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  • Mar 10th, 2008
  • Comments Off on Finance taking steps to prepare three-year MTBF: pro forma circulated among ministries
The finance ministry has started consultation with other ministries to prepare three-year (2008-11) Medium-Term Budgetary Framework (MTBF), for which a pro forma has already been circulated amongst the ministries for collection of project-wise data, official sources told Business Recorder.

Sources said that provinces has been asked to provide projects-wise utilisation status of federal share in development assistance to provinces during the current fiscal year and demand for total development assistance of the provinces in 2008-09.

The schemes proposed for inclusion in the programme would be arranged in order of priority within each sector/sub-sector, so that if resources fall short of the requirement, low priority schemes may either be dropped or allocations are adjusted accordingly.

Sources said that ministries and divisions have been directed that they should separately mention the amount on the projects to be financed through foreign-aid in rupees, indicating the expenditure on import of goods and services.

"This is necessary because under certain foreign-aid agreements the GoP is required to first incur the expenditure in local currency and thereafter the amount is reimbursed by the donor agency," the sources added.

Sources said the finance ministry has conveyed to all the ministries that allocations to on-going projects, which have reached a fairly advanced level of completion should be adequately provided with the objective to complete them within 2008-09.

Similarly, the finance ministry would ensure that schemes, which have direct bearing on achieving the plan target must get adequate allocation.

"All ministries should scrutinise their projects in the approved portfolio as well as those awaiting approval and determine whether they fall within the parameters of the MTDF," the sources quoted the officials documents circulated by the finance ministry amongst all the ministries/divisions and provincial governments as saying.

While undertaking this exercise, ministries/division should also identify projects that are based on (a) public-private partnership and (b) community/NGOs participation in terms of cost-sharing or otherwise, the sources added.

"Agencies have been directed to indicate their programmes after full deliberations so that request for re-appropriations immediately after the commencement of the fiscal year is avoided," the sources said. As a policy, the Planning Commission would not entertain requests for re-appropriations of funds during July-December period.

Sources said the finance ministry has asked the ministries/divisions and provinces to avoid unnecessary delay in processing the demands for PSDP 2008-09 by the Planning Commission, the requisite material should be made available as early as possible.

Copyright Business Recorder, 2008


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