In accordance with International Monetary Fund (IMF) recommendations, the Federal government has prohibited Supplementary Grants until a new government is formed.
According to the Finance Division’s policy for additional allocation and re-appropriation of money for the current fiscal year 2023-24, the government will not authorize any Supplementary Grants for any further unbudgeted spending over the parliamentary approved level in FY24.
No Supplementary Grants Until The Formation of New Govt., Finance Division
To stay within the agreed budgetary allotment, at least until the formation of a new government following the elections (unless in the case of a major natural disaster).
In terms of re-appropriation of funds, Principal Accounting Officers (PAOs) have been given additional funds to cover the financial requirements of Adhoc Relief Allowance 2023, which were declared in the budget for CFY 2023-24, under a distinct Cost Centre in each Demand for Grants.
PAOs are hereby advised to re-appropriate these funds to Cost Centers of Divisions / Attached Departments / Subordinate Offices within respective Demands for Grants no later than August 31, 2023, after consulting with Expenditure Wing, Finance Division.
Furthermore, monies may be re-appropriated from one “Head of Account” to another “Head of Account” within an approved Demand for Grants and Appropriation, provided that no re-appropriation is done from Employees Related Expenses (ERE) to any other “Head of Account” (Non-ERE).
In the event of an ERE allocation shortfall during the fiscal year, funds from Non-ERE “Head of Accounts” may be re-appropriated on a priority basis.
The document states that re-appropriation Orders, duly approved by the Competent Authority, shall be provided to Accounting Organizations/Offices for entry into the SAP system.
However, re-appropriation of grants must stay within the mandated quarterly limits set by the Finance Division in the CFY Strategy for Fund Release.
Technical Supplementary Grants
Concerning Technical Supplementary Grant, any request for money through TSG must be made by PA0s, together with identification of resources under other demand(s) and a certificate of comparable surrender from the respective PAO.
The Expenditure Wing will thoroughly investigate the TSG cases and provide recommendations to the Budget Wing, Finance Division.
Before submitting cases to the Finance Secretary for consideration, the Budget Wing of the Finance Division shall process them in light of the SAP system report, the suggestion of the Expenditure Wing, and the available fiscal space.
TSG PSDP cases shall be processed through the Planning, Development, and Special Initiatives Division after achieving the standards outlined in the preceding subparagraphs.
Federal Cabinet Approval of Funds Through TSG
Following Federal Cabinet approval of funds through TSG, the PAO shall submit the TSG schedule, duly endorsed by the Expenditure Wing, Finance Division, along with copies of the granted summary and selection of the Cabinet’s Economic Coordination Committee (ECC), ratification of the Cabinet, and surrender order to the Director (“Budget Computerization), Budget Wing, Finance Division for entry into the SAP system.
Funds approved through TSG will be disbursed by the Finance Division based on fund availability and in accordance with the Release Strategy.
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