System of Financail Control & Budgeting 2006

8/8/2019 System of Financail Control & Budgeting 2006

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SYSTEM OF FINANCIALCONTROLAND

BUDGETING(September 2006)

GOVERNMENT OF PAKISTANFINANCE DIVISION

ISLAMABAD


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No.F.3(2)Exp.III/2006Government of Pakistan

Finance Division****

Islamabad, the 13th September, 2006

OFFICE MEMORANDUM

SUBJECT:- SYSTEM OF FINANCIAL CONTROL AND BUDGETING

The undersigned is directed to refer to the New System of Financial

Control and Budgeting introduced with effect from 1st July, 2000 vide the

Finance Divisions O.M.No. F.3 (4) Exp.III/2000 dated 30-6-2000 on the above

subject and to state that it has been decided to review the system with a view

to delegating more powers to administrative Ministries/Divisions and bring it in

line with the Chart of Accounts (CoA) as laid down by the Auditor General of

Pakistan.

2. The procedures and financial limits laid down in this O.M shall

take with immediate effect.

3. Principal Accounting Officer:The Secretary shall be the Principal

Accounting Officer of the Ministry/Division, Attached Departments and

Subordinate Offices in respect of the expenditure incurred against the budget

grant (s) of the Ministry/Division. The term Secretary shall include the

Principal Secretary, the Acting Secretary, the Additional Secretary Incharge or

the Senior Joint Secretary/Joint Secretary Incharge of a Division.

4. Duties and Responsibilit ies of Principal Accounting Officer: In

the duties and responsibilities of the Principal Accounting Officer, finance is an

essential element in policy questions and the Principal Accounting Officer is to

ensure that financial considerations are taken into account at all stages in

framing and implementing decisions. The Principal Accounting Officer shall beassisted by a Chief Finance and Accounts Officer (CFAO) and Financial Adviser

(FA) in the discharge of his duties in financial and budgetary matters. The

delegation of greater financial powers to the Principal Accounting Officer entails

greater responsibilities also. The Principal Accounting Officer is responsible not

only for the efficient and economical conduct of the

Ministries/Divisions/Departments etc, but also continues to be personally

answerable before the Public Accounts Committee. The two main principles to


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be observed are economy: (getting full value for money) and regularity:

(spending money for the purposes and in the manner prescribed by law &

rules). The General Financial Rules (GFR) Vol.I emphasize the following

principles:

(i) Propriety: The expenditure is incurred with due regard to highstandards of financial propriety.

(ii) Purpose: The funds allotted to a Ministry/Division, AttachedDepartments and Subordinate Offices are spent for the purpose forwhich they are allocated.

(iii) Rules & Regulations: The funds are spent in accordance withrelevant rules and regulations.

(iv) Limitations: The actual expenditure does not exceed the budgetallocation.

(v) Prudence: The expenditure is not, prima facie, more than theoccasion demands, and that every government servant exercisesthe same vigilance in respect of the expenditure incurred frompublic funds as a person of ordinary prudence would exercise inrespect of the expenditure of his own money.

(vi) Public Advantage: No authority exercises the powers of

sanctioning expenditure to pass an order which will be directly orindirectly to its own advantage and that public moneys are notutilized for the benefit of a particular person or section of thecommunity unless the amount of expenditure involved isinsignificant, or the claim for the amount can be enforced in acourt of law, or the expenditure is in pursuance of a recognizedpolicy or custom.

(vii) Allowances Not To Be a Source of Profit: The amount ofallowances, such as travelling allowance, granted to meet theexpenditure of a particular type, is so regulated that the

allowances are not, on the whole, a source of profit to the recipient.(viii) Inevitable Payments: In pursuance of the GFR Vol.I, the Principal

Accounting Officer shall adopt the procedure laid down therein.Under para 105 of GFR- Vol.I, it is an important principle thatmoney indisputably payable should not, as far as possible, be leftunpaid and that money paid should, under no circumstances, bekept out of accounts a day longer than is absolutely necessary. Itis no economy to postpone inevitable payments and it is veryimportant to ascertain, provide for in the budget estimates,liquidate and record the payment of all actual obligations at the

earlier possible date. Besides, the Principal Accounting Officer


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shall make prompt payments to suppliers and contractors against theirinvoices or running bills within the time given in the conditions of thecontract which shall not exceed thirty (30) days, as stipulated in rule 43of Public Procurement Rules (PPR), 2004 issued by the Finance Divisionvide SRO 432(1)/2004 dated 8th June, 2004.

5. Other duties and responsibilities of the Principal AccountingOfficer shall be as under:-

(a) Proposals for Budgetary Allocations: The Principal AccountingOfficer shall consider budgetary proposals submitted to him andshall, after careful scrutiny, forward the proposals to FinancialAdvisers Organization for budgetary allocations. The proposals forthe expenditure not covered in the delegated powers shall also beforwarded by the Principal Accounting Officer to the FinancialAdvisers Organization/Finance Division.

(b) Control Over Expenditure: The Principal Accounting Officer shallensure that the funds allotted to a Ministry/ Division, etc. arespent for the purpose for which these are allotted. He shall alsoensure that the expenditure falls within the ambit of a Grant or anAppropriation duly authenticated, is normally proportionate to thebudget allotment and that the flow of expenditure does not giverise to demand for additional funds. The expenditure in excess ofthe amount of Grant or Appropriation as well as the expenditurenot falling within the scope or intention of any Grant orAppropriation, unless regularized by a Supplementary Grant or a

Technical Supplementary Grant, shall be treated unauthorized. The Principal Accounting Officer is responsible for any laxity inmatters of control over expenditure including that on thepart of subordinates. He shall ensure that neither he nor hissubordinates disregard the instructions issued by governmentfrom time to time for proper utilization of funds placed at hisdisposal. The principle of personal answerability shall not,however, be applicable in a case in which a Principal AccountingOfficer has been over-ruled by his Minister on a matter ofimportance affecting the financial administration of hisMinistry/Division and is required to take a course of action which

he regards as inconsistent with his duties as Principal AccountingOfficer. In such cases he should not hesitate to submit the case tothe Minister explaining how that particular course of action isinconsistent with his duties as the Principal Accounting Officer.

(c) Observance of Rules, Regulations & Instructions: Whilesanctioning expenditure out of the funds placed at his disposal,the Principal Accounting Officer shall ensure that the requirementsof the relevant rules and regulations are fully met and that theapproval of the Finance Division has been obtained in all caseswhich are not covered by a standing authorization that may have

been delegated.


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(d) Maintenance and Reconci liation of Accounts: The PrincipalAccounting Officer is responsible for ensuring that the expenditureis not incurred in excess of the budget allocation. He shall ensurethat payments are correctly classified under the appropriate headsof accounts and that departmental accounts are regularlyreconciled every month with the figures communicated by the

Controller General of Accounts (CGA)/Accountant General ofPakistan Revenues (AGPR). He shall, in addition, keep himself wellinformed not only of the actual expenditure but also of theliabilities, which have been incurred and must ultimately be met.Any anticipated excesses and savings should be readjusted bymeans of re-appropriation to the extent powers have beendelegated to the Principal Accounting Officer under the newprocedure. Similarly, the Principal Accounting Officer shall makesure that the accounts of receipts shall be maintained properly andreconciled on monthly basis.

(e) Realization of Receipts: In the matter of receipts pertaining to theMinistry/Division, Attached Departments and Subordinate Offices,the Principal Accounting Officer is expected to ensure thatadequate machinery exists for due collection and bringing toaccount of all receipts of any kind connected with the functions ofthe Ministry/Division (s)/Departments and Subordinate Officesunder his control.

(f) Public Accounts Committee (PAC) and Departmental AccountsCommittee (DAC): Being personally accountable to the PAC, thePrincipal Accounting Officer shall attend all the meetings of PAC.

The Principal Accounting Officer/Additional Secretary orequivalent shall regularly hold meetings of DAC as Chairperson, with Financial/Deputy Financial Adviser and Director General(Audit) as Members and Chief Finance and Accounts Officer asMember/Secretary to watch the processing of Audit & InspectionReports and decide upon appropriate measures so as to aid andaccelerate the process of finalization.

6. Chief Finance and Accounts Officer: In each Ministry/Division,

there shall be a Chief Finance and Accounts Officer (CFAO) under the Principal

Accounting Officer who shall assist him and report to him as part of his team.

The CFAO shall be a well- trained and experienced officer and equivalent to

Joint Secretary or Deputy Secretary, as may be appropriate, to assist the

Principal Accounting Officer in matters relating to risk management, asset

protection, internal control/audit, reconciliation of accounts, monitoring and

coordination with DAC, PAC and financial proprieties of expenditure and

receipts. The CFAO shall have such supporting officers and staff as may be

necessary. The orders for posting of CFAO shall be issued by the Establishment


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Division in consultation with the Auditor General of Pakistan. The officers

posted as such by the Establishment Division, shall not be transferable to any

other Wing of the Ministry/Division. The CFAO and the officers/staff under

him shall be under the administrative control of the Ministry/Division to which

he is attached. However, the transfer of the CFAO out of the Ministry/Divisionshall be with the concurrence of the Auditor General of Pakistan. He shall

work directly under the Principal Accounting Officer and be accountable to

him. He shall coordinate his work with the Financial Advisers Organization.

(Till such time that the Ministries/Divisions have been provided CFAO, the

present F&A Officers shall continue to perform their duties.)

7. Duties and Responsibilities of the Chief Finance and Accounts

Officer: The duties and responsibilities of the CFAO shall be as under: -

(i) Maintenance and Reconciliation of Accounts: He shallsystematize proper maintenance of accounts and their timelyreconciliation with the actual figures of the CGA/AGPR andmaintenance of Liability Register in the Ministry/Division, itsAttached Departments and Subordinate Offices. He shall monitorthe progress of the expenditure and receipts and furnish, with theapproval of the Principal Accounting Officer, a monthly statement ofdepartmental expenditure and receipts to Financial AdvisersOrganization and the Finance Division (Budget and Accounts

Section - Budget Wing) by the 10th and the reconciled statement ofexpenditure and receipts by the 25th of the month following themonth to which it relates.

(ii) Coordination and Scrutiny of Budget: Expenditure andReceipts: He shall undertake coordination and internal scrutiny ofbudget estimates of expenditure as well as receipts ofMinistry/Division, its Attached Departments and SubordinateOffices, including Budget Order (BO) and New-Items Statement(NIS) in accordance with the Budget Call Circular issued by theFinance Division and proposals for additional funds to be met outof Supplementary Grant.

(iii) Consolidation of Public Sector Development Programme(PSDP): He shall be responsible for consolidation of PSDP so thatthe development schemes of the Ministry/Division are prepared inaccordance with the prescribed procedure and instructions underthe supervision and with the approval of the Principal AccountingOfficer.


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(iv) Advice in Delegated Field: He shall tender advice to the PrincipalAccounting Officer in the delegated field, where called upon, in allmatters of payment and matters affecting the accounts or anyother matter concerning propriety and regularity of transactions

( (v) Processing of Cases in Non-Delegated Field: He shall process, inaccordance with the prescribed rules and procedure, cases relatingto the non-delegated field, and matters relating to foreignexchange, and demands for Supplementary Grant, which arerequired to be referred to the main Finance Division through theFinancial Adviser.

(vi ) Public Accounts Committee (PAC) and Department AccountsCommittee (DAC): He shall be responsible for the work relating toPAC, DAC and audit observations on Appropriation Accounts andAudit Reports, ensuring compliance with the PAC observations andrecommendations. He shall assist the Principal Accounting Officer,

prepare necessary Briefs for PAC/DAC and attend the meetings ofthe PAC and DAC alongwith the Principal Accounting Officer in thecase of PAC and Additional Secretary/equivalent officer in the caseof DAC.

(vi i) Compliance with Rules, Regulations and Orders: He shall tenderadvice to the Principal Accounting Officer for compliance of rules,such as GFR, Fundamental Rules (FR), Supplementary Rules (SR),Federal Treasury Rules (FTR) and other regulations, instructionsand orders issued by the Finance Division from time to time.

(viii) Internal Control : He shall be responsible for observance ofInternal Control prescribed by the CGA in the Ministry/Division,Attached Departments and Subordinate Offices. He shall assistand advise the Principal Accounting Officer for preventingirregularities, waste and fraud and shall exercise internal checksas provided in para 13 of GFRs Volume-I, which reads that:

(a) rules on handling and custody of cash are properlyunderstood and applied;

(b) an effective system of internal check exists for securingregularity and propriety in the various transactions

including receipt and issue of stores etc., if any, and

(c) a satisfactory arrangement exists for a systematic andproper maintenance of Account Books and other ancillaryrecords concerned with the Initial Accounts.

(ix) Internal Audit: He shall conduct the Internal Audit of theMinistry/Division Attached Departments and Subordinate Officesand incorporate the results of these inspections in the form of aninspection report and furnish the Internal Audit Report to thePrincipal Accounting Officer. The Principal Accounting Officer


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shall, after scrutiny of the reports, communicate to Audit, copies ofthe reports alongwith remarks and orders/action(s) taken thereon.

8. Powers Delegated to Ministries/Divisions/Departments: The

powers delegated to Ministries/Divisions/Departments are indicated below:-

(a) Powers are delegated to the Principal Accounting Officer in theMinistries/Divisions and the Head of Departments, respectively(Annex-I). They may exercise these powers without consulting theFinancial Adviser. The Chief Finance and Accounts Officers may,however, be consulted, where considered necessary or advisable.His advice can however, be over-ruled by the Principal AccountingOfficer who may record reasons for overruling the advice. Thepowers so delegated shall be subject to the observance of austeritymeasures taken by the government from time to time and thefollowing conditions:-

(1) availability of funds, by valid appropriation or re-appropriationwhere permissible, from within the sanctioned budget grant; and

(2) availability of foreign exchange, where required, from within theallocation of foreign exchange sanctioned for the Ministry/Divisionconcerned provided:-

(i) specific provision exists in the foreign exchange budget;

(ii) it does not involve re-appropriation from imports toinvisible or vice versa;

(iii) it does not involve travel by another carrier on routes wherePIA flights operate; and

(iv) it does not involve expenditure on entertainment orcontingencies.

(b) The Current Expenditure in the first half of the financial year shallbe restricted to 40% of the total budget allocation in the financialyear. In the second half of the financial year, the Finance Divisionshall issue separate instructions in respect of the balance 60% ofthe budgetary allocation.

(c) The financial powers delegated to the Ministries/Divisions under

the FR and SR, GFR etc., prior to the introduction of FinancialAdvisers Scheme, shall stand enhanced/modified to the extentstated in this Office Memorandum.

(d) Except as specifically provided (Annex I), further delegation ofdelegated powers (Annex I) may, as considered appropriate, bemade by the Secretaries of the administrative Ministries/Divisionsand Heads of Departments to the officers subordinate to themwithout consulting the Financial Adviser.

Note :- The term Head of Department denotes Head of Departmentas defined in S.R.2 (10).


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9. Role of Financial Adviser: Basically, FAs will facilitate and

support the operations of Ministries/Divisions that they are assigned to, and to

provide constructive advice to the Principal Accounting Officer. The Financial

Advisers scheme has the following elements:-

(a) The Financial Adviser shall continue to be under theadministrative control of the Finance Division, and shall, subject tothe provisions of sub-paras (d) and (e) below, exercise the powers ofthe Joint Secretary to the Finance Division in relation to theMinistries/Divisions to which he is attached. The Financial Advisershall represent the Finance Division in a comprehensive mannerand be the focal point in financial management of theMinistries/Divisions. He shall monitor the monthly statement ofexpenditure and receipts forwarded by the CFAO, as mentioned inpra 7 (I) and draw after careful scrutiny, the Principal AccountingOfficers attention to discrepancies, if any and shall also submitcomments to AFS(E).

(b) The Financial Adviser shall be assisted by Deputy FinancialAdvisers depending on the number of Divisions allocated and thequantum of work entrusted to him. The Financial Adviser/DeputyFinancial Adviser and their staff shall be paid from the budgetgrant of the Finance Division.

(c) The advice of the Financial Adviser in cases falling outside the fieldof delegated powers shall be binding on the administrativeMinistries/Divisions. In case of a difference of opinion with theFinancial Adviser, the Secretary of the Ministry/Division may take-up the case with the Additional Finance Secretary(Expenditure)(AFS-E)/Finance Secretary (FS), or the Minister maytake it up with the Finance Minister (FM).

(d) The Finance Division (Main) shall continue to deal with the mattersrelating to interpretation, application and relaxation of service andfinancial rules and regulations, and allocation of foreign exchangein accordance with the prescribed procedure. Except for the casesrelating to interpretation, application and relaxation of servicerules and regulations which shall be forwarded byMinistries/Divisions directly to the Finance Division (RegulationsWing), the other cases shall be routed through F.A.

(e) Financial sanctions relating to service rules and regulations whichare accorded with the concurrence of the Finance Division(Regulations Wing) will be endorsed to audit through that Wingand not through the Deputy Financial Adviser of theMinistries/Divisions.


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10. Reference to Financial Adviser/ Finance Division: In cases

where a reference to the Financial Adviser/Finance Division is necessary, the

Chief Finance and Accounts Officer shall ensure that:-

(a) the case is properly examined in accordance with the relevant rulesand orders;

(b) the facts of the case and the point of reference are clearly stated in aself-contained note or office memorandum which shall be submittedin duplicate; and

(c) such further data and information is furnished as may be asked forby the Financial Adviser/Deputy Financial Adviser/Finance Divisionfor the proper disposal of the issues referred to him.

11. Responsibilities and Powers of the Financial Adviser: The

responsibilities and powers of the Financial Adviser/Deputy Financial Adviser

in respect of Ministries/Divisions to which they are attached shall be asfollows:-

(A) Current Expenditure

(i) Approval of Expenditure and Budget Provision: TheFinancial Advisor shall have full powers to approve expenditureproposals and to accept budget provision, except that the casesinvolving important issues of policy shall be submitted to theAdditional Finance Secretary (Exp.)/Finance Secretary/Finance Minister.

Note-1: Deputy Secretary (Exp.)/DFAs shall have powers to approveexpenditure proposal and to accept budget provision upto Rs.5,000,000.(Rs. Five Million).

Note-2: Financial sanctions requiring endorsement by the Finance Divisionother than sanctions relating to service rules and regulations

which are accorded with concurrence of Finance Division(Regulations Wing) shall be endorsed to Audit through the DeputyFinancial Adviser of the Ministry/Division concerned.

(ii) Lump-sum Provision: The expenditure to be financed from alump-sum provision shall be examined and disposed of by theFinancial Adviser. He shall submit a monthly statement of suchexpenditures to AFS(E).

(iii) Proposal for Supplementary Grant In Respect of UnexpectedExpenditure: Proposals for Supplementary Grant shall likeother expenditure proposals, be examined by the FinancialAdviser concerned as per the instructions contained in Annex-II to this Office Memorandum. The Financial Advisor shallsubmit cases for sanctioning of Token Supplementary Grant toAFS (E) for approval. He shall submit the cases for Technical


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Supplementary Grant upto Rs. 100,000,000 Rs. One hundredMillion) for approval of AFS(E).The cases for sanctioning of Technical Supplementary Grant beyond Rs. 100 million andregular Supplementary Grant shall be submitted by the FA,through AFS(E), to the Finance Secretary for approval.

(iv) Re-appropriation of Funds: The powers of re- appropriationof the Finance Division, as set out (Annex-I) shall be exercisedby Financial Adviser except reappropriation from, to, or withinthe Employees Related Expenses and from Utility Charges which shall be submitted by Financial Advisor to AFS(E) forapproval.

(v) Creation of Posts: The Financial Advisor shall submit casesfor creation of posts to AFS(E) in BPS-1 to 19 for approval.The cases for creation of posts in BPS-20 and above shall besubmitted by the FA, through AFS(E), to the Finance Secretary

for approval. However, a proposal/case, involving creation of alarge number of posts in the pay scales mentioned above andnecessitating a hierarchical structure requiring the creation ofposts above BS-19, shall be dealt with as a singleproposal/case. The whole case shall, irrespective of the scale ofposts, require approval at the level of the Finance Secretary.

(vi) Appointment of Contingent Paid Staff:The Financial Advisershall submit proposals for appointment of contingent paid staffto AFS(E) for approval.

(vii) Write-off of Losses: The Financial Advisor shall dispose ofcases for write-off of losses beyond Rs.5, 000,000 (Rs. FiveMillion) upto Rs. 10,000,000 (Rs. Ten Million). He shall submitcases for write-off of losses upto Rs.20, 000,000 (Rs. TwentyMillion) to AFS(E) for approval. The cases for write off of lossesabove Rs.20,000,000 (Rs.Twenty million) shall be submitted bythe FA, through AFS(E), to Finance Secretary for approval. These powers shall be exercised within the framework ofpara 47 of GFR- Vol.I.

(viii) Representation of the Finance Division on Committees:

The Financial Advisers/Deputy Financial Advisers, accreditedto the administrative Ministries/Divisions shall represent theFinance Division at various Committees, including PAC andDAC and prepare Briefs for Finance Secretary/AFS(E). SinceSecretaries/PAOs have full powers for purchases, hencenormally FAs/DFAs will not be the members of the PurchaseCommittees of Ministries/Divisions, which shall includeofficials of Ministries/Divisions/Departments. If PAOs so wishthey may seek an exception from Finance Division if sorequired.


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(B) Development Expenditure

(i) The Financial Adviser shall be associated with the processing ofdevelopment schemes from beginning to completion. He shall beresponsible for the scrutiny and approval of developmentschemes of the Federal Government costing upto Rs. 40 million, which do not require submission to the Central Development

Working Party (CDWP). However, before according approval, theFinancial Adviser shall consult the Finance Division(Development Wing), where necessary, to ensure policycoordination.

(ii) He shall be responsible for scrutiny of development schemessponsored by the Ministries/Divisions for consideration of theCentral Development Working Party (CDWP). He shall furnishhis views to the AFS(E) through Finance Division (DevelopmentWing). The Finance Division (Development Wing) shall ensurethe following: -

(a) The scheme fits into the overall development plan.

(b) The scheme does not clash with any other scheme of any otherMinistry/Division/Department either in principle or in detailand there is no contradictory policy being followed in schemesof two different Ministries/Divisions/Departments.

(c) There is no duplication in the schemes of the variousMinistries/Divisions/Departments both in major work and indetailed working.

Note: Financial Advisers and Deputy Financial Advisers shall exercise

their powers within the guidelines approved by the FinanceDivision.

12. Representation of the Finance Division in Development

Working Parties: The meetings of the Departmental Development Working

Party (DDWP) shall be attended by Financial Advisor/Deputy Financial Advisor

and meetings of the Central Development Working Party (CDWP) by Additional

Finance Secretary (Expenditure).

13. Budgetary Procedure: The powers to sanction expenditure withinthe budget grants have been delegated to the administrative

Ministries/Divisions. Yet, the finalization of the budget proposals continues to

be the responsibility of the Finance Division. Budget is, therefore, to be used as

the most important instrument of financial control. No proposals for

expenditure shall be included in the budget unless these have been concurred

in by the Finance Division after scrutiny. The scrutiny of budgetary proposals

by Ministries/Divisions through the Financial Adviser for inclusion in the


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budget shall, as far as possible, be undertaken by the Finance Division as a

pre-budget exercise. The budgetary proposals shall be submitted by

administrative Ministries/Divisions to the Financial Advisor with the approval

of the Principal Accounting Officer. The Financial Advisor shall carefully

scrutinize the proposals before agreeing to budget provision. Once a provision

for expenditure has been made in the budget and it has become effective,

administrative Ministries/Divisions shall have the authority to sanction

expenditure from within their sanctioned budget grants, subject to the powers

delegated to them and the fulfillment of the conditions laid down therefore

under this Office Memorandum. Ministries/Divisions, while issuing

expenditure sanctions without further consultation with the Financial Advisers

in cases within the financial competence of the Principal Accounting Officershall ensure that Object Wise details are shown both in Part I and Part II

Budget Estimates. The salient features of the budgetary procedure shall be as

follows:

(i ) Budget a Continuous Process: Budgeting being a continuousprocess, the preparation of the budget shall begin well ahead of theyear to which it relates.

(ii) Estimates of Expenditure: Approval and Issuance of BudgetOrder(BO) and New Items Statement (NIS): All the proposals forEmployees Related Expenditure and other expenditure shall becleared with the Financial Adviser as soon as these are ready. Part-I of the Budget Estimates (relating to standing and fluctuatingcharges) and Part-II Budget Estimates (relating to fresh charges)shall be scrutinized finally by the Financial Adviser concerned whowill approve and issue to the Finance Division (Budget Wing) andthe AGPR copies of the BOs in respect of Part-I Budget Estimatesand verified copies of NISs in respect of Part-II Budget Estimates inaccordance with the instructions contained in the Budget Call

Circular. The admitted Part-I and Part-II Budget Estimates shall becompiled together into Demands by the Finance Division (BudgetWing).

(iii) Estimates of Tax and Non-Tax Revenues: The estimates of TaxRevenues, Non Tax Revenues and Capital Receipts shall also firstbe coordinated and scrutinized by the Chief Finance and Accounts

Officer and submitted with the approval of the Principal AccountingOfficer to the Financial Adviser for approval. The estimates, asapproved and verified by the Financial Adviser, shall be furnishedto the Finance Division (Budget Wing) in accordance with the

instructions contained in the Budget Call Circular.


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(iv) Lump Sum Provision in Current Expenditure: Lump-sumprovision in the budget shall not be proposed or made except inexceptional circumstances such as lump provision for late NIS, latereceipt of directives etc which shall be recorded. Where such aprovision is made in the budget, expenditure sanction shall be givenwith the concurrence of the Financial Adviser.

(v ) Lump Sum Provision in PSDP: No sector-wise lump-sumallocation shall be made in the PSDP as a general policy, except inexceptional circumstances, which shall invariably be recorded. Inrespect of such lump-sum provisions, the sponsoring Ministries/Divisions/Departments/ Subordinate Offices concerned shallinvariably furnish a list of approved schemes indicating bifurcationof the lump-sum allocation against each scheme to FAs/Planningand Development Division and other organizations concerned.Releases against this provision shall be made with the prior approvalof Financial Advisers.

(vi) Allocations in the PSDP forNew Unapproved Schemes/Projects:Allocation in the PSDP for new unapproved development schemes/projects shall be made in exceptional circumstances only, afteranticipatory approval of such new schemes/projects by thecompetent authority.

(vi i) Cash Plan of PSDP and Releases of Funds: During the first quarterof the financial year, releases of the allocations provided in thePSDP for individual schemes, as have already been approvedformally by the competent authority or have been given anticipatoryapproval by the Chairman, ECNEC, shall be made by the Secretaryof the Ministry/Division concerned/PAO without approval of FAsOrganization in accordance with the Cash Plan of the projects dulyapproved by the Secretary of the Ministry/Division and Planningand Development Division. All releases during the remaining three-quarters of the financial year shall be made with the prior approvalof Financial Advisers Organization in accordance with the approvedCash Plan. The releases shall be subject to utilization of fundsreleased earlier, after furnishing a certificate by the PrincipalAccounting Officer regarding satisfactory implementation ofapproved Work Plan for the previous quarter of the financial year.The releases shall not be unduly delayed.

(viii) Supplementary Grants: There are three forms of SupplementaryGrants: Token, Technical and Regular.

(a) The Token Supplementary Grant is sanctioned to open andoperate a new budget head.

(b) The Technical Supplementary Grant is sanctioned to transferfunds from a Grant/Demand as a result of accrual of saving toanother Grant/Demand, which needs provision of additional

funds.


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(c) The Regular Supplementary Grant is sanctioned when saving isnot available either through reappropriation of funds from withinthe same Grant/Demand or Technical Supplementary Grant fromone Grant/Demand to another Grant/Demand.

While the Technical Supplementary Grant does not imply anyadditionality to the sanctioned budget grant, the Regular

Supplementary Grant involves an upward change in the sanctionedbudget grant. All Supplementary Grants have to be presented to theParliament for ex-post authorization. Ministries/Divisions should,therefore, be able to anticipate the requirements well ahead of thefinancial year to which the budget relates and obtain theconcurrence of the Finance Division, thereby eliminating thenecessity for Supplementary Grants. Finance Division will look withdisfavour upon any request for Supplementary Grants except inextraordinary circumstances. In such circumstances, the FinanceDivision would expect an explanation of the failure to foresee theadditional expenditure at the time of submission of budget

proposals. The funds obtained through Supplementary Grants shallbe expended for the purposes for which these have been sanctioned.In Current Expenditure, demands for SupplementaryGrants/Technical Supplementary Grants shall not be made, exceptin extraordinary circumstances for which full justifications shallhave to be furnished to the Financial Adviser/Finance Division withreason as to why the additional expenditure could not be foreseen atthe time of submission of proposals for budget provision. In case of Technical Supplementary Grants in the Current Expenditure, theprocedure prescribed for surrender of funds from oneDemand/Grant and reallocation to another Demand/Grant shallhave to be followed. Similarly, in Development Expenditure, whilesanctioning the Technical Supplementary Grants, the prescribedprocedure for surrender of savings shall have to be completed.Likewise, for reallocation of funds from one development project toanother as a result of review of the PSDP, the prescribed procedurefor surrender of savings shall have to be completed. For thispurpose, Planning and Development Division shall indicatematching savings which shall have to be surrendered beforeallocation of additional funds to another project. This process shallbe completed expeditiously to ensure that the release of funds todevelopment schemes/projects is not unduly delayed. The last datefor submission of Schedule of Supplementary Grants/TechnicalSupplementary Grants to the Finance Division (Budget Wing) shallbe 31st May of the financial year. Such proposals for SupplementaryGrants/Technical Supplementary Grants shall be submitted inpursuance of the Constitutional provisions and GFR and on theprescribed proforma (Annex-II).

(ix) Foreign Exchange Budget in PSDP: The foreign exchange budgetshall be prepared in accordance with the instructions issued by theFinance Division (External Finance Wing) from time to time.


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14. Power of Sanctioning Projects: The existing sanctioning powers

of various authorities are indicated below :-

S.No Authority Sanctioning Power

1 Executive Committeeof National EconomicCouncil (ECNEC)

Schemes costing above Rs. 500 million.

(Planning and Development Divisions letter No.20(1)PIA/PC/ 2005, dated 14th March, 2005)

2 Central DevelopmentWorking Party(CDWP)

Schemes costing upto Rs. 500 million. Subject to thecondition that the Ministry of Finance does not disagree.

(Planning and Development Divisions letter No.20(1)PIA/PC/ 2005, dated 14th March, 2005)

3 DepartmentalDevelopmentWorking Party(DDWP)

Schemes costing upto Rs. 40 million. This power shall be

subject to the following conditions:-

(i) Ministry/Division concerned shall create a properplanning and monitoring unit within the organizationand set-up a DDWP, in which a representative of theMinistry of Finance is included.

(ii) The Ministry of Finance does not disagree with thedecision of the DDWP; in case there is anydisagreement, the scheme shall be submitted to theCDWP/ECNEC.

(iii) A copy of PC-I Form of the scheme shall be furnished to

the Finance Division and Planning and DevelopmentDivision at least 10 days before the meeting of theDDWP; Planning and Development Division will alsohave the right to express their views on the PC.I and toattend the meeting of the DDWP.

(iv) A copy of the scheme finally approved by the DDWP willbe promptly furnished to the Planning & DevelopmentDivision and Ministry of Finance (Development Wing).

(Planning and Development Divisions letterNo.20(1) DA/PC/ 2000, dated 19th June, 2000)


17/47

- 16 -

S.No Authority Sanctioning Power

4 Autonomous Bodies(Commercial/Non-Commercial)

The autonomous organizations whether commercial or non-commercial havinboard by whatever name called, would be competent to sanction theidevelopment schemes with 100% self-financing with no government guaranteand involving less than 25% foreign exchange/foreign assistance, subject to thfollowing:-

(i) A Development Working Party should be constituted by each organizatioand notified to consider and approve their self-financed projects.

(ii) The Development Working Party should be headed by the Chairman/Head othe Organization and, among others, should include representatives of thPlanning & Development Division, the Finance Division, and thMinistry/Division concerned, each not below the rank of Joint Secretary.

(iii) The quorum of the Development Working Party Should be incompletwithout the presence of either representative of the Finance Division anthe Planning and Development Division. In case either of these Divisiondoes not agree to the project proposal or any aspect thereof, the caswould be referred to the CDWP for consideration.

(iv) The decision of the Development Working Party will be subject to thendorsement of the board of the organization.

(Planning and Development Divisions letter No.21(2-Gen)/PIA/PC 2004, date18th December, 2004)

Federally AdministeredTribal Areas (FATA)

5 Agency/FR DevelopmentSub-committee(ADSC/FRDSC)

Upto Rs. 20 million.

(Planning and Development Divisions letter No.4(1-43)PIP/PC/2006-07 dated 6July, 2006)

6 FATA Development WorkingParty (FDWP)

Above Rs. 20 million and upto Rs. 200 million.

(Planning and Development Divisions letter No.4(1-43)PIP/PC/2006-07 dated 6July, 2006)

Northern Areas

7 Northern AreasDepartmental DevelopmentWorking Committee(NADDWC)

Upto Rs. 20 million

(Kashmir Affairs & Northern Areas Divisions Notifications No.14(11/99-CS, date26th November, 1999)

8. Northern AreasDevelopment Working Party(NADWP)

Upto to Rs. 100 million

(Kashmir Affairs & Northern Areas Divisions Notifications No.14(11/99-CS, date26th November, 1999)


18/47

-17

S.No. Authority Sanctioning Power

Azad Government ofthe State of Jammu& Kashmir

9 AJ & K DevelopmentWorking Party

Upto Rs. 40 million

10 AJ & K CabinetDevelopment Committee

Upto Rs. 200 million

Islamabad CapitalTerritory (ICT)

11 Islamabad DevelopmentWorking Party

Upto Rs. 40 million(Planning and Development Divisions letter No.20(1)DA/PC/2000 date

18th November, 2000)

15. This O.M shall be issued subject to the following conditions:-

(a) Except as set out in sub-para (b) below this O.M supersedesthis Divisions O.M.No.F.3(4)Exp.III/2000, dated 30th June,2000.

(b) In cases that had arisen before the date of the coming into

effect of this O.M. the instructions contained in thisDivisions O.M.No.F.3(4)Exp.III/2000, dated 30th June, 2000shall apply.

(c) This system shall not be applicable to Defence Services where the Revised System of Financial Management forDefence Services as introduced in Ministry of Defence letterNo.F.1/335/81/D-21 (Budget) dated the 26th December,1981 as modified from time to time, shall continue to be inforce.

(Tauqir Ahmed)Addl. Finance Secretary (Exp.)

Ph: 9 2 0 2 5 7 6

Secretaries/Additional Secretary Incharge of Ministries/Divisions.


19/47

- 18 -

Copy forwarded to :-

1. Presidents Secretariat (Public/Personal), Islamabad.2. Prime Minsters Secretariat (Public/Personal), Islamabad.3. Supreme Court of Pakistan, Islamabad.4. Federal Shariat Court, Islamabad.

5. National Assembly Secretariat, Islamabad.6. Senate Secretariat, Islamabad.7. Wafaqi Mohtasibs Secretariat, Islamabad.8. Federal Tax Ombudsmans Secretariat, Islamabad.9. Election Commission of Pakistan, Islamabad.10. Auditor General of Pakistan, Islamabad.11. Controller General of Accounts, Islamabad.12. A.G.P.R., Islamabad.13. Chief Accounts Officer, Ministry of Foreign Affairs, Islamabad.14. Finance Division (Military) Rawalpindi.15. Central Directorate of National Savings, Islamabad.

16 Monopoly Control Authority, Islamabad.17 Pakistan Mint, Lahore-9.18 Federal Treasury Office, Islamabad/Karachi.19 All Officers/FAs/DFAs, Finance Division, Islamabad.20 Chief Secretaries, Governments of Punjab/Sindh/NWFP/

Baluchistan.21 Chief Secretary, Azad Government of Jammu & Kashmir,

Muzaffarabad.

(Obaidur Rehman Khan)

Deputy Secretary (Exp)Ph: 9 2 1 1 0 7 9


20/47

- 19 -Annex-I

See para 8(a) of the Finance Division s O.M.No.F.3(2)Exp-III/2006, dated -7-2006FINANCIAL POWERS DELEGATED TO THE MINISTRIES/DIVISIONS AND THE HEADS OF THE DEPTTS.

S.NO. NAME OFPOWERS

POWERS DELEGATED TOTHE MINISTRIES

/DIVISIONS

POWERSDELEGATED TO

THE HEADS OFDEPARTMENTS

REMARKS

1 2 3 4 5

1 Creation oftemporaryposts

The creation of new posts inthe Current Expenditureshall require the approval ofthe Finance Division, even

when these are included inthe current budget. TheSecretaries of theMinistries/Divisions shallhave full powers to createnew posts (s) in theDevelopmentExpenditure/PSDP, includedin PC-I or PC-II after theapproval of the project by therelevant forum subject toavailability of developmentbudget against EmployeesRelated Expenses. Theseposts shall be continued on

year to year basis till thecompletion of the project.Such posts(s) will cease toexist on the closure/completion of the project.After completion of theproject and submission ofPC-IV, the barest minimumand essential posts(s) shall beconverted from DevelopmentExpenditure to CurrentExpenditure with theapproval of the FinancialAdviser.

Head of ForeignMissions maycreate a temporarypost for amaximum period of5 days for enablingthe transferredofficial to brief theincoming officialand to hand over tohim accountabledocuments etc.

(i) A post in any office odepartment which haremained vacant for period of three years omore shall be deemed thave been abolished. Thpowers for revival of thapost shall not be exercise

without obtaining papproval of the FinanciaAdviser.

(ii) Financial Adviserconcurrence focontinuance of temporarposts in the next financia

year may be sought wbefore the beginning of tha

year so that the posts noagreed to by the FinanciaAdviser are not continuein the next financial yeaeven for a day.

(iii) The proposals for creatioof temporary postbelonging to OccupationaGroups/Servicesadministratively controlleby the EstablishmenDivision will first be referreto the EstablishmenDivision for clearance.

2 Conversion of atemporary post

into apermanent post

Full powers, subject to the

following conditions:Posts which have been inexistence continuously forfive years or more, and havebeen created for work of apermanent nature, and arelikely to continue for anindefinite period.

As in column 3. Details of temporary postconverted into permanenduring the course of a financia

year, which are proposed to btransferred from Part-II to PartI of the budget for the nex

year, should invariably reported to the FinanciaAdviser before the Ist Octoberevery year.


21/47

- 20 -

SL.N0 NAME OFPOWERS

POWERS DELEGATED TO THEMINISTRIES /DIVISIONS

POWERSDELEGATED TOTHE HEADS OFDEPARTMENTS

REMARKS

1 2 3 4 5

3 Abolition of posts Full Powers As in Column 3.

4 Reimbursement ofMedical Charges

Full powers subject to availability of budget As in Column 3.

5 Re-appropriation offunds

Full powers, subject to theobservance of the following generalrestrictions and to the supply of acertificate to Audit by theadministrative Ministry/Division

while issuing orders for re-appropriation to the effect that theexpenditure to be met by re-

appropriation from the relevant minorand detailed objects was not foreseenat the time of budget; theexpenditure cannot be reduced norcan it be postponed to the next year;and the expenditure in question wasnot specifically disallowed by theFinance Division at the time ofapproving the budget estimates.

General Instructions:(I) (a) No appropriation or re-

appropriation may be made:

(i) from one grant toanother;

(ii) after the expiry of thefinancial year;

(iii) between funds authorizedfor expenditure chargedon the FederalConsolidated Fund andother expenditure;

(b) Funds may not beappropriated orre-appropriated to meet:

(i) any item of expenditure which has not beensanctioned by anauthority competent tosanction it;

As in Column 3.


22/47

- 21

SL.N0. NAME OF POWERS POWERS DELEGATED TO THEMINISTRIES/DIVISIONS

POWERSDELEGATED TO


REMARKS

1 2 3 4 4

(ii) expenditure on a new

service not provided for inthe budget estimatesauthorized for the year; and

(iii) expenditure for a purpose theallotment for which wasspecifically reduced or

refused by the NationalAssembly.

(II) (a) All powers of appropriation andre-appropriation conferredupon AdministrativeMinistries/Divisions/

Departments/Sub-ordinateOffices and other authoritiesare subject to the conditionthat without the previousconsent of the FinancialAdviser/Finance Division:

(i) an authority may not meet,by re-appropriation,expenditure which it is notempowered to meet byappropriation;.

(ii) lump-sum provisionfor expenditure included ina grant may not beappropriated or re-appropriated;

(b) No re-appropriation may bemade:

(i) from Development toCurrent Expenditure and

vice-versa;

(ii) from to, or within the

Employees Related Expenses,from Operating Expenses-Communication-Telephone &

Trunk Calls, Telex,Teleprinter & FAX, ElectronicCommunication; Utilities:Gas, Water, Electricity; SecretService Expenditure,Unforeseen Expenditure forDisaster Preparedness &Relief and Occupancy Costs.

If funds t

meet a newservice aravailableunder threlevant granre-appropriationfor such newservice may bmade after token sum habeen allocatethrough

SupplementarGrant.


23/47

- 22 -

SL.NO. NAME OF POWERS POWERS DELEGATED TO THEMINISTRIES/DIVISIONS

POWERSDELEGATED TO


REMARKS

1 2 3 4 5

(iii) of provision specificallymade in the budget forexpenditure in foreignexchange to expenditure inlocal currency; and

(iv) of provision allowed asSupplementary Grant;.

(d) Funds may not be appropriatedor re-appropriated to meet anyexpenditure, which is likely toinvolve further outlay in a future

financial year.

(III) (a) No Ministry/Division/Department/SubordinateOffice(including anyautonomous body) shall beauthorized to re-appropriatefunds from one developmentscheme to anotherdevelopment scheme. Inexceptional cases, however,re-appropriation of suchfunds may be allowed, where

necessary, by FinancialAdviser on therecommendation of Planningand Development Division.

(b) In the case of developmentschemes controlled/ executedby the Planning andDevelopment Divisionthemselves, approval for re-appropriation of funds fromone development scheme toanother, if necessary, shall be

made with the prior approvalof the Financial Adviser tothat Division.

In the case oexpenditure o

works, conditions laidown inparagraphs 3and 32 oAppendix 6 to thCentral Publi

Works AccounCode shall alsapply.

Appropriation ore-appropriationin accordanc

with provisions oS.No.5(I), (II) an

(III) in Column by a competenauthority will, that authority iauthorized tsanction thexpenditure iquestion, operatas sanction tsuchexpenditure.


24/47

- 23

SL.N0. NAME OFPOWERS

POWERS DELEGATED TO THEMINISTRIES/DIVISIONS

POWERSDELEGATED TO


REMARKS

1 2 3 4 5

6 Power to declarestores surplus orunserviceable.

Full powers, subject to prescribedconditions. As in column 3. Heads of PakistaMissions abroamay exercise thespowers iaccordance witapproved scales, irespect of thresidences of officersubordinate tthem.

7 Powers to sellsurplus or

unserviceablestores and stockby auction.

Full powers, subject to theprescribed conditions.

As in Column 3. Heads of PakistaMissions abroa

may exercise thespowers iaccordance witapproved scales, irespect of thresidences of officersubordinate tthem.

8 Write off ofirrecoverable valueof stores or publicmoney due to

losses on accountof fraud, theft, etc.

(i) Upto Rs. 5,000,000 (Rs. FiveMillion) in each case,provided that :-

(a) the loss does not disclose adefect of system theamendment of whichrequires the orders ofhigher authority; and

(b) there has not been anyserious negligence on thepart of some individualgovernment officer orofficers, which may possiblycall for disciplinary actionrequiring the orders of any

higher authority.

(ii) Powers to write-off of losses upto a limit of Rs. 200,000 (Rs.

Two Hundred Thousand) tocover deficiencies on accountof breakage, shortage intransit, wastage, spoilage andbottling, dryness in storageand depreciation on accountof wear and tear fluctuationin market prices andobsolescence.

Upto to Rs. 100,000(Rs. One hundredthousand) subject toobservance of

conditions mentionedin Column 3.

Subordinateauthorities alreadenjoying the powein (ii) of Column beyond this limmay continue texercise thospowers.


25/47

- 24 -

SL.NO. NAME OF POWERS POWERS DELEGATED TOTHE MINISTRIES /DIVISIONS

POWERSDELEGATED TO


REMARKS

1 2 3 4 5

9 Expenditure againstprovisions in thebudget shall besanctioned in thefollowing manners:-

Project Pre-Investment Analysis

(1) FeasibilityStudies, Researchand Surveys andExploratory

Operations


As in Column 3.

Operating Expenses

(2) TravellingAllowance.

Full powers, subject toprescribed conditions. As in Column 3.

(3) Transportation ofgoods.

Full powers. As in Column 3.

(4) POL Charges andCNG Charges.

Full powers, subject toobservance of ceilings whereapplicable.

As in Column 3.

(5) Conveyancecharges.

Full powers, subject toprescribed conditions.

As in Column 3.

(6) Postage andTelegraph

Full powers As in Column 3.

(7) Telephone andTrunk Calls.

Full powers, subject toobservance of prescribedceilings where applicable

As in Column 3.

(8) Telex andTeleprinter and

FAX.


As in Column 3.

(9) ElectronicCommunication.


As in Column 3.

(10) Courier and PilotService.



26/47

- 25 -


POWERSDELEGATED TO


REMARKS

1 2 3 4 5

(11) Utilities

(Gas, Water,Electricity) Hot& Cold WeatherCharges,Others.

Full powers, subject to observance of

prescribed ceilings where applicable.

As in Column 3.

(12) OfficeStationary.


(13) Printing &Publications.

Full powers, provided that printing at apress other than a press of the PrintingCorporation of Pakistan, should beundertaken only if the Principal

Accounting Officer is satisfied that it isin public interest to do so and records acertificate to that effect.

As in Column 3. The job ofprinting materiof sensitive andclassified natur

shall continue be performed bPrintingCorporation ofPakistan. ThePrincipalAccountingOfficer shalldetermine thenature of suchprinting materi

(14) Newspapers

Periodicals andBooks.

Full Powers. As in Column 3.

(15) Uniform andLiveries.

Full Powers, provided that the purchaseof uniforms and liveries shall be madesubject to the prescribed scales andprices.

As in Column 3.

(16) Rent of

non-residentialbuildings.

(i) Works Division & Defence Division.Full powers.

(ii) Ministry of Foreign Affairs. Fullpowers in respect of PakistanMissions abroad.

(iii) Other Ministries/Divisions:

(a) Upto Rs. 100,000 (Rs. One Hundred Thousand) per month forIslamabad/Rawalpindi/Lahore/Karachi/Peshawar/ Quetta.

(b) Upto Rs. 50,000 (Rs. Fifty thousand)per month for other places.

or as approved from time to time.

The powersincur expendituon rent of noresidential aresidentialbuildings shallsubject to approved raand scales.

In sanctioning re

merits and lo

conditions in e

case will be kept

mind.


27/47

- 26 -


POWERSDELEGATED TO


REMARKS

1 2 3 4 5

(17) Rent of

ResidentialBuildings.

(i) Full powers to incur expenditure

from within the sanctionedbudget grant as per prescribedrental ceiling and grant one

year advance payment of rentduring the lease period andsubject to availability of funds.

(ii) Ministry of Foreign Affairs: Fullpowers in respect of PakistanMissions Abroad.

As in Column 3. (1)In sanction

rent, merits alocal conditioin each ca

will be kept mind.

(2) Powers at (i) a(ii) in Columnmay be exercisonly in the caof governmservants who entitled

provision residentialaccommodatiounder ageneral specific orders

(18) ConsultancyandContractualWork.

Full Powers subject to observance ofprescribed conditions.

As in Column 3.

(19) Royalties, Ratesand Taxes, Rentof Machine andEquipment.


(20) Training-Domestic.


(21) Payment toGovernmentDepartmentsfor servicesrendered


(22) Essay writingand Copy Rights


(23) Law Charges. Full powers, in consultation withLaw Division.

As in Column 3.

(24) Fees to LawOfficers

Full powers, in consultation withLaw Division

As in Column 3.


28/47

- 27


POWERSDELEGATED TO


REMARKS

1 2 3 4 5

(25) Exhibitions,

Fairs and OtherNationalCelebrations

Full powers. As in Column 3

(26) Advertising andPublicity.

Full powers, subject to prescribedconditions.

As in Column 3.

(27) Payments toOthers forservicesrendered

Full powers, subject to observance ofprescribed conditions.

As in Column 3.

(28) Purchase ofdrugs andmedicines.


(29) Contribution &Subscription

Full Powers As in Column 3.

(30) Expenditure onPakistanidelegations toForeignCountries

Full powers, in accordance withprescribed conditions.

As in Column 3.

(31) Loss onExchange Full powers, in accordance withprescribed conditions. As in Column 3.

(32) Secret ServiceExpenditure


As in Column 3.

(33) Conferences/Seminars/workshops/Symposia


As in Column 3.

(34) UnforeseenExpenditure.

Rs. 100,000 (One HundredThousand)

Rs. 50,000 (Rs.Fifty Thousand)

EmployeesRetirement Benefits

(35) Reimbursementof MedicalCharges toPensioners.

Full powers subject to availability ofbudget.

As in Column 3.


29/47

- 28


POWERSDELEGATED TO


REMARKS

1 2 3 4 5

Grants

(36) Grantsdomestic.

(i) Institutions wholly financedby the government:-

Full powers, to release theamount specifically providedfor this purpose in the budgetsubject to the prescribedconditions.

(ii) Institution not whollyfinanced by the government:-

(a) Full powers subject tothe prescribedconditions to sanctionrecurring grants, providedthat specific budgetprovision in respect ofeach individualinstitutions is made.

As in clause (i) and(ii) (a) of Column 3.

(b) For non-recurring grants notcovered by the rules; uptoRs. 10,000 (Rs. Ten

Thousand) in a year subjectto the prescribed conditionsprovided that budgetprovision exists.

Transfers

(37) Scholarships,Bonuses andOther Awards.

Full powers in accordance withthe approved rates for scales

As in Column 3.


30/47

- 29

SL.N0. NAME OF POWERS POWERS DELEGATED TOTHE MINISTRIES/DIVISIONS

POWERSDELEGATED TO


REMARKS

1 2 3 4 5

(38) Entertainment.

(i) For light refreshment notexceeding Rs. 30 (Rs.

Thirty) per head atmeetings convened forofficial business. Decisionto incur such expenditure

will be taken only byofficers of and above thestatus of Joint Secretary.

(ii) For receptions, lunchesand dinners: up toRs.40,000 (Rs. Forty

Thousand) in each case forMinistries/ Divisionssubject to the conditionthat per head expenditureincluding taxes and softdrinks etc should not inany case exceedRs. 1200 (Rs. TwelveHundred).

(iii) For serving lunch boxesnot exceeding Rs. 200 (Rs.

Two Hundred) per head in

meeting which areprolonged beyond officehours without break in theinterest of Government

work.

.

As in (i) ofColumn 3.

Welcome or farewellreceptions, lunches anddinners to Governmentfunctionaries shouldnot be arranged at theexpense of publicexchequer.

(a Notwithstanding thprovisions of para (c) of this O.M. thpower at (ii) and (iiabove shall not b

delegated by thSecretaries oadministrativeMinistries/ Divisionto the officersubordinate to themin the MinistriesDivisions anelsewhere.

(b) The expenditureinvolved shall besubject to

availability ofbudget. Noproposals forreappropriation offunds from therestricted heads asmentioned at Sl.No 5 above andSupplementaryGrant/TechnicalSupplementaryGrant shall beentertained by

Finance Division.

(39) Gifts Upto Rs. 10,000 (Rs. TenThousand) in one year subjectto availability of budget.

(a) For presentation tothe foreigndignitaries only.

(b) Subject to theconditionsmentioned underunder Sl.No.9(38) (bCoulmn 5 above.


31/47

- 30 -

Sl.NO. NAME OF POWERS POWERS DELEGATED TOTHE MINISTRIES /DIVISIONS

POWERSDELEGATED TO


REMARKS

1 2 3 4 5

Expenditure onAcquiring of PhysicalAssets.

(40) Purchase ofBuilding,ComputerEquipment,Commoditypurchases (Costof State), OtherStores andStocks, Transport,

Plant andMachinery,Furniture &Fixture andpurchase of Other

Assets.

Full powers, subject toobservance of prescribedconditions & instructions ofCabinet Division, regardingpurchase of transport.

As in Column 3.

Civil Works

(41) Civil Works onRoads, Highways& Bridges,Irrigation Works,

Embankment andDrainage Works,Building &Structures, OtherWorks and

Telecommunication Works andDroughtEmergency ReliefAssistance (DERA)

works.

Approved Developmentschemes- Full powers, subjectto release of funds with theprior approval of Financial

Adviser as provided under Para13(vii) of this O.M.Non-Development Works-uptoRs. 1,000,000 (Rs.One Million).

Includes powersfor purchase ofland for Pakistanmissions abroad

and constructionof buildingthereon.

Repair &

Maintenance

(42) Transport Rs. 100,000 (Rs. One Hundred Thousand) at any one time toone or any number of vehiclesused by the Ministry/Division.

As in Column 3.US $ 2000($ Two thousand)at any one time toone or anynumber of vehiclesused by thePakistan MissionsAbroad.


32/47

- 31-

Sl.NO. NAME OF POWERS POWERS DELEGATED TO THEMINISTRIES /DIVISIONS

POWERSDELEGATED TO


REMARKS

1 2 3 4 5

(43) Machinery &Equipment,Furniture &Fixtures andComputerEquipment.


As in Column 3 (i) Heads ofMissions abroadmay exercisethese powers inaccordance withapproved scalesin respect of theresidence of theofficerssubordinate tothem.

(ii) Heads ofPakistanMissions mayincurexpenditure onrepairs up 10%of the assessedmarket value offurniture andfurnishing perfinancial year.

(44) Buildings &Structure ofPakistanMissions abroadowned by theGovernment ofPakistan.

Ministry of Foreign Affairs; perfinancial year upto 10% ofannual standard rent.

As in Column 3.

(45) Building &Structures(hired and therequisitioned)

Accommodation for office andresidential purposes: upto twomonths rent as the land lordsliability limited to the leaseperiod of not less than three

years.

Heads of MissionsUpto $ 200($ Two hundred) perannum within thefinancial year.

No liability shall beincurred forgovernment on thisaccount.

(46) Powers to giveadministrativeapproval to

works inrespect ofnon- residentialbuildings

Works Division upto Rs.2,000,000 (Rs. Two Million)Other Ministries and Divisionsupto Rs. 500,000 (Rs. FiveHundred thousand)


33/47

- 32


POWERSDELEGATED TO


REMARKS

1 2 3 4 5

10 Powers to orderrefund inaccordance with therules or inpursuance ofdecisions of courtsin respect of whichno appeal isproposed to befiled.


11 Compensationpayable to any

individual underlaw, rules, or

judgement of courts.


12 Charges forremittance of payand or allowances ofestablishment bymoney order or bybank drafts, otherthan leave salary.


13 Powers to sanction

investigation ofclaims ofgovernmentservants to arrearsof pay, allowances,etc.

Full powers subject to restrictions

under paras 125 and 126 of GFRVol.I.

As in Column 3.Claims ogovernment

servants to arrearof pay anallowances oincrements, or irespect of anunderpayments,

which have beallowed to remaiin abeyance for period exceedinone year may nobe investigated ban Accountan

General, excepunder the speciaorders of thcompetentauthority, as vesteunder para 124 oGPR Vol.I.


34/47

- 33 -


POWERSDELEGATED TO


REMARKS

1 2 3 4 5

14 Fixation of initialpay by grant ofprematureincrements in casesof first appointmentunder governmentof persons notalready in theservice of theFederal, or aProvincialGovernment.

Powers to grant not more than sixpremature increments for the initialfixation of pay subject to thefollowing conditions:-

(a) In cases of persons appointedthrough the FPSC, prematureincrements should be granted,on the recommendations of theFPSC, and in consideration ofthe fact that suitable persons ofrequisite qualifications are notavailable in the minimum payof the post.

(b) No premature incrementsshould be granted in cases ofad-hoc appointments inanticipation of FPSCsrecommendations.

(c) In posts where appointment isnot made through FPSC,premature increments should

be granted only after theappointing authority certifiesthat suitable persons ofrequisite qualifications are notavailable on the minimum ofthe sanctioned pay scale of theposts.

As in Column 3. Six advancincrements caalso be allowed tthose nomineeof the FPSC whare already igovernmentservice over anabove thminimum of threspective pascale to whicthey arappointed annot over anabove theiprotected paunder FR.22.


35/47

- 34


POWERSDELEGATED TO


REMARKS

1 2 3 4 5

15 Fixation of initial payof an officiatinggovernment servant onappointment toanother post in a timescale of pay.

Power to fix the initial pay in thetime- scale of the new post atthe stage at which it would havebeen fixed under the rules if theofficiating pay in respect of theold post was the substantivepay, of the government servantprovided that:-

(a) the government servantconcerned has held thatpost for a period of three

years continuously(including period of leave) or

would have held it for thatperiod if not appointed tothe other post; and

(b) the appointing authoritycertifies that thegovernment servant was not

officiating in a leave orshort term vacancy(sanctioned for less thanone year) and was not likelyto revert to a lower post atleast for the period during

which he/she holds the newpost.

As in Column 3. In case where theinitial pay in thetime scale of anew post is fixedin exercise ofthese powers, thegovernmentservant will, forthe purposes ofsubsequent drawlsof pay in that post

(and for thesepurposes only), betreated as if thegovernmentservant wereholding a lien onthe old post.

16 Fixation of scales/ratesof pay and allowances

of posts in PakistanMissions abroad towhich recruitment ismade locally.

Full powers to theheads of Pakistan

Missions abroadconcerned tosanction increasein scales/rates ofpay correspondingto the increaseallowed by thelocal governmentsubject to theavailability ofbudget provision.


36/47

- 35


POWERSDELEGATED TO


REMARKS

1 2 3 4 5

17 Sanction to the

undertaking of workfor which anhonorarium isoffered and thegrant of acceptanceof an honorarium.

Full powers upto the level of

Section Officer and equivalent. The amount should not exceedone months pay of thegovernment servant concernedon each occasion. In the case ofrecurring honoraria, this limitapplies to the total of recurringpayments made to an individualin a financial year.

As in Column 3. The power will

exercised subject to thcondition that threlevant rules anpolicy instructionissued by the FinanDivision from time time are duly observand that the grant honorarium is nused as a device compensate government servant fspecial pay etc. n

admissible under thrules. No expenditushould be incurred ohonoraria in excess the specific provisiomade for this purpoin the sanctionbudget grant and thif expenditure in casof such provisiobecomes necessary same stage, priconcurrence of th

Financial Adviser shabe necessary befosuch expenditure incurred.

Notwithstanding thprovisions of para 8 of this O.M. this powshall not be delegateby the Secretaries administrativeMinistries/ Divisionand Heads

Departments to thofficers subordinate them in MinistrieDivisions anDepartments.


37/47

- 36


POWERSDELEGATED TO


REMARKS

1 2 3 4 5

18 Sanction of honoraria

to governmentservants inconnection withdepartmentalexaminations inaccordance with therules.

Full powers, in accordance with

approved rates or scales.

As in column 3.

19 Power to sanction theundertaking of workfor which a fee isoffered andacceptance of fee.


20 Exemption fromcrediting portion offees to government.

Full powers in respect of fees paidto government servants for servicesrendered in Pakistan

As in Column 3. One third of any fein excess of 1000 ($ Onthousand) oequivalent receiveby a civil servanfor a foreigconsultancyoutside Pakistashall be credited tgeneral revenues.

21 Relaxation of theprescribed time limitfor submission of TABill.

(i) Where no TA advance wasdrawn: Full powers.

(ii) Where T.A advance was drawn: TA adjustment bill should besubmitted within one year of thedate of performance of journeyby the government servant,failing which the advance will berecovered.

As in Column 3.


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POWERSDELEGATED TO


REMARKS

1 2 3 4 5

22 Relaxation of theprescribed time limit

where the family oftransferredgovernment servantcould not join withinone year due toshortage ofaccommodation,education ofchildren or onmedical orcompassionategrounds.

Full powers, subject to the following

conditions:

(i) Instructions contained inGovernment Decision No.15under S.R. 116 are dulyobserved.

(ii) Where advance of TA had beendrawn in respect of the familymembers and the family did notaccompany the governmentservant, the advance would berefunded within one year.

As in Column 3.

23 Relaxation of theprescribed time limitin respect of amember of thefamily of atransferredgovernment servantpreceding him

Full powers provided that thefamily performed the journey afterthe transfer orders for thegovernment servant were issued.

As in Column 3.

24 Power to decide theamount of

permanenttravelling allowanceto be drawn by agovernment servantholding more thanone post to whichpermanenttravelling allowanceis attached.

Full powers, provided that the limitlaid down in SR 24 is not exceeded.

25 Relaxation ofprescribed time limit

where the family

could not follow agovernment servantgranted leave travelconcession withinthe prescribedperiod of one monthon medical groundsor due to privateaffairs.

Full powers, subject to theadjustment of TA advance withintwelve months.

As in Column 3.


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POWERSDELEGATED TO


REMARKS

1 2 3 4 5

26 Grant of permission

for the family toprecede agovernment servantgranted leave travelconcession.

Full Power, subject to the condition

that the family precedes thegovernment servant after the formalsanction of leave.

As in Column 3.

27 Grant of TAconcession duringleave where leave iscombined withextraordinary leavedue tocircumstances

beyond the controlof governmentservant.


28 Permission to travelby air on transfer toa Pakistan Missionabroad in cases

where air route isnot the approvedroute.

Full powers to send an official byair. The decision shall be taken atthe level of Secretary.

29 Grant of travellingand daily allowanceto non-officialmembers ofCommissions/Committees etc. set-up by thegovernment and toforeign experts.

Daily allowance upto the maximumrates admissible to governmentservants, and in addition, wherethe person concerned has, ofnecessity, to stay in a hotel,reimbursement of actual singleroom-rent, subject to theproduction of hotelreceipts/vouchers, upto themaximum rate admissible togovernment servants.

30 Grant of dailyallowance forcompulsory halt dueto dislocation ofcommunications.



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POWERSDELEGATED TO


REMARKS

1 2 3 4 5

31 Grant of extraordinaryleave to temporarygovernment servantsupto one year forreasons beyond theircontrol. .

Full powers As in Column 3. As prescribedunder RevisedLeave Rules, 1980

32. Grant of leave terms toemployees appointedon contract.

Full powers to the extent coveredby model rules laid down inAppendix-10 to FR & SR Vol.II.

As in Column 3.In terms of Item No8 of the standardterms andconditions laid dowvide EstablishmentDivisions O.M.No.10/52/95-R-2,

dated18-7-1996.

33 Grant of specialdisability leave.

Full powers provided that thedisability manifests itself withinthree months after theoccurrence of its cause.

As in Column 3.

34 Grant of advance togovernment servantsfrom various providentfunds.

Full Powers, subject to thecondition that advances will beallowed in a manner that onlyone advance will remainoutstanding at one time.

As in Column 3.

35 Permission to postponerecovery of advancedrawn from the GPFund for a specifiedperiod.

Power to postpone recovery ofadvance for a period notexceeding two years.

As in Column 3.

36 Grant of advance forthe purchase of MotorCar/Motor Cycle totemporary governmentservants.

Full powers subject to theproduction of surety bond andfulfillment of other conditionsprescribed by the rules.

As in Column 3.

37 Relaxation of the time

limit of one monthwithin which purchaseof conveyance shouldbe completed.

Full powers to raise the limit

upto six months.

As in Column 3.


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Sl.NO.

NAME OFPOWERS

POWERS DELEGATED TO THEMINISTRIES/DIVISIONS

POWERSDELEGATED TO


REMARKS

1 2 3 4 5

38 Authorization ofthe final paymentof the dues of adeceasedgovernment servantto the members offamily, dispensing

with the productionof successioncertificate andguardianshipcertificate in thecase of minorheir (s).

Full powers subject to theproduction of indemnity bond orprovided that the amount or balancestanding to the credit of a deceasedsubscriber in the fund is to theextent of Rs. 20,000 (Rs. Twentythousand).

As in Column 3. The amount is paiin accordance witthe provisions oClause (I) of sub-rul(I) of rule 234 of thFederal TreasurRules Volume .I.

39 Question ofdeciding the reallegal heir (s) in case

where there is nonomination or thenomination isincorrect or invalid.

Full powers in consultation with theLaw Division.

As in Column 3.

40 Condonation ofinterruption of

service.

Full powers provided each spell ofservice is qualifying but not in the

case of voluntary retirement, or onresignation from public service.

Subject to fulfillmenof conditions give

under Civil ServicRegulations (CSR420.

41 Condonation ofdeficiency inqualifying servicefor pension.

Upto any period, less than a year ifboth the conditions mentioned beloware satisfied:-

(i) If a government servant dies while in service or retiresunder circumstances beyondcontrol such as on

invalidation or abolition ofthe post and would havecompleted another year ofqualifying service if he/shehad not died or retired.

(ii) The service rendered wasmeritorious as laid downunder CSR 423 (2) (b).

The powers shall nobe exercised in thcase of governmenservants who havrendered less than

years continservice.


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Sl.NO. NAME OF POWERS POWERS DELEGATED TO THEMINISTRIES/DIVISIONS

POWERSDELEGATED TO


REMARKS

1 2 3 4 5

42 Grant of conveyanceallowance

Power to sanction conveyanceallowance to government servants

whose ordinary duties involveextensive travelling at or within ashort distance from theheadquarters in terms of SR 25,provided that:-

(a) the powers shall not be availablein respect of officers and staff ofthe Ministries/Divisions; and

(b) the expenditure can be metfrom within the sanctionedbudget provision;

Subject to ratesapproved by theFinance Division.

43 Power to sanctiondeputation ofgovernmentservants.

I. Temporary Duty Abroad

Full powers subject to thefollowing conditions and theorders issued by the FinanceDivision from time to time:-

i) The approval of the competentauthority has been obtained inaccordance with the existingorders.

(ii) Where no expenditure in foreignexchange on passage, dailyallowance, registration fee,contingent items, etc. isinvolved: or where expenditureon pay, passage dailyallowances, or registration feeis involved but it is to be borneby the Ministry/Divisionconcerned under the normalrules from within the foreignexchange allocation made for

the specified period.

(iii) Sanction of drawl of pay, dailyallowance etc, to the extentadmissible under the normalrules, in foreign exchange inadvance, if the duration of visitis upto one month and therupee cover is provided by thegovernment servant concerned.


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POWERSDELEGATED TO


REMARKS

1 2 3 4 5

(iv) Grant of permission to thegovernment servant to take his

wife with him to the place ofvisit at this own expenses or

when expenses on wifespassage are borne by the hostgovernment/ agency, providedthat no additional foreignexchange is involved and thatthe wife travels exclusively bya Pakistan carrier, like PIA etc.

II Training International

Full powers subject to thefollowing conditions:-

(i) Budget provision exists.

(ii) The prescribed procedure isobserved and approval ofcompetent authority isobtained in accordance withthe existing rules.

((iii) The terms of deputation are inaccordance with the generalorders issued by the FinanceDivision on the subject fromtime to time.

(iv) Foreign exchange expenditureis met out of the sanctionedallocation for the specifiedperiod.

(v) Sanction of drawal of pay inadvance in foreign exchange fora period not exceeding onemonth, if the rupee cover isprovided by the governmentservant concerned.


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POWERSDELEGATED TO


REMARKS

1 2 3 4 5

(vi) Grant of permission to

government servant to take his wife with him on trainingabroad in the following cases:-

(a)where the period of training ismore than one year;

(b) Where the period of training isone year or less and the cost of

wifes passage is borne by thedonor government/agency; and

(c) where the period of training is

more than six months but notmore than one year and thegovernment servant concernedbears cost of wifes passageetc. provided that no additionalforeign exchange is involved,the wife travels exclusively by aPakistani carrier like PIA etc,and the government servantconcerned shall draw, inforeign currency, 50% of payas admissible under the normalrules.

In both the case

mentioned at (v(a) and (b), thgovernmentservant will drawhis full pay anallowances(excludingcompensatoryallowances) iforeign exchangfor the period ostay of his wifabroad.

The permishall be granted bthe Secretary or thAdditional/JointSecretary Inchargof a Division, wh

will certify that would be desirabfor the governmenservant to take hi

wife alongwith him The Secre

Additional lnchargshall also satisfthat the salarysubsistenceallowance etcadmissible iforeign exchange iadequate to covethe expenses.

44 Advance payment toother governmentdepartments and

government owned/controlledorganizations, inexceptional casesonly.

Full Powers, subject to adjustment ofprevious advance, if any.

As in column 3.


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Annex-II

( See para 13 (viii) of the Finance Divisions O.M.No.F.3(2)Exp.III/2006,dated July,2006)

Supplementary Grants

The provisions regarding supplementary grants as contained in the

Constitution of the Islamic Republic of Pakistan and General Financial Rules

are reproduced below :-

Constitutional Provision regarding Supplementary Grants

Article 84. If in respect of any financial year it is found-

(a) that the amount authorized to be expended for a particularservice for the current financial year is insufficient, or thata need has arisen for expenditure upon some new servicenot included in the Annual Budget Statement for that year;or

(b) that any money has been spent on any service during afinancial year in excess of the amount granted for thatservice for that year;

the Federal Government shall have power to authorizeexpenditure from the Federal Consolidated Fund, whetherthe expenditure is charged by the Constitution upon that

Fund or not, and shall cause to be laid before the NationalAssembly a Supplementary Budget Statement or, as thecase may be, an Excess Budget Statement, setting out theamount of that expenditure, and the provisions of Articles80 to 83 shall apply to those statements as they apply to theAnnual Budget Statement.

General Financial Rules

Para 98(1)(iv) If such savings are not available, it should be seen whether special economies can be effected under

other sub-heads. If funds cannot be provided by eitherof these methods, it will have to be considered whetherthe excess should be met by postponement ofexpenditure or whether an application for asupplementary grant should be made. In either case,application will have to be made to the Ministry ofFinance through the Administrative Departmentconcerned and the course recommended by the latterstated. Normally, an application for a supplementarygrant will not be entertained by Government unless


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the anticipated excess is due to a cause beyond thecontrol of the authority concerned and funds cannotbe found by any legitimate postponement ofexpenditure for which provision already exists. Allapplication for supplementary grants should beaccompanied by a full explanation of the reason for the

excess and of the impossibility of providing funds tomeet it .

2. Keeping in view the above principles, the request for aSupplementary Grant should be made in a summary to be signed by the

Principal Accounting Officer. The Summary should contain the information as

indicated in the enclosed proforma (Appendix to Annex-III)

3. The Summary may be forwarded to the Finance Divisions. If the

proposal is approved by the Finance Division, necessary sanction will be issuedby the Division concerned under intimation to the Budget Wing of the Finance

Division. The sanction letter shall state that it issues with the concurrence of

the Finance Division and a copy of the sanction shall be endorsed to Audit by

the Deputy Financial Adviser.


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Appendix to Annex-II

PROFORMA FOR SUPPLEMENTARY GRANTS.

(1) Budget Year(2) Demand No.(3) Demand Name:(4) Department Name:(5) Charged Other than Charged Current Development

Tick the Box applicable

(6) Total expenditure involved in the proposal in the current

year and the following years both recurring and non-recurring.

(7) An Analysis of the Demand to which the expenditure isdebitable indicating:-

(a) Amount provided detailed object-wise;(b) Particulars of expenditure already incurred under each

detailed object; and

(c) Particulars of commitment (including

sanctions already issued) and plan ofexpenditure under each detailed object forthe remaining part of the financial year.

(8) Reasons why provision was not made in the budget.

(9) The reasons why some of the contemplated expenditure at(7)(c) above cannot be dropped/ curtailed to accommodate thepresent proposal.

(10) Reasons as to why the proposed

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System of Financail Control & Budgeting 2006

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