PESHAWAR, Sept 19: The NWFP government departments have been instructed to keep their expenditures within the limits of the released funds as they would not be provided supplementary grants for the extra expenses during the fiscal 2002-03, according to official sources.

Instructions to this effect, they said, had been issued to the district governments and authorities concerned of the provincial government in line with a decision of the NWFP cabinet.

According to sources, the cabinet had decided that no supplementary grants would be provided to any of the departments whose expenditure surpassed the limit of the funds released to it during the current financial year.

“No additional demand would be accepted if made by any of the departments except for very specific purposes for which approval has to be taken from the provincial governor,” said the sources.

In this respect, the government departments had also been asked to properly plan their annual expenditure at the start of the current fiscal “so that they should not approach the finance department, NWFP, at the end of the current financial year asking for additional funds,” they said.

The move, according to them, was meant to keep checks on the district governments’ expenditure in an effort to keep the provincial government’s overall expenditure under control.

Besides, the sources added, the decision had been necessitated due to the Provincial Finance Commission (PFC) Award, thereby, distribution of resources from the province to district governments would be made in accordance with a formula laid down for this purpose under the PFC Award.

“As this time round formula-based fiscal transfers would be made from the province to districts and onwards to Tehsils and union councils, there would be no scope for additional demands or supplementary grant during the current financial year,” they said.

The provincial government has released 40 per cent of the total annual current budget of the district governments whereas 50 per cent more would be released in January 2003, in line with a decision of the provincial cabinet.

In an attempt to make the district governments/departments to keep their expenditure within the specified limits, the provincial government has also intimated them that spending beyond the specified expenditure limit would tantamount to be regarded as misappropriation of funds. Hence, the instructions should be complied by in letter and spirit to avoid complications.

“The district governments and administrative departments of the provincial government,” said the sources, “have been clearly directed not to incur expenditure in anticipation of additional grants or supplementary grants.”