Islamabad: The federal government recently approved the Treasury Single Account Rules 2020 — with the initiative intended to ensure a steady availability of cash for the state, a new source reported on August 6.
Under the new rules, all of the public funds of a ministry, division and its attached departments will be placed into a single account. The Finance Division is also expected to draft similar rules for autonomous, regulatory and other bodies under the aegis of the federal government at a later stage.
The purpose of the rules is to anticipate the government’s cash needs, and utilise the funds available in government accounts to their fullest potential.
According to a Finance Division briefing to the cabinet, the Public Finance Management Act (PFMA) 2019 was passed in order to comply with Article 79 of the Constitution of Pakistan, with an aim to regulate the utilisation and custody of the Federal Consolidated Fund. It also intended to include a number of financial reforms. These rules further define the use of public funds.
