Government oflndia
Ministry of Finance
Department of Economic Affairs
North Block,New Delhi·] 110001
Tel :+91·c 11-23093183
Fax:+91·] 11·] 23093133
rllail:prashant.9oyal(O nic.in
E·
D.·Z.No.4(21)· B(SD)/2015 Datcd:8th October,2015
Dear
,,
The Second batch of Supplementary Demands for Grants for 2015-16 is to ,
presented to Parliament in the ensuing Winter Session likely to commence ,Z,
November/December, 201 5.
2. The following types of Supplementary Demands may only be considered for inclusion
in this batch:
(a) Cases where advances from the Contingency Fund of India have been granted,
which are required to be recouped to the fund;
(b) Payments against court decree which cannot be postponed;
(c) Additional funds immediately required which can be met by
re-appropriation of savings in the grant but require prior approval of Parliament
under the New Service/lriew Instrument of Service Rules. In all cases where the
savings ate available within the same section (Revenue/Capital and
ChargedA/oted) of the grant, only token supplementary should be proposed. In
cases where the savings are available in the Revenue/Capitai section or
chargedlvoted section and the expenditure is to be incurred in another section
(Revenue/Capital or ChargedNoted), full requirement may be proposed as a
technical supplementary. It may be noted that the savings, against which the full
amount is proposed in a different section , will be committed for surrender and
will not be available for re-appropriation; and
(d) Cases where Ministry of Finance has specifically advised moving of
Supplementary Demand in the Winter Session.
3' All other cases may be held back for the third and final batch of Supplementary
Demands for Grants for the current year due in the Budget session.
4' The Public Accounts Committee had commended adversely on cases where
Ministries/Departments obtained supplementary grants in earlier
y.u.. but the final
expenditure was less than or in excess of the app.oued grant.
In order to avoid recurrence
of such lapses in future, steps/measuter *uy- be takeri for better fiscal and
expenditure
management as per this Ministry's O.M. No. 7(1)E. Coord./2014
dated2g.l1.21li.Further,
instructions on incidence of unauthorized .L-app.opriation
of budget issued by this
Ministry's o.M. No. F.7(7)-B(SD)/2013 dated 7tf,ianuary 20t4, *uy
6'," rigidly followed.
2
Attention is also drawn to the Department of Expenditure's O.M. No. 12/21/E.Coord/ 2015
dated 17th July, 2015 regarding Excess Expenditure over Voted Grants, wherein, it has been
brought to the notice of all Ministries/ Departments that the Public Accounts Committee
(PAC) had expressed its displeasure over the tepid approach of the defaulter
Ministries/Departments particularly for bad planning, lack of foresight and ineffective
monitoring on the part of budget controlling authorities while preparing both budget
estimates as well as Supplementary Demands for Grants. The Committee, therefore,
reiterate the need for scrupulous scrutiny of the budget proposal both at the time of
preparation of Demands for Grants and Supplementary Demands for Grants, rigorous
monitoring of the pace of expenditure and strict compliance of General Financial Rules
to eliminate the possibility of excess expenditure, under spending, wrongful
appropriation, etc. In the light of the Observations of PAC, all the
Ministries/Departments may take all measures, including use of electronic systems, to
ensure proper planning and monitoring of expenditure vis-à-vis voted grants so the
pitfalls in expenditure are avoided.
5. Budget controlling Authority/FAs of concerned Ministries/Departments may,
therefore, ensure that the proposals are made on the basis of thorough objective and realistic
assessment of additional requirement of funds in each case that is proposed for inclusion in
Second batch of Supplementary Demands for Grants for 2015-16.
6. The proposals along with the draft statement justifying Supplementary Demands to
be included in the ensuing batch and appropriate background notes may be forwarded to
Budget Division in the prescribed form by 30th October, 2015, after which date, proposals
may not be entertained. Cases which are required to be reported to Parliament in terms of
the guidelines circulated with the Ministry's O. M. No.F.1(23)-B(AC)/2005 dated 25th May
2006 may also be furnished to Budget Division in a summarized form by the same date.
7. If there is no proposal for Supplementary Demands for Grants in this batch, a nil
report is also specifically requested.
8. The proposals in complete form (3 copies) may please be furnished by the due date to
Shri K. Vasudevan, Deputy Director (Budget), Ministry of Finance, Department of
Economic Affairs, Room No. 237, North Block, New Delhi.
With regards,
Yours sincerely,
Sd/-
Encls: As above
(Prashant Goyal)
To
All Financial Advisers.
No.7(1)/E.Coord.l2014
Government of India
Ministry of Finance
Department of Expenditure
***********
~
_/~ North Block,
New Delhi,1-'r' October, 2014
OFFICE MEMORANDUM
Subject: Expenditure Management - Economy Measures and
Rationalisation of Expenditure.
Ministry of Finance, Department of Expenditure has been
'" issuing austerity instructions from time to time with a view to containing
non-developmental expenditure and releasing of additional resources for
priority schemes. The last set of instructions was issued on is"
September 2013 after passing of the Union Budget. Such measures are
intended at promoting fiscal discipline, without restricting the
operational efficiency of the Government. In the context of the current
fiscal situation, there is a need to continue to rationalise expenditure and
optimize available resources. With this objective, the following
measures for fiscal prudence and economy will come into immediate
effect:-
2.1 Cut in Non-Plan expenditure:
For the year 2014-15, every Ministry / Department shall effect a
mandatory 10% cut in non-Plan expenditure excluding interest payment,
repayment of debt, Defence capital, salaries, pension and Finance
Commission grants to the States. No re-appropriation of funds to
augment the Non-Plan heads of expenditure on which cuts have been
imposed shall be allowed during the current fiscal year.
2.2 Seminars and Conferences:
(i) Utmost economy shall be observed in organizing conferences/
Seminars/workshops. Only such conferences, workshops,
seminars, etc. which are absolutely essential, should be held
wherein also a 10% cut on budgetary allocations (whether Plan
or Non-Plan) shall be effected.
(ii) Holding of exhibitions/fairs/seminars/conferences abroad is
strongly discouraged except in the case of exhibitions for trade
promotion.
(iii) There will be a ban on holding of meetings and conferences at
five star hotels except in case of bilateral/multilateral official
engagements to be held at the level of Minister-in-Charge or
Administrative Secretary, with foreign Governments or
international bodies of which India is a Member. The
Administrative Secretaries are advised to exercise utmost
discretion in holding such meetings in 5-Star hotels keeping in
mind the need to observe utmost economy in expenditure.
2.3 Purchase of vehicles:
Purchase of new vehicles to meet the operational requirement
of Defence Forces, Central Paramilitary Forces & security
related organizations are permitted. Ban on purchase of other
vehicles (including staff cars) will continue except against
condemnation.
2.4 Domestic and International Travel:
(i) Travel expenditure {both Domestic Travel Expenses (DTE) and
Foreign Travel Expenses(FTE)} should be regulated so as to
ensure that each Ministry remains within the allocated budget
for the same after taking into account the mandatory 10% cut
under DTE/FTE (Plan as well as Non-Plan). Re-appropriation!
augmentation proposals on this account would not be approved.
(ii) While officers are entitled to vanous classes of air travel
depending on seniority, utmost economy would need to be
observed while exercising the choice keeping the limitations of
budget in mind. However, there would be no bookings in
First Class."
(iii) Facility of Video Conferencing may be used effectively. All
extant instructions on foreign travel may be scrupulously
followed.
(iv) In all cases of air travel the lowest air fare tickets available for
entitled class are to be purchased! procured. No companion free
ticket on domestic/ international travel is to be availed of.
2.5 Creation of Posts
(i) There will be a ban on creation of Plan and Non-Plan posts.
(ii) Posts that have remained vacant for more than a year are not to
be revived except under very rare and unavoidable
circumstances and after seeking clearance of Department of
Expenditure.
3. Observance of discipline in fiscal transfers to States, Public
Sector Undertakings and Autonomous Bodies at Central/
State/Local level:
3.1 Release of Grant-in-aid shall be strictly as per provisions
contained in GFRs and in Department of Expenditure's OM
No.7(1)/E.Coord/2012 dated 14.ll.2012.
3.2 Ministries/Departments shall not transfer funds under any Plan
schemes in relaxation of conditions attached to such transfers (such as
matching funding).
3.3 The State Governments are required to furnish monthly returns
of Plan expenditure - Central, Centrally Sponsored or State Plan - to
respective Ministries/Departments along with a report on amounts
ouistanding in their Public Account in respect of Central and Centrally
Sponsored Schemes. This requirement may be scrupulously enforced.
3.4 The Chief Controller of Accounts must ensure compliance with
the above as part ofpre-payment scrutiny.
4. Balanced Pace of Expenditure:
4.1 As per extant instructions, not more than one-third (33%) of the
Budget Estimates may be spent in the last quarter of the financial year.
Besides, the stipulation that during the month of March the expenditure
should be limited to 15% of the Budget Estimates is reiterated. It may be
emphasized here that the restriction of 33% and 15% expenditure ceiling
is to be enforced both scheme-wise as well as for the Demands for Grant
as a whole, subject to RE ceilings. Ministries/ Departments which are
covered by the Monthly Expenditure Plan (MEP) may ensure that the
MEP is followed strictly.
4.2 It is also considered desirable that in the last month of the year
payments may be made- only for the goods and services actually
procured and for reimbursement of expenditure already incurred. Hence,
no amount should be released in advance (in the last month) with the
exception of the following:
(i) Advance payments to contractors under terms of duly executed
contracts so that Government would not renege on its legal or
contractual obligations.
(ii) Any loans or advances to Government servants etc. or private
individuals as a measure of relief and rehabilitation as per service
conditions or on compassionate grounds.
(iii) Any other exceptional case with the approval of the Financial
Advisor. However, a list of such cases may be sent by the FA to
the Department of Expenditure by so" April of the following
year for information.
4.3 Rush of expenditure on procurement should be avoided during
the last quarter of the fiscal year and in particular the last month of the
year so as to ensure that all procedures are complied with and there is
no infructuous or wasteful expenditure. FAs are advised to specially
monitor this aspect during their reviews.
5. No fresh financial commitments should be made on items
which are not provided for in the budget approved by the Parliament.
6. These instructions would also be applicable to autonomous
bodies funded by Government of India.
7. Compliance
Secretaries of the Ministries / Departments, being the Chief
Accounting Authorities as per Rule 64 of GFR, shall be fully charged
with the responsibility of ensuring compliance of the measures outlined
above. Financial Advisors shall assist the respective Departments in
securing compliance with these measures and also submit an overall
report to the Minister-in-Charge and to the Ministry of Finance on a
quarterly basis regarding various actions taken on these measures /
guidelines.
-
(Ratan P. Watal)
Secretary(Expenditure)
All Secretaries to the Government of India
Copy to:
1. Cabinet Secretary
2. Principal Secretary to the Prime Minister
3. Secretary, Planning Commission
4. All the Financial Advisors
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