The West Bengal Financial Rules
Chapter 9

Budget

SECTION 1 - GENERAL

Responsibility for preparation of Annual Budget Estimates


320. Under: Article 202(1) of the Constitution of India, the responsibility for the preparation of the annual statement of the estimated receipts and expenditure of the State and its presentation to the Legislature lies with the Finance Department. Full details of the receipts and expenditure of the " Annual financial Statement" are given in One annual publication, "Detailed Civil Budget Estimates".

327. The materials on which the budget estimates are based should be obtained by the Finance Department from the local budgeting officers. The authorities who will be responsible for the submission of budget estimates under the different heads, the form in which and the dates on which such estimates are to be furnished to Government and to the Accountant-General, West Bengal, will be prescribed by the Finance Department.

328. Under Article 149 of the Constitution of India, the Accountant-General, West Bengal, will. be responsible for rendering such, assistance in the preparation of the annual budget estimates as may be settled in consultation with the Finance Department and shall supply any information in connection with the budget estimates which he is in a position to supply and to offer any opinion or advice in connection therewith which may be required by Government.

Note. - The nature of the assistance rendered by the Accountant-General, West Bengal and the detailed instructions connected therewith are laid down in rule 360.

Form in which the Budget Estimates should be presented to Legislature


329. The Budget of the State to be presented to the Legislature should show in detail the receipts and expenditure of the State in separate columns-

    (i) the actuals of the past year,
    (ii) the budget estimates of the current year ,
    (iii) the revised estimates of the current year, and
    (iv) the budget estimates of the ensuing year.


330. The estimates of expenditure shall show separately -

    (i) the sums required to meet expenditure described by the Constitution of India as expenditure charged upon the Consolidated Fund of the State, and
    (ii) the sums required to meet other expenditure proposed to be made from the Consolidated Fund of the State.

and shall distinguish expenditure on revenue account-from other expenditure.

Note.-A list of expenditure declared "charged" upon the Consolidated Fund of the State is given in Appendix 19. Any question whether any proposed expenditure falls within a class of expenditure charged on the Consolidated Fund of the State shall be decided by the Legislature of the State or by the Governor.

331. So much of the estimates of expenditure as relates to expenditure charged upon the Consolidated Fund of the State is not submitted to the vote of the Legislative Assembly. So much of the estimates as relates to other expenditure is submitted to the Legislative Assembly in the form of "Demands for Grants".

Major Heads under each demand will contain, first, an abstract by sub-Major heads, if any, and Minor heads of the total amount required; then, a statement of the detailed estimates distributed under different sub-heads and detailed heads.

Note. - The sub-heads as they appear in the Budget Estimates for a year (as voted by the Legislature) will be the sub-heads prescribed by the Finance Department for that year. Any changes in the prescribed sub-hoods found necessary by the departmental authorities or by the Accountant-General during the course of the year will be introduced only under the formal authority of the Finance Department to be communicated officially to the departmental authorities and the Accountant-General. In preparing the budget for a year, the departmental budgeting authorities and the Accountant-General will normally adopt the sub-head" appearing in the Budget Estimates of the previous year with any changes that may have been authorised by the Finance Department, officially during the course of that year.

Schedule of authorised expenditure
332. After the demands for grants have been assented to by the Legislature, a Bill (called “Appropriation Bill”) will be introduced to provide for appropriation out of the Consolidated Fund of the State of the Grants made by the Legislature, as well as the several sums required to meet the expenditure "charged" upon the Consolidated Fund of the State. The Bill, when passed, will be called the " Appropriation Act" for the year.

Punctuality in the submission or estimate


333. The officers by whom the different budget estimates are to be prepared and the dates by which these estimates are to be submitted to Government and the Accountant-General, West Bengal, are shown in Appendix 20. As the time available for examination and consolidation of the estimates is very limited, any delay in the submission of a single estimate will dislocate the budget programme seriously. It is, therefore, of the utmost importance that all the budgeting authorities should adhere strictly to the dates fixed for the transmission of their estimates to the authorities concerned.

Form of the estimates to be prepared by local officer


.334. Each budgeting authority will be responsible for the correct preparation of the estimates (both for revised and budget) in respect of the receipts and expenditure with which he is concerned. The forms in which these estimates are to be prepared will be supplied by the Finance Department on such- dates as may be fixed. ,BR>
335. The estimates should be prepared in quadruplicate. One copy should be kept for record in the office of the local budgeting officer, the remaining copies being sent simultaneously to the Accountant-General, West Bengal, the Finance Department and the administrative department concerned.

Where, however, the administrative department is itself responsible for the preparation of the estimates, only three copies need be prepared-one copy being kept for record in the department and the remaining copies being sent simultaneously to the Accountant-General, West Bengal, and the Finance Department.

SECTION II - INSTRUCTIONS FOR THE PREPARATION OF REVISED AND BUDGET ESTIMATES RELATING TO HEADS OTHER THAN PUBLIC WORKS AND IRRIGATION

Introductory


336. The instructions in the following rules should be borne in mind in framing the revised estimates of the current year and budget estimates of the ensuing year.

Note. - The instructions for the preparation of budget estimates for Public Works and Irrigation Departments are contained in rules 353 to 359.

A - Revised Estimates


337. The Revised Estimates are forecasts, as accurate as it is possible to make, of what the actual receipts and expenditure of the current year will be.

(i) REVENUE RECEIPT


338. In regard to "Revenue Receipts", the most important guide to the preparation of "Revised Estimates" will ordinarily be found in the actual receipts of those months of the current year which have already elapsed, If an officer observes that the actual receipts from a particular source of revenue reveal a growth or diminution compared with those of the corresponding period of the previous year he will, unless there are definite reasons to the contrary, be justified in assuming a continuance of the growth or decline at the same rate during the remaining months. The proportionate estimate based on this assumption should, however, he corrected by a; consideration of the other materials which are available for the formation of a sound forecast; the progress of collection of revenue, for instance, or the anticipation of agricultural or commercial depression may suggest that the rate of growth or decline will be retarded or accelerated, and the proportionate estimate should, therefore, only be used by the estimating officer, as one among a number of factors which influence his decision. It is rarely suitable for use in estimating land revenue and other receipts, for which the demand is fixed, or income, such as that from sale of land and houses, which necessarily fluctuates widely from year to year.

339. In all cases and especially in dealing with important revenue receipt estimates the reasons, which have led to the adoption of the figures proposed for the Revised Estimate, should be briefly but clearly explained. This explanation should recount the particular circumstances which have, in the budgeting officer's opinion, led to a recorded increase or decrease in the revenue of the earlier months, and the grounds on which they expect to obtain the balance of the estimates in the latter part of the year; it should not be merely mechanical.

(ii) EXPENDITURE


340. In regard to expenditure heads the following more important points should be borne in mind in framing the Revised Estimates :-

    (i) Under the head "Salaries." the Revised Estimates are to be based on the actuals of the past few months of the current year plus the probable requirements for the remaining months of the year calculated with reference to the pay and allowances charges of incumbents likely to be on duty during the remaining months and leave salary likely to be drawn.

    (ii) For the fluctuating items of expenditure, neither the actuals of the previous year, nor the progress of actuals of the current year should be used as the only guide, but due consideration should be given to exceptional circumstances of the previous years and special features of the current year.


Every attempt should be made to make the estimates as accurate as possible.

341. The reasons which have led to the adoption of the figures proposed for the Revised Estimates should be briefly but clearly explained.

342. The Revised Estimates of expenditure are merely forecasts, based on later information, of what the actual outlay of the year will be; they do not operate either to increase or to reduce the grants which have been placed at the disposal of officers in the sanctioned budget.
B. - Budget Estimates
(i) REVENUE RECEIPTS


343. The Actuals of the previous years and Revised Estimates of the current year ordinarily afford the best guide in framing the budget estimates of the ensuing year; and in the absence of definite reasons to the contrary, it is ordinarily advisable to assume a continuance of any growth or decline which is revealed by these figures. The salient factors which have led to the adoption of figures proposed for the Budget Estimates should be clearly and briefly explained.

(ii) EXPENDITURE


344. (i) The estimates under the head "Salaries" should actually include the full amount of pay (including increments) and allowances likely to be drawn by the incumbents on duty during the year. Provisions for leave salary may also be proposed in the estimates when considered necessary. They should, how- ever, be exhibited separately under the head, "Salaries" and the reasons for the provision briefly explained.

In justification of the estimates under "Salaries" full details of the number of officers and their pay together with the number should be supplied with the estimates in the prescribed form unless otherwise ordered by the Finance Department in regard to estimates under certain heads,

(ii) In respect of the charges of a fluctuating nature, instructions given in rule 340(ii) may be borne in mind.

345. The Budget Estimates of expenditure, to be prepared in the District and Departmental offices, must be rigidly confined to ordinary charges and to charges which, although not yet incurred, have been finally sanctioned for being incurred in the ensuing financial year. They must not include provision for any new unsanctioned schemes which it is desired to introduce in the ensuing financial year.

346. Proposals for new expenditure on schemes, which it is desired to introduce in the ensuing financial year, should be separately submitted by the administrative departments to the Finance Department in the form of schedules. The instructions regarding the preparation of these schedules are contained in rules 347 to 352.

Schedules of new expenditure


347. The estimates of new expenditure proposed to be included in the budget of the ensuing year should be dealt with separately (vide rule 346) in accordance with the instructions laid down in the following rules. ,

Note.-The term "new expenditure" applies not only to expenditure on all new services the provision for which has not been previously included in the sanctioned grant or appropriation but also to new items like those involved in additions to, or extensions of, an existing service, commitment or facility, e.g., provisions for new buildings, new roads, additions to existing establishments. grants-in-aid, contributions and similar items of expenditure. In cases of doubt whether expenditure of a particular kind should be included in the statement of new expenditure, the matter should be referred to the Finance Department for orders.

348. The estimates of new expenditure are, for the sake of convenience divided into two parts in the preliminary stages of the budget, viz :-

    (a) expenditure on new major constructional works (i.e., above Rs. 10,000) to be carried out by the Public Works Department, and
    (b) other new expenditure including minor works.


349. The schedule of new expenditure, proposed for inclusion in the next year's budget should be furnished to the Finance Department, in duplicate, by the administrative department concerned not later than the 30th September and should be prepared in such form with such details as may be prescribed by the Finance Department-vide sample forms appended to these rules. Only such schemes, which have been administratively approved, should be included in the schedule of new expenditure, in their order of priority.

On the 1st September each year reminders will be issued by the Finance Department to all administrative departments pointing out that their schedules are due, in duplicate, on the 30th September.

350. To ensure that all items of new expenditure for which it is desired to make provision in, the budget are actually included in the schedules, the administrative department should maintain registers in which they will enter, at the time of receipt, all proposals involving new expenditure in the following year .

351. No, proposal for new expenditure, which has not been included in the schedule of new expenditure, will be accepted by the Finance Department after the 30th September. No schedule will be received by the Finance Department after that date except under special orders of the Minister in charge of the Finance Department.

Administrative departments should, however, report to the Finance Department all proposals for new unavoidable expenditure which are received by them after the 30th September up to the 15th November.

352. No schedules need. be prepared for individual minor works for which lump provisions are made in the Public Works budget. If administrative department is of opinion that the lump Sum allotted each year for minor works is inadequate, a schedule in the prescribed form showing the proposed increase in the lump provision should be sent to the Finance Department not later than the 30th September.

SECTION III - SPECIAL RULES FOR THE PREPARATION OF BUDGET ESTIMATES FOR PUBLIC WORKS AND IRRIGATION DEPARTMENT EXPENDITURE.


(a) Public Works


353. The following instructions should be followed in the preparation of the Revised and Budget estimates of Non-Plan works expenditure under the head "259-Public Works ' , and othe! functional Major heads which will be submitted by the Public Works Department to the Accountant-General and to the Finance Department on the 1st November :-

    (1) The estimates will be submitted in Form A - sample of which is given below.
    (2) Entries against "New works" will be made in the second (current year's budget) column only. The total expenditure anticipated during the current year on works shown in column 2 will be included in column 3 opposite "Works in progress" while the budget of the following year for "New works” will be decided on a consideration of the Schedules of major works and estimates for minor works (including those submitted by the Public Works Department), and not on the estimates submitted to the Accountant-General.
    (3) Supporting the entries against "Works in progress" a statement in Form B (sample of which is given below) should be forwarded to the Accountant-General and to the Finance Department simultaneously with the estimates in Form A. The information to be given in this form should be obtained from the reports of the Executive and Superintending Engineers, and It should be seen that the


Instructions for filling up the form are clearly understood by them, and are exactly followed.

On the 10th of January, a similar form based ill the same way on reports from Executive and Superintending Engineers, and containing later information then available as to the amount likely to be spent on works in the current financial year , should be submitted to the Finance Department. The date for the submission of this supplementary statement should be most carefully observed, since it will be of no use unless it is received in good time. .

In issuing these and any subsidiary instructions to Executive and Superintending Engineers, it should be pointed out to them that the Revised estimates, which they submit of the expenditure they are likely to incur on works, do not operate to reduce the sanctioned grant for those works; and that it is their duty to frame the Revised estimate as accurately as possible, after taking into consideration, among other things, the pace at which the work is progressing, the difficulty or otherwise of labour, the possibility of collecting materials, etc.

Repairs


354. In framing the Revised estimate of repairs the instructions contained in rules 340(ii) and 342 should be borne in mind. For the Budget estimate of repairs, the Revised estimate With necessary additions for repairs to new works executed m the course of the year will ordinarily be the safest guide.

Establishment charges, etc.


355. Past actuals will ordinarily be the best guide for the Revised estimate of establishment charges; and past actuals and the Revised estimate will be the best guide for the Budget estimate. In both cases allowance should be made for any increase or reduction in the charges due to any revision of the number or pay of the establishment which may have taken place in the year to which the Revised estimate relates.

356. Proposed revisions of the number or pay of establishments in the ensuing year will, of course, be shown in the Public Works Department Schedule of new expenditure, unless they have been finally sanctioned for introduction in the ensuing year. In that case the cost will be included in the Budget estimate submitted to the Accountant-General.

Detailed list of works in progress


357. By the 10th of January at the latest, the Public Works Department should furnish to the Finance Department a complete detailed list of works in progress under Public Works in the estimates of the ensuing year for inclusion in the Explanatory Memorandum, which will be presented to the Legislature by the 15th of February or so.

Form A


(Vide rule 353)


Instructions for filling up Form B


358. The following instructions should be followed in filling in the different columns of the form :-
column 2.-There should be entered in this column-
    (a) In detail, all major works included in the original Budget estimate for the year in which the statement is submitted, except those the construction of which has been definitely and finally postponed. Even though it is known that nothing will be spent in the year on a major work included in the original budget estimate, that work should be entered in the list unless it has been finally decided to drop the proposal to go on with it.

    (b) In detail, all major works which, though not included in the original Budget estimate, have been or are likely to be taken up in the course of the year in which the statement is submitted.

    (c) Minor works in lump.
    Column 3. - When the original estimate has been revised, the latest sanctioned estimate must be entered because this gives the latest information of the probable cost of the work. .

    column 4. - This column shows the expenditure incurred on a work up to the end of the previous financial year.

    Column 5. - This column shows the original grant as passed by the Legislature and sanctioned by Government.

    Column 6. - In this column should be entered not the maximum amount which can conceivably be spent but the best forecast the officer carrying out the work can make at the time the statement is submitted of the amount which he is likely to spend in the year. He should be particularly careful not to overstate the amount.

    The aggregate of the amounts entered in column 6 constitute the Revised estimate of expenditure on original works in progress.

    Column 7. - The figures in this column will be calculated as follows :-


The difference between the figure in column 3 and the sum of the figures in columns 4 and 6 represents the amount required for the completion of the work. This amount will be entered in column 7, if it is considered likely that all of it can be spent in the ensuing year. If, however, it is thought unlikely that the work can actually be completed in the ensuing year, then only such less amount as it is thought likely to be spent should be entered.

Minor Works.-The entries against the item "Minor Works" should be calculated in exactly the same way by the details of works, and mutatis mutandis the instructions regarding major works in the notes under column 2 apply to them. But the details of minor works need not be included in the statement submitted to the Accountant-General; it will be sufficient to give lump sum totals.

(b) Irrigation


369. The following estimates of receipts and non-Plan expenditure should be submitted by the Irrigation and Waterways Department to the Accountant-General and to the Finance Department on the 1st of November :-

Irrigation.-Revenue Accountant


    131 - Water and Power Development Services.
    132 - Multipurpose River Projects.
    133 - Irrigation, Navigation, Drainage and Flood Control Projects.
    331 - Water and Power Development Services.
    332 - Multipurpose River Projects.
    333 - Irrigation, Navigation, Drainage and Flood Control Projects.


Irrigation-Capital Account .


    531 - Capital outlay on Water and Power Development Services.
    532 - Capital outlay on Multipurpose River Projects.
    533 - Capital outlay on Irrigation, Navigation, Drainage and Flood Control Projects.


These estimates win be submitted in the same form as shown in the "Detailed Civil Budget Estimates" (vide Rule 326) ; the instructions given in clauses (2) and (3) of rule 353 as well as those in rules 354 to 356 will apply mutatis mutandis.

SECTION IV. - ASSISTANCE RENDERED BY THE ACCOUNTANT-GENERAL


360. Under Article 149 of the Constitution of India the Accountant-General will be responsible for the following items of work connected with the preparation by the Finance Department of the annual budget estimates of the State Government :-

  1. (i) The estimates under the following heads will be prepared by the Accountant- General and submitted to the Finance Department in the prescribed form on such dates as may be fixed by the Finance Department :-


    (a) 049-Interest Receipts.
    (b) 066-Contributions and Recoveries towards Pension and other Retirement Benefits.
    (c) 068-Miscellaneous General Services-Unclaimed Deposits.
    (d) 065-Other Administrative Services-Fees for Government Audit.
    (e) 249-Interest Payments.
    (f) 266-Pensions and other Retirement Benefits.
    (g) Receipts and Expenditure relating to Public Account Section of the Budget.


    (ii) The Accountant-General win prepare the estimates for "Public Debt" and "Loans and Advances" and submit the same to the Finance Department not later than the 10th December in the form prescribed for the purpose. As for the preparation of these estimates, the Accountant-General has, in his turn, to depend on departmental officers. The departmental budgeting officers will, therefore, furnish to the Accountant-General the materials required by him in such form and by such date as may be prescribed by the Accountant-General.

    (iii) The Accountant-General will also be responsible for the following items of work connected with the annual budget estimates :-


    (a) To fill in the actuals of the previous year and the first six months of the current year by detailed heads of account in the printed form of the detailed budget estimates for each major head. The printed form for the purpose will be supplied to the Accountant-General by the Finance Department on or about the 10th September, which should be returned by the Accountant-General after due completion not later than the 20th November.

    (b) To consolidate the local officer's estimates (both Revised and Budget) where necessary. i.e., in those cases where more than one budgeting officer is concerned with one budget head. The estimates as proposed by different budgeting officers, under those heads with which more than one budgeting officer is concerned, should be consolidated so as to arrive at the total detailed head figure for the State as a whole for purposes of adoption in the printed form of detailed budget estimates referred to in item (a) above.

    (c) To check the estimates under .'Salaries" with reference to Audit Registers.
    (d) To examine the local Officer's estimate with a view to seeing that no unsanctioned charge is included in the estimates and that no sanctioned charge of which the Accountant-General has any information is omitted.

    (e) To enter the figures for Revised and Budget estimates proposed by local Officers (after consolidation where necessary) in the printed budget estimate forms [vide item (a) above].

    (f) To note in the "Remarks" column !1f the budget form, the results of scrutiny of the estimates under "Salaries" as well as of the validity of the charge included in the estimates [vide item (d) above] where any comments or remarks are considered necessary.
    (g) To furnish to the Finance Department the actuals for the first seven months of the current year under the principal heads of revenue by the 5th December in such form as is prescribed by the Finance Department.

    (h) To fill in the eight months' actuals in thousands of rupees for the current , and previous years by detailed heads for each major head; for this purpose printed detailed budget estimate forms will be supplied by the Finance Department about the 3rd week of December for return by the Accountant-General after due completion, not later than the 12th January.

    (i) To furnish to the Finance Department the actuals in thousands of rupees for the first 9 months of the current year under the principal heads of revenue by detailed heads by the 11th February on such form as .may be prescribed by the Finance Department.


SECTION V. - ESTIMATES OF RECEIPTS AND CHARGES IN ENGLAND


361. Omitted.

362. Omitted.

SECTION VI. - ESTIMATES OF STORES TO BE INDENTED FROM THE UNITED KINGDOM


363. Omitted.

SECTION VII. - SUPPLEMENTARY ESTIMATES


384. The estimates of expenditure embodied in the Annual Financial Statement said before the Legislature under Article 202(1) of the Constitution of India (vide rule 326) are understood to represent, Government's full requirements for the Financial year, and nothing but pressing emergencies that cannot be accommodated within the supplies available, should occasion the presentation to the Legislature of demands for further funds or of estimates of further "charged" expenditure.

365. When unforeseen circumstances make it necessary to incur expenditure not contemplated in the Appropriation Act, every effort .should be made to meet it from savings elsewhere within the same Grant (voted or charged, as the case may be) by postponement or curtailment of less urgent expenditure. Only if it is not possible to make the requisite amount available by this means, recourse should be had to Supplementary estimate. .

The statement will then b6 dealt with in the same way as the Annual Financial Statement and the original demands for Grants are dealt with, and eventually. a Supplementary appropriation out of the Consolidated Fund of the State may be authorised by passing another “Appropriation Act” , before the close of the financial year.

It is not permissible to incur out of the Consolidated Fund of the State, expenditure on a "New Service" or any expenditure in excess of the total provision under a "Grant", pending enactment of the Supplementary Appropriation Act. If such .expenditure is found to be unavoidable before the enactment of the Supplementary Appropriation Act, application should be made to the Finance Department for sanctioning necessary advance from the Contingency Fund of the State for the pur- pose to be recouped after the Supplementary Appropriation Act has been enacted (vide rule 382).

The responsibility in regard to proposals for Supplementary estimates rests in the first place on the Chief Controlling Officer who should be in a position to explain clearly not only why a Supplementary Grant or Appropriation is required but also why the need for funds was not foreseen when the original estimates were framed.

Greatest care should be taken by administrative departments in submitting proposals for Supplementary estimates as, if on the closing of the accounts any Supplementary Grant or Appropriation actually obtained are found to have been unnecessary or excessive, the Audit will draw attention to the fact in the Audit Report on the Appropriation Accounts and the action of the department will attract the criticism of the Public Accounts Committee.

SECTION VIII.-A"THORISATION OF EXPENDITURE IN ANTICIPATION OF BUDGET PROVISION


366. When an additional appropriation is required urgently under any head of accounts and no savings can be foreseen under the same Grant though the Grant as a whole has not yet been exceeded, the administrative department may, with the concurrence of the Finance Department, sanction the expenditure and shall inform the Accountant-General, that funds will be provided later either by reappropriation, or, if this proves impracticable, by Supplementary Grant or Appropriation, as the case may be. The administrative department concerned will be responsible for seeing that funds are provided by one or other or both of these means before the end of the financial year.

SECTION IX. - CENTRAL (AGENCY) BUDGETS


367. The State Government administer, as the agent of the Government of India, certain Central subjects in so far &8 their operation in this State is concerned. Estimates of revenue and expenditure relating to such Agency subjects have accordingly to be furnished to the Government of India. A list of these subjects is given below along with the names of officers responsible for their preparation and submission to the Accountant-General 'and the Finance Department. All these estimates should reach the Accountant-General and the Finance Department by the 25th September at the latest.

List of Central (Agency) Budgets and the officers responsible for their preparation


Estimates of revenue and receipts


368. The estimate of revenue and receipts should be prepared in triplicate in the form supplied by the Accountant-General. The reasons which have led to the adoption of the figures proposed for the estimates should be briefly and clearly explained. One copy of the estimates should be kept for record in the office of origin, the remaining copies being sent simultaneously to the Finance Department and the Accountant-General. The Accountant-General will transmit the estimates with his remarks to the Finance Department. The estimates adopted by the Finance Department will be communicated to the Accountant-General by the 3rd week of October at the latest. The Accountant-General will include the in the consolidated estimates which he sends to the Ministry of Finance, Government of India.

Estimates of expenditure


369. The estimates of expenditure should be prepared in two parts. Part n should include all new items of expenditure which under the procedure prescribed by the Government of India have to be placed before the Standing Finance Committee of the Parliament and Part I should include the rest of the estimates.

370. The estimates of Part I expenditure must be confined to ordinary charges which, although they have not yet been incurred, have been finally sanctioned for being incurred in the ensuing year. They are not to include provision for any new unsanctioned schemes which it is desired to introduce in the ensuing financial year . Provision for such schemes is to be included in Part II of the estimates. Estimates of Part I expenditure should be prepared in triplicate in the form supplied by the Accountant-General. The reasons which have led to the adoption of the figures proposed for the estimates should be briefly arid clearly explained. One copy of the estimates should be kept for record in the office of origin, the remaining copies being sent simultaneously to the Finance Department and the Accountant-General.

371. The Accountant-General will transmit these estimates with his remarks to the Finance Department not later than the 10th October. The estimates adopted by the Finance Department will be sent to the appropriate administrative departments of the Government of India so as to reach them not later than the 1st November, a copy of the estimates being sent to the Accountant-General as well as to the administrative departments of the State Government which are concerned with the respective estimates.

372. Proposals for new expenditure should be submitted by estimating officers direct to the administrative department during the course of the year as soon as the necessity for the expenditure comes. to notice, without reserving them for a consolidated report at the time of submission of the estimates. Each proposal should be sent by the administrative department to the Finance Department by the 15th August at the latest for concurrence to administrative approval. After administrative approval it should be sent up to the administrative departments of the Government of India by the 15th September at the latest in the form given below, a copy being sent simultaneously to the Finance Department for information.

Proposals which are ready for submission to the Government of India before the 15th September should not be held up till just prior to that date but should be submitted as they become ready. The new schemes so sent up should be included in Part II of the Budget, the letter in which the proposal was forwarded to the Government of India being mentioned against each scheme :-

Btatement of new items of expenditure for inclusion in the budget estimate of ______ _________ for 19__-19__

SECTION X - GRANT AND ITS DISTRIBUTION


373. The amount of "Grant" or "Appropriation" as included in the Appropriation Act will be communicated ,by the Finance Department by the "prescribed date to the departments concerned in the shape of lump sums known as primary units of appropriation or detailed heads of accounts. The department concerned will then make arrangements for distributing and communicating the sanctioned funds among the controlling and disbursing officers in the manner laid down in the following rule :-

374. The distribution of Grant is usually effected as under
    (i) The whole or a part of the appropriation for a primary unit within a Grant may be placed at the disposal of controlling or a disbursing officer, or the primary unit may be broken up into a number of secondary units (each of which will cover either one or a number of detailed heads of account) and the appropriation for any of these, wholly or in part, may be placed at his disposal.

    (ii) A controlling officer, at whose disposal an appropriation for a primary or a secondary unit has been placed, may, out of it. allot funds for expenditure on a specific item or on a group of items.

    Note l - Any distribution of appropriation among specific items or groups o~ items which may be made by a disbursing officer for purposes of his control over the expenditure need not be communicated to audit.

    Note 2 - The controlling officers and disbursing officers including Treasury officers/Sub- Treasury officers and Calcutta Pay and Accounts office shall follow the provisions of rule 18 of Delegation of Financial Power Rules, 1977.

    (iii) The sum total of all appropriations made by any controlling authority from a unit should not exceed the amount of the unit or a portion thereof placed at his disposal.

    (iv) The appropriation for a unit can be increased or decreased only by a formal order of reappropriation authorising a transfer of funds from one to another.


375. An appropriation is intended to cover all the charges, including the liabilities, if any, of past years, to be paid during the financial year or to be adjusted in the accounts of that year. Any unspent balance lapses and is not available for utilisation in the following year. Such unspent balances should be surrendered by the controlling officers to the administrative departments by, the 14th February and by the administrative departments to the Finance Department by the 21st February each year.

Expenditure in anticipation of funds


375A. When communication Under rule 373 regarding sanctioned funds is not. received before the commencement of the financial year, disbursing officer may, fu anticipation of receipt of such communication, authorise expenditure on pay and other charges on the basis of those incurred in the last month of the preceding year.

Note. - The expenditure authorised by the disbursing officers shall be recorded in the column showing the appropriation or allotment in contingent bills.

SECTION XI - REAPPROPRIATION


(i) General rules


378. Any appropriation or reappropriation within the grant of a year can be authorised at any time before, but not after, the expiry of the financial year to which it relates.

377. Reappropriation. of funds from one Grant to another Grant are not permissible, as such reappropriations will have the effect of reducing or increasing the amounts of the Grants concerned as specified in the Schedule of authorised expenditure appended to the Appropriation Act and will this be ultra vires of the provisions of the Constitution.

378. No reappropriation from a "voted;" to a "charged" head and vice versa is admissible.
379. The Finance Department can sanction any reappropristion of funds within a Grant from one head to another provided such reappropriation does not involve transfer of funds from a "voted" to a "charged" head or vice versa The powers of appropriation delegated to the departments of Government and to other subordinate authorities are laid down in rules 380 and 381.

380. Department other than the Finance Department may sanction, without previous reference to the Finance Department, any reappropriation within Grant at their disposal subject to the following conditions .-

    (i) that the Grant as a whole i. not likely to be exceeded ;
    (ii) that a reappropriation from a "charged" to a "voted" head or vice versa is not involved ;
    (iii) that the expenditure which will be met by the reappropriation does not involve the undertaking of a new or unapproved or recurring liability;

    Explanation - Savings that become available as a result of the postponement, whether deliberate or unavoidable, of expenditure for which specific provision exists in the budget may be reappropriated to accelerate the implementation to any approved scheme already in progress, because even should such acceleration involve an immediate temporary increase in Government’s recurring liabilities, Government will not be assuming a new unapproved (ultimate) recurring liability.

    (iv) that the savings are known in sufficient time to permit of their being spent to good purpose and that the expenditure is not incurred merely to prevent savings lapsing ;
    (v) that a reappropriation sanctioning the undertaking of a “new service” is not involved:
    Note 1 - No satisfactory definition of “new service” has been evolved, but the general purport of the term is reasonably clear. When there is any doubt the case should be referred to the Finance Department.

    Note 2 - If a grant is controlled by two or more administrative departments, an administrative department desiring to sanction a reappropriation from a head controlled by another administrative department must obtain the concurrence of the latter to such reappropriation.

    (vi) that there should be no appropriation between the heads indicated below except with the prior concurrence of the Finance Department :


    (a) transfer of funds from one Major heads to another Major heads within a grant, e.g., funds from Revenue head should not be transferred to Capital head or from One Capital head to Loan head and vice versa.
    (b) provisions for planned schemes, Centrally, Sponsored and Central Sector Schemes should not be diverted -to Non-Plan Schemes and vice versa. .
    (c) provisions for “office expenses” should not be increased by reappropriations.


Orders sanctioning reappropriation under these powers will issue from the department concerned to the officer making the application. A copy of every such order must be sent forthwith both to the Accountant-General and the Finance Department.

381. Subject to the conditions specified in rule 378 and also to the condition that funds may not be reappropriated to meet an item of expenditure which has not been sanctioned by proper authority, the officers mentioned in the schedule below may sanction, without previous reference either to the Finance Department or to the administrative department concerned, reapproptiations within the appropriations under a Grant which are placed at their disposal.

Orders sanctioning reappropriations under these powers will issue from the officer concerned to the Accountant-General. A copy of every such order must be sent forthwith to the Finance Department and to the administrative department of Government concerned.

List of officers empowered to sanction reappropriations


    1. Director of Public Instruction.
    2. Director of Health Services.
    3. Secretary, Board of Revenue.
    4. Commissioners of Divisions.
    5. Inspector-General of Prisons.
    6. Director of Land Records and Surveys.
    7. Chief Conservator of Forests.
    8. Inspector-General of Police.
    9. Commissioner of Police, Calcutta.
    10. Director of Industries.
    11. Director of Agriculture.
    12. Commissioner of Excise.
    13. Registrar of Co-operative Societies.
    14. Director of Veterinary Services.
    15. Superintendent of Government Printing.
    16. Chief and Superintending Engineers (Public Works and Irrigation and Waterways Departments).
    17. Superintendent and Remembrancer of Legal Affairs.
    18. Superintendent, Government Gardens, Calcutta, and Lloyd Botanic Garden, Darjeeling.
    19. Director of Cinchona.
    20. The Chief Justice of the High Court.
    21. Inspector-General of Registration.
    22. Chief Engineer, Public Health Directorate.
    23. Secretary, Public Service Commission.
    24. Director of Fisheries.
    25. Commissioner of Commercial Taxes.
    26. Commissioner, Agricultural Income-tax.
    27. Chief Engineer, Housing Directorate.
    28. Director, Bureau of Applied Economics and Statistics.
    29. Secretary, West Bengal Legislative Assembly.
    30. Chief Engineer, Directorate of Agricultural Engineering.
    31. Milk Commissioner.
    32. Conservator of Forests.


SECTION XII - EXPENDITURE NOT PROVIDED FOR


382. Expenditure for which no provision has been made in the Budget estimate of the current year should rarely, if ever, be incurred.

If on account of exceptional reasons, expenditure, which is either not provided for in the Budget estimates of the current year or is in excess of the Budget provision, has to be incurred, and if the authority incurring the expenditure is not in .3 position, to find funds by reappropriation, application should be made for the provision of additional funds, accompanied by a statement in F .R. Form No. 38 showing how the expenditure is proposed to be met. When such an application is sent the reasons for considering it indispensably necessary, that the outlay should be immediately incurred and not postponed to the next financial year should be stated. It should also be explained why the need for the expenditure was not foreseen in time for its inclusion in the Budget estimates. It should be borne in mind that under the Constitution of India no expenditure can be incurred out of the Consolidated Fund of the State in excess of the Grants or Appropriations authorised by the Legislature through Appropriation Acts.

In cases when under unavoidable circumstances an unforeseen expenditure is required to be incurred on a new service or in excess of the grant provided by the Appropriation Act, the Finance Department should be moved through the appropriate administrative department for authorising payment of the amount out of the contingency Fund of the State pending authorisation of such expenditure by the Legislature through an Appropriation Act. The amount so advanced from the Contingency Fund should be repaid into the Fund as soon as the necessary appropriation has been obtained through the Appropriation Act.

383. When Demands (original or supplementary) for appropriation of the necessary amounts for the expenditure are placed before the Legislature, suitable provision should always be made for anticipated liabilities and the provision in the Account Rules, "that adjustment should not be made in the previous year's accounts if the disbursements could not have been reasonably anticipated in time for a grant being obtained" should not be used as a cloak to conceal the results of defective budgeting. The onus of proving that the disbursements could not have reasonably been anticipated should lie on the Controlling Officer.

SECTION XIII - WATCHING OF ACTUALS


384. It is an important function of a Departmental Controlling Officer or a Disbursing Officer at whose disposal a grant is placed, to keep constant watch over the progress of expenditure under different units of appropriation separately for voted and charged items and to keep a separate record of all liabilities. He should also keep himself informed of such circumstances as may affect the progress of expenditure, in order to take early steps for obtaining supplementary grants or surrendering any probable savings as may be necessary.

385. The responsibility of Departmental Controlling Officers cannot possibly be exercised effectively unless they are in possession of the most up to date information as to the progress of the expenditure incurred by the various Government servants subordinate to them. In order to fix this responsibility with regard to the expenditure under various heads, the Finance Department should prepare a list of Controlling Officers in respect of the different budget heads and lay down detailed instructions for the maintenance of accounts by departments and their verification, month by month, with those maintained by the Accountant-General. The Controlling Officers must not depend on the figures of the Audit Office, as these figures must always be two months in arrears and cannot include items of expenditure which may have been passed for payment, but not paid, and that office cannot be in as good a position as the Controlling Officer to advise as to the possible future expenditure. The Audit Office may be asked to check their figures, but for the reasons indicated above, should not ordinarily be asked to advise as to the probable expenditure during the year. For such information, Departmental Controlling Officers must rely upon their own subordinate Government servants, and the records of past expenditure which should be maintained in their offices.

    Note 1. - The detailed procedure laid down by Government in regard of control of expenditure (including maintenance of departmental accounts and the verification of departmental figures with those in Accounts office books) is set forth in Appendix 21.

    Note 2. - The above rules for watching the progress to expenditure do not apply to the Public Works and the Forests Departments where initial and subsidiary accounts are compiled in whole or part departmentally. Their accounts are kept in such a way as to ensure satisfactory budget control. The detailed procedure to be observed by the officers of these departments in regard to control of expenditure may be prescribed by departmental regulations.


SECTION XIV - APPLICATION FOR SANCTION TO EXPENDITURE


386. In all applications for sanction to expenditure it should be distinctly stated whether provision for the proposed charge has or has not boon made in the Budget estimates of the year, and if it has not been made, whether the funds can be found by reappropriation.

SECTION XV. - GENERAL RULES FOR PAYMENT AGAINST GRANTS


387. No Government servant may, without previously obtaining an extra appropriation, incur expenditure in excess of the amount provided for expenditure under the heads concerned, and when a Government servant exceeds the annual appropriation he may I under orders of Government, be held responsible for the excess.

Note. - In the rare cases where expenditure in excess of the amount provided is urgent and inevitable, this may be incurred, but the officer incurring it does so on his own responsibility and must immediately report the fact to his immediate superior with the request that additional funds may be provided to cover the excess and at the same time explain why it was not possible to foresee the necessity for an extra grant.

388. Expenditure can only be incurred on a work or other object -

    (i) if sanction of competent authority has been obtained as required by any statutory rules or by any orders, general or special, issued thereunder by competent authority, e.g., the rules in any authorised code,
    (ii) if funds to cover the charge during the year have been provided by competent authority, and
    (iii) if no breach of any of the standards of financial propriety is involved.


389. All charges incurred must be paid and drawn at once, and under no circumstances may they be allowed to stand over to be paid from the grant of another year. If possible, expenditure should be postponed till the preparation of new budget has given opportunity of making provision, and till the sanction of that budget has supplied means, but on no account may charges be actually incurred in one year and thrown on the grant of another year.

SECTION XVI - AVOIDANCE OF RUSH OF EXPENDITURE TOWARDS THE CLOSE OF FINANCIAL YEAR


389A. It is contrary to the interest of the State that money should be spent hastily or in an ill-considered manner merely because it is available or that the lapse of a grant could be avoided. In the public interest grants that cannot be profitably utilised should be surrendered. The existence of likely savings should not be seized as an opportunity for introducing fresh items of expenditure which might wait till next year. A rush of expenditure particularly in the closing months of the financial year will ordinarily be regarded as a breach of financial regularity.