The Federal Government has amended its funds’ release strategy for development projects for the current fiscal year 2022-23, and downward revised releases for the first two quarters from 45 percent to 30 percent.
However, for the 3rd and 4th quarters of the ongoing fiscal year the releases have been upward revised, an official source told ProPakistani.
Owing to the decline in the utilization of funds during the 1st and 2nd quarters of FY 2022-23, the Finance Division has decided to downward revise the release of PSDP funds to 30 percent for the first half of the current fiscal, however for the second half it has been enhanced from 55 percent to 70 percent, the source said.
As per the previous release strategy of the Finance Division for the developmental budget 2022-23, the Ministry of Planning will release 20 percent of funds for the development budget in the 1st quarter, 25 percent in the 2nd quarter, 30 percent in 3rd quarter, and 20 percent in 4th quarter.
Under the new release strategy, it has been decided that 10 percent of each approved Demand for grant and appropriation will be released during 1st quarter while 20 percent of each approved demand for grant and appropriation will be released during the 2nd quarter.
It has also been decided that 30 percent of the approved demand for grants and appropriations will be released in 3rd quarter while 40 percent of the approved demand for grants and appropriations will be released in 4th quarter during CFY.
Since Development Budget is released to the Planning, Development, and Special Initiatives Division, therefore, all the concerned have been asked to approach the Planning Division for any issues related to authorization as well as distribution of funds between the approved projects/schemes.
