Investor Presentaiton
T
Chapter V - Public Account of the Province
he Provincial Consolidated Fund (PCF) has been established under Article 118 (1) of the Constitution of Islamic Republic of Pakistan,
1973. The Constitution requires that all revenues of the Government, all loans raised by it and all moneys received by it in repayment
of loans shall form part of the Provincial Consolidated Fund. Article 118 (2) further provides that all other moneys received by or on
behalf of the Government or received by or deposited with the High Court or any other court established under the authority of the
Province shall be credited to the Public Account of the Province.
Provincial
Consolidated Fund
Public
Account
Government Tax /
Non-Tax Receipts
Loans Received &
Recovered
Trust Moneys
Received
Deposits under
Court Orders
The moneys received in Provincial Consolidated Fund and Public Account are deposited to the Government Treasury, cash of which is placed
in a bank account maintained by the State Bank of Pakistan, under an agreement between the Governor of the Punjab and State Bank of
Pakistan, titled "Punjab Account Number - I (Non-Food)". This account reflects a common cash balance of both PCF and the Public Account.
However, separate sets of books of accounts for receipts and expenditure of Provincial Consolidated Fund and Public Account of the Province
are maintained by the AG's / District Accounts Offices. It may also be worthwhile to add that the Government is authorized to open more than
one bank account to run the system of the Government in a smooth manner. All such accounts would, however, form part of the Provincial
Consolidated Fund or the Public Account of the Province depending upon the type of money. For example, Government of the Punjab has
opened Provincial Account Number - II (Food) with the State Bank of Pakistan for its commodity operations. Similarly, Provincial Account
Number-V (DEAs) and Provincial Account Number - VI (DHAS) have also been opened with the State Bank of Pakistan. The cash balances
of these accounts are treated part of the composite cash balance of the Province for the purpose of overdraft facility of the Punjab Government.
However, the cash available in these accounts are used only for the purpose of commodity operation, expenditure on School Education and
as the case may be, for Primary and Secondary Health, respectively, in the Province.
The Government, as a custodian of all moneys placed in the Public Account, has a fiduciary responsibility to receive and disburse these
moneys but is not at liberty to appropriate the money pertaining to Public Account for the general service of the Government. The form and
manner for disbursement of moneys from the Public Account is regulated under the Punjab Treasury & Subsidiary Treasury Rules and the
Punjab Financial Rules, framed under the Article 119 of the Constitution. As the disbursement of moneys credited to the Public Account is not
subject to the vote of the Provincial Assembly, the deposits unclaimed for one whole account year, balances of deposits partly repaid during
the year then closing, and all balances unclaimed for more than three complete account years will lapse at the close of June in each year, be
credited to Government, therefore, the balances thereof, if any, are carried forward on year to year basis, maximum for three complete financial
years. Therefore, such money can be refunded within a span of three financial years after the year of deposit. On completion of life of three
financial years the unpaid lapsed credits are shifted to the Provincial Consolidated Fund as Miscellaneous receipts under Object code C03801-
Unclaimed Deposits. Any claim arising thereafter is refunded from provincial receipt of "unclaimed deposits".
The moneys credited to the Public Account and its disbursement are generally governed by the agreement(s) / law & rules/ court orders etc.
So far as to distinguish the different kinds of credits / debits and the maintenance of accounts of Public Account is concerned, various codes
with nomenclature have been allotted at Major, Minor and Detailed levels in the Chart of Accounts (COA). The credits and debits of Public
Account are categorized in following three categories.
Cash and Bank balances,
Receivable loans & advances,
Physical Assets and Investments)
II
Liabilities, Loans, Deferred Liabilities,
Trust Accounts, Special deposit
Accounts etc.
III
Equities and Investment by
Government
Page 45View entire presentation