The approach for allocating funds for the FY23 development budget, which is focused on public sector development, was modified on Tuesday by the Ministry of Finance.
The money release approach will be used on each request for a grant and appropriation of the budget, as listed in the schedule of permitted spending for FY23, according to an official document released by the ministry in this respect. It is not going to be relevant to specific projects, cost centers, or object heads in a grant and appropriation request.
The Ministry of Planning, Development and Special Initiatives must release and upload funds for each grant and appropriation demand at a maximum level of 10% for the first quarter of the fiscal year, 20% for the second quarter, 30% for the third quarter, and 40% for the fourth quarter of the approved budget.
While the officer in charge of a project is also responsible for making sure there are enough funds available to cover the employee-related expenses incurred in each project, the release of funds for each approved project shall be made through principal accounting officers (PAO) in each quarter within the aforementioned limits.
The Finance Division will also post the quarter-by-quarter budget allocation and releases on the MoF website. Any accounting organization may not make a payment in excess of the permitted amounts without first receiving written consent from the Finance Division.
The Planning Commission was instructed to issue grants and allocations at the maximum levels of 20% for Q1FY23, 25% for Q2FY23, 30% for Q3FY23, and 25% for Q4FY23 by the Ministry of Finance earlier on July 7.
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