Finance Ministry scraps fund guarantee requirements for projects

Finance ministry removes budget guarantee requirement for revolving fund accounts in projects.

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The Ministry of Finance has removed the requirement for a budget or funds guarantee to open revolving fund accounts for projects.

This change comes after an amendment to the office memorandum issued on August 4, 2022, which has now been officially notified.

According to the revised memorandum, the language in Paragraph 1 (1)(b), which previously required a budget cover and funds guarantee for projects, has been removed.

Similarly, the clause in Paragraph 1 (j) stating that budget allocations in the budget estimates (BOs/NISs) and the provision of relevant documents were mandatory has also been deleted.

Furthermore, a new paragraph, 1(d), has been added, specifying that no payment will be made from the revolving fund account unless the required amount is allocated in the project’s budget.

The Ministry of Finance stated that these changes aim to enhance transparency and improve financial management of project funds. The updated guidelines are effective immediately.