Govt prohibits additional grants under IMF policy

• The Ministry of Finance issues an official memorandum.
• Only disaster -related grants are allowed without the nod of parliament.
• Ministries must exhaust all options before looking for extra funds.
  

ISLAMABAD: The Finance Directorate made it clear that additional grants for intact expenses will not be approved – except in the case of serious natural disasters, The news reported.

The Ministry of Finance issued an official memorandum for this purpose, aligning in terms set out by the International Monetary Fund (IMF) under the continuing Extended Fund (EXF) program.

According to the Directive, additional grants will only be taken into account when all other funding routes have been exhausted and no resources are available through repetition or technical supplementary grants (TSGS). In such exceptional cases, the following conditions must be met: The main accountant (PAO) must certify that all funding options have been investigated, a claim to be verified by the relevant accounting organization or office.

PAO must provide strong excuse and clear reasons for searching for a complementary grant.

The request must be supported by the expenditure wing or the interesting wing of the funding department. All procedural requirements described for TSGs must also be followed.

The Memorandum states Article 84 of the Pakistani Constitution and Article 10 of the Public Finance Management Act (PFM) in 2019, which provides legal basis for additional costs where existing funds are lagging behind or where new services require funding not included in the annual statement of budget (ABS).

In terms of repetition, authorized employees may transfer funds in accordance with their authorized financial powers under SR#5 of the Financial Management and Paos Regulations, 2021, as informed by the funding department. However, repetition is not permitted by non -circulating budget distributions.

In addition, the main accounting employees have been allocated funds to cover the AD-HOC compensation costs announced during the current use. These funds have been placed under a separate cost center in any demand for grants and credits.

In this way, PAOs are advised to redefine these funds, in consultation with the expenditure wing, the funding department, only for the purpose of AD-HOC relief in Cfy’s 3rd 3rd 3rd. In the event of a lack of expenses associated with employees during FY, the repetition of funds by non -“accounts of accounts” may be prioritized. Repeat orders duly approved by the competent authority are provided to accounting organizations/offices for entry into the SAP system.

However, liberalized funds remain within the prescribed quarterly boundaries given by the Directorate of Finance in the strategy for the liberalization of CFY funds. It has been observed that a large number of cases to relax the cut -off date for the repetition of funds, ie May 31, in accordance with Article 11 of the PFM 2019 Act, are taken at the Finance Division during June each year.

It has been decided that repeat commands are taken into account, which are duly approved by the competent authority and monitoring nature: to adapt excessive expenditure closed to account offices. To meet shortcomings according to the ERE leaders’ accounts; inevitable payments that mature in June. Vi. Copies of the approved repetition order must be provided to the Expenditure and Budget Wing (Computer Degree) for the purpose of registration and monitoring.

Technical Supplementary Sorts: Any Application for Capital During the TSG is submitted only by PA0, by identifying resources in the context of another demand and the certificate that equivalent funds will be provided by the Ministry/Divide by their allocation.