Delegation of powers under the Punjab Delegation of Financial Powers Rules, 2006 was issued on 2nd October, 2006. Since then a number of corrections and amendments have been made. It has been felt that the original rules alongwith corrections and amendments therein do not make an easy reading of these set of Rules. In order to overcome this difficulty, an updated version of the Rules is being brought out for the convenience of Administrative Departments and field offices. Circular letters and instructions issued for clarification of financial powers have also been appended. This should considerably enhance the utility of this edition.
The Delegation of Financial Powers Rules provide a regulatory framework for the management of expenditure by the Provincial Government. Since these rules are intended both to streamline and facilitate the conduct of government business, they require periodic reviews to keep the financial powers of government functionaries closely aligned with the emerging requirements of governance, particularly in the context of modern public sector management practices. The basic format of the Delegation of Financial Power Rules 1990 has been retained so as to ensure continuity.
More specifically, the present revision, in the shape of The Punjab Delegation of Financial Powers Rules 2006 has been carried out in view of the extraordinary changes brought about in the institutional structures and financial procedures in the Province by the implementation of the Devolution Plan and the introduction of the New Accounting Model, coupled with the increase in the cost of commodities and services since 1990. This revision also signifies a marked departure from the previous revision in that it draws from a detailed analysis of various audit observations generated because of certain lacunae in the Delegation of Financial Powers Rules 1990 with a view to improve financial discipline and to remove inherent weaknesses in the framework of financial regulations. Furthermore, recent changes in related financial rules have been considered and incorporated in the revision to make them compatible.