposes. The new strategy says that the federal government will issue subsidies on a case-to-case basis during the current financial year.
In accordance with the guidelines of the Finance Ministry, the Principle Account Officers (PAOs) will formulate quarterly funds requirement plans for subsidies within the assigned budget for the present fiscal year and will share them with the relevant divisions of the Finance Division prior to the start of each quarter. Finance Division can review the quarterly requirement plan and may communicate its views to the PAO concerned in two weeks.
While firming up comments and views, Finance Division will consider inter-alia, fiscal space along with cash balance availability. Release of funds by the PAO for grants will then be made under the funds’ requirement plans, as revised considering Finance Division’s comments.
Moreover, PAO will issue the approval for expenditure and a copy will be referred to Budget Wing, Finance Division for entry into the SAP System.
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The federal government will issue 20% of total assigned funds and lending during the first quarter (July-Sept), and 25% each during the second (Oct-Dec) and third quarters (Jan-March). While, the remaining amount will be released during the fourth quarter (April-June) of the current fiscal year.
Furthermore, funds for foreign exchange payments will need prior consent by the External Finance Wing of the Finance Division. Meanwhile, examining requests for such grants, the External Finance Wing will consider the obtainability of Foreign Exchange.
It is to be mentioned that all the payments will be made through the pre-audit system by all the Accounting Organizations and Offices or via Assignment Account Procedure or any other process announced by the Finance Division.
