Financial Powers, Delegation of
Financial Powers, Delegation of refers to the powers delegated to the administrative ministries or divisions across the government in financial matters. Under the rules of business of 1975 (issued in revised form in 1996), references to the Ministry of Finance are mandatory on all issues involving finances in specified areas. As a general rule, the ministries/divisions and their attached departments and autonomous organisations are free to incur expenditure within the budget allocations made by the finance division with the approval of the jatiya sangsad.
The delegation of financial powers made by the finance division fall into two broad categories: first, those relating to the revenue budget, and second, those relating to the development budget. All financial matters in relation to the revenue budget are to be disposed of by the ministries/divisions themselves in accordance with the provisions laid down in various codal rules and government instructions and orders. In pursuance of an office memorandum issued on 15 August 1983 by the Finance Ministry's finance division, it was decided to minimize frequent references to the finance division. To that end, the finance division's office memorandum specified in an annex a list of twenty-seven cases on which reference has to be made to that division. Although a minor revision was made in April 1990 in relation to it, the list of twenty-seven items remained basically the same.
Another office memorandum, issued in April 1994 by the finance division, contains as many as thirty-three cases or areas where the powers for implementation of development budget are delegated in full or in part. The heads of various attached departments, including the development-related project directors under such departments, have been allowed to enjoy varying powers depending upon the nature and size of their projects.
The latest decision in this regard was made public on August 16, 2015 for both types of budgetary expenditures (Finance Divisions Office Memorandum no. 07.00.0000.151.22.003.15.351(1) dated August 16, 2015). The said notification refers to the earlier delegation of February 3, 2005 and the order on the Model for Sub-delegation of Financial Powers.
It is seen from existing Delegation of Financial Powers that in case of revenue expenditure, financial limits for incurring expenditure have increased. Besides, in the earlier memos of delegated authority there were twenty-seven cases which had to be referred to the Finance Division for decision. This has since been reduced to fourteen. The latest order also points out that previously, the delegated powers were not specific in some cases for which revision was necessary. The decision on delegated powers further casts a number of responsibilities on the Secretaries (includes Senior Secretary, Secretary in charge) in matters relating to expenditures in their capacity as Principal Accounting Officers.
The other important features of the decision on delegated powers are (i) the ministry or division shall further delegated its power to the attached department as deemed necessary, (ii) at the beginning of each financial year, annual procurement plan will have to be prepared and approval obtained from the Head of Procurement Entity (HOPE) and (iii) in civil works related cases, expenditures above Tk. 50 crore will have to be submitted to the Cabinet Committee on Procurement and for expenditure above Tk. 10 crore for consultancy services similar action as above to be taken.
Part II of the memo for Delegation of Powers relates to expenditure under development budget. This part, in an annex, has provided a list of fifteen cases for which approval by Finance Division shall be necessary. This apart, financial power for ministry/division attached departments and Project Director have been delegated some of which are subject to public procurement act/rules including other procedures as are applicable. [AMM Shawkat Ali]
