Observance of Financial Discipline June 2025 dt 20.06.2025

Observance of Financial Discipline June 2025 dt 20.06.2025

OFFICE MEMORANDUM

Subject: Financial Discipline

I am directed to refer to the subject cited above to draw your attention to the provision of para 13.1 of the Punjab Budget Manual, read with rules 2.16 and 18.15 (aa) of Punjab Financial Rules Volume-I and policy guidelines issued from time to time, reiterated annually inter alia ensuring financial discipline during financial year 2024-25 in the province and also to ensure that the validly accrued liabilities against government are discharged well before the closing of the Financial Year.

2. I am further directed to state that considering the difficulties experienced by various departments in the past, adjusted time frame for submission of bills / claims / cheques etc. to the Account Offices (including Treasury Office) has been prescribed as under:

1. Budget Execution

• All administrative departments shall ensure that the budgetary allocation placed at their disposal are promptly released to the DDO / executing agencies and expanded uniformly during the financial year. In this regard, the onus of delay, if any, will be on the Administrative Department.
• As provided in para 14.10 of the Punjab Budget Manual, the Administrative Department / DDOS, once the Second Statements of Excess & Surrenders stands communicated, are precluded either to offer more surrenders or to utilize the funds earlier offered for surrenders, therefore, the Administrative Departments should keep close eye on such incidents.
•  No excess expenditure is allowed over the allocated and released budget.

2. Deadline for submission of claims to AG / DAO / TO Lahore for Financial Year 2024-25

Note-I    The instructions circulated via the Finance Department’s letter number IT(FD)3-2/2015(P) PLGA dated 08.04.2019 shall be followed in letter and spirit. Any disregard to these instructions by the DDOS / DAOS / Treasury Officer may result in disciplinary proceedings (Annex-A).

Note-II Cheques that remain uncashed after 30th June 2025, if any, shall be surrendered to the respective Accounts / Treasury Officer by 3rd July 2025 to enable them to write-back the expenditure booked against such cheques and render accounts.

Note-III The DDO may prepare the cheque for salary for the month of June 2025 by 23.06.2025 and the cheque for utilities for the month of June 2025, against advance bills, may also be prepared and presented as above.

 Note-IV The District Accounts Officers (DAOs) may also educate the recipient of cheques, after endorsement by the DAO/TO, immediately lodge a cheque for clearance by State Bank / National Bank, respectively.

3. In addition to the above arrangements and to strengthen financial discipline in the province, the DDOs / Executive Engineers executing the development funds through PLAs, AAA (LC) and PWD cheques are required to send the statement of cheques issued from 01.06.2025 to 23.06.2025 (close of office hours) on the enclosed format (Annex-B) through email, not later than 1600 hours on 23.06.2025 to their Administrative Secretary with a copy to the Finance Department at email address ciotfd@punjab.gov.pk and District Accounts Office / Treasury Office concerned. The nominated officer from the respective Administrative Department and Finance Department will acknowledge the receipt of email. Any DDOs / Executive Engineers not following these directions will be proceeded against under disciplinary rules.

4. The above instructions shall, in the context of payment, be applicable to the payments of Provincial Government against Account I (Non-Food), Account II (Food), Account V (District Education Authorities), Account VI (District Health Authorities) as well as Account VII (Urban Local LGs) and Account VIII (Rural LGs).

5. I am also directed to state that any violation of financial rules and litigation arising in consequence of disregard to financial discipline will be the responsibility of the Administrative Department concerned.

6. Kindly acknowledge receipt of this correspondence at the earliest.