Shehbaz govt opens coffers for MPs ahead of elections

• MP's discretionary funding priority for PDM-led govt.
• Planning ministry to carry out fund release strategy.
• Govt will release 15% funds in first quarter.

ISLAMABAD: The government of Pakistan Democratic Movement (PDM) has approved the release of funds worth billions of rupees for the development scheme for lawmakers just months before the elections, it emerged Monday.

In the first quarter of the ongoing fiscal year, the government okayed the release of Rs131 billion, equivalent to 15% of the allocated funds, exclusively for Parliamentarians' discretionary schemes within the Sustainable Development Goals Achievement Programme (SAP).

The prioritisation of lawmakers’ discretionary funding within the SAP program as development funds has remained a significant focus for the PDM-led government in Islamabad, which will end its constitutional term on August 12, 2023, making it a distinct approach.

According to an Office Memorandum (OM) issued by the finance ministry, the funds’ release strategy for the development budget in the ongoing financial year 2023-24 will be carried out by the Planning, Development and Special Initiatives (PD&S|) Division.

This is in accordance with the provisions chalked out in the Public Finance Management Act, 2019, Rule 3(9) of the Cash Management and Treasury Single Account Rules, 2020, and Financial Management and Powers of Principal Accounting Officers Regulations, 2021.

Out of the Public Sector Development Programme (PSDP) allocation for CFY for approved projects, 15% of funds will be released in quarter one, 20% for quarter 2, 25% for quarter 3, and 40% for quarter 4.

The PSDP stands at Rs950 billion out of which Rs131 billion or 15% will be released in the first quarter of the current fiscal year.

The funds released against surrendered amount for SDGs during FY23 will be standing at Rs20.26 billion. The parliament had passed a resolution at the time of approval of the budget for making SAP funds non-lapsable.

The funds released for approved SDGs schemes for FY24 stand at Rs41 billion which will also be released in the first quarter of the current fiscal year. The available funds for remaining PSDP Schemes during Q1 of FY24 will be released at Rs69.74 billion, so in totality Rs131 billion will be released.

Besides there has been misuse of powers as there is one retired officer who was re-hired on a project but he was given an honorarium in alleged violation of all rules in the planning ministry.

While executing development projects PD&SI Division and the Principal Accounting Officer (PAOs) concerned shall ensure implementation of the provisions contained under Chapter-lll of the Public Finance Management Act, 2019. 

The PD&Sl Division shall devise quarterly sector-wise/project-wise/division-wise strategies for the release of funds for PSDP within the appropriations approved by the National Assembly and included in the Schedule of Authorised Expenditure in terms of Article 83 of the Constitution of Pakistan.

Any proposal for change to the limits prescribed at (i) above shall be considered by the Budget Wing, Finance Division on case to case basis and shall require prior approval of the finance secretary. The release of funds for approved projects in a Demand for Grants and Appropriations shall be made by the PAO in each Quarter within the above limits.

The PAO shall ensure the availability of sufficient funds for Employees Related Expenses (ERE) for each project. PAOs/heads of attached department/heads of 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 the Ministry of Planning, Development and Special Initiatives.

Adequate budgetary allocations on account of the Foreign Exchange Component (Rupee Cover) shall be ensured by all relevant PAOs and conveyed to Economic Affairs Division and Finance Division. Funds for foreign exchange payments shall require prior approval of the External Finance Wing of the Finance Division.

While examining requests for such funds, the External Finance Wing shall consider the availability of foreign exchange.