ISLAMABAD, July 8: The federal government has directed all the ministries and divisions to ensure utilization of up to 50 per cent of budget allocation during first half (up to December 31) of the financial year.

The sources said all the ministries and divisions had been asked to ensure that current expenditure in the first half of the financial year did not increase 40 per cent of total allocation in case of non-social sector, and 50 per cent in case of social sectors.

Similarly, the development expenditure in the first half of the year should be up to 45 per cent of the total budget allocation for non-social sector and 50 per cent in case of social sectors.

The finance ministry would undertake a review of expenditures and receipts in the first half of the financial year on the basis of the reconciled accounts and formulate a strategy for operation of the budget in the second half of the financial year.

No expenditure, except for pay and allowances and other obligatory unavoidable expenditure, would be incurred in the first fortnight of January. The finance ministry would issue instruction on the basis of the review for the second half of the financial year.

The ministries and divisions have also been asked to send a monthly statement of demand-wise expenditure to the finance ministry by 21st of each month.

The principal accounting officer shall ensure that the funds allocated to his ministry or division are spent for the purpose for which they are allocated. He would also ensure that the expenditure falls within the ambit of a grant or an appropriation duly authenticated.

The new guidelines said the expenditure in excess of the amount of grant or appropriation as well as expenditure not falling within the scope or intention of any grant or appropriation, unless regularised by a supplementary grant, will be treated as unauthorised expenditure.

The principal accounting officer is responsible for any laxity in matters of control over expenditure, including that on the part of his subordinates.

While sanctioning expenditure out of the funds placed at his disposal, the principal accounting officer shall ensure that the requirements of the relevant rules and regulations are fully met and that the approval of the finance ministry has been obtained in all cases which are not covered by any standing authorization that may have been delegated to him.

The advice of the financial adviser in cases falling outside the field of delegated powers shall be binding on the administrative ministries and divisions. In case of difference of opinion with the financial adviser, the secretary of the ministry concerned would consult additional finance secretary or the relevant minister with the finance minister.