Finance Department Notifications-2006 (323-549)

Compendium of Instructions of Local Governments
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Proforma for the requirements of EDOs(F&P)
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Finance Department
No. IT(FD)3-7/2005 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 20th January, 2006 Subject: FINANCIAL AND ACCOUNTING PROCEDURE REGARDING FUNDS TRANSFERRED TO LOCAL GOVERNMENTS UNDER THE PUNJAB DEVOLVED SOCIAL SERVICES PROGRAMME (PDSSP)
Kindly refer to the subject noted above. 2. The following financial and accounting procedure is prescribed, in the matter of Incurrence of expenditure against funds transferred to the District Governments.and Tehsil/Town Municipal Administrations under the Punjab Devolved Social Services Programme (PDSSP), in terms of the Memorandum of Understanding (MOU) executed between the Government of the Punjab and the recipient local government. FLOW OF FUNDS (i) After receipt of the funds from the donors in Provincial Government Account No.1, these will be budgeted under the respective functional/object classification by the Finance Department. (ii) On the advice of the PDSSP, the F.D shall release funds to the respective City District Governments, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala/District Governments/TMAs, in the prescribed mode, for credit to the District Fund A/C No IV Tehsil/Town Local Fund, as the case may be. Each release shall be specific purpose/tied grant to the respective local government, and shall only be utilized, after due budgeting by it, in accordance with the sector plan approved by the respective council,
FINANCIAL AND ACCOUNTING PROCEDURE (i) In order to ensure efficient utilization/tracking of expenditures, a new object classification may preferably be got prescribed from the Controller General of Accounts in the existing chart of classification of the City District Government, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala/District Governments. The Tehsil/Town Municipal Administrations, may however, utilize such grants from the respective local funds, through their existing prescribed classifications. (ii) The Executive District Officer (F&P) in case of City District Governments, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala/District Government, and Tehsil/Town Officer (Finance & Budget) in case of TMAs may respectively authorize scheme-wise releases from their budgets to the respective EDO or the Tehsil/Town Officer, as the case be, for utilization of PDSSP funds on the approved schemes in the prescribed mariner.
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(iii) The EDOs Education, Health and Works and Services may be declared as Drawing and Disbursing Officers by the DCO in respect of the funds respectively placed at their (EDOs) disposal. (iv) (v) Like wise the respective Tehsil/Town Officer shall act as the DDO for the funds placed at the disposals by the TMA concerned. The Accountant General, Punjab or the concerned District Accounts Officer, as the case be, shall respectively be responsible for the pre-audit and accounting functions of the PDSSP funds expended by the City District Governments, Lahore Rawalpindi, Multan, Faisalabad and Gujranwala or the District Governments in the Punjab. All expenditures incurred against these funds shall be booked separately under the respective prescribed objects for efficient tracking and reconciliation of such expenditures. Similarly the Tehsil/Town Accounts Officer of the respective TMA shall maintain and reconcile accounts against expenditure incurred from the PDSSP funds placed at the disposal of each TMA.
(vi)
(vii) The statement of reconciled expenditure shall be submitted by the EDO (F&P)s in case of City District Governments, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala/District Governments to the Finance Department as well as the Programme Support Unit (PSU). Similar statements shall also be submitted by the Tehsil/Town Accounts Officer of each TMA to the FD as well as the PSU. (viii) Funds received by the City District Governments, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala/District Governments in the Punjab during the current financial year shall be budgeted by the respective local government, through supplementary grant, and included in their ensuing budgets as revised estimates. Funds of the programme lapsing at the close of the financial year, against budgets of the respective scheme in the respective local government shall be reinstated to the extent of reconciled unspent balance in the next budget, through supplementary grants by the respective local government. AUDIT (i) The funds of the programme shall be auditable by the Auditor General of Pakistan in respect of the City District Government, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala/District Governments in the Punjab and by the designated authority, as prescribed in the relevant Section of the PLGO 2001 (as amended), regarding funds placed at the disposal of TMAs. A supplementary audit by the qualified commercial Auditors may also be conducted as per the agreed TORs acceptable to the Government of the Punjab, the concerned local government and the ADB. 3. The above instruction may kindly be observed in the letter and spirit. ----------
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Finance Department
GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 30th January, 2006. NOTIFICATION No. FD (FR) 11-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-I OFFICERS IN CATEGORY-I of the First Schedule to the Delegation of Financial Powers Rules, 1990, the following shall be added, with immediate effect: Amendment: 71. The Provincial Commissioner, Relief & Crisis Management, Government of the Punjab, S&GA Department. ---------NO. FD (FR)II-36/79 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 7th February, 2006. Subject: Sir, I am refer to Finance Departments notification No. FD(FR)II-36/79, dated 6.04.2004, on the subject as cited above, whereby a District Disposal Committee, for each District (both for non-Devolved & Devolved Offices) was constituted for the disposal of un-serviceable/redundant/surplus and condemned Equipment, Machinery, stores etc. 2. I am further to invite your kind attention to para 3 (vii) of above cited notification, where under Progress Report on disposal of the old stores/stocks and Machinery were required to be sent, on quarterly basis, to the respective Administrative Department and Finance Department. 3. As a follow up measure, I am to request you to furnish the requisite report, in the following format: Sr. No. Name of the Office/ Department Detail of Condemned & surplus Equipment/ Machinery/ Stocks Detail of Equipment/ Machinery/ Stores/Stocks Auctioned Dates of Auction Value of Proceeds of each Auction deposited to Account No.1 of Provincial Receipts with Date QUARTERLY PROGRESS REPORT OF THE DISTRICT DISPOSAL COMMITTEE.
4.
Your report may reach this Department within fortnight. ----------
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No. FD.PC.2-1/2006 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 02 March, 2006 Subject: Sir, I am directed to refer to this Departments letter of even number dated 15th March, 1997 regarding grant of Adhoc Relief to civil servants and to say that in light of Judgment of Supreme Court of Pakistan in civil petition No. 3403/2001 dated 21-032003, it has been decided to treat Adhoc Relief of Rs.300/- reckonable towards pension for those retired employees in BPS 1-16 (including those who were in BPS-17 by virtue of move-over) who were in receipt of Adhoc Relief at the time of their retirement. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 20th March, 2006. NOTIFICATION No. SO (B&E-I) 7-1/2003. In exercise of the powers conferred by Article 119 of the Constitution of the Islamic Republic of Pakistan, the Governor of the Punjab is pleased to direct that the following further amendments shall be made in the Treasury Rules (Punjab), namely:AMENDMENTS In the aforesaid Rules, in Part II (Subsidiary Treasury Rules):(1) in the definition of the term Head of District, for the words Collector or the Deputy Commissioner the words the District Accounts Officer or the Treasury Officer shall be substituted; in rules 1.2 to 1.6 and the heading or Notes thereto, for the word Collector, wherever occurring, the words the District Accounts Officer or the Treasury Officer shall be substituted; after rule 1.18, the Annexure (See note (2) below rule 1.18) under the heading Duties and responsibility of officers under training in the SubTreasuries and paragraphs (1) to (4) there under or entries relating thereto shall be omitted; and for rules 1.12 to 1.24, the following shall be substituted, namely:-1.12 The District Accounts Offices, Treasuries or Sub-Treasuries, as the case may be, specified in column (1) of the table below, shall be inspected by the authorities specified in column (2) thereof, within the period specified in column (3) thereto. INCLUSION OF ADHOC RELIEF OF RS. 300/- IN PENSION
(2)
(3)
(4)
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TABLE (1) Office District Accounts Office/Treasur y (2) Inspecting Authority (3) Frequency of Inspections a a a a a
Chief Inspector of (i) One detailed inspection within Treasuries and Accounts period of three years (ii) One surprise inspection within period of five years Inspector of Treasuries and (i) One detailed inspection within Accounts period of one year (ii) One surprise inspection with period of one year Deputy Inspector of Two detailed inspections within Treasuries and Accounts period of one year Chief Inspector of Treasuries and Accounts Inspector of Treasuries and Accounts Deputy Inspector of Treasuries and Accounts
Sub-Treasury
District Accounts Officer
One detailed inspection within a period of six years One detailed inspection within a period of one year (i) One detailed inspection within a period of one year (ii) One surprise inspection within a period of one year (i) Two detailed inspections within a period of one year (ii) One surprise inspection within a period of one year
1.13 Notwithstanding anything contained herein, the duties, powers and functions of the inspecting officers in relation to the business of the District Accounts Offices, Treasuries or Sub-Treasuries shall, subject to their service rules, vest in the officers of the Punjab Treasuries and Accounts Service in the manner and to the extent, as may be determined and notified by the Finance Department. 1.14 The Finance Department shall, by notification in the official Gazette, lay down a procedure for approval of the inspection programme of the inspecting officers, .the authorities competent to approve such programme, the procedure relating to inspection reports and execution or action thereon, the extent of authority of the inspecting officers to have access to records in the District Accounts Offices, Treasuries and Sub-Treasuries and issues connected with or ancillary to inspections including powers to call for information and record from these and other offices of the Government of the Punjab and its entities. 1.15 The Chief Inspector of Treasuries and Accounts shall cause to be prepared a detailed report, each year, on the working of the Treasuries and Sub-Treasuries and actions required to be taken to improve the working of the Treasuries and SubTreasuries and such other issues as he may deem fit for inclusion in the report.
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SECTION II SUB-TREASURIES (See rule 5) 1.16 There shall be a Sub-Treasury at the level of each Tehsil Municipal Administration and Town Municipal Administration and in relation thereto rule 4 relating to division of Treasuries into two departments, the responsibility of the Treasury Officer, inspection of Treasuries, verification of imprest etc., and rules 1.1 to 1.16 specified herein shall mutatis mutandis apply to Sub-Treasuries. 1.17 A Sub-Treasury Officer belonging to the Punjab Treasuries and Accounts Service shall head the Sub-Treasury. 1.18 When a Sub-Treasury Officer is absent for any reason, the concerned District Accounts Officer shall temporarily place a suitable officer or official subordinate to him to be in charge of the Sub-Treasury. 1.19 There shall be posted such number of officials in the Sub-Treasuries as may be determined by the Chief Inspector of Treasuries and Accounts, with the prior approval of the Finance Department. 1.20 The business of the Sub-Treasury shall be transacted in the manner as may be determined by the Chief Inspector of Treasuries and Accounts with the prior approval of the Finance Department. 1.21 The Chief Inspector of Treasuries and Accounts shall be responsible to place necessary human and physical infrastructure in case the Finance Department decides to set up new Sub-Treasuries. 1.22 The responsibilities and functions of the officers under training in the SubTreasuries shall be such as may be determined by the Chief Inspector of Treasuries and Accounts, with the approval of the Finance Department. 1.23 The Finance Department may assign any additional work to the Sub-Treasuries. 1.24 The Finance Department may assign the work of Sub-Treasury and any additional work to the District Accounts Office or Treasury in Tehsils where Sub-Treasuries do not exist. ----------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 30th March, 2006. NOTIFICATION No. FD (FR)11-5/82 (P). In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab, is pleased to direct that in Part-II Special Powers To Certain Departments and Officers Local Government & Rural Development Department, of Second Schedule to the Delegation of Financial Powers Rules, 1990, following amendment shall be made, with
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immediate effect: Existing Sr. No 1. Name of Power Technical Sanction (original works/repai r works) Acceptance of tenders (original works/repai r works) To Whom Delegated Assistant Engineer (BS-17) Extent Upto Rs.5.00 lac provided the excess over the amount for which the administrative approval has been accorded does not exceed 10 percent. In case the excess exceeds 10 percent fresh administrative approval will be required. Upto Rs.5.00 lac These powers are subject to the conditions that:(i) the normal procedure laid down for invitation of tenders is followed. (ii) The rates quoted and/ or amounts tendered are such that the total cost of a project/work will not exceed the amount for which technical sanction has been accorded by more than 4.5% and (iii)Where competitive tenders are invited under the rules, in case the lowest tender from an approved contractor is not accepted, reasons should be recorded and further approval should be obtained from (a) the Chief Engineer (of relevant sector and area) for tenders upto the value of Rs.10 lac (b) the Administrative Department, if the value of the tender is more than Rs.10 lac, but not more than Rs.20 lac, and (c) the Finance Department if the value of the tender exceeds Rs.20 lac. ---------Deleted Amendment
2.
Assistant Engineer (BS-17)
Deleted
No. SOS-8(9)/05 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
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Dated Lahore, the April 01, 2006 Subject: Sir, Kindly refer to the subject noted above. 2. During recent meetings held with various Departments, it was felt to advise a check list for purchase proposals which are referred to the Finance Department for concurrence. A check list in this regard has been prepared and is enclosed for ready reference. It would be appreciated if the cases for purchase of various items are prepared in line with the check list in order to facilitate Finance Department for processing purchase proposals quickly. CHECKLIST FOR PREPARATION OF PURCHASE PROPOSALS Sr. # 1. Information required Status (i) Certificate for availability of funds given Yes / No at para 15(a) of the indent (pl. indicate page No. and attach a copy of the F.Ds letter for allocation of funds. (ii) In case the certificate at para 15(b) of the Yes/No (please indent has been signed by indenting give reasons, if Officer, please attach a copy of the Audit any). Copy for the allotment of funds issued by the F.D. Whether the item being purchased has been Attached/Not standardized by the IDSC? Please attach a attached (Please copy of the S&GADs notification. give reasons, if any) In case the item has been standardized by the Attached / Not Departmental Standardization Committee Attached (Please (other than the items standardized by the give reasons, if IDSC), please attach copy of Minutes of the any) DSC meeting and approved specifications of the item in question duly signed by the DSC. Please attach copy of advertisement for Yes/No Tender Enquiry (Atleast in two newspapers). Please indicate whether name / particulars of the item given in tender enquiry correspond with the Indent and approved specs). IOs estimated rate of the item. (i) (ii) (iii) Page # CHECKLIST FOR PURCHASE PROPOSALS
2.
3.
4.
5.
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Sr. # 6.
Information required (a) Last purchase rate (LPR) of the item. (b) Reasons if LPR is not available Technically accepted rate.
Status (i) (ii) (iii) (i) (ii) (iii) (i) (ii) (iii) (a) (b)
Page #
7.
8.
9.
10. 11.
12. 13.
14 15 16
17
18
(a) Increase / decrease over IOs estimate (in percentage higher / lower). (b) Increase / decrease over LPR (in percentage higher / lower). (a) Reasons for increase over IOs estimated rate. (b) Reasons for increase over LPR. (a) Comparative Statement (b) Revised comparative statement (a) Report of the Technical Committee on the offered bids. (b) Reasons for rejecting the lost lowest bid. Validity period of the offer. Also indicate the last date of validity of the offer. Deliver period. In case the delivery period falls in the next financial year, please attach certificate for availability of funds well before the delivery date in the next financial year. In case of negotiation made, indicate mode and revised comparative statement. In case, the lowest bid(s) have been passed over, please justify (para 24 of the P.M.) Please attach copies of Registration Certificates in case of registered firms or CDRs in case of unregistered firms In case the tenderers are neither registered nor have furnished CDR, please indicate reasons for not rejecting their bids. In case of the purchase of vehicles:(a) Please attach attested copies of PC0I for the Scheme following provision for purchase of the Vehicle, which is being purchased for an ADP Scheme. (b) Please attach copy of the Scheme under which purchase of the vehicle/vehicles has been allowed by the Chief Minister,
Available / Not available
Attached / Not relevant
Attached / Not relevant Attached / Not relevant
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Sr. #
19
20 21
Information required Status Page # if its being purchased out of nondevelopment budget. (a) In case Tender Enquiry was advertised or Attached / Not proprietary item, please attach relevant proprietary Certificate alongwith justification for its being proprietary item (Para 8(ii) of Purchase manual). (b) If the offers are received in respect of Attached / Not items of proprietary nature; or spare parts relevant or where response to a tender enquiry has been poor or a single tender has been received or rates received are otherwise considered to be on the high side, please attached Price Reasonability Certificate given by the tenderer (Para 38 of Purchase Manual) Please attach a copy of minutes of negotiation Attached / Not meeting. relevant Please attach copy of minutes of SFS meeting Attached / Not in terms of Para 102 on the Purchase Manual. relevant ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 21st April, 2006.
NOTIFICATION No. FD (FR) 11-5/82 (P). In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab, is pleased to direct that at serial No.3 under Part-II, Special Powers to Certain Departments and Officers (C&W Department, I&P Department, HUD & PHE Department) - of the Second Schedule to the Delegation of Financial Powers Rules, 1990, amendment shall be made to the following extent, with immediate effect: Amendment: Sr. Name of Powers No. 3. To sanction employment of work charged establishment subject to the conditions that : (a) Provision exists in the sanctioned estimates; (b) The power is To whom delegated Existing Revised
(i) Administra tive Department (ii)
Full Powers Full Powers
Full Powers Full Powers
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exercised only when the order to commence the work has been received; and (c) The monthly wages allowed do not exceed the emoluments including allowances admissible to regular establishment of the same category
Chief (iii) Superi On salaries upto Rs.4000/- per mensum. On salaries upto Rs.3000/- per mensum. On salaries upto Rs.6,000/per mensum. On salaries upto Rs.5,000/per mensum.
(iv)
Executi
Note: The aforesaid revision shall also be applicable to the LG&RD Department etc. ---------No. IT(FD)3-2/2003 GOVERNMENT OF THE PUNJAB FINANCE DEPARMENT Dated Lahore, the 25th April 2006. Subject: TAMEER-E-PUNJAB PROCEDURE. PROGRAMME, 2003 FINANCIAL
Kindly refer to this departments letters of even Nos. dated 7.4.2003 and 14.6.2005 on the above noted subject. 2. In partial modification of the financial procedure outlined in sub-paras 3(ix), (x) and 3 (xi) of this departments letter dated 7.4.2003, the following shall be substituted with immediate effect:Sub para 3 (ix) The District Coordination Officers/ADLG, being the drawing and disbursing officers of the Tameer-e-Punjab programme, shall maintain the accounts of all receipts and payments accruing to the PLA of TPP, in a cash book, form PWA-I, in terms of Rule 3.20 of the Punjab Departmental Financial Rules, read with Para 76 of CPWA Code and Para 80 of the Account Code Vol-III. All vouchers shall be retained by the DCO/ADLG for record and post audit. The DCO/ADLG shall maintain scheme-wise details of the payments made out of the PLA of TPP and send such details on monthly basis to the EDO (W&S) for record. The DAOs shall not maintain separate works accounts regarding T.P.P, but for maintaining accounts regarding receipts/payments pertaining to the PLAs, and for its submission to AG(Pb), in the prescribed manner.
Sub para 3(x)
Sub-para 3(xi)
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3. The changes, as above, have been introduced on the advice of the office of D.G Accounts (Works), Lahore. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 25th April, 2006. NOTIFICATION No. FD (FR) 11-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-I OFFICERS IN CATEGORY-I of the First Schedule to the Delegation of Financial Powers Rules, 1990, the following shall be substituted, with immediate effect: Amendment: 61. The Project Director / Director General, Punjab Emergency Service, Lahore. ---------No. IT(FD)3-2/2003 GOVERNMENT OF THE PUNJAB FINANCE DEPARMENT Dated Lahore, the 26th April 2006. Subject: TAMEER-E-PUNJAB PROCEDURE. PROGRAMME, 2003FINANCIAL
Kindly refer to this department's letters of even Nos. dated 7.4.2003 and 14.6.2005 on the above noted subject. 2. In partial modification of the financial procedure outlined in sub-paras 3(ix), (x) and 3 (xi) of this department's letter dated 7.4.2003, the following shall be substituted with immediate effect:Sub para 3 (ix) The District Coordination Officers/ADLG being the drawing and disbursing officers of the Tameer-e-Punjab programme shall maintain the accounts of all receipts and payments accruing to the PLA of TPP, in a cash book, Form PWA-I, in terms of Rule 3.19 of the Punjab Departmental Financial Rules, and Para 80 of the Account Code Vollll. All vouchers shall be retained by the DCO/ADLG for record and post audit, besides a copy of the paid voucher shall be sent to EDO (W&S) for reference and record. The DCO/ADLG shall maintain scheme-wise details of the payments made out of the PLA of TPP, and send such details on monthly basis to the EDO (W&S) for record. The DAOs shall not maintain separate works accounts regarding T.P.P, but for maintaining accounts regarding receipts / payments
Sub para 3(x)
Sub-para 3(xi)
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pertaining to the PLAs, and for its submission to AG(Pb), in the prescribed manner.
3. The changes, as above, have been introduced on the advice of the office of D.G Accounts (Works), Lahore.
---------No. FD (FR) II-2/89 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 5th May, 2006. Subject: SANCTION TO REIMBURSEMENT OF MEDICAL CHARGES
Kindly refer to your correspondence (Noting part), dated 30.05.2005, on the subject as cited above, wherein Finance Department was requested to assign the powers to the Additional I.G.P/Finance, to sanction reimbursement of medical charges, on the grounds as mentioned therein. 2. The matter has been examined and after appreciating the difficulties being confronted by the Police Department in disposal of claims of medical charges, the Finance Department agrees to assign the powers to the Addl. I.G.P/Finance, a Category-I Officer, to sanction reimbursement of medical charges upto Rs.10,000/- in each case. 3. I am further directed to request you to put up a summary for the Chief Minister, Punjab, for approval of the delegation of the aforesaid powers through an amendment under Part-II, Special Powers to Certain Departments and Officers (Police Department) of the Second Schedule to the Delegation of Financial Powers Rules, 1990. 4. The Summary may be routed through Finance Department. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 13th May, 2006. NOTIFICATION No. IT(FD)3-14/2005. In pursuance of the approval granted by the Competent Authority, it has been decided to establish a Special Cell in the Punjab Local Fund Department with immediate effect. 2. The Special Cell with its headquarter at the Provincial Directorate Local Fund Audit, Lahore, and sub-offices at each divisional headquarters (defunct) shall be responsible to assist the respective City District Government/District Government in identifying systemic issues and serious irregularities pertaining to statutory audit reports, and to appropriately advise the City District Governments/District Governments in the matter of settlement of audit observations/paras pertaining to their statutory audits .
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3. The Special Cells shall coordinate with the respective City District Government/District Government for the said purpose in accordance with the operational framework annexed to this notification. This arrangement shall not in any manner effect the provisions relating to audit contained in the PLGO 2001. ---------Annex-A TIME SCHEDULE TO BE OBSERVED BY THE DISTRICT GOVERNMENTS / LOCAL FUND AUDIT DEPARTMENT Sr. No. 1. Action to be taken Supply of Budget Estimates Supply of Appropriation Accounts and Audit Reports of the Auditor General of Pakistan To identify systematic issues and serious irregularities as observed in the Audit Report of A.G.P convey appropriate guidance Supply of Inspection and Audit Report (I&AR) with proposed annotations Vetting of compliance and giving technical assistance in finalizing the annotations. Progress Report on the settlement of Audit Observations / Audit Paras (Proforma annexed). The Officer The Officer to responsible for whom action is taking the action reported Principal Provincial Director, Account LFA Officer /EDOs Divisional Director, LFA Principal Provincial Director, Account Officer / LFA EDOs Provincial Director Local Fund Audit Zila Nazim / Principal Accounting Officer and Government Time Schedule Within 30 days after approval Within 15 days after receipt Within 30 days after receipt
2.
3.
4.
5.
Principal Accounting Officer/EDOs/ DDOs Divisional Director, Local Fund Audit Principal Accounting Officer/EDOs/ DDOs
Divisional Director, LFA Principal Accounting Officer / EDOs / DDOs Provincial Director, LFA / Divisional Director LFA
Within 15 days after receipt Within 20 days after receipt. At the end of each quarter
6.
2. Notwithstanding the aforesaid arrangement, Zila Nazim / the Principal Accounting Officer / EDO of a District Government may seek professional guidance / assistance,
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from the PD, LFA, Punjab, Lahore, on issues pertaining to Appropriation Accounts and Audit Paras thereof. ---------No. IT(FD)3-1/95 Vol-III GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 13th May, 2006. Subject: OBSERVANCE OF FINANCIAL DISCIPLINE IN THE PROVINCIAL/DISTRICT GOVERNMENTS, SPECIALLY DURING THE MONTH OF JUNE.
Kindly refer to the standing instructions contained in this departments circular letter No. IT (FD) 3-1/95-Vol-ll, dated 8th May, 2001 on the above cited subject prescribing various stipulations (cut-off dates) in the matter of (i) utilization of budget (ii) contracts (iii) submission of claims to the Accountant General, Punjab/District Accounts Officer/Treasury Officers and (iv) payments through government cheques, etc. 2. In order to facilitate maximum discharge of liabilities by government departments/district governments for the financial year ending 30th June 2006, it has been decided to extend the stipulations for submission of claims/cheques to the AG(Pb)/DAOs/T.O, Lahore upto 28th June 2006 in relaxation of the respective conditions contained in the circular letter of 8th May, 2001. 3. The policy instructions/relaxations, as above, shall only be applicable in the context of payments pertaining to Provincial Account No.1 (Non-Food), Account No-II (Food), and District Fund Account No IV, unless otherwise restricted by the respective district government for the latter. 4. However, the provisions regarding observance of normal office/banking hours as contained in para 2(e) of the circular letter under reference shall remain enforced, as before, for the provincial and district governments payments respectively. 5. 6. These relaxations shall only apply to the financial year 2005-2006. These instructions shall NOT apply to Federal Government payments. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 19th May, 2006 NOTIFICATION No. IT (FD)3-14/2005. In pursuance of the approval granted by the Competent Authority, it has been decided to establish a Special Cell in the Punjab Local Fund Department with immediate effect.
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2. The Special Cell with its headquarter at the Provincial Directorate Local Fund Audit, Lahore, and sub-offices at each divisional headquarters (defunct) shall be responsible to assist the respective City District Government/District Government in identifying systemic issues and serious irregularities pertaining to statutory audit reports, and to appropriately advise the City District Governments/District Governments in the matter of settlement of audit observations/paras pertaining to their statutory audits. 3. The Special Cells shall coordinate with the respective City District Government/District Government for the said purpose in accordance with the operational framework annexed to this notification. This arrangement shall not in any manner effect the provisions relating to audit contained in the PLGO 2001. ---------No. FD (FR) VI-2/2005 (P-I) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 22nd May, 2006. Subject: PAYMENT OF MEAL CHARGES
Kindly refer to your letter No. EDO (F&P)/BWN/576, dated 24.04.2006, on the subject as cited above. 2. The matter was examined and Finance Department observes that the expenditure on entertainment @ Rs.130/- per head is admissible to be incurred on the participants of an official meeting in terms of para 52 (a), Appendix 15, P.F.R. Vol-II. Further, the meal charges going to be incurred by the District Government, Bahawalnagar on the Police officials on the eve of Muharram do not fall in the categories of the meetings, as spelled out in para 52 (a) ibid. Accordingly, the commitment made by the Nazim, Bahawalnagar is not covered under the aforesaid rules. 3. Given that, I am directed to state that the District Government, Bahawalnagar may move a summary for the Chief Minister for sanction of the expenditure in relaxation of rules. 4. Further, I am to state that the expenditure on official entertainment is charged to the contingencies in terms of 52 (e) Appendix-14 ibid. ---------No. IT(FD)3-4/2002 Vol-VIII GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 24th May 2006 Subject: CUSTODY OF MONEYS PERTAINING TO DISTRICT FUND ACCOUNT NO IV AND TEHSIL/TOWN LOCAL FUNDS.
Kindly refer to the subject cited above.
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2. As you are aware, the District Fund Account No. IV, established under Section 107 of the PLGO 2001 is to be exclusively kept by the respective City District/District Government in the National Bank of Pakistan as prescribed by the Government, vide para 2(i) (a) of Finance Departments letter No. IT(FD)3-4/2002 dated 15.7.2002, in terms of Section 108 ibid. 3. Likewise, the Tehsil/Town Local Fund established under Section 107 ibid is to be kept by the respective Town/Tehsil Municipal Administrations in the National Bank of Pakistan or the Bank of Punjab as prescribed in para 2 (ii) (a) of the letter referred to above, read with letter No. IT(FD)3-4/2002 dated 12.8.2002, in terms of Section 108 ibid. 4. It has however, been observed that certain City District/District Governments and Tehsil/Town Municipal Administrations have, in violation of the specified arrangement, kept their respective funds in other Bank Accounts, an act, which constitutes serious financial, irregularity on the parts of such local governments. 5. The specific case in point is that the EDO (W&S) District Government, Narowal kept an huge amount assigned to him by the DCO as Deposit Work in his personal bank account. Likewise, it is also on record, that certain TMAs are maintaining their Tehsil/Town Local Funds in bank accounts other than those prescribed by the government. 6. The Government, has therefore, taken a very serious view of such financial irregularities, and it is advised that all local governments may take immediate stock of the situation, and initiate urgent remedial measures to ensure that respective funds are only kept in the prescribed manner. Ail City District/District Governments and Tehsil/Town Municipal Administrations are advised to furnish a compliance certificate in this regard to the Finance Department. ----------No. FD.SR.1/3-10/2004 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the June 01, 2006 Subject: Sir, I am directed to refer to the Policy instructions issued vide this Departments notification of even number dated 10th November, 2004 and to say that due to some ambiguity in para-3 of the said notification some clarifications have been sought from different quarters with respect to date of effectiveness of the Policy. It is accordingly clarified that:(a) The Policy was notified on 10-11-2004 and takes effect prospectively from that date onwards. FINANCIAL ASSISTANCE TO THE FAMILY OF A CIVIL SERVANT WHO DIES WHILE IN SERVICE
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(b)
Deceased civil servants, who expired before issue of this notification, are not covered by this Policy. The financial assistance sanctioned in their favour were in the nature of ex-gratia grants-in-aid approved by the competent authority on case to .case basis, without prejudice. There was no concept of extension of the Policy to back dated cases.
2. In order to remove any ambiguity in para-3 of the said notification the sentence that All the cases initiated by or under process in the Administrative Departments may be disposed of accordingly may please be deemed deleted. 3. Further necessary action may kindly be taken accordingly. ---------No. IT (FD)3-4/2002 Vol VIII GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the June 02, 2006 Subject: GRANT OF PENSIONARY BENEFITS TO CIVIL SERVANTS RETIRING FROM TEHSIL/TOWN MUNICIPAL ADMINISTRATIONS.
Kindly refer to the subject noted above. 2. A question has arisen as to who would authorize payments of encashment of Leave Preparatory to Retirement (LPR), and other pensionary benefits to civil servants who retire while serving in Tehsil/Town Municipal Administrations. 3. In this regard attention is invited to paras 1(a) and 5(b) of this departments letter No. IT(FD)3-4/2002 dated 17.3.2003 reproduced below:Para 1(a) In the event of posting of such employees in a Tehsil/Town Municipal Administration, they shall deem to fall under the audit jurisdiction of the District Accounts Officer of the district in which such TMA is located. 5(b) PENSION SANCTIONING AUTHORITY The Pension Sanctioning Authority in respect of civil servants posted in TMAs shall remain the same as respectively prescribed for such category of officials, the sanction for encashment of LPR of civil servants posted in TMAs shall also be done by the same authority as done prior to their postings in the TMAs. 4. It is accordingly clarified, that all admissible pensionary benefits to a civil servant retiring from a TMA, including the encashment of LPR, shall be authorized by the District Accounts Officer/Accountant General, Punjab, as the case be, in the prescribed manner, in the district in which such TMA is located. Copies of relevant sanction orders shall be duly endorsed to the respective DAO/AG (Pb) for the purpose. ----------No. IT(FD)3-7/2005 GOVERNMENT OF THE PUNJAB
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FINANCE DEPARTMENT Dated Lahore, the 10th June, 2006. Subject: FINANCIAL AND ACCOUNTING PROCEDURE REGARDING FUNDS TRANSFERRED TO LOCAL GOVERNMENTS UNDER THE PUNJAB DEVOLVED SOCIAL SERVICES PROGRAMME (PDSSP).
Kindly refer to the subject noted above. 2. The following financial and accounting procedure is prescribed, in the matter of incurrence of expenditure against funds transferred to the District Governments and Tehsil / Town Municipal Administrations under the Punjab Devolved Social Services Programme (PDSSP), in terms of the Memorandum of Understanding (MOU) executed between the Government of the Punjab and the recipient local government. FLOW OF FUNDS (i) After receipt of the funds from the donors in Provincial Government Account No.1, these will be budgeted under the respective functional/object classification by the Finance Department. (ii) On the advice of the PDSSP, the F.D shall release funds to the respective City District Governments, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala / District Governments / TMAs, in the prescribed mode, for credit to the District Fund A/C No IV / Tehsil / Town Local Fund, as the case may be. Each release shall be specific purpose/tied grant to the respective local government, and shall only be utilized, after due budgeting by it, in accordance with the sector plan approved by the respective council.
FINANCIAL AND ACCOUNTING PROCEDURE (i) In order to ensure efficient utilization/tracking of expenditures, a new object classification may preferably be got prescribed from the Controller General of Accounts in the existing chart of classification of the City District Government, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala/ District Governments. The Tehsil/Town Municipal Administrations, may however, utilize such grants from the respective local funds, through their existing prescribed classifications. (ii) The Executive District Officer (F&P) in case of City District/District Governments shall authorize scheme-wise releases from their budgets to the respective EDO, for utilization of PDSSP funds against the approved schemes in the prescribed manner. The release of funds in the TMA shall be done in the prescribed manner.
(iii) The EDOs Education, Health and Works and Services may be declared as Drawing and Disbursing Officers by the DCO in respect of the funds respectively placed at their (EDOs) disposal.
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(iv) (v)
The Payments against claims submitted by the respective Tehsil/Town Officer shall be processed and authorized in the prescribed manner. The Accountant General, Punjab or the concerned District Accounts Officer, as the case be, shall respectively be responsible for the pre-audit and accounting functions of the PDSSP funds expended by the City District Governments, Lahore Rawalpindi, Multan, Faisalabad and Gujranwala or the District Governments in the Punjab. All expenditures incurred against these funds shall be booked separately under the respective prescribed objects for efficient tracking and reconciliation of such expenditures. Similarly, the Tehsil/Town Accounts Officer of the respective TMA shall maintain and reconcile accounts against expenditure incurred from the PDSSP funds placed at the disposal of each TMA.
(vi)
(vii) The statement of reconciled expenditure shall be submitted by the EDO (F&P)s in case of City District Governments, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala / District Governments to the Finance Department as well as the Programme Support Unit (PSU). Similar statements shall also be submitted by the Tehsil / Town Accounts Officer of each TMA to the FD as well as the PSU. (viii) Funds received by the City District Governments, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala / District Governments in the Punjab during the current financial year shall be budgeted by the respective local government, through supplementary grant, and included in their ensuing budgets as revised estimates. Funds of the programme lapsing at the close of the financial year, against budgets of the respective scheme in the respective local government shall be reinstated to the extent of reconciled unspent balance in the next budget, through supplementary grants by the respective local government. AUDIT The funds of the programme shall be auditable by the Auditor General of Pakistan in respect of the City District Government, Lahore, Rawalpindi, Multan, Faisalabad and Gujranwala / District Governments in the Punjab and by the designated authority, as prescribed in the relevant Section of the PLGO 2001 (as amended), regarding funds placed at the disposal of TMAs. A supplementary audit by the qualified commercial Auditors may also be conducted as per the agreed TORs acceptable to the Government of the Punjab, the concerned local government and the ADB. 3. The above instruction may kindly be observed in the letter and spirit. ---------No. FD (FR) VI-2/2005 (P-I) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
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Dated Lahore, the 22nd June, 2006. Subject: OFFICIAL ENTERTAINMENT OF THE MEMBERS OF TEHSIL COUNCIL CLARIFICATION THEREOF.
Please refer to your letter No. TMA(City)/BWP/900-02, dated 15th March,2006, on the subject as cited above. 2. It is clarified that the limit of Entertainment Charges @ Rs.130/- per head as notified by the Finance Department vide No. FD(FR)II-2/89, dated 20th May, 2002, are applicable to certain categories of departmental meetings of the Government of the Punjab, as stated in para-52-A in Appendix-14 of P.F.R. Vol-II and would not be ipsofacto applicable to the meetings of Tehsil Council, attended by the public representatives, until so adopted by the LG&RD Department. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 1st July, 2006 NOTIFICATION No. SO(PFC)1-31/2005. The Punjab Specification and Distribution of Provincial Resources Order 2006, having been approved by the Governor of the Punjab on 01 July 2006, is hereby published as an order of the Government of the Punjab, The Punjab Specification and Distribution of Provincial Resources Order, 2006 Order of 2006 AN ORDER to provide for the specification of the Provincial Retained Amount, the Provincial Allocable Amount and the distribution of resources amongst the local governments in the Punjab. WHEREAS, in pursuance of section 120-A of the Punjab Local Government Ordinance, 2001, the Governor of the Punjab constituted a Provincial Finance Commission to make recommendations, among other matters, as to the distribution of resources between the Provincial Government and local governments of the net proceeds of Provincial Consolidated Fund; And WHEREAS the Provincial Finance Commission has submitted its recommendations with regard to the said distribution; NOW, THEREFORE, in exercise of the powers conferred upon him under subsection (6) of section 120-D of the Punjab Local Government Ordinance, 2001, the Governor of the Punjab is pleased to make the following Order:-
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1. Short title, extent and Commencement:- (1) This Order may be called the Punjab Specification and Distribution of Provincial Resources Order, 2006. (2) (3) It shall extend to the whole of the Punjab. It shall come into force on the first day of July, 2006 and shall remain effective up to thirtieth day of June, 2009.
2. Definition: In this Order, unless there is anything repugnant in the subject or context; (a) baseline expenditure means the actual Current Expenditure for financial year 2005-06 in respect of a City District Government / District Government enhanced by 15% and in .case of Tehsil Municipal Administration / .Town Municipal Administration budgeted transfers in Financial Year 2005-06. The baseline expenditure for a Union Administration means actual releases made during the financial year 2005-06; common expenditure includes expenditure incurred by the Provincial Government on account of pension, debt servicing, charged expenditure, subsidy and capitalization of Pension Fund and General Provident Fund; local government means a local government as defined under the Punjab Local Government Ordinance 2001; net proceeds of the Provincial Consolidated Fund means the proceeds of the Provincial Consolidated Fund reduced by common expenditure, expected shortfalls in receipts, transfer payments of Urban Immovable Property Tax and 2.5% General Sales Tax;
(b)
(c) (d)
3. Specification of the Provincial Retained Amount:- The Provincial Retained Amount shall be equal to 58.1 percent of the net proceeds of the Provincial Consolidated Fund in every financial year. 4. Specification of the Provincial Allocable Amount:- (1) The Provincial Allocable Amount shall be equal to 41.9 percent of the net proceeds of the Provincial Consolidated Fund in every financial year. (2) The Provincial Allocable Amount shall be supplemented by the addition of 2.5% General Sales Tax in every financial year of the Award period reduced by the share, as may be calculated by the Provincial Government on the basis of population of Cantonment Boards, for transfer to Cantonment Boards pursuant to Distribution of Revenues and Grants in Aid (Amendment) Order, 2006 (Presidential Order No.1 of 2006). 5. Distribution of Resources amongst local governments: The sum assigned to the local governments under Article 4 shall be distributed among the City District / District Governments or the Tehsil / Town Municipal Administrations or the Union Administrations, as the case may be on the basis of their respective expenditure needs in the following ratios as specified against each:City District / District Governments 83.81%
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Tehsil / Town Municipal Administrations Union Administrations
12.50% 3.69%
6. Provincial Finance Commission Grant System: The sums assigned to every tier of local governments under Article 5 shall be distributed among the local governments through a grant system in the following ratios as specified against each grant: Sr. Type of Grant No. Share of Provincial Allocations + 2.5% GST (reduced by share of Cantonment boards) Distribution of Grants in Local Govts. Distributi on (%) of Grants in Local Govts.
1.
General Purpose and Equalization Grants for City District / District Governments
67.50%
2.
General Purpose and Equalization Grants for Tehsil / Town Municipal Administrations for Union Administrations
General Purpose Grants for 89.00% CDOs/DOs Equalization Grant for 11.00% CDGs / DGs General Purpose Grants for 57.25% TMAs Equalization Grant for TMAs 14.32%
13.00%
3.
Development Grant for City District /District Governments or Tehsil / Town Municipal Administrations
General Purpose 28.40% Grants for UAs 11.30% Equalization Grant for 78.26% CDGs/DGs Development Grant for TMAs 21.74% Tied Grants for CDGs / DGs 91.00% 8.20% Tied TMAs Grants 9.00%
4.
Tied Grants for City District / District Governments or Tehsil / Town Municipal Administrations
(2) Seventy (70) percent share out of General Purpose Grant, Equalization Grant and Development Grant of Town Municipal Administrations that are obtaining municipal services through their City District Government service infrastructure shall be given to the respective City District Government.
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7. Criteria for distribution of Grants: The distribution of Grants amongst City District / District Governments or Tehsil / Town Municipal Administrations or Union Administrations as the case may be according to the following criteria:(a) General Purpose Grant shall be calculated on the basis of population of a City District / District Government or a Tehsil / Town Municipal Administration, as the case may be. Whereas in the case of Union Administration, the distribution of General Purpose Grant shall be on the basis of a fixed monthly amount for every Union Administration with higher allocation to Union Administrations of the City District Government Lahore. Equalization Grant in case of City District /District Government and Tehsil / Town Municipal Administration shall be calculated on the basis of fiscal gap between respective baseline expenditure and respective share under General Purpose Grant. Any amount left under the equalization grant after equalization has taken place shall be distributed on the basis of popularity amongst City District / District Governments or Tehsil / Town Municipal Administrations, as the case may be. Development Grant (i) The City District Governments and the District Governments shall be provided Development Grant calculated on the basis of their respective population and Index of Under Development prepared from Multiple Indicator Cluster Survey (MICS) data, with both having equal weight. (ii) The Tehsil Municipal Administrations and Town Municipal Administrations shall be provided Development Grant calculated on the basis of their respective total population and Urban Population with both having equal weight.
(b)
(c)
(d)
Tied Grant: (i) The City District Governments and the District Governments shall be provided Tied Grants for Education and Health Sectors in accordance with the following criteria:
Education Component: Population: 60% Performance: 40% Health Component: Population: 70% Health Deprivation Index: 30% Based on Index of Under Development prepared from Multiple ... Indicator Cluster Survey (MICS) and Punjab Economic Research Institute (PERI) data in case of Devolved Social Services Programme. (ii) The Tehsil Municipal Administrations and Town Municipal Administrations shall be provided Tied Grant which will be distributed as follows:
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Population: 70% Water and Sanitation Index*: 30% * Based on Multiple Indicator Cluster Survey (MICS) for the district in which the TMAs is located. 8. Annual Review of Grants:- Tied Grants given to City Governments and Tehsil / Town Municipal Administrations shall be subject to annual review by the Provincial Finance Commission. 9. The inter se distribution of resources for City District Governments and District Governments (1) 'The inter se shares amongst City District / District Governments excluding Tied Grants for Financial Year 2006-07 as laid cut in Article 6 and.7 is given in Schedule-A. (2) In financial years 2007-08 and 2008-09, the share of City District / District Governments shall be calculated on the basis of percentages fixed in articles 5 and 6 and shall be distributed among the City District / District Governments as per shares determined for financial year 2006-07 under article 9(1) above. Tied Grants shall be distributed in subsequent years subject to annual review by the Provincial Finance Commission. 10. Grant in Aid to Certain District Governments: Annual grant in aid shall be given out of the Provincial Retained Amount to the following District Governments for the two financial years commencing from the first day of July, 2006 equal to the amounts specified against each: District Government Chakwal Hfizabad Rahim Yar Khan Sialkot Vehari Grant in Aid (Rs. In million) 141.652 312.159 372.449 81.537 300.205
11. The inter se distribution of resources for Tehsil Municipal Administrations and Town Municipal Administrations:- (1) The inter se distribution of resources amongst Tehsil Municipal Administrations, Town Municipal Administration and City District Governments in case of Town Municipal Administrations which are being provided services through the integrated infrastructure of a City District Government for Financial Year 2006-07 as laid out in Article 5, 6 and 7 is given in Schedule-B excluding Tied Grants. (2) In financial year 2006-07 and 2008-09, the share of Tehsil /Town Municipal Administrations shall be calculated on the basis of percentages fixed in articles 5 and 6 and shall be divided between Tehsil / Town Municipal Administrations as per shares determined for each Tehsil / Town Municipal Administration in financial year 2006-07 in section 11(1) above.
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12. The Distribution of resources for Union Administrations:- The inter se distribution of resources between Union Administrations for Financial Year 2006-07 is given at Schedule-C. ---------Schedule-A INTER SE SHARES OF DISTRICT GOVERNMENTS UNDER PFC 2006-07 TO 2008-09 (Excluding Tied Grants) Sr # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 District Attock Bahawalnagar Bahawalpur Bhakkar Chakwal D.G Khan Faisalabad Gujranwala Gujrat Hafizabad Jhang Jhelum Kasur Khanewal Khushab Lahore Layyah Lodhran Mandi Bahauddin Mianwali Multan Muzaffargarh Nankana Sahib Narowal Okara Pakpattan Rahim yar Khan Rajanpur Rawalpindi Percentage Share 2.15% 3.24% 3.18% 1.88% 1.93% 2.59% 6.64% 4.15% 2.53%. 1.17% 3.73% 1.47% 3.09% 2.80% 1.60% 7.62% 1.93% 1.67% 1.52% 1.83% 3.95% 3.44% 1.92% 2.05% 2.90% 1.79% 4.00% 1.61% 4.05%
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30 31 32 33 34 35
Sahiwal Sargodha Sheikhupura Sialkot Toba Tek Singh Vehari Total
2.53% 3.90% 2.77% 3.31% 2.30% 2.74% 100.00% Schedule-B
INTER SE SHARES OF TEHSIL MUNICIPAL ADMINISTRATIONS UNDER PFC 2006-07 TO 2008-09. (Excluding Tied Grants) SR # District name 1 2 3 4 5 6 7 8 9 10 11 12 13 .14 15 16 17 18 19 20 21 Attack Attack Attack Attack Attack Attack Bahawalnagar Bahawalnagar Bahawalnagar Bahawalnagar Bahawalnagar Bahawalpur Bahawalpur Bahawalpur Bahawalpur Bahawalpur Bahawalpur Bhakkar Bhakkar Bhakkar Bhakkar Tehsil name Attack City Hasanabdal Fateh Jang Jand Pindi Gheb Hazro Bahawal Nagar Fortabbas Chishtian Minchinabad Haroonabad Bahawalpur City Bahawalpur Sadar Ahmadpur Hasilpur Khairpur Tamewali Yazman Bhakkar Darya Khan Kallurkot Mankera Percentage Share 0.45% 0.19% 0.24% 0.22% 0.28% 0.64% 0.32% 0,58% 0.40% 0.45% 0.95% 0.39% 0.82% 0.37% 0.21% 0.45% 0.49% 0.28% 0.26% 0.19%
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SR # District name
Tehsil name
Percentage Share 0.55% 0.14% 0.43% 0.13% 1.32% 0.24% 0.41% 5.14% 0.52% 0.55% 0.57% 0.29% 0.56% 1,19% 0.58% 0.61% 2.22% 0.24% 0.26% 0.21% 0.24% 0.51% 0.47% 0.79% 1.34% 0.91% 0.20% 0.59% 0.41%
22 23 24 25 26 27 28
Chakwal Chakwal Chakwal Chakwal D.G Khan D.G Khan D.G Khan Faisalabad Faisalabad Faisalabad Faisalabad Faisalabad Faisalabad Faisalabad Faisalabad Faisalabad Gujranwala Gujranwala Gujranwala Gujranwala Gujranwala Gujranwala Gujranwala Gujranwala Gujrat Gujrat Gujrat Hafizabad Hafizabad
Chakwal Choa Saidan Shah Talagag Kalar Kahar D.G Khan D Excluded Area Taunsa Transfer to CDG Faisalabad Faisalabad City (Lylpur Town) Jinnah Town Madina Town Chak Jhumra Iqbal Town (Sadar) Jaranwala Samundri Tandlianwala Transfer to CDG Gujranwala Khayali Shahpur Qila Didar Singh Town Nandi pur Town Aroop Town Kamoki Naushera Virkan Wazirabad Gujrat Kharian Sarai Alamgir Hafizabad Pindi Bhattian
29 30 31 32 33 34 35 36
37 38 39 40 41 42 43 44 45 46 47 48
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SR # District name 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 Jehlum Jehlum Jehlum Jehlum Jhang Jhang Jhang Jhang Kasur Kasur Kasur Khanewal Khanewal Khanewal Khanewal Khushab Khushab Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Layyah Layyah Layyah
Tehsil name Jehlum City Find Dadan Khan Sohawa Dina Chiniot Jhang Shorkot Ahmed Pur Sial Kasur Chunnian Pattoki Khanewal Jahanian Kabirwala Mian Channu Khushab Noorpur Thal Transfer to CDG Lahore Aziz Bhatti Town Data Ganj Baksh Town Allama lqbal Town Nishtar Town Ravi Town Shalimar Town Wahga Town Gulberg Town Samanabad Town Choubara Karor Layyah
Percentage Share 0.49% 0.30% 0.19% 0.21% 1.15% 1.43% 0.43% 0.34% 1.41% 0.66% 0.73% 0.65% 0.28% 0.75% 0.70% 0.88% 0.19% 8.85% 0.31% 0.44% 0.45% 0.43% 0.46% 0.39% 0.51% 0.36% 0.45% 0.47% 0.41% 0.68%
66 67 68 69 70 71 72 73 74 75 76 77
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SR # District name
Tehsil name
Percentage Share 0.54% 0.42% 0.38% 0.55% 0.34% 0.44% 0.35% 0.62% 0.32% 2.51% 0.40% 0.28% 0.26% 0.25% 0.29% 0.48% 0.44% 0.50% 0.92% 1.12% 0.77% 0.38% 0.22% 0.21% 0.72% 0.71% 1.05% 1.20%
78 79 80 81 82 83 84 85 86
Lodhran Lodhran Lodhran MB Din MB Din MB Din Mianwali Mianwali Mianwali Multan Multan Multan Multan Multan Multan Multan Muzaffargarh Muzaffargarh Muzaffargarh Muzaffargarh Nankana Sahib Nankana Sahib Nankana Sahib Nankana Sahib
Lodhran Karor Pacca Dunya Pur Mandi Bahauddin Malikwal Phalia Isakhel Mianwali Piplan Transfer to CDG Multan Jalalpur Pirwala Shah Ruknay Alam Town Mumtaz abad Town Sher Shah Town Bosson Town (Sadar) Shujabad Alipur Jatoi Kot Addu Muzaffargarh Nankana Safdarabad Shahkot Sangla Hill Narowal Shakar Garh Okara Depalpur
87 88 89 90 91 92 93 94 95 96 97 98 99 100
101 Narowal 102 Narowal 103 Okara 104 Okara
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SR # District name 105 Okara 106 Pakpattan 107 Pakpattan 108 109 110 111 Rahimyar Khan RahimyarKhan Rahimyar Khan Rahimyar Khan
Tehsil name Renala Khurd Pakpattan .Arif Wala Khanpur Liaquatpur Rahim Yar Khan Sadiqabad Rajanpur Jampur Rojhan Transfer to CDG Rawalpindi Rawalpindi City (Rawal Town) Gujar Khan Kahuta Murree Kotli Sattian Taxila Kalar Saydian Potohar Town Sahiwal Chichawatni Sargodha Bhalwal Shahpur Sahiwal Sargodha Silanwali Kot Momin Feroz Wala Sheikupura Sharakpur
Percentage Share 0.38% 0.78% 0.68% 0.80% 0.77% 1.21% 0.90% 0.48% 0.55% 0.23% 1.79% 0.77% 0.56% 0.34% 0.20% 0.11% 0.52% 0.17% 0.56% 1.24% 0.88% 1.37% 0.94% 0.32% 0.28% 0.28% 0.39% 0.82% 1.55% 0.17%
112 Rajanpur 113 Rajanpur 114 Rajanpur Rawalpindi 115 Rawalpindi 116 Rawalpindi 117 Rawalpindi 118 Rawalpindi 119 Rawalpindi 120 Rawalpindi 121 Rawalpindi 122 Rawalpindi 123 Sahiwal 124 Sahiwal 125 126 127 128 129 130 Sargodha Sargodha Sargodha Sargodha Sargodha Sargodha
131 Sheikhupura 132 Sheikhupura 133 Sheikhupura
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SR # District name 134 Sheikhupura 135 136 137 138 139 140 141 142 143 144 Sialkot Sialkot Sialkot Sialkot TT Singh TT Singh TT Singh Vehari Vehari Vehari Total
Tehsil name Mureedke Daska Pasroor Sialkot Sambrial Gojra Toba Tek Singh Kamalia Burewala Vehari Mailsi
Percentage Share 0.52% 0.67% 0.69% 1.72% 0.34% 0.59% 0.69% 0.61% 0.85% 0.75% 0.80% 100.00% Schedule-C
INTER SE RESOURCE DISTRIBUTION AMONGST UNION ADMINISTRATIONS 2006-07 Category of UA 1 2 Urban UAs of CDG Lahore Other UA Monthly allocation per UA 216.000 91.000
No. IT(FD)3-1/93(Misc)(B) Vol-IX GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 18th July, 2006 Subject: REVALIDATION OF WORKS AND SERVICES DEPARTMENTS CHEQUES ISSUED BY DISTRICT OFFICERS (B&R) OF CITY DISTRICT/DISTRICT GOVERNMENTS AND TEHSIL/TOWN OFFICERS (I&S) OF TEHSIL/TOWN MUNICIPAL ADMINISTRATIONS.
Kindly refer to the subject noted above.
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Finance Department
2. It has been brought to the notice of the Finance Department, that certain contractors executing public works for the City Districts / District Governments and Tehsil / Town Municipal Administrations have failed to draw payments through Works and Services Departments cheque(s) issued in their favour by the offices of the Accountant General, Punjab / District Accounts Officers, or the Tehsil Officer (Finance) / Tehsil Accounts Officers respectively, on or before 30-06-2006, during the financial year 2005-2006, in discharge of their validly accrued liabilities. This position has essentially emerged due to belated issuance of cheque(s) by the respective authorities. 3. In order to alleviate the aforestated hardship to the payees, it has been decided to allow revalidation of all cheque(s) of Works and Services departments issued by the AG (Pb) / DAOs for the City District/District Governments, and the T.O (Finance)/TAO for the Tehsil /Town Municipal Administrations, on or before 30-06-2006, during the financial year 2005-2006, which though validly issued for payment by the AG(Pb)/DAO/TO or the TO (Finance)/TAO, as the case be, could not be encashed by the payees through bank clearance. 4. The revalidations in case of City District Government/District Governments shall be done by the AG (Punjab)/ concerned DAO respectively, on the submission of a formal request by the D.O (B&R) of City District/District Government concerned, along with the original un-cashed cheque(s). Accordingly, a new cheque (s) shall be issued, in the prescribed manner, by the AG (Punjab) / DAO, as the case may be, in lieu of the undrawn / un-cashed cheque(s) issued on or before 30-06-2006, after due scrutiny of the record relating to the original claim(s). The amount of cheque(s) in case of City/District Government shall be debitable to the District Fund. Account No IV against the respective budgets of the City District Government/District Governments for the financial year 2005-06. 5. The revalidation of cheque(s) in case of Tehsil /Town Municipal Administrations shall be done by the respective Tehsil Officer (Finance)/Tehsil/ Town Accounts Officers (TAO) on the submission of a formal request by the respective TOs (I&S), along with the original un-cashed / un-drawn cheque(s) issued on or before 30-06-2006, during the financial year 2005-2006. Accordingly, new cheque(s) shall be issued, in the prescribed manner, by the TO (Finance) / TAO in lieu of the under drawn / un-cashed cheque(s) issued on or before 30-06-2006, after due scrutiny of the relevant record relating to the original claim(s). The amount(s) of the cheque(s) shall be debitable to the respective Tehsil /Town Local Fund against the respective budgets for financial year 2005-2006. 6. The revalidations, as above, shall be further subject to the following conditions:(a) that the cheques, under reference were validly issued by the AG (Pb)/DAO/TO for the City District / District Government, and TO(Finance)/TAO for TMAs respectively on or before 30th June, 2006, in discharge of valid accrued liabilities; that the amount of each cheque, after its issuance, had been debited to the respective budgetary allotment of the scheme/work of the District/City District Government or the Tehsil /Town Municipal Administration, as the case be, for the financial year 2005-2006; that the expenditure corresponding to amount of each cheque had been entered and booked in the respective cash book maintained by the AG
(b)
(c)
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(Pb) /DAO or the TO (I&S) as the case be, in the respective date, falling on or before 30-06-2006, and that the cash book was closed on 30-06-2006, and duly verified thereafter by an authorized representatives of the Director General (Audit) Works, Lahore, or the Director General, District Audit respectively, as the case may be; (d) that the serial number of the respective cheque (including the last cheque) preceded the number of the last cheque issued by the AG (Pb) / DAO or the TO (Finance) /TAO of the City District /City District Government or the Tehsil / Town Municipal Administration, as the case be, on or before 3006-2006 and communicated to the Director General Audit (Works), Lahore, or the Director General, District Audit, as the case may be, on 30-06-2006 telegraphically in the prescribed manner; The above policy shall only be applicable to cheques of the Works and Services department issued by the District /City District Governments or the Tehsil /Town Municipal Administrations, pertaining to financial year, 2005-2006. The re-issuance of cheques in the aforesaid manner would not be admissible in case of self & special-cheques issued on or before 30-06-2006.
Note (i)
(ii)
7. The policy regarding revalidation of PWD cheques of the Provincial Works Departments has been issued separately. -----------No. IT (FD) 3-1/93 (Misc) (A) Vol-IX GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 18th July 2006 Subject: PWD CHEQUES ISSUED BY PROVINCIAL WORKS DIVISIONS FOR PAYMENT ON OR BEFORE 30TH JUNE 2006 REVALIDATION OF UNCASHED PWD CHEQUES
Sir, I am directed to refer to the subject cited above, and to state that it has been brought to the notice of the Finance Department that certain contractors of Public Works Department failed to draw payments, through PWD Cheques, pertaining to the financial year 2005-2006, issued by the respective divisional/sub-divisional officers of the Provincial Works Divisions on or before 30th June 2006 due to their belated presentations to the respective DAO/TO, for authorization, or to the State Bank of Pakistan/National Bank of Pakistan for encashment. 2. The above position has emerged due to the fact that the concerned divisional/subdivisional officers of the Provincial Works Divisions have once again failed to ensure timely clearance of Such liabilities against the government in accordance with the deadlines, inter-alia prescribed by the Finance department for the issuance of PWD Cheques, vide No. IT(FD)3-1/95 dated 25th March, 1997 duty reiterated to all Administrative Secretaries vide No. IT(FD)3-1/95-Vol-III dated 13.5.2006. This lapse on
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the part of the, divisional/sub-divisional officers of the Provincial Works Divisions has resulted in undue inconvenience to the payees, who are now coming up with requests to the Finance department for the revalidation of such un-cashed PWD cheques relating to the Provincial Government. 3. Therefore, considering the legal aspect of the issue, as well as to alleviate the hardship to the contractors, it has been decided to prescribe the following procedure for the revalidation of PWD Cheques, pertaining to the financial year 2005-2006 which were validity issued by the Provincial Works Divisions in the prescribed manner, on or before 30th June, 2006, and were either duly authorized for payments by the respective DAOs / TOs, but remained uncashed, through bank clearance, by the payees from the respective SBP/NBP branch up to 30th June, 2006, or could not be so authorized, due to their belated issuance. 4. Requests for revalidation of PWD Cheques, as aforementioned, shall be considered on case to case basis on the recommendation of the respective Administrative departments. While forwarding such cases to Finance Department, the AD would also be required to ascertain reasons and to fix responsibilities for the belated issuance of cheques bv the concerned divisional/sub-divisional officers, of Provincial Works Divisions in contravention of the time limits fixed by the Finance Department, and notwithstanding subsequent relaxation granted by it. An attested photocopy of uncashed PWD Cheque (both obverse & reverse) shall also be sent to ascertain its bonafides, as well as the fact as to whether it was authorized or otherwise, by the concerned DAO/TO up to 30th June, 2006. 5. The requests for revalidation shall be further subject to the following .conditions: (a) that PWD cheques, as detailed above were validly issued by the concerned divisional/sub-divisional officer of the Provincial Works Divisions on or before 30th June. 2006, in discharge of accrued liability; that these cheque/cheques were duly presented to the respective DAO/TO on or before 30th June, 2006, in the prescribed manner, and were authorized for payment at the respective SBP/NBP branch. In case the cheques could not be authorized, as aforementioned, the reason(s) for the same may be indicated; that the amount of each cheque, after its Issuance, had been debited to the respective budgetary allotment of the scheme/work of the provincial government for the financial year 2005-2006; that the expenditure corresponding to amount of each cheque had been entered arid booked in the cash book of the division in the respective date, falling on or before 30-06-2006, and that the cash book stands dosed on 3006-2006, duly verified thereafter by an authorized representative of the Director General Audit (Works), Lahore, as prescribed; that the serial number of the cheque (including the last cheque) precedes the number of the last cheque issued by the divisional/sub-divisional officer of the Provincial Works Divisions on or before 30-06-2006 and communicated
(b)
(c)
(d)
(e)
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to the Director General Audit (Works), telegraphically in the prescribed manner; Note: (i) (ii)
Lahore, on
30-06-2006
The above policy shall only be applicable to PWD Cheques issued by the Provincial Works Divisions pertaining to financial year, 2005-2006. The re-issuance of cheques in the aforesaid manner would not be admissible In case of self & special-cheques issued on or before 30-06-2006.
(iii) The revalidation shall not be applicable in case of payment of arrears of electricity dues to WAPDA as stipulated in FDs policy instructions No. SO (PD)/1-1/94-95, dated 20th July, 1998. 6. All un-cashed PWD Cheques pertaining to financial years, prior to 2005-2006, having remained unpaid for more than one year as on 30th June 2006 SHALL NOT BE REVALIDATED. Such cheques shall be cancelled by the respective divisional/subdivisional officer and their amounts1 WRITTBN-BACK as prescribed under Rule 2.17 of PFR Vol-I, read with Article 262 of Account Code Vol-III. Thereafter, they may come up with a request to the F.D. for allocation of fresh funds (GROSS AMOUNT OF UNPAID CHEQUE) through the respective Administrative Department in the prescribed manner. 7. Note: These instructions are not applicable to cheques of Works and Services Departments of city districts / district governments or the tehsil / town Municipal administrations issued during the financial year 2005-06. Separate instructions have been issued regarding such cheques. ----------No. FD(SR-III)4-80/2006 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 22nd July, 2006. Subject: Sir, I am directed to state that the Governor of the Punjab has been pleased to grant increase in pension to the pensioners including family pensioners of the Government of the Punjab with effect from 1.7.2006 at the following rates:(a) (b) Pensioners who retired prior to01.05.1977: Pensioners who retired on or after: 01.05.1977: 20% 15% PENSION INCREASE
2. The increase in pension .will also be admissible to those government servants who would retire after 30.6.2006. 3. For the purpose of admissible .of increase in pension sanctioned in this notification the term Pension means Pension being drawn.
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4. The increase will also be admissible on Family Pension, Extra-ordinary Pension & on Compassionate Allowance, Sanctioned under the Pension Rules, of Government of the Punjab. 5. If the gross pension sanctioned by the Punjab Government is shared with any Government In accordance with the rules, the amount of the increase in pension will be apportioned between the Punjab Government and the other Government concerned on proportionate basis. 6. In case of re-employed pensioners, the increase in pension sanctioned in the notification shall not be admissible to them during the period of their re-employment. 7. The benefit of increase in pension sanctioned in this notification will also be admissible to those civil pensioners of the Punjab Government who are residing abroad (other than those residing in India and Bangladesh) who retired on or after 15.8.1947 and are not entitled to or are not in receipt of pension increase under the British Government, Pension (increase) Acts. The payment will be made at the applicable rate of exchange. -----------No. FD(PR)9-2/2006 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 22nd July, 2006. Subject: Sir, I am directed to state that the Governor of the Punjab has been pleased to sanction the Conveyance Charges for late sitting to the non-gazetted employees of the Secretariat, attached offices and employees of District Governments at the following rates:ON WORKING DAYS: For officials in BS 1-2 For officials in BS: 3-15 including holders of BS-16 by virtue of selection grade. ON CLOSED DAYS: For officials in BS 1-2 For officials in BS: 3-15 including holders of BS-16 by virtue of selection grade. 2. (i) (ii) Rate Rs.12.00 per day Rs. 15.00 per day Rate Rs.15.00 per day Rs. 18.00 per day CONVEYANCE CHARGES FOR LATE SITTING
The late sitting Conveyance Charges are subject to the following conditions:For detaining the employees in the office beyond two hours of usual closing hours. Certificate from the concerned Officer not below the rank of Deputy Secretary or equivalent to the effect that detention of the official(s) was necessary in connection with the official business. ----------
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No. FD (FR) II-2/89 (Vol-II) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 7th August, 2006
Subject:
REIMBURSEMENT OF MEDICAL CHARGES TO THE EMPLOYEES POSTED IN TEHSIL MUNICIPAL ADMINISTRATIONS IN THE PUNJAB.
Sir, I am directed to refer to the subject as cited above and to state that the Tehsil Municipal Officer, TMA, Khushab has sought clarification as to the competent sanctioning authority for reimbursement of medical charges to its employees. (Annex-A). 2. The matter has accordingly been examined in the Finance Department and it is observed that the employees working in the TMAs in Punjab are drawn from three different services / departments viz, the Municipal employees, of the Local Councils (defunct), employees of Local Council Service (LCS), and civil servants posted in TMAs. The sanction of reimbursement of medical charges to the said categories of employees is being generally done in the following manner:(i) The reimbursement of medical charges to Municipal employees, both serving and retired, are sanctioned by LG&RD Department on the recommendation of the House. However, in certain TMAs, reimbursement is made under the sanction of Nazim and Local Council itself. The sanction of reimbursement of medical charges to the LCS employees up to Rs.10,000/- is done by the DCO in the concerned District, and that exceeding Rs.10,000/- by the Local Govt. Board (Annex-B).
(ii)
(iii) The sanction to reimbursement of medical charges to the employees of LG&RD Department in BS-1 to BS-5 including Secretaries of Union Administrations is done by ADLG/Officer Incharge of the Special Cell of the respective District, while that for employees in BS-6 to BS-16 by the D.G. LG&RD Department. Sanction for others in BS-17 and above is done by the LG&RD Department itself (Annex-C). (iv) The sanction to reimbursement of medical charges to the employees of the Public Health Engineering Department is done by the Nazim in the Council, while in some cases it is done by the Administrative Department, i.e. the LG&RD Department.
3. Under Rule 33 (b) of the Punjab Local Government (Accounts) Rules, 2001 read with Rule 36 of TMA Rules of Business, 2003, the power to sanction contingent expenditure is prescribed as under:Kind of Expenditure Tehsil/Town Officer Tehsil Municipal Officer Nazim
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Contingent Expenditure
Category-III Officer
Category-II Officer
Full Powers
4. On the Governmental side, the powers to sanction reimbursement of medical charges are exercised by the Attached Department up to Rs.10,000/-, and that by the Administrative Departments up to Rs.20,000/- under Delegation of Financial Powers Rules, 1990. 5. While recognizing the need to prescribe a uniform policy for sanction of reimbursement of medical charges for all categories of the employees working in TMAs, and to avoid misapplication of such powers, Finance Department proposes to align these powers with that in Delegation of Financial Powers Rules, 1990 i.e. up to Rs.20,000/- by LG&RD Department and exceeding Rs.20,000/- by Finance Department. The aforesaid arrangement ought to be prescribed by invoking the provision of Section 197 of the PLGO, 2001. 6. The LG&RD department is requested to further its views / recommendations on the matter in question.
---------No. FD (FR) 11-2/69 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the August 07, 2006 Subject: STREAMLINING OF PROCEDURES TO IMPROVE THE PACE OF EXECUTION OF DEVELOPMENT SCHEMES - POWERS TO REAPPROPRIATE APPROVED DEVELOPMENT SCHEMES WITHIN THE
Sir, I am directed to invite your kind attention to this departments notification No. even, dated 30th June, 2004, on the subject as cited above, whereby it was clarified that the Administrative Departments and Officers In Category-l were competent to sanction re-appropriation of funds of development schemes, within their sectoral allocations. In the prescribed manner, vide serial No.5 under Part-I Powers Common to all Departments, of the Second Schedule to the Delegation of Financial Powers Rules, 1990 read with para 15.3 (b) (xi) of the Punjab Budget Manual, without seeking prior approval of the proposed re-appropriations from P&D and Finance Department. It was further clarified vide F.D letter No, even, dated 14th May, 2005 that the connotation Approved Schemes shall only include development schemes reflected in the ADP/Development Budget as per the Schedule of the Authorized Expenditures. 2. Since the issuance of the aforesaid instructions, a number of instances have come to the notice of the Finance Department where the designated authorities made reappropriations of funds of development schemes in deviation of the prescribed procedure and laid down conditions. Besides floating the prescribed procedure and conditions, such irregular re-appropriations have, interalia, created immense difficulties for the Finance Department while finalizing the Revised Estimates for both the years 2004-2005 and
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2005-2006. Some of the irregularities committed while making re-appropriations during previous years were as under: Re-appropriations were supplementary grants. made from the funds provided through
While sanctioning re-appropriation of funds, from one scheme to other, the concerned authorities failed to observe the laid down conditions/procedure as prescribed In para 15.3 (b) (vi) and (xi) of the Budget Manual. The funds re-appropriated from a scheme were restored back subsequently in violation of the provisions of para 15.3 (b) (III) of the Manual Ibid. Funds so re-appropriated were neither incorporated in the Second Statement of Excesses and Surrenders, submitted by the Administrative Departments, nor were the copies of the sanctions endorsed/provided to the Finance.
3. Given that I am directed to reiterate the relevant provisions regulating the reappropriations of development schemes within their sectoral allocations as under:(a) (b) Re-appropriation will not be made except for approved schemes; The approved cost of the scheme will not be exceeded, through reappropriation by more than 10% of the amount for which the scheme has been administratively approved; No appropriation will be made from the funds sanctioned through supplementary grant/s; No authority subordinate to the one which reduced an allocation will increase such reduced allocations by means of re-appropriations; Re-appropriation will not be made so as to divert the provision from specified new items to other purposes; Funds so re-appropriated will invariably be incorporated in the 2nd Statement of Excesses & Surrenders under endorsement to P&D and Finance Department; It will be ensured that 2nd Statement of Excesses & Surrenders is received in the Finance Department by 31st March of the given financial year. All re-appropriations made in the aforesaid manner/shall promptly be intimated to the P&D and Finance Department, for the purpose of monitoring of utilization of ADP funds.
(c) (d) (e) (f)
(g) (h)
4. I am, further, directed to request you to strictly adhere to the aforesaid conditions while sanctioning re-appropriations of development schemes within their sectoral allocations. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
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Dated Lahore, the 7th August, 2006. NOTIFICATION No. FD(FR) II-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-I Officers in Category-I of the First Schedule to the Delegation of Financial Powers Rules, 1990, following shall be added, with immediate effect:Amendment: 73 - Chief Monitoring, Programme Monitoring & Implementation Unit (PMIU), Irrigation & Power Department. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 8th August, 2006 NOTIFICATION No. RO(Tech)FD 2-2/2001. The Governor of the Punjab is pleased to approve the following amendments in Schedule of Wage Rates, 2005 with immediate effect. Sr. No. BPS Existing Monthly Wages Lahore, Faisalabad, All Rawalpindi, Multan, other Gujranwala, Sialkot, places Sargodha, Bahawalpur, D.G. Khan 3883 3220 3955 3285 4064 3383 4165 3474 4387 3565 4488 3656 4590 3747 4735 3877 4902 4026 5039 4150 5426 4299 5680 4527 11593 9282 Revised Monthly Wages Lahore, Faisalabad, All Rawalpindi, Multan, other Gujranwala, Sialkot, places Sargodha, Bahawalpur, D.G. Khan 4205 3543 4285 3615 4405 3724 4517 3825 4749 3927 4861 4028 4973 4130 5133 4275 5317 4442 5469 4579 5873 4746 6153 5000 12664 10353
1 2 3 4 5 6 7 8 9 10 1 12 13
1 2 3 4 5 6 7 8 9 10 11
12 (Composer)
17 Graduate Engineer
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---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 15th August, 2006. NOTIFICATION No. FD(FR) II-5/82. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in Part-I Officers in Category-I of the First Schedule to the Delegation of Financial Powers Rules, 1990, following shall be added, with immediate effect:Amendment: 74- The Head of Project Management Unit/Programme Director/Project Director PMU indigenous/foreign funded projects. ---------No. SO(TAX)1-7/94(P-II) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, August 15, 2006 Subject: COMPUTATION OF INCOME TAX PAYABLE BY THE SALARIED TAXPAYERS FOR TAX YEAR 2007 AND DEDUCTION OF ADVANCE TAX FROM SALARY FOR THE YEAR COMMEIGING 1st JULY, 2006
Enclosed please find copies of Government of Pakistan, Revenue Division, Central Board of Revenues Circular No.1 of 2006 (Income Tax) explaining the important provisions relating to amendment in Income Tax Ordinance, 2001 and Circular No.3 of 2006 (Income Tax) regarding computation of Income Tax payable by salaried persons for tax year 2007 and deduction of advance tax from salary for the tax year commencing on 1st July, 2006 for information, guidance and immediate necessary action. ---------GOVERNMENT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE No.F.4(1)ITP/2006-EC Subject: Islamabad July 1, 2006
FINANCE ACT, 2006 EXPLANATION OF IMPORTANT PROVISIONS RELATING TO AMENDMENT IN INCOME TAX ORDINANCE, 2001
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The amendments made in the Income Tax Ordinance, 2001, through the Finance Act, 2006 are explained as under:1. REVSSED VOLUNTARY PENSION FUND RULES [Section 2]
The profit or gain or benefit derived by the pension fund or the pension fund manager from the Pension Fund is exempt from tax which was granted through Finance Act, 2005. Security and Exchange Commission, has revised the Voluntary Pension Funds Rules 2005. Therefore, certain amendments have been made in the Income Tax Ordinance, as per the revised rules. Consequently, the following expressions have been defined, in section 2 of the Ordinance:Description (i) (ii) 2. Approved Employment Pension or Annuity Scheme Approved Occupational Savings Scheme Under clause (3D) (3E)
PERMANENT ESTABLISHMENT CONCEPT AND THE MINUMUM PERIOD REQUIREMENT [Section 2(41)]
There is a universal agreement that income can generally be taxed only when it is attributable to a Permanent Establishment in a country. In the Income Tax Ordinance, 2001, the term Permanent Establishment has been defined, inter-alia as a place of business through which the business of the person is wholly and partly carried on. However, there is no mention of a minimum period of presence. Law has been amended to provide the minimum requirement of three months for the determination of PE.
3.
EXEMPTION FROM INCOME TAX REAL ESTATE INVESTMENT TRUST (REIT) [Section 2(47A)]
REIT is a security that sells like a stock and invests in real estate directly or indirectly. REIT has been provided exemptions from the applicability of different provisions of the Income Tax Ordinance, 2001, subject to condition that not less than 90% of its accounting income of that year, (as reduced by capital gains whether realized or unrealized) is distributing among the unit or certificate holders or shareholders as the case may be. Consequent to above amendments, the following expressions have been defined in section 2 of the Ordinance and exemptions have been provided as below:Description (i) Real Estate Investment Trust (REIT) Under clause (47A)
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(ii)
Real Estate Investment Rust Management Company
(47B) (99) Part I of Second Schedule (57 Part I of Second Schedule
(iii) Exemption to income (iv) (v) Exemption to instrument of redeemable capital Exemption from applicability of provision of Section (a) (b) (c) 4. 113 (minimum tax) 151 (profit on debt) and 233 (Brokerage and Commission) 150 (Dividends)
Under Clause Part IV of Second Schedule (11) (33) (47B)
FIXED TAX ON INCOME FROM PROPERTY [Section 15 (6)]
Upto tax year 2006, income from property was subject to withholding tax @ 5% if the annual rent exceeded Rs.300,000/-. The monetary limit for deduction of tax has been removed. This provision was applicable only if the payer of rent was the Federal Government, a Provincial Government, Local Authority, a company, a non-profit organization or a diplomatic mission. Now, CBR has also been empowered to designate any person as withholding agent in this behalf. In order to broaden the tax base and at the same time to facilitate the taxpayer, amendment in law has been made and fixed tax @ 5% on gross amount of rent chargeable to tax under section 15 read with section 16 of the Income Tax Ordinance, 2001 has been made applicable w.e.f. July 1, 2006. However, the provision of sub-section (1) of section 15 shall not apply in respect of a taxpayer who (i) is an individual or association of persons; (ii) derives income chargeable to tax under section 15 not exceeding Rs.150,000/- in a tax year; and (iii) does not derive taxable income under any other head. 5. FULL DEDUCTIBSL5TY OF EXPENSE ON PERQUISITES. [Section 21(k)]
Expenditure on provision of perquisites and allowances to an employee in excess of 50% of his salary [excluding the value of perquisites or amount of allowances] was not deductible in the hands of the employer. The restriction on admissibility of full expense on account of perquisites and allowances paid to an employee in the hands of the employer, has been .removed by omitting clause (k) of section 21. This amendment will be applicable where expense is incurred on July 1, 2006 and onward.
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6.
RATIONALIZATION OF PROVISIONS RELATING TO DEDUCTIBILITY OF EXPENSE MADE THROUGH BANKING CHANNEL [Section 21(1)]
Any expenditure paid or payable under a single account head which, in aggregate, exceeds fifty thousand rupees made other than by a crossed bank cheque or crossed bank draft, except expenditures not exceeding ten thousand rupees or on account of freight charges, travel fare, postage, utilities or payment of taxes, duties, fee, tines or any other statutory obligation, was not be an allowable deduction up to tax year 2006. This provision was originally introduced under section 24(ff) in the repealed Ordinance, 1979. It was clarified through CBRs Circular No.11 of 1998 dated July 25, 1998, stating that clause (ff) applies to expenditure normally chargeable to profit and loss account. The expenditure chargeable to trading and manufacturing accounts (like wages and freight or purchases debitable to the said accounts) fell out side the ambit of the said clause. Now the language of the section 21(I) has appropriately been amended to include every expenditure whether debitable to trading or manufacturing accounts or profit and loss account will fall within the purview of said section. Further, the scope of banking transactions has also been expanded to include online transfer of payment from the business account of the payer to the business account of the payee and payment through credit cards subject to the condition that such transactions are verifiable from the bank statement of the respective payer and payee. This is an elaboration of the definition of banking transactions. It is explicitly clarified that any expenditure paid or payable under a single account head which, in aggregate, exceeds fifty thousand rupees made other than by a crossed bank draft, shall not be an allowable deduction w.e.f. July 1, 2006. The restriction under this provision will not apply (as before) in respect of expenditure which (i) (ii) does not exceeding ten thousand rupees; or is on account of freight charges, travel fare, postage, utilities or payment of taxes, duties, fee, fines or any other statutory obligation;
As a consequence CBRs Circular No. 11 of 1998 dated 25th July, 1998 being contrary to the provision of law is withdrawn, henceforth. 7. EXEMPTION FROM WITHHOLDING TAX TO THE GOVERNMENT DEPARTMENTS [Section 49] (i) Federal Government; (ii) a Provincial Government; or (iii) a local authority. Some of the sections pertaining to WHT do not provide explicitly exemption from such deduction or collection. Therefore, government departments were required to obtain exemption certificate from the Commissioner of Income Tax. Now, the Federal Government, Provincial Governments and local authorities (excluding those incomes of a provincial government or a local authority from a business carried on outside its
The provisions of section 49 provide exemption to the income of the
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jurisdiction) have been provided exemption explicitly from all withholding taxes deductible/collectable under the Income Tax Ordinance, 2001. 8. TAX CREDIT FOR INVESTMENT IN IPOs [Section 62]
Before amendment in section 62 tax credit was available on investment in Initial Public Offerings (IPOs) up to maximum investment of Rs.150.000/-. In order to encourage savings and to provide incentive for fresh investment, this limit has been enhanced to Rs.200,000/- for the purpose of tax credit under section 62 of the Income Tax Ordinance, 2001, where investment is made on July 1, 2006 and onward. 9. RESIDENTIAL STATUS
[Section 82]
The law provides a minimum period of 182 days to qualify as a resident. It has been opined that since a leap year consists of 366 days, an individual can be a resident of two countries at the same time which can create tax complications. For the removal of any distortion which may arise, the time period of 182 days has been changed to 183 days for the determination of residential status of an individual person. 10. REVISION BY THE REGIONAL COMMISSIONER OF INCOME TAX AGAINST ORDER OF THE COMMISSIONER UNDER WHT REGIME. [Section 122B]
Under various provisions of law relevant to withholding tax, the Commissioner is empowered to issue exemption or lower rate deduction certificate to the taxpayers. However, no appeal can be filed if such certificate is refused. To take care of such like eventualities Regional Commissioner of Income Tax has been empowered to review the orders of the CIT. 11. PROVISIONS RELATING TO ALTERNATIVE DISPUTE RESOLUTION. [Section 134A]
Under the existing scheme, a taxpayer can apply to the Central Board of Revenue for resolution of any hardship relating to income tax. Amendment has been made to specifically restrict the jurisdiction of such Committees to pending issues only meaning, thereby that closed matters fall outside the ambit of ADRCs. 12. RATIONALIZATION OF ADVANCE TAX ESTIMATE REGIME. [Section 147]
Under the existing regime, Advance Tax is payable on the basis of the last assessed income of the taxpayer, even when income for the current year is higher. In order to overcome this anomaly, advance tax has been made mandatory for a company on the basis of current years estimated income if it is more than the last assessed income. 13. EXEMPTION CERTIFICATE FOR IMPORTERS
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[Section 148] Commissioner can issue a certificate for 100% reduction of advance tax/WHT in the case of a manufacturer who imports raw material (other than edible oil) for his own use if the tax paid or collected in a tax year equals the amount of tax paid in the immediately preceding year. Amendment in section 148 (3) has been made to empower the Commissioner to issue exemption certificate to the extent of 75% reduction only. Furthermore, an explanation has been added to explain the expression edible oils to include crude oil, imported as raw material for manufacture of ghee or cooking oil. 14. ADJUSTABLE WITHHOLDING TAX ON IMPORT OF MOTOR CARS AND FERTILIZER BY MANUFACTURERS. [Section 148(7)]
Under the existing regime, withholding tax is collected @ 6% at the time of import in case of commercial importers and tax withheld is the final tax under the presumptive tax regime. Manufacturers of cars and fertilizers are also importing cars and fertilizers as finished goods and marketing them in the country. Since these are considered as commercial imports being imported finished goods, tax withheld is not adjustable and is their final tax liability. Amendment is introduced to prescribe that tax withheld on import of cars in CBU condition and fertilizers in the case of manufacturers of cars and fertilizers will be adjustable against the final tax liability of such manufacturers. 15. RATIONALIZATION OF WITHHOLDING TAX ON SERVICES [Section 152]
Every prescribed person making a payment for rendering or providing of services is liable to deduct tax from the gross amount payable at the following rates:(i) (ii) in the case of transport services = 2% in any other case = 5%
The rate of WHT is prescribed @ 6% in the case of a contract (i) for the supply of supervisory activities in relation to project; or (ii) for services rendered other than contract; and (iii) for advertisement services rendered by TV Satellite Channels. For the purposes of simplification of law and procedure and to reduce the hassle of litigation, uniformity has been introduced and services rendered or provided including transport services has also been subjected to a WHT @ 6% on the analogy of WHT rate on contracts, which shall also be the final discharge of liability under PTR. However, companies providing or rendering services will remain outside the ambit of PTR. As a result clause (iv) of SRO 600(I)/91 being contrary to the amended provision of law, is omitted from the said SRO.
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16.
SERVICES OF SIZING AND WEAVING TO BE DEEMED AS EXPORTS. [Section 153(1A)]
Through SRO.946(S)/2005 dated September 12, 2005 services of stitching dying, printing, embroidery and washing rendered or provided to an exporter or an export house were treated as export and made chargeable to tax at the rate equal to the rate of tax applicable to the exporter on export of goods to which such services related, as specified in Division IV of Part III of the First Schedule. This measure was taken in conformity with the parameters given in the Trade Policy 2005. Since sizing and weaving industry both are also providing similar services to the exporters, therefore, to incentivize the export sector, these services have also been treated as export and export rate shall be made applicable to such services under Presumptive Tax Regime. Amendment in law has been made to specify exporters or export houses as prescribed persons for the purposes of WHT on such services. 17. ENHANCING WHT RATE WHERE NTN /CNIC IS NOT DISCLOSED [Section 153(8A)]
A new provision has been incorporated to provide, where supplier of goods and services as well as a person executing a contract does not disclose NTN/CNIC, WHT will be enhanced by 2% over and above the normal rate of withholding tax. This measure has been taken to encourage documentation in economy. 18. Monthly withholding tax return/statement [Section 165(2)]
In order to improve withholding taxes regime, provision has been made to make mandatory for withholding agents to file a monthly return of withholding taxes. 19. STATEMENT REGARDING THIRD PARTY INFORMATION. [Section 165(3)] A new sub-section (3) has been added to section 165, which empowers CBR to prescribe a statement to be furnished periodically. Containing information as required. 20. PERIODICAL STATEMENTS EXTENSION OF TIME FOR FILING. [Section 165(4)]
Every withholding agent is required to furnish annual statement to the Commissioner within two months after the end of the financial year or within such further time as the Commissioner may allow by order in writing. Withholding agents are also required to file quarterly statements. However, for filing of quarterly statement, law does not empower the Commissioner to extend the date even in genuine cases. Commissioner has now been empowered to allow extension of time in hardship cases. 21. ELECTONIC FILING OF WHT STATEMENTS [Section 165(5)]
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With rapid advances in technology taking place, the concept of E-Government has already become popular not only in technologically advanced countries but even in developing countries. The obvious advantages are improvement in efficiency, facilitation etc. In the ongoing reform process in Pakistan, automation figures prominently. Law also provides facility of electronic filing of income tax returns. On the analogy of provisions prescribed for E-filing of Income Tax Returns, amendment has been made in law, enabling CBR to prescribe mandatory e-filing of statements by prescribed classes of withholding agents. 22. CIRCULAR OF CBR IS BINDING ON OFFICERS [Section 206]
Sub-section (2) of section 206 has been re-written to reiterate, in line with the directions contained in the judgments of the superior courts, that circular issued by the CBR shall be binding on all income tax authorities and other persons employed in the execution of the order under the control of the Board other than CIT (Appeals). 23. WITHHOLDING TAX ON COMMISSION AND BROKERAGE [Section 233] In the case of indenting commission 5% of the amount of the payment agents, Advertising agents and yarn dealers. In the case of others 10%
Brokerage or commission was subject to withholding tax as below:
Tax deducted on aforesaid commission is the final discharge of tax liability. In order to bring clarity in law and to provide uniformity in tax rate, withholding tax rate on commission including indenting commission and yarn dealers commission has been made uniform @ 10%. Advertising agents will, however, be liable @ 5% under clause (26), Part II of Second Schedule. Furthermore, previously, the final tax regime was applicable to commission/brokerage received by resident agents only. In order to remove the anomaly, the law has been suitably amended to provide similar treatment to nonresidents also. 24. SIMPLIFICATION OF SALARY TAXATION. ENHANCEMENT IN BASIC EXEMPTION LIMIT [First Schedule, Part I, Division 1]
Following the policy of making tax laws simpler wherever possible, the method of valuation and taxation of perquisites etc. has been rationalized. The basic exemption limit has been enhanced from Rs.100,000 to Rs.150,000. However, where the taxpayer is a woman the basic exemption limit wilt be Rs.200.000/-. All allowances and perquisites shall be added to the salary income.
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(i)
The value of house shall be taken at the amount equal to the allowance which the employee would have received in cash if accommodation was not provided, or 45% of minimum time scale (or basic salary ) whichever is less; The valuation of conveyance facility is restricted to 10% and 5% of value of car where the car is for totally personal use or partly personal use, respectively.
(ii)
The additions of all allowances and perquisites will be grossed up and tax rate as per Division I of Part I of the First Schedule will be applied to determine the tax liability of the salaried taxpayer. 25. SIMPLIFIED TAX REGIME FOR NON-SALARIED TAX PAYERS [First Schedule, Part-I, Division 1]
A simple rate card has been evolved for non-salaried taxpayers and flat rates have been introduced to be applied to the taxable income of non-salaried individuals, depending upon the level of income, 26. SPECIAL TAX CONCESSION FOR WOMEN [First Schedule Part-I, Division 1[
In line with the Government policy of women empowerment, the basic threshold in the case of salaried and non salaried women taxpayers has been enhanced to Rs.200,000 and Rs.125,000 respectively for tax year 2007. 27. REDUCTION IN CORPORATE TAX RATES. [First Schedule Part I, 1]
Through the Finance Act 2002, a five year rate card was introduced which contemplated a gradual reduction culminating into a uniform 35% rate for all the three categories of companies w.e.f. tax year 2007. For the tax year 2006 the rates in force are: Banking companies Public Companies Private Companies 28. 38% 35% 37%
REDUCTION IN TAX RATE FOR INTER CORPORATE DIVIDENDS [First Schedule, Part I, Division III]
A concessional tax @ 5% is leviable on dividends received by a public company or an insurance company. Dividends received by other companies were subject to a withholding tax of 10% which was their final tax liability. In order to encourage more investments, withholding tax rate on inter-corporate dividends received by resident companies has been reduced to 5% like in the case of public companies w.e.f. Tax Year 2007 as a final tax liability. 29. EXCLUSION OF AGRICULTURE INCOME FROM PERSONAL TAX RATE CARD. [First Schedule, Part I, Division 1, Clause (2)]
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Finance Department
The personal tax rate card provides that where, for a tax year, an individual or AOP derives income from agriculture and the gross amount of such income for the year exceeds Rs.80,000/-, basic exemption limit will not be available to work out the taxable income. This provision to account for agricultural income to workout income tax liability has been omitted. 30. ONE TIME EXEMPTION ON CORPORATIZAT10N OF INDIVIDUAL STOCK EXCHANGE MEMBERSHIP [Clause (133A), Second Schedule, Part I]
Onetime exemption on income from transfer of individual membership to a company was allowed up to 30.06.1999. This incentive had improved the quality of intermediation in capital market transactions, therefore another one time exemption was provided up to 30.06.2006. In order to encourage further corporatization, the gain derived by an individual from transfer of membership rights or shares of a stock exchange in Pakistan alongwith a room in a stock exchange in Pakistan by an individual to a company at any time between the first day of July, 2006 and the thirtieth day of June 2007 will be exempted from levy of income tax. 31.___VENTURE COMPANIES - EXTENSION IN EXEMPTION AFTER JUNE 2007._______________________________________________________________ [Second Schedule, Part I, Clause (101)] Exemption to profit and gains derived by the Venture Capital Company (VCC) and Venture Capita! Fund (VCF) registered under Venture Capital Companies and Funds Management Rules, 2000. was introduced in the Repealed Income Tax Ordinance, 1979 for a period of seven years effective from July 1, 2000. This sector is not fully developed so far. Therefore, exemption to income of Venture Capital Companies and Venture Capital Funds has been extended upto 2014. 32. MURABAHA FINANCING. [Second Schedule, Part IV, Clause (11)]
Islamic banking is fast coming up in Pakistan. In conventional banking, minimum tax i.e. 0.5% is applicable on the interest income only as this falls under the definition of turnover. Whereas in case of Murabaha, the applicability of minimum lax i.e. 0.5% is on total amount of resale (cost plus profit) as the Islamic bank will be recording the sales revenue in their books which will be treated as their turnover. In order to ensure that Islamic banking is not at a disadvantage viz-a-viz normal banking, minimum tax @ 0.5% on Murabaha turnover covered under the Islamic Banking Transactions has been withdrawn w.e.f. Tax Year 2007. 33. WAIVER FROM MINIMUM TAX IN THE CASES OF TRADING HOUSES [Second Schedule, Part-IV, Clause (57)]
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Large trading houses were excluded from PTR through Finance Act, 2005. To further incentives sector Large Trading Houses, these have been exempted from application of [minimum tax] for the first ten years starting from the tax year in which the business operations commence. 34. REBATE FOR TEACHERS AND GOVERNMENT INSTITUTIONS [Second Schedule, Part-III, Clause (2)] RESEARCHERS POSTED IN
Full time teachers or researchers employed in non-profit education or research institutions including Government training and research institution duly recognized by a Board of Education, a University or Higher Education Commission enjoy a special tax rebate of 75%. Previously, the law provided that Government Training and Research Institutions are also required to be recognized from HEC for such reduction in tax liability. Whereas the ground reality is that Government Training and Research Institutions are invariably not subject to recognition by the NEC or by any University. In order to encourage teachers and researchers posted in such institutions, law has been suitably amended to extend similar tax reduction to them as well. 35 TAX REBATE FOR SENIOR CITIZENS - REDUCTION IN AGE LIM1T
FROM 65 TO 60 YEARS
[Second Schedule, Part III, Clause (1A)] Tax liability is reduced by 50% in the case of a taxpayer whose (i) age is 65 years or more; and (ii) income does not exceed Rs.400,0007In order to provide further relief to senior citizens, it has been extended to persons having age above 60 years. 36. EXEMPTION ON IMPORT OF RADIO APPARATUS BY AIRPORTS [Second Schedule, Part-IV, Clause (56)(x)] NAVIGATIONAL AID
To encourage the public, private collaboration in projects where huge investment is involved, exemption on import of Radio Navigational Aid Apparatus for airports has been granted. 37. EXEMPTION FOR EXPORT OF LOCALLY DEVELOPED TELEVISION
PROGRAMS.
[Second Schedule, Part I. Clause (133)] Income Tax law allows exemption upto 2016 for I.T enabled services which include call centres, medical transcriptions, accounting services. HR services and graphics design etc. To boost exports through cultural activities, the exports of locally developed television programs have been exempted from income tax.
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38.
REDUCTION SECURITIES
OF
WITHHOLDING
RATE
ON
GOVERNMENT
Profit on debt received by a person on account of a deposit/certificate under the National Savings Scheme or Post Office Savings Account, or an account/deposit maintained with a bank or a financial institution is subject to withholding tax @ 10% of the yield or profit paid. However, profit paid on other securities by the Federal Government, a provincial government or a local authority attracts WHT @ 20%, which placed the said investors at a disadvantageous position. Therefore, WHT on profit on Government Securities has been reduced from 20% to 10%. 39. WITHHOLDING TAX ON EXEMPT AND REDUCED RATES IMPORTS [Second Schedule, Pad II, Clause (13G)]
Under the previous regime, certain imports enjoyed total exemptions, whereas others are subject to a reduced rate of withholding tax. In the first category it includes imports of wheat, sugar, mobile telephone sets and plant, machinery, equipments and parts and in the second category are gold and silver which are subject to a withholding tax of Rs.2/par tola and Rs.5/- per kg. respectively. Likewise import of re-rollable and re-meltable scrap which is a raw material for steel industry is liable to withholding tax @1% at the import stage. These concessions have now lost relevance and there was a need to rationalize the rate structure. (A) Withholding tax @ 1% has been prescribed for imports of items given below: (i) (iii) (v) (vii) (ix) (x) Capital goods; (ii) Cement; Coal; (iv) Gold; Mobile telephone sets; (vi) Silver; Sugar; (viii) Wheat; Raw wood; Trucks in CBU condition having Gross Vehicle Weight exceeding 5 tons classified under PCT headings 8704.3290 and 8704.9090, (xi) Dump trucks classified under PCT heading 8704; (xii) Buses and tractors classified under PCT heading 87.01, 8702.1090; (xiii) The following items covered by SRO. 567(l)/2006 dated (B) Clause (13H), Part II of the Second Schedule has been added to collect reduced rate of WHT @ 2%, on the following items, on import value as increased by customs duty and sales tax, (if any leviable thereon):(i) raw material for steel industry including re-meltable, and re-reliable scrap; (ii) raw material for manufacture of poultry feed and (iii) stationery; For the purpose of section 148, an explanation has been added to define the expression capital goods as below:-
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Explanation Capital goods mean any plant, machinery, equipment, spares and accessories, classified in Chapters 84, 85 or any other Chapter of the Pakistan Customs Tariff, required for,(i) the manufacture or production of any goods, and includes refractory bricks and materials required for setting up a furnace, catalysts, machine tools, packaging machinery and equipment, refrigeration equipment, power generating sets and equipment, instruments for testing, research and development, quality control, pollution control and the like; use in mining, agriculture, fisheries, animal husbandry, floriculture, horticulture, live stock, dairy and poultry industry;
(ii)
(iii) service sector as defined in Customs Act, 1969; 40. WITHDRAWAL OF REDUCED RATE OF WITHHOLDING TAX ON SUPPLIES OF RAW HIDES AND SKINS
SRO.600(I)/91 dated July 2, 1991 prescribed reduced withholding tax @ 1% on supplies of raw hides and skin. Prescribed persons (being exporters of goods) making payments on account of supply of goods as are purchased in respect of goods exported are not required to withhold tax on such supplies. However, where special rates of tax deduction have been specified, (as in the case of Raw Hides & Skins) the prescribed person has to deduct tax at source under the law. In order to facilitate exports, special rate for deduction of tax, on supplies of raw hides and skins as provided in clause (i) of SR0.600(I)/91 dated 05.06.2006 under the Customs Act, 1969 : (a) (b) (c) (d) Disinfectants used in poultry business pre-fabricated structures for poultry farms live stock and raw materials and intermediaries goods as used in the manufacture of packing material for the packing of dairy products, medicines for cancer, drugs used for kidney dialysis and kidney transplant, all type of vaccines for Hepatitis, Inter feron and other medicines for Hepatitis, all vaccines/anti-sera, cardiac medicines, injection anti-D Immunoglobulin, blood bags CPDA.1, ail medicines for HIV/AIDS and ail medicines for Thalassemia. News print
(e)
xiv. The following items covered by SRO. 575(l)/2006 dated 05.06.2006 under the Customs Act, 1969: (a) (b) medical, surgical, dental or veterinary machinery/equipment, fixtures, fittings, furniture and diagnostic kits (not manufactured locally). equipments relating to call centers (not manufactured locally)
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Finance Department
(c)
ripening chambers, hot water treatment plant, vapour hot treatment plant, modern cold storage, packing machinery, power generating sets of 10-25 KVA and battery operated fork lift trucks used in horticulture and floriculture business processing and packing machinery/equipment required for fish farming Broadcasting equipments
(d) (e) xv.
Computer hardware, parts and accessories of items classified under PCT heading 8471.
July 2, 1991 is withdrawn, w.e.f. July 1, 2006 so that all suppliers making supplies to exporters get similar treatment. 41. TAXATION OF STOCK MARKET TRANSACTIONS [Second Schedule, Part I, Clause (99)]
Income Tax was introduced to stock market through the Finance Act, 2004 in the form of withholding tax, as under; (i) (ii) Purchase of shares in lieu of commission earned by members Sale of shares in lieu of commission earned by members 0.005% 0.005% 0.005% 0.01%
(iii) Value of the shares traded (Sale)

(iv) Financing of carry over trade (Badia) in shares by the
members of stock exchanges on amount of carry over charge

(v) Capital Value Tax (CVT) on the purchase value of shares @ The rate of WHT on all trading transactions made in the stock exchanges has been increased as under: (i) (ii) in case of purchase of shares in case of sale of shares 0.01% of purchase value 0.01% of sale value 0.01 % of traded value
(iii) in case of trading of shares
In case of financing of carry over trades (Badla)/cfs the existing rate of 10% has been retained. However, CVT on purchase value of shares has been enhanced from the 0.01% to 0.02%. 42. WITHHOLDING TAX ON CASH WITHDRAWALS FROM BANKS. [First Schedule, Part IV, Division-VI]
Withholding tax @ 0.1% was levied in 2005 on cash withdrawals from banks, exceeding Rs.25,000/-. The measure was primarily aimed at encouraging documentation in the economy. The rate of withholding tax has been enhanced from 0.1% to 0.2% of the amount withdrawn. The limit of Rs.25,000/- per transaction has been changed to per day basis.
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43.
TAXATION OF PROFIT ON DEBT. [First Schedule, Part III, Division-1]
Upto tax year 2006 withholding tax deducted on profit on debt @ of 10% was adjustable. Tax so deducted has now been made final discharge of tax liability under the Presumptive Tax Regime except in the cases of companies. 44. AMENDMENT IN RULES - REGARDING APPROVAL OF NON-PROFIT ORGANIZATIONS (NPOS) AND WELFARE INSTITUTIONS Filing of Return by NPOs and Welfare Institutions The NPOs mostly do not file the return of income tax and even do not obtain NTN considering themselves as exempt entities. Now, it has been made explicitly mandatory for NPOs to file income tax returns annually. 45. EXEMPTION FOR SUBSIDIES PROVIDED GOVERNMENT [Clause (102A) Part I of the Second Schedule] BY FEDERAL
It is common practice that Governments have to allow subsidies to their agencies/departments to meet the cost differentials in order to carry out their plans/projects. This is often necessitated to provide relief to various segments of the society at large. Under the existing scheme of things, such subsidies are taxable. Now, subsidies granted by the Federal Government for the purposes of implementation of any approved assignment have been exempted from income tax. 46. DEPRECIATION FOR THE MACHINERY PRODUCING I.T. PRODUCTS [Third Schedule, Part I]
Depreciation allowance @ 10% is admissible in the case of machinery and plant in addition to initial allowance of 50% across the board. However, computer hardware including printers, monitors and allied items are allowed normal depreciation @ 30%. This concession is due to fast obsolescence of I.T. items. The machinery producing IT products is also depreciated or become obsolete fastly as compared to other machinery. Therefore, to encourage this sector depreciation allowance@~3Q% will be admissible to machinery and equipment used in (manufacture of IT products. ---------GOVERNMENT OF PAKISTAN REVENUE DIVISION CENTRAL BOARD OF REVENUE C. No.F.4(5)ITR/06 Islamabad, July 11, 2006 Circular No. 03 of 2006 (Income Tax)
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Finance Department
Subject:
COMPUTATION OF INCOME TAX PAYABLE BY THE SALARIED TAXPAYERS FOR TAX YEAR 2007 AND DEDUCTION OF ADVANCE TAX FROM SALARY FOR THE TAX YEAR COMMENCING 1ST JULY 2006
Tax in the case of a salaried taxpayer shall be computed in accordance with sections 12,13 and 14 of Income Tax Ordinance 2001, read with rules 2 to 7 of income Tax Rules 2002. A salaried taxpayer means where salary constitutes more than 50% of the total income. Ail perquisites, allowances or benefits, [excepting those covered under Part-l of the Second Schedule to the Ordinance], are to be included in the salary and rate of tax prescribed in Part-l of the First Schedule shall be applied for the tax year 2007 on the gross figure. The taxation of salaried taxpayer is explained as under: 2. REBATE FOR TEACHERS AND GOVERNMENT INSTITUTIONS RESEARCHERS POSTED IN
A full time teacher or a researcher, employed in a non-profit education or research institution recognized by Higher Education Commission (HEC), a Board of Education or a University was entitled to a benefit, under Part-III of Second Schedule to the Income Tax Ordinance 2001 and his tax liability stood reduced by an amount equal to 75% of tax payable on his income from salary. This concession has now been extended to full time teachers and researchers employed in government training and research institutions also.
3.
INCREASE IN BASIC THRESHOLD.
The basic exemption for tax year 2006 is rupees 1,00,000/-. This has been enhanced to Rs.150,000/- for the tax year 2007. The tax slabs have also been revised through Finance Act, 2006. These slabs shall be applicable for tax year 2007. For withholding purposes, these shall apply to salary paid on or after first day of July, 2006. The revised slabs are as underSr. No. 1. 2. 3. 4. 5. 6. Taxable Income Where the taxable income does not exceed Rs.150,000 Where the taxable income exceeds Rs.150,000 but does not exceed Rs.200,000 Where the taxable income exceeds Rs.200,000 but does not exceed Rs.250,000 Where the taxable, income exceeds Rs.250,000 but does not. exceed Rs.300,000 Where the taxable income exceeds Rs.300,000 but does not exceed Rs.350,000 Where the taxable income exceeds Rs.350,000 does not Rate of tax 0% 0.25% 0.50% 0.75% 1.50% 2.50%
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7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 4.
exceed Rs.400,000 Where the taxable income exceeds Rs.400,000 but does not exceed Rs.500,000 Where the taxable income exceeds Rs.500,000 but does not exceed Rs.600.000 Where the taxable income exceeds Rs.600,000 but does not exceed Rs.700,000 Where the taxable income exceeds Rs.700,000 but does not exceed Rs.850,000 Where the taxable income exceeds Rs.850,000 but does not exceed Rs,950,000 Where the taxable income exceeds Rs.950,000 but does not exceed Rs.1,050,000 Where the taxable income exceeds Rs.1050,000 but does not exceed Rs.1,200,000 Where the taxable income exceeds Rs.1200,000 but does not exceed Rs.1,500,000 Where the taxable income exceeds Rs.1500,000 but does not exceed Rs.1,700,000 Where the taxable income exceeds Rs.1700,000 but does not exceed Rs.2000,000 Where the taxable income exceeds Rs.2000,000 but does not exceed Rs.3,150,000 Where the taxable income exceeds Rs.3,150,000 but does not exceed Rs.3,700,000 Where the taxable income exceeds Rs.3,700,000 but does not exceed Rs.4,450,000 Where the taxable income exceeds Rs.4,450,000 but does not exceed Rs.3,400,000 Where the taxable income exceeds Rs.8,400,000
3.50% 4.50% 6.00% 7.50% 9.00% 10.00% 11.00% 12.50% 14.00% 15.00% 16.00% 17.50% 18.50% 19.00% 20.00%
TAXATION OF ACCOMMODATION PROVIDED BY THE EMPLOYER
The value of accommodation provided by the employee to the employee shall be taken as the amount which the employer would have paid to the employee in case the accommodation was not provided to him. In other words, for the purpose of calculation of value of the perquisite of housing, the amount of house rent that would have been paid by the; employer (if house was not provided) shall be included in tile salary for tax purposes. However, the value taken for this purpose will not be less than 45% of the minimum of the time scale of the basic salary or the basic salary where there is no time scale. 5. TAXATION OF MOTOR VEHICLE PROVIDED BY THE EMPLOYER
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Finance Department
The addition on account of Motor Vehicle provided by the employer to the employee shall be calculated in the following manner: (i) (ii) Where motor vehicle is used partly for personal and partly for business purposes. In case the motor vehicle provided by the employer is used partly for personal and partly for business purposes, the amount to be included in the salary on this account shall be 5%, of: (a) (b) (ii) cost to the employer for acquiring the motor vehicle;
or
the fair market value of the motor vehicle at the commencement of the lease (if the motor vehicle is taken on lease by the employer)
Where motor vehicle is provided exclusively for personal or private use. In case motor vehicle provided by the employer is used exclusively for personal or private use, addition in income will be made as under: (a) Where motor vehicle is owned 10% of cost to the owned by the employer employer for acquiring motor vehicle. or where the motor vehicle is taken 10% of fair market vale of on lease by the employer motor vehicle at commencement of the lease. by the the the
(b)
6.
FLYING ALLOWANCE Any amount received as flying allowance by: (a) (b) Pilots, flight engineers and navigators of Pakistan Armed Forces, Pakistani Airlines or Civil Aviation Authority; and Junior Commissioned Officers of other ranks of Pakistan Armed Forces shall be taxed @ 2.5% as a separate block of income.
7.
ADJUSTMENT OF TAX LIABILITY OF SALARIED TAXPAYERS BY EMPLOYERS BEING WITHHOLDING AGENT
In accordance with the guidance embodied in Circular No. 18 of 2004 dated August 9, 2004, every employer, while deducting income tax payable on the income chargeable under the head Salary of its employees, is allowed under the provisions of section 149 of the Income Tax Ordinance, 2001 to make such adjustments, as may be necessary, for any excess deduction or deficiency arising out of any previous deduction or failure to make deduction during the Tax Year. A withholding agent is allowed to make adjustments on production of the documentary evidence by an employee regarding income tax withheld alongwith;
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(a) (b)
motor vehicle tax in respect of motor vehicle registered in employees own name; telephone bill as subscriber of telephone.
8. The following examples will illustrate the computation of tax of salaried taxpayers for the tax year 2007 and tax shall accordingly be deducted under section 149 (1) of the Income Tax Ordinance, 2001 by the employers w.e.f July 1, 2006: Example-1 Minimum Time Scale (Rs.2980-200-8980) A salaried taxpayer is provided with accommodation by the employer. The employee was entitled to house rent allowance @ 45% of minimum time scale, had the accommodation not been provided. Total Income Basic Salary @ 7180 per month House Rent allowance (35760 45%) Conveyance allowance Medical allowance Rs.5100/-. Exempt upto 10% of the basic salary, if free medical treatment or hospitalization or re-imbursement of medical or hospitalization charges is not provided [clause (130)(b), Part I of Second Schedule] Spl. Addl. Allowance Spl. Relief Allowance Adhoc Relief Dearness Allowance Total Tax payable on Rs.150744 @ 0.25% Tax deductible per month Example-2 Minimum Time Scale (Rs.2865-185-8410) A salaried taxpayer is entitled to house rent allowance @ 45% of minimum time scale, as he has not been provided with accommodation by the employer. Total Income 52140 Exempt Income Nil Taxable Income 52140 86160 16092 8160 5100 Exempt Income Nil Nil Nil 5100 Taxable Income 86160 16092 8160 00
5496 10956 10956 12924 156844 Rs.377 Rs.31
Nil Nil Nil Nil 5100
5496 10956 10956 12924 150744
Basic Salary@ 4345 per month
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Finance Department
House Rent allowance (34380 45%) Conveyance allowance Medical allowance Rs.5100. Exempt up to 10% of the basic salary, if free medical treatment or hospitalization or re-imbursement of medical or hospitalization charges is not provided, [clause (139)(b), Part I of Second Schedule] Computer allowance Spl Addl. Allowance Spl. Relief Allowance Adhoc Relief Dearness allowance Total
15471 5520 5100
Nil Nil 5100
15471 5520 00
9000 4980 6492 6492 7821 113016
Nil Nil Nil Nil Nil 5100
9000 4980 6492 6492 7821 107916
This salaried taxpayer also owns a house which is on rent @ Rs.10,000/- per month (Total property income comes to Rs.10,000 12= 120.000/-). Since the salary income as well as property income is below the basic threshold i.e. Rs.150,000/-, therefore, no tax will be paid by the taxpayer for the tax year 2007 [section 15(7) of the Income Tax Ordinance, 2001]. Example-3 Minimum Time Scale (Rs.2865-185-8410) A salaried taxpayer is entitled to house rent allowance @ 45% of minimum time scale, as he has not been provided with accommodation by the employer. Total income 52140 15471 5520 5100 Exempt Income Nil Nil Nil 5100 Taxable Income 52140 15471 5520 00
Basic Salary @ 4345 per month House Rent allowance {34380 45%) Conveyance allowance Medical allowance Rs.5100. Exempt up to 10% of the basic salary, if free medical treatment or hospitalization or re-imbursement of medical or hospitalization charges is not provided, [clause (139)(b), Part I of Second Schedule] Computer allowance Spl. Addl: Allowance Spl. Relief Allowance Adhoc Relief Dearness allowance Total
9000 4980 6492 6492 7821 113016
Nil Nil Nil Nil Nil 5100
9000 4980 6492 6492 7821 I07916
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This salaried taxpayer also owns a house which is on rent @ Rs.15,000/- per month (Total property income comes to Rs.15,000 X 12 = 180.000/-). Therefore, tax payable on the salary and property income for the tax year 2007, will be computed as below: (A) (B) Salary income Rs.107916/- being below the basic threshold i.e. Rs.Rs.150,000/-, therefore, no tax on such income will be payable. Property income Tax @ 5% = = Rs.180,000 Rs.180,000
Total tax payable is Rs. 9000 Exarnple-4 Minimum Time Scale (Rs.14260-705-28360) A salaried taxpayer is provided with accommodation by the employer. The employee was entitled to house rent allowance @ 45% of minimum time scale, had the accommodation not been provided. total Income 230340 77004 14880 18600 6000 30069 30069 406962 Rs.14244 Rs.1187 Exempt income Nil Nil Nil Nil Nil Nil Nil Nil Taxable Income 230340 77004 14880 18600 6000 30069 30069 406962
Basic Salary @ 19195 per month Accommodation provided by employer, Conveyance allowance Spl. Addl. Allowance Qualification Pay Spl. Relief allowance @ 15% Ad-hoc relief allowance @ 15% Total Tax payable on Rs.406962 @ 3.5% Tax deductible per month Ex ample-5 Basic Salary Rs.19195/-
A salaried taxpayer is provided with accommodation by the employer. The employee was entitled to house rent allowance @ 60% of basic salary had the accommodation not been provided and there is no minimum time scale. Besides, the employer provided the vehicle exclusively for personal use. The cost of motor vehicle to the employer is Rs.500000/Total Income 230340 138204 50000 418544 Exempt Income Nil Nil Nil Nil Taxable Income 230340 138204 50000 418544
Basic Salary @ 19195 per month Accommodation provided by employer. Motor Vehicle @ 10% of the cost [Rs.500,000]. Total
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Finance Department
Tax payable on Rs. 418544 @ 3.5% Tax deductible per month Example-6 Basic Salary Rs.19195/-
Rs.14649/Rs.1220/-
A salaried taxpayer is provided with accommodation by the employer. The employee was entitled to house rent allowance @ 60% of basic salary had the accommodation not been provided. There is no minimum time scale. The employer also provided the vehicle exclusively for personal use. The fair market value of motor vehicle is taken at Rs.500,000/-, assuming that motor vehicle is taken on lease by the employer. Total Income Basic Salary @ 19195 per month 230340 Accommodation provided by employer. 138204 Flying allowance, assuming that the person works 2500000 for a Pakistani Airline Medical Allowance Rs.60000/-, Exempt up to 10% 60000 of the basic salary, if free medical treatment or hospitalization or re-imbursement of medical or hospitalization charges is not provided, [clause (139)(b), Part I of Second Schedule] Free passage 4 air tickets provided by an airline to 320000 its employee @ Rs.80000 per ticket. Motor Vehicle @ 10% of the fair market value 50000 [Rs.500,000] Concessional loan of Rs.2.0 (M) obtained @ 4% 100000 per annum [benchmark rate 9% for the tax year 2007. Difference 9-4 = 5%] Total 3398544 Tax payable on Rs. 55,55,10 @ 4.50% Tax on flying allowance of Rs. 25,00,000 @ 2.5 % Total tax payable Tax deductible per month Example-7 Basic salary Rs.19,195/A salaried taxpayer is provided with accommodation by the employer. The employee was entitled to house rent allowance @ 70% of basic salary had the accommodation not been provided and there is no minimum time scale. The employer provided vehicle to employee partly for personal and partly for business use. The cost of motor vehicle to the employer is Rs.1,000,000/Rs.24998/Rs.62500/Rs.87498/Rs.7292/Exempt Income Nil Nil Nil Taxable Income 230340 138204 To be separately taxed 36966
23034
320000 Nil Nil 343034 50000 100000 555510
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Basic Salary @ 19195 per month Accommodation provided by employer. Medical Allowance Rs.96000/- provided by the employer. Exempt up to 10% of the basic salary, if free medical treatment or hospitalization or re-imbursement of medical or hospitalization charges is not provided, [clause (139)(b), Part I of Second Schedule] Motor Vehicle @ 5% of the cost [Rs.10,00,000] Concessional loan of Rs.2.0 (M) obtained @ 4% per annum [benchmark rate 9% for the tax year 2007. Difference 9-4 = 5%] Total Tax payable on Rs. 614544 @ 6% Tax deductible per month (Assumed) the taxpayer has:(a) (b) contributed to an Approved Pension Fund (section : 63) made investment in shares (section 62) = =
Total Income 230340 161238 96000
Exempt Income Nil Nil 23034
Taxable Income 230340 161238 72966
50000 100000
Nil Nil
50000 100000
637578
23034
614544
Rs.36873/Rs.3073/-
Rs.150000 Rs.40000
Tax credit will be computed as under: (a) contribution to an approved Pension Fund Formula Where.A (A/B) C
is the amount of tax assessed to the person for the tax year, before allowance of any tax credit under Part X; is the persons taxable income for the tax year; and Is the lesser of
Rs.36873 Rs.614544
B C
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Finance Department
(i)
the total contribution or premium paid by the person in the year; or 20% of the persons taxable income for the relevant tax year, or
Rs.150000
(ii)
Rs.122909 Rs.500,000 Rs.7375 Rs.40,000
(iii) Rs.500,000/Tax Credit (36873/614544) 122909 (b) investment in shares Formula (A/B) C where A is the amount of tax assessed to the person for the tax year before allowance of any tax credit under Part X; is the persons taxable income for the tax year; and is the lesser of (a) the total cost of acquiring the shares in the year; (b) (c) 10% of the persons taxable income for the year; or Rs. 200,000/-. = Rs.36873 Rs(7375) Rs.(2400) Rs.27098 ----------
Rs.36873 Rs.614544
B C
Rs.40000 Rs.61454 Rs.200000 Rs.2400
Tax Credit (36873/614544) 40000 Total Tax Tax credit u/s 63: Tax credit u/s 62 : Tax Payable for tax year 2007
No.F.5(1)R.5/2005-384 GOVERNMENT OF PAKISTAN Finance Division (Regulations Wing) Islamabad, 16th August, 2006 Subject: GRANT OF COMPUTER ALLOWANCE
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Sir, It has come to the notice of the Finance Division that a fake O.M. bearing No.F.1(5)Imp/2006 dated 24 June 2006 having fictitious signature of Mr. Shakeel Ahmad, DS (R.2) conveying therein the so called revision in the Computer Allowance is in circulation. It is requested that no action on the said O.M may be taken as no upward revision in the rates of Computer Allowance has taken place since 2001. ---------No. FD/ACCOUNTS(A&A)-14/61(VOL-III) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 24th August, 2006. Subject: DISBURSEMENT OF PAY AND ALLOWANCES/PENSION FOR THE MONTH OF JUNE, 2006.
In pursuance of the provision of Note 1 below Rule 5.1 (1) (e) of the Punjab Financial Rules (PFR) Vol-I, Finance Department directs to disburse the Pay and Allowances/Pension for the month of June, 2006 in advance, to all the Provincial Government employees including those working in the District Governments and Pensioners, on 30th June, 2006. 2. You are, therefore, requested to kindly take necessary action accordingly. ---------No. IT(FD)3-4/2002 Vol-VIII GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 23rd September 2006 Subject: EXECUTION OF DEVELOPMENT SCHEMES GOVERNMENTS AS DEPOSIT WORK OF LOCAL
Kindly refer to the subject cited above. 2. The question as to whether a local government can get the execution of its development schemes done from any agency other than those not specifically notified as a works department of the federal, provincial or a local government has been examined in the Finance Department in consultation with the LG&RD Department. 3. In this regard attention is invited to Section 109(3) of the PLGO 2001 which is reproduced below:Section 109(3)
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No local government shall transfer monies to higher level of government except by way of repayment of debts contracted before the coming into force of this Ordinance, or for carrying out deposit work. 4. It is accordingly clarified, that transfer of funds and execution of development schemes of local governments may strictly be done in terms of the said provision of law. In this regard, attention is also drawn to the policy instructions contained in F.Ds letter No. IT(FD)3-4/2002 Vol-III dated 22.2.2003. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 2nd October, 2006. NOTIFICATION No. FD (FR) II-2/89. In exercise of the powers conferred upon him under Article 119 of the Constitution of the Islamic Republic of Pakistan, 1973 and in supersession of all previous rules, orders, instructions, etc. relating to the delegation of powers under the Delegation of Financial Powers Rules, 1990, the Governor of the Punjab is pleased to make the following rules:THE PUNJAB DELEGATION OF FINANCIAL POWERS RULES, 2006 1. SHORT TITLE AND COMMENCEMENT (1) These rules may be cited as the Punjab Delegation of Financial Powers Rules, 2006. (2) 2. These shall come into force at once. DEFINITIONS (1) In these rules, unless the context otherwise requires: (a) Chief Secretary mean the Chief Secretary to the Government of the Punjab; (b) (c) First Schedule and Second Schedule mean respectively the First and the Second Schedules attached to these rules, and Officers in Category-I, Officers in Category-II, Officers in Category-III and Officers in Category-IV mean respectively the Officers specified in Part-I, Part-II, Part-III and Part-IV of the First Schedule.
(2) 3.
An expression used in these rules but not defined in it, shall have the same meaning as assigned to it in the Punjab Financial Rules, Volume-I.
DELEGATION OF POWERS (1) The authorities specified in column 3 of the Second Schedule shall exercise the powers conferred in column 2, to the extent mentioned in column 4 thereof.
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(2)
Notwithstanding anything contained in sub-rule (1) (a) the Chief Justice, Lahore High Court, the Ombudsman, Punjab; the Chairman, Punjab Public Service Commission; the Secretary, Provincial Assembly of the Punjab; and the Chairman, Punjab Local Councils Election Authority shall respectively exercise the financial powers of an Administrative Department; subject to the superintendence of the Home Department as provided for under Article 9(1) read with Article 2(xxvi-a) of the Police Order, 2002, the Provincial Police Officer may exercise financial powers of an Administrative Department under Part I (Powers common to all departments) of the Second Schedule. Any case regarding an allocation of a supplementary grant or funds for the Police or the Provincial Police Officer, other than the normal or allocated budget, shall be routed through the Home Department; the Secretary (Implementation & Coordination Wing), Services and General Administration Department, shall exercise the financial powers as of the Administrative Department mentioned against serial number 21 under PartI of Second Schedule pertaining to the reimbursement of medical claim of a Provincial Minister etc.; the Additional Secretary (Supply), Services and General Administration Department, shall exercise the powers of a Category-II Officer in respect of the items mentioned against serial numbers 2(a), 2(b) (i), 2(b) (iii), 2(b) (xvii), 2(b)(xix) and 4 under Part-I, (Powers common to all departments) of the Second Schedule; the Government may, by notification, confer the financial powers of an Administrative Department on any officer; the Government may, by notification, confer the financial powers of an officer of a category as mentioned in the First Schedule, on any other officer; and the Government may, by notification, confer the special financial powers mentioned in Part -II of the Second Schedule, on any officer.
(b)
(c)
(d)
(e) (f)
(g)
4. Notwithstanding anything contained in rule 3, the highest authority in a department shall have the same powers as have been delegated to an authority subordinate to it under rule 3. The powers conferred by this rule on a higher authority shall not be in derogation of, but in addition to, the powers of the subordinate authority. 5. The powers delegated under rule 3 shall be exercised subject to any general or specific conditions laid down in the Second Schedule, or in any other rules of the Government. ---------FIRST SCHEDULE [See Rule 2(1)(c)]
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PART 1 ----- OFFICERS IN CATEGORY - 1 A. Secretaries to Government (Chief Secretary shall be the Secretary to Government so far as establishment is concerned if no other Secretary to Government in the Services and General Administration Department has been so declared as Secretary). B. C. D. E. F. G. Special Secretary in the Administrative Department Registrar, Lahore High Court, Lahore. Chairman, Punjab Labour Appellate Tribunal. Presiding Officer, Punjab Labour Court. All Heads of Attached Departments. Other Officers: 1. 2. 3. Additional Inspector General of Police. Director of Agriculture, include All Directors of Agriculture and other officers of Agriculture Department of equivalent rank and status and incharge of independent offices. Director, Livestock and Dairy Development Department include all Directors of Livestock and Dairy Development Department and other officers of Livestock and Dairy Development Department of equal rank and status and incharge of independent offices. Chief Research Officer, Buffalo Research Institute at Bhunikey, Pattoki. Director of Information and other field officers of the Information Department of the status of Director. Electric Inspector. Director, Institute of Blood Transfusion, if he is of the status of Director, Health Services. Deputy Director, Food. Director of Education (Colleges) Dean, Institute of Public Health / Institute of Hygiene and Preventive Medicine, Lahore. Principal, DeMontmorency College of Dentistry, Lahore. Dean, Post Graduate Medical Institute, Lahore. Chairman, Punjab Service Tribunal. Medical Superintendents, Lady Willingdon Hospital, Lahore, Lady Aitchison Hospital, Lahore, Punjab Dental Hospital, Lahore, Holy Family Hospital, Rawalpindi, Mayo Hospital, Lahore, Government Hospital for Psychiatric Diseases, Lahore. Director, Institute of Experimental Medicine, Lahore. The Head of Project / Program Indigenous / Foreign Funded Projects. Principal, Barani Agriculture College, Rawalpindi. Secretary to Chief Minister. Director General, O&M, Services & General, Administration Department. Additional Director Public Instruction (Elementary Education), Lahore.
4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
15. 16. 17. 18. 19. 20.
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21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32.
Surgeon General, Punjab. Chief Pilot, VIP Flight. Military Secretary to Governor Punjab. Deputy Inspector General of Police. Director Archives, S&GAD / Secretary Official Language. District Education Coordinator. District & Session Judges. Director General (Population Welfare Department). Chairman Drug Courts, attached with Health Department. Officer Incharge, Aviation Flight (Rotary Wing), Government of the Punjab, Home Department. The Principal, Postgraduate College of Nursing, Lahore, attached with Government of the Punjab, Health Department. Dean Childrens Hospital / I.C.H. Lahore, attached with Government of the Punjab, Health Department. PART II ------OFFICERS IN CATEGORY II
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
Officers in-charge of independent offices in Basic Pay Scale -19 and above not included in Part I. Director of Land Records / Inspector-General of Registration. Settlement Officers. Principals of Degree Colleges / Principal of Training Colleges/Training Institutes/ College of Physical Education (non-devolved components). District Education Officers, Colleges (non-devolved component). Divisional Directors, Local Fund Audit. Principal, Queen Mary College, Lahore. Principals of Special Institutions. District Police Officer. Director (A & F) / Chief Medical Officer, Incharge of RHS-A, Master Training Centre. Additional Secretaries in the Punjab Civil Secretariat who control the budget. Regional Head / Regional Manager of Project / Program Indigenous / Foreign Funded projects. The Additional Director, Teachers Training Programme, Directorate of Staff Development (DSD), Punjab, Lahore, attached with the Education Department. The Deputy Inspector General, Prison Department.
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Finance Department
15.
The Director, Project Management Office of the Project of Taunsa Barrage, Rehabilitation and Modernization, attached with the Government of the Punjab, Irrigation and Power Department. Principal Research Officer, Hydraulics Wing of Punjab Irrigation Research Institute (IRI), Irrigation & Power Department. PART III ------ OFFICERS IN CATEGORY III
16.
1. 2. 3.
Officers in-charge of independent offices in Basic Pay Scales-18 and above not included in Part-II. Divisional Forest Officers. Deputy Secretaries in the Punjab Civil Secretariat who control the budget. PART IV ------ OFFICERS IN CATEGORY IV Drawing and Disbursing Officers other than those specified in Parts I, II and III. GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the October 2, 2006.
NOTIFICATION No. FD(FR)II-7/87. In exercise of the powers conferred upon him under Article 119 of the Constitution of the Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in the Punjab Financial Rules, Volume-I, the following further amendments shall be made:Amendments: In the said rules:(i) sub-rule 2 of rule 15 shall be substituted by the following:(ii) Purchase and acquisition of stores. 15.2. (a) The purchases of articles required for the public service whether of indigenous origin or of otherwise shall be made by the Departments through their respective purchase agencies. The Purchase Manual issued by the Services & General Administration Department, shall be applicable. Subject to the provisions of sub-rule (a) above and note 3 & 4 under rule 8.3, the officers of various categories mentioned in the First Schedule to the Delegation of Financial Powers Rules, 2006 may make direct local purchase from within the country (not involving expenditure of foreign exchange) as authorized from time to time. These powers would be available for:An article of store; or a class of similar articles of stores;
(b)
(i)
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(ii)
During a period of one year unless the requisite stores are controlled or covered by a Rate and Running Contract or are of such a special nature as cannot easily be procured or are exempted under special or general order of Government or by any other officer authorized on their behalf;
(iii) If the value of proposed purchase is beyond the prescribed financial competence of local powers during the financial year, sanction of competent authority possessing the requisite local powers shall be required. Each sanction of expenditure shall bear the total amount of sanctions made during the year. (c) Purchases should be made in the most economical manner; when stores are purchased from the open market, the system of open competitive tender should as far as possible be adopted and the purchases should be made from the lowest tender unless there are any special reasons to the contrary which should be recorded in writing. The instructions regarding inviting tenders, clearance and forwarding of imported stores, submitting of necessary documents to the liaison officer and recopying of the imprest placed at his disposal as contained in the said Purchase Manual, should be strictly adhered to. Further, instructions for purchase and acquisition of stores are given in Annexure-D to this chapter; and In Chapter XV, Annex-D shall be substituted by the following:ANNEXURE D Referred to Rule 15.2 While making purchases, the following instructions should be observed in addition to those given in Chapter XV of these rules:(a) Unless a rate or running contract exists for the supply of the articles or unless the value of the order to be placed is small, or unless there are sufficient reasons, which should be recorded in writing to indicate that it is not in the public interest to call for tenders (such reasons to be confirmed by the next superior controlling authority within one week after the decision), purchases should be made by inviting tenders and tenders should be obtained by: (i) (ii) (b) Advertisement (open tender); Direct invitation to a limited number of firms (limited tender); and
(d)
Note: (i) (ii)
(iii) Invitation to one firm only (single tender or proprietary purchase). The open tender system i.e. invitation to tender by public advertisement should be followed in all cases where the expenditure exceeds the local purchase powers of a sanctioning authority.
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(c)
For the local purchase limited tender system (viz Notices for bids shall be sent to the registered Firms/Suppliers) should be adopted subject to the following conditions:(i) (ii) It does not involve foreign exchange; If the value of proposed purchase is beyond the prescribed financial competence of local powers during the financial year, sanction of competent authority possessing the requisite local powers shall be required. Each sanction of expenditure shall bear the total amount of sanctions made during the year.
(d)
The single tender system may be adopted for small orders, or when the articles required are of a proprietary character and competition is not considered necessary. A small order shall mean an order the total value of which does not exceed Rs.10,000/-. In all such cases, however, the purchasing office should consider whether it would not be feasible to effect purchases through Purchase Manual or to avail of the running / rate contract entered into by the competent authority, under Purchase Manual. ---------GOVERNMENT DEFINITION OF
(e) (f)
Finance Department letter No. SOAA-II -3/59-1685/64 Dated 10th December, 1964. Subject: DEFINITION OF TERM GOVERNMENT AS USED IN THE FINANCIAL SANCTIONS.
It has been brought to the notice of the Finance Department that an ambiguity exists in certain quarters with regard to the term Government as used in matter of financial sanctions under the Financial Rules. The term is already defined and the business of Government is distributed amongst several departments under West Pakistan Government Rules of Business, 1962. The word Government as defined in rule 2(x) of the Rules of Business means Executive Government of the Province and executive authority of the Provincial Government in financial matters is exercised by Administrative Department in consultation with the Finance Department. 2. Under rule 121 of the Punjab Financial Rules Volume I Government, has been defined as an Administrative Department of Government This definition when read with rule 15 of the Rules of Business, also clearly shows that no Administrative Department, without previous consultation with the Finance Department, can issue any order having financial implication, expect an order in pursuance of any general or special delegation made by the Finance Department.
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3. With this clarification it is hoped that consultation with Finance Department will invariable be made when the authority competent to accord financial sanction is Government and no specific delegation for the purpose of such a sanction, already exists in favour of the sanctioning authority. 4. An acknowledgement is requested. Finance Departments Letter No. FD(FR)-II-37/75, dated 2nd January, 1976 to the Accountant General, Punjab, Lahore. Subject: PURCHASE OF PERIODICALS AND JOURNALS.
I am directed to state that some Departments have sought sanction from the Finance Department to the relaxation of rules for the payment of subscription for the purchase of periodicals and journals stating that the payment of subscription is treated as Advanced Payment by your office and requires relaxation of rules. The matter has been examined and the Finance Department considers that subscription in respect of periodicals/journals for a specified period is paid in advance to the publishers/suppliers who undertake to supply the publications. It has been decided that the payment of subscription in respect of such journals and periodicals may not be treated as an advance payment which requires relaxation of Rules. The firms invoice demanding the subscription may be treated as sufficient for allowing payment. UNAUTHORIZED DEPOSIT OF GOVERNMENT MONEY Finance Departments letter No. FD(FR)V-6/2, dated the 29th October, 1978. Subject: UNAUTHORIZED OPENING OF BANK ACCOUNTS AND DEPOSIT OF GOVERNMENT MONEY IN PRIVATE BANKS
I am directed to state that the Auditor General in his report on the accounts of Government of Punjab for the year 1970-71 has reported that certain officers had unauthorizedly opened accounts with the commercial banks and had deposited therein money withdrawn from the provincial revenues. The Public Accounts Committee has taken a serious view of the irregularity. 2. In this connection, attention is invited to Rule 7(1) of the Punjab Treasury Rules which lays down that all moneys received by a Government servant on behalf of the Provincial Government shall be paid in full into Treasury and shall be included in the Provincial Consolidated Fund or Public Account of the Province as the case may be. Similarly, rule 9(1) ibid lays down that a Government servant may not, except with the special permission of the Government deposit in Commercial bank moneys with drawn from the Provincial Consolidated Fund or Public Account of the Province. 3. I am to request you that above mentioned provisions of the rules may kindly be brought home to all the Officers under your administrative control for strict compliance. In no case the Government money coming into the hands of a Government servant either on account of receipts of the Government or by way of with drawal from the Treasury should be kept in a commercial band except with the specific sanction of the Finance Department. In case any bank account has been opened by some Offices/institutions the
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same may be closed forthwith and the balance standing therein credited to the Government account. 4. Any violation of above mentioned rules and these instructions will be regarded as a serious financial irregularity and the Government servants concerned shall be held personally responsible for such an irregularity. OFFICE OF THE ACCOUNTANT GENERAL, PUNJAB, LAHORE NO. TM-I/2-3A (iii)/86-88/10247 Dated: 27.6.1988 Subject: DELEGATION OF POWERS UNDER THE FINANCIAL RULES AND THE POWERS OF RE-APPROPRIATION RULES, 1962.
Please refer to the Finance Departments Memo No. FD (FR) II-1/78 dated 29-051988 on the above subject. 2. This office has sought for the clarification on the following points: (i) Where the powers delegated in Serial No. 3(a) of Part-I of the Second Schedule to the Delegation of Powers under the Financial Rules and Powers of Re-appropriation Rules, 1962, are to be exercised in respect of such items of expenditure only which are shown distinctly under Serial No. 3(a) ibid subject to the fulfilment of conditions mentioned against each such item under Serial No. 3(b) ibid. Where specific powers have been delegated for items in Part-I of the Second Schedule ibid (excepting Serial No. 3), the delegate should exercise those specific powers and not the powers under Serial No. 3(a) ibid.
(ii)
(iii) Where specific powers have been delegated vide Part-II of the Second Schedule ibid, the delegate should exercise those special powers and not the powers under Serial No. 3(a) of Part-I ibid. 3. The Finance Department have replied the points in seriatim as under: (i) The powers delegated under Serial No. 3(a) are to be exercised in respect of all items of expenditure specifically shown in the budget estimates in detail irrespective of the fact whether these items are shown under Serial No. 3(b) or Serial No. 4 to 14 of Part-I of the Second Schedule. However, the conditions imposed against any sub-item of item 3(b) will be applicable even if sanction is accorded under item 3(a) in view of the specific budget provision.
(ii) & (iii) The powers delegated in Part-I (Serial No. 4 to 14) and Part-II of the Second Schedule are in addition and not in substitution of the powers delegated vide Serial No. 3(a) of Part-II ibid. 1. This office has examined the reply of the Finance Department and is of the view that the powers delegated under Serial No. 3(a) are to be exercised in respect of such items of expenditure only which are shown distinctly under Serial No. 3(b) and not in
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respect of such items shown against Serial No. 4 to 14 of Part-I or Part-II ibid. For example, the purchase and replacement of vehicles for which no powers have been delegated under Serial No. 3(a) ibid would not be governed under Serial No. 3(a) in spite of the fact that specific provision for purchase and replacement of vehicles exists in the budget of the Department, but would be regulated under the specific powers delegated for the purpose under Serial No. 7-A of Part-I ibid. Likewise , this office is of the view that purchase of medicines for hospitals for which no powers have been indicated in Part-I ibid in spite of the availability of specific provision in the budget of a hospital but would be regulated by the powers mentioned against Serial No. 2 of Part-II- Special Powers to the Health Department of the Second Schedule ibid. In case it is held that the powers delegated under Serial No. 3(a) ibid are applicable in such cases, then there does not seem any justification to retain the powers mentioned against Serial No. 7-A of Part-I or Serial No. 2 of Part-II- Special Powers to Health Department, etc, because of the reason that the powers delegated under Serial No. 3(a) ibid are such high than those delegated under other Serial Nos. For instance, the different categories of officers of the Health Department enjoy the powers of sanctioning expenditure on purchase of pharmaceuticals to the extent mentioned against each below vide Serial No. 2 of Part-II- Special Powers to Health Department:Serial No. To whom delegated Extent (i) Administrative Department Full powers (ii) Officers in Category-I Rs. 10,000/ (iii) Officers in Category-II Rs. 5,000/ (iv) Officers in Category-III Rs. 25, 00/ (v) Officers in Category-IV Rs. 500/ On the other hand, the powers of these officers to sanction expenditure under Serial No. 3(a) ibid are as under:Serial No. To whom delegated Extent (i) Administrative Department Full powers (ii) Officers in Category-I Full powers (iii) Officers in Category-II Each item not exceeding Rs. 50,000/ (iv) Officers in Category-III Each item not exceeding Rs. 25,000/ (v) Officers in Category-IV Each item not exceeding Rs. 5,000/ It would thus be evident that the powers delegated under Serial No. 3(a) are ten times more than the powers delegated under Serial No. 2- Special Powers to Health Department. In case the purchase of medicines for hospitals is decided to be governed by the powers delegated under Serial No. 3(a) ibid, then every officer would certainly be using the enhanced powers under Serial No. 3(a) ibid, thus making the powers under Serial No. 2 of Part-II ibid as redundant. 5. The matter may please be reconsidered and the decision of the Government conveyed to this office at an early date. ----------
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Finance Department
No. FD (FR) II-I/78. VOL. II GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 11th December, 1988 Subject: DELEGATION OF POWERS UNDER THE FINANCIAL RULES AND THE POWERS OF RE-APPROPRIATION RULES, 1962.
Kindly refer to your Memo. No. TM-I/2-34(iii)/86-88/10247 dated 27-06- 1988 on the subject noted above. 2. Finance Department observes as under:(a) Para 2(i) & (ii) The powers delegated vide item 3(a) of Part-I of the Second Schedule are exercisable in respect of sub-items mentioned under item 3(b). These powers cannot obviously be exercised for the succeeding items of Part-I, namely item 4 to 16 which relate to administrative approval for works, reappropriation of funds, power to declare machinery and stores surplus, unserviceable, their disposal, power to sanction and incur expenditure on repairs, replacement of machinery, motor vehicles, T&P, power to suspend collection of Government duties, advances to Government servants, write off of losses, investigation of claims, lease of land and dismantling of unserviceable buildings. The powers under item 3(a) are to be exercised subject to the conditions, if any, mentioned against the relevant sub-items under item 3(b). Serial No. (iii) The powers delegated vide Part-II of the Second Schedule are in addition to and not in substitution of the delegation made vide Part-I of the Second Schedule. ---------No. FD(M-II)I-III/98. GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT (MONITORING WING) Dated Lahore, the 18th May, 1999. Subject: STRENGTHENING OF PRE-AUDIT SYSTEM
(b)
While conducting post-audit of the accounts of various Government offices by the Audit Department, it is frequently observed that Drawing & Disbursing Officers do not observe, in many cases, codal formalities in incurring/ sanctioning expenditure on various accounts, resulting into a large number of audit paras involving violation of financial rules/irregularities. The Public Accounts Committees on a number of occasions have observed that all such audit objections could have been avoided, had the concerned
145
District Accounts Officers exercised vigilant check on all such violations and irregularities while pre-auditing the relevant bills submitted to them by the respective Drawing & Disbursing Officers. Although, in some cases, the intention of the DDOs may not be mala-fide in submitting such bills and it may only be due to ignorance of relevant rules/procedures yet, in some cases, the unscrupulous behaviour in submitting unjustified claims cannot be ruled out. Nevertheless, in either case, the DAOs are required not to pass such bills on any account. 2. Therefore, in order to strengthen the pre-audit system and obviate such audit objections involving infringement of rules/irregularities, all the D.A.Os are directed to be careful while pre-auditing/passing such bills and observe all requisite codal formalities, financial rules and regulations. They are accordingly required to exercise more supervisory checks and personally test/check bills at pre-audit. If in spite of that wrong/unjustified claims are accepted at pre-audit, the D.A.Os will be personally held responsible along with the D.D.Os, as directed by the two PACs. ---------No. FD(M-I)III-2/87(P-III) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT (MONITORING WING) Dated Lahore, the 27th February, 1994 Subject: Sir, In pursuance of the decisions taken in the Special Meeting held on 30.1.1994 with the representatives of the Works Departments are issued for strict compliance:(i) The Divisional Accountant, being the compiler of accounts as well as primary auditor in a Division of Public Works Department, must scrutinize all bills and financial claims before making payment, as provided in rule 2.14 of Departmental Financial Rules. He must ensure that no payment is made without proper scrutiny; Where the Divisional Accountant feels that bill/claim is not in accordance with the rules, it is his duty to raise objections in writing and advise the Executive Engineer about the irregularities/illegalities in the claim as contained in rule 2.16(b) of Departmental Financial Rules; ROLE OF DIVISIONAL ACCOUNTANTS IN THE WORKS DEPARTMENTS EFFECTIVE FINANCIAL MANAGEMENT
(ii)
(iii) If no objection has been raised by the Divisional Accountant and irregular/illegal payment is made by the Executive Engineer, the Divisional Accountant would be held equally responsible for wrong payments; (iv) Where the Divisional Accountant has raised objections in writing but the Executive Engineer has made the payment by over-ruling the objections, then the Executive Engineer would be held fully responsible for the wrong payment. In that case, the Divisional Accountant would be duty-bound to
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Finance Department
report such as case immediately to report such as case immediately to the Director General Works Audit/Director Accounts (Works) as well as the Finance Department in accordance with rule 2.16(b) of Departmental Financial Rules. If he fails to do so, he would be equally accountable alongwith the Executive Engineer; (v) Since no payment can be made without pre-audit by the Divisional Accountant, he would be responsible for assisting the Executive Engineer for furnishing explanations/ compliances at the time of inspection by the Audit Team of Works Audit Department. As provide in rule 2.15 read with rule 2.33 and Note 1 and 2 of rule 2.36 of Departmental Financial Rules the Divisional Accountant would ensure that, through appropriate explanations and completion of record, minimum number of objections are raised by the Audit Team. In compliance with rule 2.35 of Departmental Financial Rules and Note thereunder, the Divisional Accountant would invariably attend all D.A.C./P.A.C. Meetings and would assist his Executive Engineer in disposing off the Audit Paras; and
(vi)
(vii) Finance Department as well as Pakistan Audit Department are in agreement that the Executive Engineers as well as Divisional Accountants are equally responsible for veracity of accounts and propriety of expenditure and it is their duty to food back to their departments immediately where any transgression of financial powers is noticed. The Divisional Accountants would henceforth invariably send copies of their dissenting notes to the Director General Works Audit/ Director Accounts (Works) and the Finance Department as required in rule 2.16(b) of Departmental Financial Rules. 2. The above instructions may kindly be circulated amongst all concerned for strict immediate compliance. Where-ever necessary, the relevant financial rules are being amended separately. ---------No.SO(M-REC) MW/91 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT (MONITORING WING) Dated Lahore, the 25th September 1991 Subject: Sir, The Public Accounts Committee-I of the Provincial Assembly of the Punjab has observed that the powers delegated to various authorities under the Delegation of Financial Powers Rules to write-off losses are being exercised by the without proper EXERCISE OF POWERS TO WRITE-OFF LOSSES
147
investigation into causes of the losses . Consideration of various Audit Reports by the PAC has revealed that in most of the cases of losses due to shortages, overpayments, misappropriation etc, the departmental authorities had not taken prompt and proper action to investigate into facts of the case, fix responsibility and make good the losses. The matters had been allowed to linger on for years together. The audit observations, the decisions of the Departmental Accounts committees and even the directives of the PAC were constantly ignored. At a belated stage, cases of write-off of the losses were initiated with such explanation as the relevant record was not traceable or the officials responsible had retired or expired or the contractor had died or his whereabouts were not known etc. 2. In such cases, the Administrative Secretaries usually grant write-off sanctions without investigating whether the loss had occurred due to negligence or fraud and without investigating who were responsible for not taking proper and timely action to make the recoveries. 3. The matter has been examined and it has been decided that in future the Administrative Secretaries and all other field officers who are delegated powers to write off losses will exercise such powers after conducting detailed investigations and fixing responsibility in each case. Such authorities at the time of issuing sanctions to write-off losses must give reasons in writing and also record the following certificates in the body of each sanction: (a) (b) I have conducted a thorough investigation under the rules and am satisfies that no official/ contractor was responsible for the loss; I have personally satisfied myself that the loss was inevitable and the recovery which was beyond control was not possible.
4. The above instructions may kindly be noted for strict compliance and may also be circulated among your subordinate offices. ---------TO BE SUBSTITUTED FOR BEARING THE SAME NO. & DATE No. X(Agri-II)4-26/98-Vety GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT. Dated Lahore, the 8th May, 1999 Subject: WRITE OFF LOSSES SUSTAINED BY THE GOVERNMENT OF PUNJAB DUE TO NEGLIGENCE AND INEFFICIENCY OF GOVERNMENT SERVANTS
Sir, I am directed to refer to the subject noted above and to convey the concern about the cases that are referred to Finance Department for writing off losses sustained by the Government due to negligence and inefficiency, wherein the responsible Government
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Finance Department
servants are awarded in-sufficient penalties. A greater cause of concern is that mostly no recovery of the Government loss is made from over those found guilty. It is requested that where such loss has been caused to the Government, the Authority/Authorized Officer may invariably keep in view the extent of responsibility of guilty persons and accordingly order full or partial recovery of the amounts involved. Further the Administrative Secretaries should examine such cases carefully with a view to exercising their Revisional Jurisdiction under the Efficiency and Discipline Rules rather more frequently. ----------
No.FD(FR)VI-2/91(P) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 15th November, 1993 Subject: REFERENCE TO THE FINANCE DEPARTMENT
It has been observed that the cases are referred at random to the Finance Department for clarification without quoting any rule or Govt. instruction on the point at issue which shows that such cases are not properly examined by the addresses. All the District Accounts Officers / Treasury Officer, Lahore are, therefore, directed that they should not refer any case to this department in a perfunctory manner. All the cases should be disposed off under the existing relevant Rules and Govts instructions. In case any departmental authority is not satisfied with the observations raised by the District Accounts Officer/Treasury Officer concerned, he may be advised to take up the case with the Finance Department through his Administrative Department. ---------No. FD (FR) 11-2/89 (P) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT (MONITORING WING) Dated Lahore, the 11th October 2000 Subject: POWERS TO SANCTION EXPENDITURE ON PURCHASE OF STORES FROM GOVT. CONTROLLED PRODUCTION/SUPPLY UNITS AND PURCHASE ON RATE CONTRACT.
Sir, There has been a lot of confusion regarding sanctioning/purchases powers of different field officers in respect of purchase from Govt. controlled production/supply
149
units like M.S.D., Govt. Weaving Centre, Shahdara, Govt. Weaving Centre, Shahdara, Govt. Woollen Centre, Jhang, Units of Punjab Small Industries Corporation, etc. Because of ambiguity, a large number of audit paras have been raised in the recent past resulting into an influx of numerous cases in Finance Department for regularization of such purchases. 2. The matter has been examined in the Finance Deptt: and it has been decided that all field officers, irrespective of their category, would be competent to make purchases from Govt. controlled production units, subject to the following conditions:(a) The purchases would be made subject to clear availability of budget specifically meant for the purpose and the DDO will be bound to certify availability of specific budget in the relevant head of account while issuing sanction for the expenditure and payment will be made through Bank draft / pay order / Book adjustment as the case may be. The purchase should be reasonably rationalized to be made into 3-4 installments spread over the whole year.
(b)
3. Similarly, for making purchases of the items from the firms with which rate contract has been entered into by the competent authority, every DDO would be competent to make purchases according to his requirement subject, again, to clear availability of specific budget in the relevant head of account and rate contract entered into with the respective firms by the competent authority other conditions for internal controls imposed from time to time by government will remain applicable. The DDOs, while issuing sanctions, will mention the No. and date of order of rate contract for the items concerned. 4. Instructions may kindly be issued to all DDOs under your administrative control to abide by the above instructions and also to fulfill all other codal formalities before making purchases. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 7th April, 2004 NOTIFICATION No. FD (FR) II-5/82(P). In partial modification of this Departments Notification No. even, dated 11.08.2001, Governor of the Punjab is pleased to direct that the Tehsil / Town Municipal Officer of a Tehsil / Town Municipal Administration shall act as member of the District Development Committee to consider and approve development schemes of the respective Tehsil / Town Municipal Administration above Rs.5.00 million, as prescribed under Rule 16 of Tehsil Municipal Administration (Works) Rules, 2003 --------------No. FD (FR) II-2/89. GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
150
Finance Department
Dated Lahore the 30th June, 2004. Subject: STREAMLINING OF PROCEDURES TO IMPROVE THE PACE OF EXECUTION OF DEVELOPMENT SCHEMES POWERS TO REAPPROPRIATE APPROVED DEVELOPMENT SCHEMES WITHIN THE SECTOR.
Sir, I am directed to invite your kind attention to Serial No.5 of Part-I Powers Common To All Departments of the 2nd Schedule to the Delegation of Financial Powers Rules, 1990, read with Para 15.3 (b) (xi) of the Punjab Budget Manual, whereby Administrative Departments and Officers in Category-I are competent to sanction reappropriation of funds of development schemes, while observing the following conditions:(a) (b) Re-appropriation will not be made except for approved schemes and the approved cost of the scheme will not be exceeded, through reappropriation by more than 10% of the amount for which the scheme has been administratively approved.
2. However, as a necessity of purpose, the role of the P&D department was deliberately built in, to formally approve re-appropriations of development schemes, as it is not only responsible for preparing the ADP, but also tasked to monitor the utilization of ADP funds during the financial year. Therefore, from this perspective, it was considered imperative to keep the P&D department fully abreast in the matter of reappropriation of ADP funds by the Administrative Departments, within their respective sectors. 3. In order to streamline the procedure and to improve the pace of execution of development schemes, it has been decided, after the approval of the competent authority, that while the Administrative Departments and Officers in Category-I shall carry out reappropriation of funds, relating to the development schemes within their sectoral allocations, in the prescribed manner, however, all re-appropriations done in the said manner shall promptly be intimated to the P&D and Finance Departments for the purpose of monitoring the utilization of ADP funds. 4. I am further directed to state, that under the existing provision contained at Serial No. 4 of Part-I of the Schedule ibid, an Administrative Department in Sub-Committees is empowered to accord Administrative Approval to works/ development schemes up to Rs.20.00 million, it has been meanwhile, further decided, with the approval of the competent authority, to enhance the powers of Administrative Approval to Works/Development Schemes of Administrative Departments through Departmental Development Sub-Committees, from Rs.20.00 (Twenty) million to Rs.100.00 (Hundred) million. Moreover, the powers of Administrative Approval of the District Development Committees shall remain up to Rs.20.00 million as already provided vide Finance Departments No. FD (FR)II-5/82, dated 12.01.2002. Further, the projects of the Local Governments costing between Rs.20.00 million to Rs.50.00 million shall be
151
approved by the Departmental Development Sub-Committees, whereas those exceeding Rs.50 million shall be approved by the Provincial Development Working Party. Accordingly, necessary amendments in the Delegation of Financial Powers Rules, 1990 shall follow. 5. Administrative Departments and District Governments are requested to take necessary actions accordingly. ----------
GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 6th April, 2005 NOTIFICATION No. FD (FR) II-36/79. In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab has been pleased to approve the constitution of the District Disposal Committee and the procedure for auction / disposal of unserviceable, surplus and condemned machinery / equipment / stores in the manner as prescribed hereunder:1. The DCO of the District Government / Category-I Officer of the concerned Department, as the case may be. Superintending Engineer Irrigation of the concerned Zone or his representative not below the rank of a BS-18 Officer. A representative of Agriculture Engineering Department not below the rank of a BS-18 Officer. The EDO (W&S) or his representative not below the rank of a BS-18 Officer. A representative of the department not below the rank of a BS-18 Officer. The Executive District Officer (F&P) Convenor
2.
Member
3. 4. 5. 6.
Member Member Member Member/Secy.
The function of the District Disposal Committee would be to dispose of unserviceable and redundant equipment / machinery that have been declared unserviceable or surplus in the Department by the competent authority of the respective department. 2. The Committee would adopt the following course of action:-
152
Finance Department
(i)
To Dispose of surplus machinery / equipment by inviting sealed offers/ tenders after due publicity. The District Committee would have special powers to accept or reject an offer. The tenderers would be required to deposit earnest money @ 2% of the value of their offers. This would be in the form of deposit at call or Bank Draft in the name of Convener District Disposal Committee.
(ii)
(iii) Each Department will furnish list of equipment / machinery with full description, its conditions, location and reserve price (worked out in the light of Para 4.31 of B&R Code) to the Secretary, District Disposal Committee on month-to-month basis. The lists, after scrutiny, and consolidation would be copied for supply to the bidders at Rs.50/- per page. (iv) The sale proceeds of tenders and equipment would be credited to Punjab Government Account No.1 under Revenue head:1000000 NON-TAX RECEIPTS 1300000 MISCELLANEOUS RECEIPTS 391000 OTHER RECEIPTS 1391002 OTHER RECEIPTS SALES OF STORES AND MATERIALS The General terms and conditions for sale would be drafted by each Committee and got cleared from the Convenor before calling tenders. The cost of Advertisement / Auction, if any, would be borne by the respective Department, the machinery / tools, plants etc. whereof are to be auctioned.
(v) (vi)
(vii) The Convenor would submit quarterly progress reports to the respective Administrative Department and Finance Department for the purpose of monitoring. (viii) The record of sale proceedings would be retained by the respective Department for audit scrutiny etc. ---------No. FD (FR) II-2/89 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 14th May, 2005 Subject: STREAMLINING OF PROCEDURES TO IMPROVE THE PACE OF EXECUTION OF DEVELOPMENT SCHEMES POWERS TO REAPPROPRIATE APPROVED DEVELOPMENT SCHEMES WITHIN THE SECTOR.
Sir,
153
I am directed to refer to this Departments letter No. even, dated 30.6.2004, on the subject as cited above. 2. I am to state that it has been observed that the connotation Approved Schemes occurring in Para 1 (a) of the said letter has been misconstrued as to its exact purview. 3. I am accordingly to clarify that approved scheme shall only include development schemes reflected in the ADP/development budget as per the Schedule of Authorized Expenditures. 4. All Administrative Departments/ District Governments may also apply the policy in question, to the said extent only. ---------No. FD(FR)II-2/89. GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 6th July, 2005. Subject: Sir, I am directed to state that the National Economic Council (NEC), in its meeting held on 27.05.2005, decided to enhance the powers of the Provincial Development Working Party (PDWP) in the following manner:The power of Provincial Development Working Parties (PDWPs) were enhanced to sanction development schemes, costing up to Rs.5,000 million, for projects other than irrigation sector, provided no Federal funding or external financing was involved in the cost of project. 2. The sanctioning powers of the Provincial Development Working Party (PDWP), as notified vide Planning & Development Departments letter No.35 (231) RO(COORD) P&D/2004, dated 12th April, 2004, shall stand amended, accordingly. ---------No. FD (FR) II-2/89 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 7th August, 2006. Subject: STREAMLINING OF PROCEDURES TO IMPROVE THE PACE OF EXECUTION OF DEVELOPMENT SCHEMES - POWERS TO REAPPROPRIATE APPROVED DEVELOPMENT SCHEMES WITHIN THE SECTOR. ENHANCEMENT OF POWERS OF PROVINCIAL DEVELOPMENT WORKING PARTY (PDWP)
154
Finance Department
Sir, I am directed to invite your kind attention to this departments notification No. even, dated 30th June, 2004, on the subject as cited above, whereby it was clarified that the Administrative Departments and Officers in Category-I were competent to sanction re-appropriation of funds of development schemes, within their sectoral allocations, in the prescribed manner, vide serial No.5 under Part-I Powers Common to all Departments, of the Second Schedule to the Delegation of Financial Powers Rules, 1990 read with para 15.3 (b) (xi) of the Punjab Budget Manual, without seeking prior approval of the proposed re-appropriations from P&D and Finance Department. It was further clarified vide F.D letter No. even, dated 14th May, 2005 that the connotation Approved Schemes shall only include development schemes reflected in the ADP/Development Budget as per the Schedule of the Authorized Expenditures. 2. Since the issuance of the aforesaid instructions, a number of instances have come to the notice of the Finance Department where the designated authorities made reappropriations of funds of development schemes in deviation of the prescribed procedure and laid down conditions. Besides flouting the prescribed procedure and conditions, such irregular re-appropriations have, interalia, created immense difficulties for the Finance Department while finalizing the Revised Estimates for both the years 2004-2005 and 2005-2006. Some of the irregularities committed while making re-appropriations during previous years were as under: Re-appropriations were made from the funds provided through supplementary grants. While sanctioning re-appropriation of funds, from one scheme to other, the concerned authorities failed to observe the laid down conditions/procedure as prescribed in para 15.3 (b) (vi) and (xi) of the Budget Manual. The funds re-appropriated from a scheme were restored back subsequently in violation of the provisions of para 15.3 (b) (iii) of the Manual ibid. Funds so re-appropriated were neither incorporated in the Second Statement of Excesses and Surrenders, submitted by the Administrative Departments, nor were the copies of the sanctions endorsed/provided to the Finance Department.
3. Given that, I am directed to reiterate the relevant provisions regulating the reappropriations of development schemes within their sectoral allocations as under:(a) (b) Re-appropriation will not be made except for approved schemes; The approved cost of the scheme will not be exceeded, through reappropriation by more than 10% of the amount for which the scheme has been administratively approved; No appropriation will be made from the funds sanctioned through supplementary grant/s; No authority subordinate to the one which reduced an allocation will increase such reduced allocations by means of re-appropriations;
(c) (d)
155
(e) (f)
Re-appropriation will not be made so as to divert the provision from specified new items to other purposes; Funds so re-appropriated will invariably be incorporated in the 2nd Statement of Excesses & Surrenders under endorsement to P&D and Finance Department; It will be ensured that 2nd Statement of Excesses & Surrenders is received in the Finance Department by 31st March of the given financial year. All re-appropriations made, in the aforesaid manner, shall promptly be intimated to the P&D and Finance Department, for the purpose of monitoring of utilization of ADP funds.
(g) (h)
4. I am, further, directed to request you to strictly adhere to the aforesaid conditions while sanctioning re-appropriations of development schemes within their sectoral allocations. ---------No. FD (FR) II-2/89 (Vol-II) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 5th October, 2006. Subject: REIMBURSEMENT OF MEDICAL CHARGES
I am directed to refer to your letter No.SO.ADMN.II/1-1137/85, dated 26th August, 2006, on the subject as cited above and to clarify that District Coordination Officer (DCO) of a District Government / City District Government is authorized to sanction reimbursement of medical claims up to Rs.1,00,000/- in each case i.e. equal to the powers as of Administrative Department vide Sr.No.21 under Part-I of the Punjab Delegation of Financial Powers Rules, 2006 read with this Departments letter No. even, dated 10th September, 2003 (copy enclosed) in favour of the civil servants of the devolved offices who retired before / after devolution. 2. I am further directed to advise that reimbursement of medical claims, in favour of the civil servants adjusted/posted in TMAs, up to Rs.1,00,000/- and exceeding Rs.1,00,000/- may be sanctioned by the Administrative Department i.e. LG&RD Department and Finance Department respectively. 3. Further action may be taken accordingly. ---------No. FD(FR)11-2/89 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 13th October, 2006.
156
Finance Department
Subject: Sir,
THE PUNJAB DELEGATION OF FINANCIAL POWERS RULES. 2006
I am directed to refer to the subject cited above and to enclose a copy of the Rules, promulgated through Notification of even No., dated 2nd October, 2006, for information, guidance and compliance by all concerned. These Rules have substituted the Delegation of Financial Powers Rules. 1990. 2. I am to request that nine copies of the Rules may be got collected through an authorized representative for official use in your Department and Attached Departments, from the Accounts Officer (FR), Monitoring Wing, Finance Department. 1 st Floor PST Building, Lahore. 3. I am to state further that a soft copy of the Punjab Delegation of Financial Powers Rules, 2006 has also been placed at the webpage of Finance Department on the website of the Government of the Punjab viz www.punjab.gov.pk. The Rules are also available, on payment, at the sale depot of the Printing & Stationery Department. Government of the Punjab, Lahore. 4. I am to add that while drafting The Punjab Delegation of Financial Powers Rules 2006, the Finance Department has endeavoured to eliminate the potential for the misuse of financial powers and to clarify certain misplaced notions regarding general and local purchase powers under Sr.No.3 (a) and 3(b) of the Second Schedule of the Delegation of Financial Power Rules 1990, as well as to curtail the tendency on the part of Drawing and Disbursing Officers to split expenditures. However, we expect the revised rules to be as facilitating in nature as they are intended to be regulatory. 5. You are requested to bring the aforesaid position to the notice of all the Drawing & Disbursing Officers, and ensure that these Rules are followed by all concerned meticulously. ---------GOVERNMENT OF THE PUNJAB, FINANCE DEPARTMENT Dated Lahore, the 14th October, 2006 NOTIFICATION No. FD(FR)11-2/89. In exercise of the powers conferred upon him under Rule 3 [(e), (f) & (g)] of the Punjab Delegation of Financial Powers Rules, 2006, the Governor of the Punjab is pleased to declare that the following functionaries of the City District Governments and District Governments in the Punjab, shall exercise the financial powers as of the Administrative Department, Officers in Category-1, II, III & IV, prescribed in Part-1 of the Second Schedule to the Rules ibid, as below:(i) District Coordination Officer, City District Administrative Department/ Government/ District Government, in the Punjab. Officer in Category-I
157
(ii)
(iii) (iv)
(v)
(vi)
(vii) (viii)
(ix) (x)
Executive District Officer, City District Government/Executive District Officer (Health) District Government Executive District Officer, District Government Principal, Comprehensive High School/Higher Secondary School/Head of Special Institution under the administrative and financial control of the City District Government/District Government. Headmaster/Headmistress, Government (Boys/ Girls) High School, under the administrative and financial control of the City District Government/ District Government. Officers Incharge of Independent Offices in Basic Pay Scale 19 and above, other than those specified at Sr. nos. i, ii, iii, iv & v above. District Officer, City District Government/ District Government. Officers Incharge of independent offices in Basic Pay Scales 18 and above other than those specified at Sr. Nos. i to vii above. Deputy District Officer, City District Government/ District Government. Drawing & Disbursing Officers other than those specified at Sr. No. i to x above.
Officer in Category-I
Officer in Category-II Officer in Category-II
Officer in Category-II
Officer in Category-II
Officer in Category-III Officer in Category-III
Officer in Category-IV Officer in Category-IV
Note: The powers of re-appropriation of funds shall be exercised in the manner prescribed under Section 111 (3) of PLGO. 2001. 2. The Governor of the Punjab, is further pleased to assign the functionaries of the City District Governments / District Governments to exercise the financial powers as admissible to officers of respective ranks, prescribed in Part-ll - special powers to certain departments and officers, of the Second Schedule to the Rules ibid, in the following manner:Sr.# Group of Offices Agriculture Designation of the officer whose powers have been assigned Executive District Officer District Director General, Agriculture Officer (Ext), OFWM, Soil Deputy Director, Agriculture Fertility. Soil Conservation Deputy District Officer Other Drawing & Disbursing Officers in the Agriculture Department To whom assigned
1.
158
Finance Department
Sr.#
2. 3.
4.
Designation of the officer whose powers have been assigned Fisheries District Coordination Officer Director General, Fisheries Executive District Officer Director, Fisheries District Officer Assistant Director, Fisheries Forest District Coordination Officer Chief Conservator of Forest Executive District Officer Conservator of Forest District Officer Divisional Forest Officer Livestock District Coordination Officer Director General Executive District Officer Director District Officer Deputy Director Works & Executive District Officer Superintending Engineer Services District Officer (Road/ Building) Executive Engineer Education District Coordination Officer Administrative Department/Director, Public Instructions Executive District Officer Director of Education (Colleges) Head of the Institution Head of the Institution of corresponding rank Health Executive District Officer Officer of corresponding category District Officer Officer of corresponding category Deputy District officer Officer of corresponding category ----------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 16th October, 2006
Group of Offices
To whom assigned
NOTIFICATION No. FD(FR)11-2/89. In exercise of the powers conferred upon him under rule 3 [(e),(f) & (g)] of the Punjab Delegation of Financial Powers Rules, 2006. the Governor of Punjab is pleased to assign the functionaries of the offices of Land Revenue & Estate, City District Government/ District Government, to exercise the financial powers, prescribed in Part-H - Special Powers to certain departments and officers - Revenue Department, of the Second Schedule to the Rules ibid, to the extent as mentioned hereunder:REVENUE Note: The powers over and above the powers detailed hereunder shall be exercised by the Board of Revenue, Government of the Punjab, Lahore.
159
Sr. # 1 1. 2.
Nature of powers
GENERAL To whom assigned
Extent 4 Full powers. Up to Rs.10,000/-per District. Up to Rs. 1,000/- per District. Up to Rs. 1.000/-
2 3 Remission of revenue in EDO (Revenue) accordance with the rules. Remission of Land Revenue (i) EDO (Revenue) due. to calamities. (ii) DO (Revenue) Remission of revenue EDO (Revenue) otherwise those due to calamities, in accordance with the rules, but not in relaxation of any rules. Powers to sanction loans (i) EDO (Revenue). under the Agriculturist Loans Act. (ii) DO (Revenue).
3.
4.
5.
6.
7.
Up to Rs.50,000/- in each case Up to Rs.15,000/- in each case (iii) Deputy District Up to Rs.10,000/- in each Officer (Revenue) case, (iv) Tehsildars/ Up to Rs.1,000/- in each Mukhtiarkars. case Powers to sanction loans (i) EDO (Revenue) Up to Rs.50.000/- in each under the Land Improvement case. Loans Act. (ii) DO (Revenue) Up to Rs.15,000/- in each case. (iii) Deputy District Up to Rs.10,000/- in each Officer (Revenue) case. Powers to sanction (i) EDO (Revenue) Full powers but in suspension of recoveries of accordance with the loan under the Land Taccavi Acts and Rules. Improvement Loans Act. and (ii) DO(Revenue) Up to the extent of three the Agriculturist Loans Act. installments in each case, irrespective of the amount of loans, Powers to sanction the EDO (Revenue) Up to the sum of Rs.100/remission of disallowances in individual cases. by Audit Officers.
160
Finance Department
Sr. # 1 8.
Nature of powers 2 To sanction refund of courtfee stamps affixed unnecessarily, in consequence of an order of a Court. To sanction refund of mutation fee in case of rejection of mutation in accordance with the rules. To sanction refund or renewal of impressed or adhesive court-fee stamps which have been spoiled, or rendered useless or unfit for the purpose intended or for which the purchaser has not immediate use.
To whom assigned 3 DO (Revenue).
Extent 4 Full powers on production of an order of the Court.
9.
Deputy District Officer Full powers. (Revenue).
10.
DO (Revenue)
11.
12.
To sanction expenditure in EDO (Revenue) cases in which money is credited to Government Treasury or purchase of stamps, but stamps are not actually purchased. To sanction writing off of the value of: (i) EDO (Revenue)
Full powers, subject to the deduction of six paisa per Rupee of face value in the case of refunds, except in case of court-fee, stamps not spoiled or rendered unfit for use returned to DO(R), store on-to expiration of licence; or (ii) revocation of licence for any reason other than fault of the Licensee. Full powers.
Up to Rs.500/-
161
Sr. # 1
Nature of powers
To whom assigned
Extent 4 Up toRs.300/-
13. 14. 15. 16.
2 3 (i) non-postal stamps that (ii) DO (Revenue). are obsolete, unserviceable or spoiled. (ii) water-marked plain paper which is damaged and unfit for use. (iii) (a) Stamps lost in transit, (b) loss of stamps forming part of the stock in a local Branch Depot. To write off irrecoverable (i) EDO (Revenue). loss of stamps revenue (ii) DO (Revenue). Administrative approvals DO (Revenue). works. Grants-in-aid EDO(Revenue) To sanction expenditure on (i) EDO (Revenue) account of binding work of Revenue/Settlement records. (ii) DO (Revenue) DISPOSAL OF LAND To sanction grant of State EDO (Revenue) Agricultural lands in colonies.
Up toRs.500/Up toRs.300/Up to Rs.20,000/Full powers in accordance with. the rules Up to Rs.2,000/- in each case. Up to Rs.1,000/- in each case. Full powers subject to the condition that the grant is made in accordance with standing orders or a Scheme approved by the Revenue Department in consultation with the Finance Department. Up to the value of Rs.10,000/Full powers. Full powers subject to Standing Orders of the Board of Revenue.
1.
2.
3. 4.
To sanction grant of nazul lands free of cost to Local Governments. To allot land for graveyards and cremation grounds To allot land for kanals (tanning yards)
EDO (Revenue)
DO (Revenue) (i) EDO (Revenue)
162
Finance Department
Sr. # 1
Nature of powers 2
To whom assigned 3 (ii) DO (Revenue)
Extent 4 Up to limit of two kanals in each case subject to Standing Orders of the Board of Revenue. Up to fifty acres; provided that:(a) The land is sold by auction held in accordance with the condition approved to Government or the Board of Revenue, and (b) The reserved price is approved by the Board of Revenue before the auction is held. Note: The result of such auction should be reported to the Board of Revenue in such form as may be prescribed by it. Full powers, provided: (a) the price is charged on the basis of previous years auction price or the previous three years average auction price
5.
To sell State land for agricultural purposes.
EDO (Revenue)
5.
6.
To sanction sale of awkward EDO (Revenue) plots of State land for agriculture purpose by private Treaty.
163
Sr. # 1 6.
Nature of powers 2
To whom assigned 3
Extent 4 which ever is higher in the same or an adjoining chak or village. (b) 10% of the price is charged in addition on account of concession to sell by private treaty; (c) If the land is encroached upon, then in addition, 10% of the price for unintentional encroachment and 50% of the price for intentional, encroachment and (d) the sale is in accordance with the policy laid down by Government or Board of Revenue. Note: A copy of the sanction should be forwarded to the Board of Revenue. Full powers Up to the value of Rs.15,000/- subject to the condition that the land is sold by the public auction after full publicity. Sites up to five acres. Sites up to two acres Full powers Site s up to five acres Sites up to two acres. Up to 4 kanals in any individual case at half the market value
7.
To sanction sale of escheated (i) EDO (Revenue) land. (ii) D.O. (Revenue)
8. 9. 10. 11.
To sanction sale of nazul land by Public auction
(i) EDO (Revenue) (ii) D.O (Revenue) To sanction or cancel sale of DO (Revenue) old wells. To sanction sale of State land (i) EDO (Revenue) for-non-agricultural purposes (ii) DO (Re venue) by public auction:To sanction sale of, sites (i) EDO (Revenue). required exclusively for the purpose of a Temple,
164
Finance Department
Sr. # 1
Nature of powers 2 Mosque, Church or other religious building in Stateowned towns, i.e. towns built mainly on State owned land colonies. To sanction sale of land required exclusively for the purpose of a Mosque, Temple or Church in areas other than those specified in item 11. To sanction reserve price of land to be sold by auction.
To whom assigned 3 (ii) DO (Revenue)
Extent 4 Up to 2 kanats at half the market value of the land.
12.
(i) EDO (Revenue) (ii) DO (Revenue)
13. 14. 15.
16.
To sanction sale of village residential shod site by private treaty. To fix amount of EDO (Revenue) compensation cases involving breach of the conditions of sale. To cancel sale of state land and refund the price already paid in cases in which:(1) the land is sold and EDO (Revenue) after sale it transpires that (a) it, or a part of it, is owned by another person; or (b) it, or a part of it, is already allotted or leased out to another person or it has already been sold on installment basis to another person; or (c) a part, or whole of it, is a graveyard. (2) the land is sold as commanded by a canal but it is found later on as a result of the Irrigation Departments report that a major part
(i) EDO (Revenue) (ii) DO(Revenue) DO (Revenue)
Up to 12 kanals subject to the condition that the first 4 kanals are paid for at half the market value and any area in excess on full market rates. Full powers for land they are competent to sell. Full powers subject to the order of the EDO (R) regarding the price. UptoRs.1,000/-
Full powers provided that:(a) the cancellation is of the whole and not of part of it and (b) the price paid is refunded without any interest there on or compensation. Note: A copy of the order cancelling sale should in each case be supplied to the Board of Revenue,
165
Sr. # 1
Nature of powers 2 of it is situated outside the Irrigation boundary of the canal; or the land is sold erroneously under some mistake of fact.
To whom assigned 3
Extent 4
(3)
17.
EXCHANGES To sanction exchange of land EDO (Revenue) under the peasant grant of occupancy with state land in colony areas.
Powers to sanction exchange up to 25 acres within 10 years of the grant and subject to the limitation that:(a) where land has been acquired for public purposes; (b) where the irrigation Department find difficulty in maintaining irrigation; and (c) where the land has been adversely affected by waterlogging, and the subsoil water is reported by the Irrigation Department or any other agency of Government dealing with water-logging and salinity control to be within five feet of the surface and the area affected has become banjar to the extent of 1/3 of the total holding and is incapable of bearing 25 paisa crop owing to the presence of thur. Up to one hundred and fifty acres in accordance with the rules for the. lease of
18.
To sanction lease of: (1) Land under the rules contained in Appendix
LEASE EDO (Revenue)
166
Finance Department
Sr. # 1
Nature of powers
To whom assigned
Extent 4 waste land contained in Appendix-III to the Land Administration Manual for a maximum period of twenty years, provided that the total area held on lease by a single lease does not exceed on one hundred and fifty acres. Full powers Full powers
19.
2 3 III to the Land Administration Manual other than land included in a colonization scheme or which is likely to come under perennial irrigation in the foreseeable future. (2) Land for grazing of (i) EDO (Revenue) cattle (ii) DO (Revenue) (3) Fruit trees not in the (i) EDO (Revenue) compound of (ii) DO (Revenue) Government Buildings. To tease out State (i) EDO (Revenue) agricultural land by tenders in colonies.
(ii) DO (Revenue)
20.
To lease out State land for agricultural purposes by private treaty.
(i) EDO (Revenue)
(ii) DO (Revenue)
Full powers subject to any order issued by Government or the Board of Revenue and provided that the area to be held at one time, by a tease shall not exceed the limit fixed under the Land Revenue Orders. Up to one hundred acres for a period not exceeding ten harvests. Up to fifty acres for a period of two years only in respect of land for which offers by tender or auction fail to attract a bidder provided that no lease of land beyond two years is allowed in continuation of the same lease without the sanction of the Board of Revenue. Up to fifty acres for a period of one year only in respect of land for which offers by tenders or auction fail to attract a bidder
167
Sr. # 1
Nature of powers 2
To whom assigned 3
Extent 4 provided that no second lease of the same land to the same tease in continuation of the first, lease should be allowed without the sanction of the EDO (Revenue). Full powers subject to standing order of the Board of Revenue. Lease of areas up to five acres for a period not exceeding five years provided that the lease does not involve .erection of a building. (a) In a first class Municipality leases of areas up to two acres for a period not (exceeding five years provided the lease, does not involve the erection of a building. (b) In a second class Municipality and other areas, leases of areas up to five acres for a period not exceeding five years provided that the lease does not involve the erection of a building. Full powers subject to the standing orders issued from time to time by Government or the Board of Revenue, Up to two acres for a period of five years
21.
22.
To sanction long lease with special conditions under a scheme approved by Government. To sanction lease of nazul land.
EDO (Revenue)
EDO (Revenue)
23.
To sanction lease of State land for non-agricultural purposes.
EDO (Revenue)
24.
To sanction lease of land to Local Governments.
(i) EDO (Revenue)
(ii) DO (Revenue)
168
Finance Department
Sr. # 1
Nature of powers 2
To whom assigned 3
Extent
25.
4 provided the lease does not involve the erection of building. To lease out State land for DO (Revenue) Full powers subject to brick kilns. standing orders of the Board of Revenue. CONCESSION AND REMISSIONS To remit acreage rate. (i) EDO (Revenue) (ii) DO (Revenue) To remit up to Rs.100 per harvest in a single case. Up to Rs.50 per harvest in a single case. Full powers subject to standing orders issued by the Board of Revenue from time to time (Returns of remission granted should be furnished to the Board of Revenue) Up to Rs.100/Up to two years. Up to one year. Ten half yearly installments Six half yearly installments
26.
27.
To sanction remission of rent {i) EDO (Revenue) on temporary cultivation.
(ii) DO (Revenue). 28. Shifting of installments connected with disposal of land. Increase in number of instalments connected with the disposal of land. (i) EDO (Revenue) (ii) DO (Revenue) (i) EDO (Revenue) (ii) DO (Revenue) ------------
29.
GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 17th October, 2006 NOTIFICATION No. FD (FR) II-2/89. In exercise of the powers conferred upon him under rule 3 [(e),(f) & (g)] of the Punjab Delegation of Financial Powers Rules, 2006, the Governor of Punjab is pleased to assign the functionaries of the offices of Special Education, City District Government/District Government, to exercise the financial powers, prescribed in Part-II Special Powers to certain departments and officers Special Education Department, of the Second Schedule to the Rules ibid, to the extent as mentioned hereunder: -
169
1.
(i)
To give Technical Sanction to (i) the estimates for expenditure on painting and replacement of glass panes of doors and (ii) windows of educational institutions.
District Education Upto Officer, Special Rs.5,000/- in Institution. each case Head of Institution.
(ii) Annual / Special Repairs of Buildings of Schools of Special Education.
2.
To accord Administrative Approval for Repair and Maintenance Works in respect of non-residential buildings ----------
Special Upto Rs.2,000/- in each case (i) Principal of Special Upto Institution. Rs.10,000/in each case (ii) Headmaster/ Upto Headmistress of Rs.5,000/- in Special Institution. each case Principal of Special Upto Institution Rs.100,000/in each case
GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 20th October, 2006 NOTIFICATION No. FD(FR)II-5/82. In continuation of this departments notification of even No. dated 12th January, 2002, the Governor of Punjab is pleased to further enhance the powers of District Development Committee to approve development schemes upto the value of Rs.50.00 million, with immediate effect. The composition of District Development Committee already notified shall remain the same. ----------
No. FD.SR.1-9-6/91 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the November 01, 2006 Subject: Sir, I am directed to refer to this Departments circular letter of even number dated 0209-2004 on the above-mentioned subject and to say that the monthly Over-Time ENHANCEMENT IN OVER-TIME ALLOWANCE ALLOWED TO STAFF CAR DRIVERS. DESPATCH RIDERS AND MECHANCIS
170
Finance Department
Allowance of Rs.1.000/- per month as currently admissible to Staff Car Drivers / Despatch Riders / Mechanics working in the Punjab Civil Secretariat and Drivers attached with the Judges of the Lahore High Court and Officers in Regular BS-21 who are entitled to free use of staff car has been enhanced to Rs.1,500/- per month with immediate effect. 2. Further necessary action may kindly be taken accordingly. -----------No. No. FD (A&A) II-4/67 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 14th November, 2006 Subject: AMENDMENT IN PARA-3 OF THE GUIDELINES ISSUED BY FINANCE DEPARTMENT ON 27.03.1990 REGARDING PURCHASE & REPLACEMENT OF MOTOR VEHICLES OF PUNJAB DELEGATION OF FINANCIAL POWERS RULES, 1990.
Please refer to your letter No. MTO(S&GAD)AT-II/2-4/2006, dated 1st November, 2006, on the subject as cited above, wherein Finance Department has been desired to keep intact the existing yardstick for replacement of vehicles in Government Departments. 2. The matter has been examined and Finance Department shares the observation of the S&GAD that, with the technological advancement, performance of vehicles have been improved. Besides, the improved road conditions and better repair and maintenance arrangements have enhanced the average life of the vehicles. Accordingly, the yardstick prescribed under the Delegation of Financial Powers Rules, 1990 have been continued and kept intact under the Punjab Delegation of Financial Powers Rules, 2006. 3. The S&GAD is requested to apprise the position to the Chief Minister, Punjab, in pursuance of his observation as quoted in the letter under reference. 4. I am, therefore, directed to request you to take further action accordingly. ---------No. FD (A&A) II-4/67 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 16th November, 2006. Subject: AMENDMENT IN PARA -3 OF THE GUIDELINES ISSUED BY FINANCE DEPARTMENT ON 27.03.1990 REGARDING PURCHASE & REPLACEMENT OF MOTOR VEHICLES OF PUNJAB DELEGATION OF FINANCIAL POWERS RULES, 1990.
Please refer to your letter No. MTO(S&GAD)AT-II/2-4/2006, dated 1st November, 2006, on the subject as cited above, wherein Finance Department has been desired to
171
keep intact the existing yardstick for replacement of vehicles in Government Departments, due to the reason as mentioned therein. 2. The matter has been examined and Finance Department is of the views that any reduction in the existing yardstick for replacement of vehicle would immediately cause influx of demands for such replacement and likely to affect the development out-lay of the Provincial Government. Keeping in view this fact, Finance Department favours to keep intact the existing yardstick prescribed under the Punjab Delegation of Financial Powers Rules, 2006. 3. The S&GAD may apprise the position to the Chief Minister, Punjab, in pursuance of his observation as quoted in the letter under reference. ---------No. IT(FD)3-7/2001.Vol-I GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the November 16, 2006 Subject: SHORTFALL IN GROUP INSURANCE PREMIUM OF PUNJAB GOVERNMENT EMPLOYEES, SPECIALLY THOSE WORKING IN LOCAL GOVERNMENTS.
Kindly refer to this departments circular letters of even numbers dated 8.6.2005 and 23.11.2005 on the above noted subject, expressing concerns regarding the continuous decline in the collection of monthly group insurance premium in respect of Punjab government employees, especially those working in District Governments and Tehsil / Town Municipal Administrations. 2. The State Life Insurance Corporation of Pakistan (SLIC) has once again approached the Finance Department, apprising that against the total premium receivable for the last four years i.e. Rs.58,28,74.967/-, a premium of Rs.1,95,78,19,020/- only has been received, causing a shortfall of Rs.373,680,848/-The SLIC has attributed this phenomenon to the non-cooperation and indifference of the District Accounts Offices as well as the Tehsil / Town Municipal Administrations. The following reasons have been specially cited:(i) The District Accounts Officers are not promptly crediting the group insurance deductions against District Fund Account No.IV to Provincial Account No.I in the prescribed manner. The deductions made from provincial government employees working in TMAs are not given prompt effect in their books by the District Accounts Officers, besides transferring the amounts in Provincial Account No.I in the prescribed manner.
(ii)
(iii) The TMAs are not discharging their functions in the prescribed manner by ensuring 100% deductions on account of group insurance premium at the prescribed rates, and crediting the same to the respective head of account as
172
Finance Department
prescribed in para 3(b) of this departments letter No. IT(FD)3-4/2002 VolIV dated 17.3.2003. Besides, the action prescribed by this department for the computation and recovery of arrears vide para 4 of this departments letter of even number dated 23.11.2005 has not been acted upon in letter and spirit, causing further decline in collection of group insurance premium from the TMAs. 3. The Finance Department has observed these lapses with serious concern, and it is directed that District Accounts Officers as well as the Tehsil / Town Municipal Officers must take strict measures for implementing the prescribed instructions relating to the deduction of Group Insurance premium. Besides, it has been decided to monitor these deductions each month, wherefore the following additional mechanism is. (i) All DAOs shall be required to submit monthly statements in the form at Annex-A, indicating the amount of monthly deductions as effected / booked in the monthly accounts. This statement duly certified by the Assistant Treasury Officer and countersigned by the District Accounts Officer should reach the FD by the 10th of the following month to which the statement relates. The Audit Officers/Assistant Director (Audit) Officer LFA, posted in each Tehsil / Town Municipal Administration shall submit a monthly statement in the form at Annex-B, indicating the amount of monthly deductions effected on account of group insurance from the civil servants working in the TMAs. This statement shall be countersigned by the TMO concerned and submitted to the FD by the 10th of the following month to which the deductions relate.
(ii)
4. It is finally reiterated that the above instructions must be observed in letter and spirit, failing which, the concerned DAO, TMO and AO/AD LFA shall be held personally responsible for the lapse. ----------
Annex-A MONTHLY STATEMENT SHOWING THE AMOUNTS OF GROUP INSURANCE DEDUCTIONS FOR THE MONTH OF ________ 2006. (i) (ii) Total Amount group insurance premium deducted from Provincial government employees in Account No.1 Total Amount of group insurance premium accounted for and booked for District Government employees in Account No. IV for the month of ______ Rs. __________ Rs. __________
(iii) Total Amount of group insurance premium credited to Provincial Account No. I regarding deductions made by TMAs as at Sr. No. ii above. (iv) Total deductions
Rs. __________
Rs. __________
173
(v)
Reasons for variations, if any, under each item from monthly deductions made in the previous month
CERTIFICATE This is certified that the deductions, as above, are correct as per the amounts under each item incorporated in the monthly account of ________ 2006. Signature Signature ASSISTANT TREASURY OFFICER DISTRICT ACCOUNTS OFFICER ---------Annex-B MONTHLY STATEMENT SHOWING THE AMOUNTS OF GROUP INSURANCE DEDUCTED FOR THE MONTH OF _________ 2006 Deduction made for the employee of (i) LG&RD Department (ii) PHED Department (iii) H&PP Department (iv) Any other Department Total deductions CERTIFICATE It is certified that an aggregate amount of Rs. ________ as group insurance deductions for the month of ________ have been deposited in the National Bank of Pakistan in the prescribed head of account through cheque No. ____________ dated ___________ vide challan No. ______________ dated ____________ and communicated to DAO, _________ vide letter No. ________ dated _________ Signature AO/AD, LFA ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 29th November, 2006 NOTIFICATION No. FD (FR) 11-5/82. In exercise of the powers conferred upon vide sub-rule 2 (f) of Rule 3 of the Punjab Delegation of Financial Powers Rules, 2006, the Governor of the Punjab is pleased to direct that following addition shall be made under Part-I Officers in Category-I of First Schedule to the Rules ibid: AMENDMENT 33. Director / Co-ordinator, Punjab Education Assessment System (PEAS), Lahore ---------Signature TMO Month Amount
174
Finance Department
No. FD(SR-I)9-20/2006 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 29th November, 2006 Subject: Sir, I am directed to refer to the above-mentioned subject and to say that the Governor of the Punjab has been pleased to sanction a Project Allowance at rate of Rs.25,000/- PM with immediate effect to all the District Coordination Officers in the Punjab having substantive postings. It will, however, not be admissible to the officers holding (he post on additional charge basis. 2. Expenditure involved will be met out of existing budget of the District Governments, concerned. -----------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 29th November, 2006 NOTIFICATION No. FD(FR)11-2/89 (P). In exercise of the Powers conferred upon him under Article 119 .of the constitution of the Islamic Republic of Pakistan, 1973, the Governor of the Punjab is pleased to direct that in the Punjab Financial Rules, Volume-II, following further amendments shall be made, namely:AMENDMENT In paragraph 52. Appendix-14, PFR Volume-II, (i) in sub-para (b), for the figure 10/- and 130/- the figure 30/- and 200/- respectively, shall be substituted; and (ii) in sub-para (c) for the figure 10/- and 130/- the figure 30/- and 200/- respectively, shall be substituted. ---------No. FD.SR.1/9-20/2006 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 30th November. 2006 Subject: POLICY FOR PAYMENT OF PROJECT ALLOWANCE PROVISION OF PROJECT ALLOWANCE TO COORDINATION OFFICERS IN THE PROVINCE DISTRICT
175
Sir, I am directed to refer to the subject cited above and to state that the Competent Authority has been pleased to approve a policy for sanction of Project Allowance to Project / Programme Directors and other staff members of the foreign aided projects. The policy, will apply to the officers/officials posted through transfer or restrictive/open competition as well as professionals hired from private sector. 2. For the purpose of payment of Project Allowance to officers/officials posted through transfer or restrictive competition, projects will be .categorized as follows: (a) Category (A): This category will include projects having: (i) (ii) the headquarters in a backward / remote city multi-sectoral components, which require engagement in more than one backward district or the headquarters is located in a big city but the project is complex, and involves institutional reforms, redesigning of business processes, interfacing/joint execution with private sector or working with communities having the headquarters in a big city but the activities require engagement in remote areas (ii) which are less complex in implementation as compared to those included in (a) above.
(b)
Category (B): This category will comprise projects: (i)
(c)
Category (C): The projects in this category will have: (i) the headquarters located in a big city but activities require engagement in big cities
3. Project Allowance to the Project Director/posted in accordance with para 2, will be admissible at the rate of Rs.50,000/-, Rs.35,000/- and Rs.25,000/- PM for categories A, B and C respectively. The core staff of projects falling in various categories will be allowed project allowance in accordance with the following parameter: Basic Pay Scales of the Officers 19/20 18 17 Project Allowance (% of Project Allowance of PD) 60 50 40
4. Market based salaries to Civil Servants and professionals from the private sector will be allowed only if Project Director and core staff are selected through open competition. The salary of a Civil Servant will be fixed after monetizing any benefits that. he/she is enjoying from the mainstream position. The salary package of a Project Director, selected from the private sector, will be determined within the scope of MP-II and MP-III for Project Categories A & B respectively. 5. For a new project, the proposal for payment of project allowance will be incorporated in PC-I and a decision about the Category in which the project falls will be
176
Finance Department
made by the competent authority at the time of approval of the project. For ongoing projects, the concerned administrative department may submit a proposal to PDWP for a decision about the category of the project and position(s) designated as core staff for payment of project allowance. 6. The Competent Authority has also been pleased to approve the following: (a) Departmental Development Sub Committees (DDSC) will have no power to consider or recommend any .Project Allowance or Special Pay Package while approving schemes within their competence. Approval of the PDWP will be recommendatory in nature and subject to final approval/clearance by the Finance Department. Project Allowance/Special Pay-Package will be considered only for the posts for which provision of funds has been included in the PC-I of the Project. The packages will be admissible only to officers having substantive postings against the Project positions. However, officers holding Additional Charge of the post of Project Directors will be allowed a Project Allowance at the rate of 40% of their basic Pay Scale without any limit. The P&D and S&GA Departments will prepare performance criteria for The terms & conditions of appointment of the employees in BS-1 to BS-16 will be governed by the provisions of the Contract Appointment Policy notified by the S&GAD vide its notification No. DS(0&M)5-3/ 2004/Contract(MF) dated 29-12-2004. Officers/officials recruited against project posts who are not included in the core team will be allowed the following Pay-Package as per para-3(xiii)(i) of the Contract Appointment Policy notified by S&GAD on 29-12-2004 i.e. Package of Pay & Allowances as per Pay-Scale of the post. 30% of the minimum of Pay-Scale as social security benefit in lieu of pension. Any Ad-hoc/Special Relief etc. allowed to the government servants shall be extended to such contact employees. Annual increment as per Pay-Scale of the post will also be admissible under the existing rules for annual increment.
(b) (c)
(d) (e)
(f)
7. The Policy will be applicable with immediate effect. Terms and conditions already notified for officers/officials working in various projects will remain unchanged till the completion of initial period of contract appointment. -----------No. FD (FR) 11-5/82 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT
177
Dated Lahore the 9th December, 2006. Subject: Sir, The following substitutions are made against Sr. No.1 in Part-II Special Powers to Certain Departments and Officers under the heading Information, Culture and Youth Affair Department, in Second Schedule to the Punjab Delegation of Financial Powers Rules, 2006: Existing 1. (a) In case of works (i) Director General (original / special repair) of (ii) Director conservation of the Historical Monuments (iii) Deputy Director (Protected under Special Premises Ordinance) Up to Rs.25.00 lac in each case Up to Rs.10.00 lac in each case. Up to Rs.5 lac in each case Provided the excess over the amount for which the administrative approval has been accorded does not exceed 10%. In case the excess exceeds 10%, fresh administrative approval will be required. Full Powers Up to Rs.20.00 lac in each case. Up to Rs.10.00 lac in each case. Provided the excess over the amount for which the administrative approval has been accorded does not exceed 10%. In case the excess exceeds 10%, fresh administrative approval will be required. THE PUNJAB DELEGATION OF FINANCIAL POWERS RULES, 2006 CORRECTION SLIP NO. 1.
1.
Substituted (a) In case of works (i) Director General (original/special repair) of conservation (ii) Director of the Historical Monuments (Protected (iii) Deputy Director under Special Premises Ordinance) and other residential/ non-residential buildings.
2.
The omission is regretted. ----------
178
Finance Department
No. IT(FD)3-4/2002 Vol-VII GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 13th December 2006 Subject: TRANSFER OF APPROVED BUDGETED AMOUNTS BETWEEN THE LOCAL GOVERNMENTS FOR VARIOUS PURPOSES.
It has been brought to the notice of the Finance Department by the LG & RD Department that development funds transferred by the District/City District Governments to the Union Administrations (UAs) under the provisions of Section 109(2) of the PLGO 2001, read with the policy instructions contained in Finance Departments letter No. IT(FD)3-4/2002 Vol. HI dated 22.2.2003. for the execution of development schemes by the UAs, are not strictly utilised for the assigned purpose, as the UAs do not have the requisite capacity to execute such schemes, nor do they have the systems to maintain the accounts for such funds. 2. It is, therefore, advised that till such time that sufficient capacity is acquired by the UAs, the District/City District Governments may exercise caution and restraint in transferring funds to the UAs as above. ---------No. FD(M-Rec) 2-18/2001 (Advice) GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 14th December, 2006. Subject: GRANT OF NO DEMAND CERTIFICATE (NDC) TO RETIRING GOVERNMENT SERVANTS INVOLVED IN MISAPPROPRIATION / EMBEZZLEMENT AND IRREGULARITIES
Sir, I am directed to invite your kind attention to the instructions as contained in this department letter No. even, dated 19th November, 2001, which interalia provide the guide-lines to the departments that the government losses pointed out in the audit paras should be finalised well before the retirement of the employee concerned and where any audit para was pending against a retiring government servant, the pension for such employee should not be withheld; instead an undertaking on the stamp paper may be obtained from the retiring government servant that in case the recovery was established at any stage against him then he would be liable to pay the amount of recovery. 2. The Provincial Ombudsman, Punjab, in his Annual Report, 2005, has observed that in a large number of cases, gratuity/pension was withheld where some audit paras were pending against a retiring government servant, in disregard of the instructions as mentioned above. Resultantly, a number of retiring government servants or their families could not get their pensionary benefits, in time.
179
3. I am, therefore, directed to request you to ensure that gratuity/pension may not be withheld merely on the ground that some audit para was pending against a retiring government servant. I am to reiterate further that in case any audit para is pending against a retiring civil servant, the pension/gratuity for such employee may not be withheld; instead an undertaking on stamp paper may be obtained from the civil servant that in case the recovery is established at any stage against him, he will be liable to pay the amount of recovery. 4. Needless to mention, government losses as pointed out in the audit paras/audit observations should be finalised in time, well before the retirement of the civil servant concerned. ---------GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 14th December, 2006 NOTIFICATION No. FD (FR) 11-5/82 (P). In exercise of the powers conferred upon him under Article 119 of the Constitution of Islamic Republic of Pakistan, 1973, the Governor of the Punjab, is pleased to direct that in Part-I of Second Schedule to the Punjab Delegation of Financial Powers Rules, 2006, following amendment shall be made, with immediate effect: Amendment. Note-2 under Sr. no.8 of Part-I Powers Common To All Departments, Second Schedule to the Punjab Delegation of Financial Powers Rules, 2006, shall stand deleted. ---------No. FD (FR) 11-7/87 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore the 19th December, 2006. Subject: Sir, The words and figures appearing as sub-rule 2 of rule 15 shall be substituted by words and figures Rule 15.2 in amendment in rule 15.2 of the Rules as cited above made vide notification No. even, dated 2nd October, 2006. 2. The omission is regretted. ---------PUNJAB FINANCIAL RULES CORRECTION SLIP NO 1. (PFR)VOLUME-I, PART-I
180
Finance Department
No. FD(FR)11-2/89 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 20th December, 2006 Subject: Sir, The following substitutions are made in the Punjab Delegation of Financial Power Rules, 2006:THE PUNJAB DELEGATION OF FINANCIAL POWERS RULES, 2006 CORRECTION SLIP NO. 2
No. FD(SR-I)9-3/2000 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT Dated Lahore, the 27th December, 2006 Subject: REVISION OF BASIC PAY SCALES, ALLOWANCES AND PENSION OF CIVIL EMPLOYEES OF PUNJAB GOVERNMENT
I am directed to refer to para-10(xii) of the Finance Departments notification No. FD(PC)2-1/2003, dated 16-07-2005 on the above-mentioned subject and to clarify that:(a) The Integrated Allowance at rate of Rs.150/- PM is admissible to Naib Qasids, Qasids / Daftries, Frashes / Chowkidars / Sweepers and Sweeperesses in lieu of Washing Allowance and Dress Allowance with effect from 01-07-2005. The other categories of employees shall continue to draw Washing Allowance and Dress Allowance at the same rate as they were drawing these
(b)
181
allowances before the introduction of the Revised Basic Pay-Scales Scheme, 2005. ---------Government of Pakistan Finance Division (Regulations Wing) Subject: REVISION OF RATES OF PAIL Y ALLOWANCE ADMISSIBLE TO OFFICIALS AND OTHER PERSONS WHILE ON TOUR/DUTY OUTSIDE PAKISTAN.
The undersigned is directed to refer to this Divisions Office Memorandum No.F.l(10)R.10/90-80/96, dated the 2^ February, 1996 on the subject indicated above and to state that the existing rates of daily allowance admissible to Government Servants while on temporary duty outside Pakistan have been reviewed having regard to the existing cost of living abroad. As a result, the President has been pleased to decide to revise the existing rates as shown in the attached schedule with effect from January, 2007. 2. The existing rules on the subject are detailed below:(i) A category-I Officer for whom accommodation in a hotel is not arranged by the Pakistan Embassy concerned and who stays in a hotel under his own arrangement shall, in addition to the daily allowance for Category-I, continue to be allowed reimbursement of the actual charges of single room accommodation not exceeding the amount of daily allowance admissible to a Category-II Officer on production of hotel bills, provided that where no receipt is produced, daffy allowance will be admissible as prescribed for Category-II Officers. In such a situation the concerned Officer will be allowed advance of foreign exchange equal to daily allowance of Category-I plus Category-II and this advance will be adjusted on return of the officer to Pakistan by producing the hotel bills. The extra amount spent by a Government servant proceeding abroad on the purchase of foreign exchange in the form of Travellers Cheques equivalent to the amount of daily allowance in US Dollars against the advance of daily allowance sanctioned to him, shall be reimbursed on production of necessary receipt.
(ii)
(iii) Government officials visiting Saudi Arabia on official temporary duty during the Hajj Season shall be entitled to the Daily Allowance and other facilities as laid down in this Divisions O.M. No.F.l(l)R.10/83, dated the 2CP February, 1983. (iv) The daily allowance In Pakistan rupees will be calculated on the basis of selling rates applicable to US Dollars in cash or travellers cheques on the date of purchase as 7 notified by the State Bank of Pakistan. Original receipt from the Bank from which foreign exchange has been purchased will be attached with the TA bill. 3. Fu/f DA can be paid in advance. However, 50% of DA meant to cover accommodation charges will be admissible in the final TA adjustment bill on production
182
Finance Department
of hotel receipts/ vouchers. This does not apply to Category-1 Officers for whom there are separate rules on the subject. 4. In case of State guests, i.e. where the host agency/ country provides boarding & lodging by 30% of the DA is admissible. 15% incidental charges are not allowed to state guests. 5. According to Para.2 of Appendix 7 of FR & SR Vol.II the existing Categories of Government servants for the purpose of DA on tour/duty abroad are as under lease: Category-I Category-II Category-III Category-IV BPS-21 and above BPS-20 BPS 17-19 BPS16 and below
6. Ministries/Divisions are requested to manage the expenditure out of their allocated budget No requests of supplementary grant shall be entertained. ----------

Finance Department Notifications-2006 (323-549)

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Compendium of Instructions of Local Governments

Proforma for the requirements of EDOs(F&P)

Compendium of Instructions of Local Governments

Your report may reach this Department within fortnight. ----------

Compendium of Instructions of Local Governments

District Accounts Officer

Compendium of Instructions of Local Governments

Assistant Engineer (BS-17)

No. SOS-8(9)/05 GOVERNMENT OF THE PUNJAB FINANCE DEPARTMENT

Compendium of Instructions of Local Governments

Available / Not available

Attached / Not relevant

Attached / Not relevant Attached / Not relevant

Compendium of Instructions of Local Governments

(i) Administra tive Department (ii)

Full Powers Full Powers

Full Powers Full Powers

Sub para 3(x)

Compendium of Instructions of Local Governments

Sub para 3(x)

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

Kindly refer to the subject cited above.

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Compendium of Instructions of Local Governments

Tehsil / Town Municipal Administrations Union Administrations

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

Sahiwal Sargodha Sheikhupura Sialkot Toba Tek Singh Vehari Total

2.53% 3.90% 2.77% 3.31% 2.30% 2.74% 100.00% Schedule-B

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

101 Narowal 102 Narowal 103 Okara 104 Okara

131 Sheikhupura 132 Sheikhupura 133 Sheikhupura

Compendium of Instructions of Local Governments

Kindly refer to the subject noted above.

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

(c) (d) (e) (f)

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

Real Estate Investment Rust Management Company

(47B) (99) Part I of Second Schedule (57 Part I of Second Schedule

Under Clause Part IV of Second Schedule (11) (33) (47B)

FIXED TAX ON INCOME FROM PROPERTY [Section 15 (6)]

The provisions of section 49 provide exemption to the income of the

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

SERVICES OF SIZING AND WEAVING TO BE DEEMED AS EXPORTS. [Section 153(1A)]

Brokerage or commission was subject to withholding tax as below:

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

Compendium of Instructions of Local Governments

(d) (e) xv.

(iii) Value of the shares traded (Sale)

members of stock exchanges on amount of carry over charge

(iii) in case of trading of shares

Compendium of Instructions of Local Governments

TAXATION OF PROFIT ON DEBT. [First Schedule, Part III, Division-1]