Finance Division new order delegates financial powers

The Finance Division on Tuesday issued a new consolidated order on the delegation and re-delegation of financial powers to ministries, divisions, attached departments and subordinate offices to strengthen discipline in public financial management and procurement.
Under the order, the government repealed the previous delegation framework issued on August 16, 2015 along with all later amendments, and replaced it with an updated system reflecting recent administrative changes, procurement reforms and legal developments.
The Finance Division of the Ministry of Finance said the practice of delegating financial powers began through operating budget-related orders in 1983 and 1985, reports UNB.
The order has come into effect immediately and will remain in force until further notice.
Broader powers were delegated in 1994, followed by revised orders in 2000 and 2004.
The last comprehensive order before the current one was issued in 2015, covering both development and non-development expenditure.
Amendments to the Public Procurement Act, 2006, and the formulation of the Public Procurement Rules, 2025 also made it necessary to update and harmonise the delegation of financial powers.
Under the revised framework, the Senior Secretary, Secretary or Acting Secretary of each ministry or division will act as the Principal Accounting Officer.
They will be responsible for ensuring that expenditures are made only for approved purposes, all financial rules and regulations are followed, budget limits are not exceeded and no expenditure is incurred in anticipation of supplementary grants without prior approval.