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K-P to release 50% uplift funds at start of year

The Khyber-Pakhtunkhwa government has issued its new release policy for the fiscal year 2017-18, setting up 50 per cent releases for the ongoing approved developmental schemes at the start of the year.

The K-P finance department has issued the Release Policy 2017-18, increasing the first tranche release for the ongoing schemes from the 25 per cent of the previous year’s release policy to 50 per cent at the start of the fiscal year.

In the previous year’s policy, 25 per cent funds were to be released for the ongoing schemes at the start of the fiscal year and then 25 per cent more funds were to be released in the second quarter of the year.

The move is considered to be K-P Chief Minister Pervez Khattak’s plan of wanting to complete maximum number of ongoing developmental schemes before the completion of his tenure next year.

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Under the new policy, out of the total Rs208 billion funds earmarked for annual development programme (ADP) 2017-18, 15 per cent would be withheld till the realization of receipts and will be released subject to availability of financial resources.

The policy further explains the methodology of the funds released stating that the administrative department will ensure adequate releases to those ongoing schemes which are due for completion and also to the schemes pertaining to snowbound areas—regardless whether they are due for completion or not.

It adds that the subsequent 50 per cent releases to each sector will be made on provision of a list of schemes with proposed allocations before the start of the quarter by each department subject to utilisation of at least 75 per cent of the already released amounts. The departments can also provide justification for the non-utilisation or low utilisation on case to case basis.

For the new schemes, 25 per cent of the allocated funds would be released at the start subject to the provision of the administrative approval for the schemes.

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The remaining funds would be released on production of utilisation of the already released 25 per cent by the respective administrative department.

Similarly, for the revised schemes in ADP funds will be released only to those schemes which are revised by the competent forum.

For the health department 75 per cent funds would be released for medicine procurement schemes and the remaining 25 per cent would be released upon demand.

Regarding umbrella schemes, the respective departments would provide the schemes district wise breakup of the schemes within one week after release of funds and no funds would be released in the name of individuals with respect to umbrella schemes.

In regards to the district government developmental funds, the policy states that the funds shall be transferred to the respective local government on quarterly bases subject to availability of funds.

Similarly, the policy also outlines the methodology for the grants to local councils under which the town or tehsil municipal administration would get the grants on monthly installments, the district councils would get 20 per cent share of the grants on monthly installments while, the village councils or neighborhood councils would get 80 per cent share of the grants each month, however, 30 per cent of the total share of the village and neighborhood councils shall be withheld until the government has financial resources available.

Khattak, Sohail. K-P to release 50% uplift funds at start of year. The Express Tribune, July 3, 2017.

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