Ensure fund availability before contract execution: Ministry of Finance

Energy Saturday 12/September/2020 15:37 PM
By: Times News Service
Ensure fund availability before contract execution: Ministry of Finance

Muscat: The Ministry of Finance on Thursday issued Financial Circular No. 19/2020 directing all ministries, government units, authorities and public establishments to stick to procedures and ensure the availability of credit allocations in the budget prior to concluding contracts .
The circular also advised them to get contract procedures endorsed by the Ministry of Finance in line with the provisions of the Financial Law promulgated by Royal Decree No. 47/1998 and its Executive Bylaw issued under Royal Decree No. 36/2008, as well as the provisions of Royal Decree No. 48/1976 on signing foreign and local financial transactions.
The circular instructs the above-mentioned departments not to float any new tenders or assign any works or enter into any new contractual financial obligations by banking on the current budget. In addition, no operation orders or letters of good intent shall be issued to engage companies or establishments to carry out government projects or offer supply tasks or services unless prior approval has been obtained from the Ministry of Finance. Only after obtaining approval shall the Ministry of Finance be approached for financial ratification procedures.
The Ministry of Finance directed government units to provide its Treasury Department with detailed statements of all sums expected to be disbursed (whether on current, capital or developmental budget) within the cash liquidity approved for each department on a quarterly basis.
The Ministry said it will continue to advise ministries and government units to rearrange their spending priorities in a manner that conforms with available financial resources. It is also asking the departments in question to fully adhere to government directives aimed to cut down general expenditure and limit the State’s Budget deficit.