The Punjab government on Tuesday decided to enhance the limit of Cash Management Fund from Rs200 to Rs1,000 billion during the current fiscal year.
According to details, the limit of the Cash Management Fund was increased by five times for the current fiscal year. The government cash payments will become profitable through this fund.
The Punjab finance department said that the limit of the Cash Management Fund earlier was Rs200 billion.
The Punjab government has already informed the federal government about the enhancement in the limit of the Cash Management Fund.
All the spare funds of the government department will be deposited in the same fund. The government will not borrow loans on huge interest.
The Punjab government’s cash flow will be strengthened, and the interest rate will also be dropped. The fund for the public welfare project will be released on a priority basis
The financial discipline will be improved, and profit will increase after the payment of net cash.
Officials hoped that an increase in the Cash Management Fund would enable government funds to generate income instead of remaining idle.
