The government has amended the guidelines for disbursement and utilisation of budgetary allocations for the development projects aimed at speeding up implementation of Annual Development Programme (ADB).
Project directors of development projects will now be able to use funds for their respective development projects in line with the budgetary allocations from July 1, the first day of the new fiscal year.
The finance division issued a circular to this end with effect from July 1, 2018, said a media release of the finance ministry, reports BSS.
At present, there is provision for respective ministries/divisions to take steps to get released of the government portions of funds for projects to be implemented by the ministries/divisions/departments/directorates/other organisations.
Under this system, project directors need long 2-3 months in receiving approval for getting the money released.
Under the amended system, they do not need to maintain such procedures for the use of 1st and 2nd instalments of funds for development projects. Project directors will now be able to use the funds directly from July 1 in line with the budgetary allocations.
In respect of customs duty (CD) and Value Added Tax (VAT), ministries/divisions concerned take steps to get the funds released but under the amended system, project directors will now be able to use the funds directly from July 1 in line with the budgetary allocations.
In respect of land acquisition, there is provision to release funds on the basis of instalment. Now the entire amount for land acquisition can be released at a time.