Govt Tightens Rules on Supplementary Grant Requests

The Finance Division has implemented stricter rules for obtaining supplementary grants and reallocating government funds. In a circular, the Budget Wing instructed principal accounting officers, department heads, and other government offices to adhere to revised procedures for reappropriation and the use of Technical and Supplementary Grants during the current and upcoming financial years.

The Finance Division, under Article 84 of the Constitution and Section 10 of the Public Finance Management Act, 2019, clarified that funds can be reappropriated within authorized limits but unreleased budget allocations cannot be used for reappropriation. The division provided additional funds under separate cost centers for the Ad hoc Relief Allowance 2026, which can only be reappropriated by principal accounting officers in consultation with the Expenditure Wing for payment during the third quarter of the current financial year.

Requests to extend the May 31 deadline for supplementary grants would only be considered for unavoidable June payments, salary shortfalls, and adjustment of excess expenditures booked by Accounts Offices. Such requests must involve orders approved by the competent authority. The Finance Division has tightened the process for Technical Supplementary Grants, requiring principal accounting officers to identify resources from other demands and obtain a certificate of equivalent surrender by the concerned officer.

The Expenditure Wing will review these requests before submission to the Budget Wing for further evaluation. Supplementary Grants requests for additional unbudgeted expenditure beyond the approved parliamentary amount, except in cases of severe natural disasters, will not be considered. If funds cannot be obtained through reappropriation or a Technical Supplementary Grant, the responsible officer must provide justification and recommendations from the relevant Finance Division wing.

These new procedures will apply to all principal accounting officers, departments, organizations, subordinate offices, and accounting offices during the current and upcoming financial years.