ISLAMABAD, July 6: The Ministry of Finance has notified a fresh scheme for release and utilisation of all current and development expenditures in an attempt to ensure prudent utilisation of budgetary allocations during 2012-13.

The new strategy sent to principal accounting officers of all ministries, divisions, financial organisation, planning, controller general of accounts and auditor general of Pakistan revenue requires strict compliance with schedule of expenditure during this financial year. The notification has come into force with effect from July 1, 2012.

All the principal accounting officers have been directed to restrict current and development expenditure at the level of 20 per cent of budget estimates for the period July-September 2012, followed by another 20 per cent during the second quarter (October–December 2012).

Likewise, the ministries and division would be required to release 30 per cent each in the last two quarters.

In the event of an unavoidable case, international and domestic contractual and obligatory payments will be considered on case to case basis and relaxation if required would need to be allowed by the federal secretary finance under a set pro forma.

Moreover, all cases in respect of current and development expenditures for releases would be required to be referred to the budget wing for ways and means clearance before effecting such payments.

The ministries and divisions have also been advised that all releases and payments should be made through pre-audit system of Auditor General of Pakistan revenue or through assignment account procedure. Any direct payment through the State Bank of Pakistan would be made as a special case with the prior approval of the finance secretary.

Similarly, the ministries and divisions have been directed that all cases in respect of current and development expenditure for regular supplementary grant be referred to the budget wing of the finance ministry for comments and clearance.

Likewise, they would be required to refer proposals for re-appropriation and technical supplementary grant out of lump provisions in the budget 2012-13 to the budget wing for clearance before making any payment.