Govt eases rules for ADP fund release

Hasibul Aman

14 April, 2019 12:00 AM printer

The government has moved to spur ADP projects execution further with scrapping the provision for finance division’s approval in getting the fourth instalment of GoB funds released.

The finance division has recently issued an office order with regard to this, finance ministry sources said.

The new decision will help the project directors release and utilise the local portion of funds for development projects without taking prior approval from the finance division of the administrative ministry or division.

In a bid to bring momentum to project implementations, the government had decided to empower project directors from July 01 in current FY19 in releasing the first and second instalment of local funds.

The provision of seeking approval from the concerned authorities to release the remaining two instalments was still in place, which caused harassment to PDs and project delay.

“According to revised authority in 2018-19 fiscal year, ministry, division, department or other offices won’t require taking consent from finance division, administrative ministry or division to release the fourth instalment of GoB fund for any approved ongoing projects,” says the office order.

The money will be treated as automatically released and project directors will be able to directly spend the money, it added. 

However, in the case of revised, unapproved and other types of projects the rules mentioned in fund release and utilization directory 2018 issued by the finance division will have to be followed.

Funds against development schemes are released in four instalments. Earlier, it was mandatory to obtain approval from the finance division or the concerned executing ministry’s administrative department for getting the funds release.

The main objective of this was to ensure greater accountability and transparency in project expenditure.

But the system, which usually consumes much time for bureaucratic tangles, has been a major concern for timely project execution.

The government makes project-based development expenditure projection in the budget and project directors are appointed to oversee project work.

At the time of project approval, component-based expenditure plan is also approved.

The concerned ministry gives approval of fund release. In the process, the finance ministry and planning ministry are also involvement.

Any project procurement and infrastructures are constructed by the private sector through tenders. There is a rule to take clearance from the finance ministry for the procurement related bills and vouchers.

In these cases, project directors make payment to contractors after getting fund release approval. But the new rule makes them free of this hassle.