The Finance Division has tightened rules for reallocating and obtaining additional government funds, limiting requests for supplementary grants and allowing exceptions to the May 31 deadline only in specified cases, including unavoidable June payments and salary-related shortfalls.
In a circular, the Budget Wing directed principal accounting officers, department heads and other government offices to follow revised procedures for reappropriation, Technical Supplementary Grants and Supplementary Grants during the current and coming financial years.
The Finance Division said funds can be reappropriated within the financial powers delegated to authorized officers, but money from unreleased budget allocations cannot be reappropriated. The instructions were issued under Article 84 of the Constitution and Section 10 of the Public Finance Management Act, 2019.
The division has also provided additional funds under separate cost centers for payment of the Ad hoc Relief Allowance 2026. Principal accounting officers can reappropriate these funds, in consultation with the Expenditure Wing, only for the allowance during the third quarter of the current financial year.
In case of a shortfall in employee related expenditure, funds can be reappropriated from non employee related expenditure heads on a priority basis. However, released funds must remain within the quarterly limits set under the Finance Division’s fund release strategy.
The Finance Division said requests to relax the May 31 deadline would only be considered in specified cases, including adjustment of excess expenditure booked by Accounts Offices, shortfalls in employee related expenditure and unavoidable payments due in June. Such requests must involve orders already approved by the competent authority.
The division has also tightened the process for Technical Supplementary Grants. Principal accounting officers must identify resources from other demands and provide a certificate confirming an equivalent surrender by the concerned officer. The Expenditure Wing will scrutinize the requests before they are sent to the Budget Wing for further assessment.
For Supplementary Grants, the Finance Division said no request for additional unbudgeted expenditure beyond the amount approved by Parliament would be considered, except in cases involving severe natural disasters. Where funds cannot be arranged through reappropriation or a Technical Supplementary Grant, the concerned officer must provide justification and recommendations from the relevant Finance Division wing.
The new procedures will apply to the current and coming financial years and cover all principal accounting officers, departments, organizations, subordinate offices and accounting offices.
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