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GOVERNMENT OF NAGALAND FINANCE DEPARTMENT( BUDGET BRANCH)
No. BUD/1-3/2004-05/I Dated Kohima the 18th May, 2006
To All Principal Secretaries / Commissioners & Secretaries / Secretaries to the Government of Nagaland
Sir / Madam.
Sub :- PLACEMENT OF BUDGET FOR THE YEAR 2006-07 (NON-PLAN)
I am directed to address you on the subject cited above and to place at your disposal the entire budget provision under ‘ NON-PLAN’ for 2006-07 as appearing in the Demands for Grants. Item-wise analysis of the expenditure provision under each Demand is enclosed.
2. No expenditure, other than (i) Salaries & wages of regular establishments . (ii) Scholarship & Stipend. (iii) Travel expenses (iv) Rent, rates & taxes (v) Pension (vi) GPF withdrawals authorized to be sanctioned and disbursed by the heads of departments (regulated under separate existing orders) can be drawn except on the strength of Drawal Authority (DA)/Drawing Limit (DL) issued by the Finance Department and duly authenticated by the Director Treasuries & Accounts.
3. The following guidelines should be strictly followed by all concerned, while incurring/authorizing expenditure under Non-Plan:
(a) The Controlling Officer in respect of each ‘Demand for Grant’ i.e. the Head of Department concerned, shall continue to be fully and solely responsible for ensuring that the expenditure on the above mentioned items are regulated in such a way that the total expenditure does not exceed the total budget provision under each item. (b) The Departments should promptly clear up all dues on account of electricity charges, water charges, rent for hired office buildings, telephone charges etc. in stead of keeping these inevitable charges pending for clearance during the later part of the year. While the departments generally complain of non-release of funds in time, payment against these inevitable charges are never made in time. As a result, there happens to be rush of such proposals during the fag end of the year, and in some cases, when the department concerned has already exhausted the available fund on other wasteful or not-so-unavoidable expenditure. The departments are once again urged to ensure that these charges are not kept pending and are cleared promptly. Any penal charges for late payment on these accounts must be recovered from those responsible for delay. (b) (1) It is found that some of the provisions for payment of electricity charges, telephone charges, rent for hired accommodation, etc, which should be classified as ‘Rent Rates and Taxes (RRT), are included in the Budget in the provision under Office Expenses. This has to be rectified so that the Departments can clear these charges without obtaining DA/DL from the Finance Department. To facilitate this, the Heads of Departments should work out such provisions included under ‘OE’ and include the same under ‘RRT’ in the sub-allotment accordingly (by reducing the OE provision). The required correction in the Budget will be carried out at RE stage. (c) The expenditure should be evenly spread throughout the year, i.e. expenditure in each month should not generally exceed 1/12th of the total budget provision. (d) Each Head of Department should make a DDO- wise Sub-allotment of the budget provision available in his/her ‘DEMAND’ as indicated in the budget analysis for each item, in the format given at Annexure –I. The consolidated sub-allotment should be furnished to the Finance Department on or before 15.6.2006. It was noticed that some Heads of Departments did not issue correct DDO-wise sub-allotments during the past years, as a result of which there might have been excess expenditure particularly under salaries/wages. The Heads of Departments should ensure that DDO-wise sub-allotments are made as correctly as possible. If any Head of Department fail to furnish the DDO-wise sub-allotments to the Finance Department within 15.6.2006, instructions will be issued to the Treasuries to dishonour all claims for payment (including salaries) in respect of the defaulting department, with effect from 16.6.2006. To avoid misunderstanding/inconvenience, Heads of Departments should ensure that the consolidated DDO-wise sub-allotments are hand-delivered to the Budget Branch of Finance Department and obtain a receipt. (e) On receipt of the DDO-wise sub-allotment from the Head of Department, Finance Department will verify the same with reference to the voted budget and will circulate the authenticated copies of the same to all Treasuries, a copy being given to the Department concerned for circulation among their DDOs. (f) The DDOs should submit monthly expenditure statement (MES), to the Head of Department concerned, indicating the expenditure against the aforesaid sub-allotment , incurred by him upto the end of each month in FORM given at ANNEXURE II, within the 7th of the month following the month under report. (g) The DDOs should also furnish a Monthly Receipt Statement (MRS), in the form given at Annexure II (a), to the Head of Department, within the 7th of the month following the month under report. (h) It shall be the sole personal responsibility of the DDO to ensure that his/her drawal does not exceed the sub-allotment given by HOD under each item (duly authenticated by the Finance Department). Similarly it shall be the sole responsibility of the HOD to ensure that the total drawals against each item does not exceed the budget provision as indicated in ANNEXURE-I and also that the drawal in each month is within 1/12th of the whole year’s budget provision. (i) The Treasury /Sub-Treasury Officers are to refuse payment if any claim for drawal by the DDOs exceeds the sub-allotment communicated to them by the Finance Department, except for the provisions under DA/DL. (j) Each HOD should consolidate the MESs and MRSs submitted by the DDOs [as prescribed at (f) and (g) above] in the FORMAT given at ANNEXURE –III and ANNEXURE –III(a), and furnish the same, within the 12th of the month following the month under report, to the Head of the Administrative Department , who in turn will also be responsible to ensure that expenditure is strictly restricted to the budgetary allocations . A copy of the CONSOLIDATED MONTHLY EXPENDITURE STATEMENT and CONSOLIDATED RECEIPT STATEMENT should also be furnished to the Finance Department (Budget Branch).
4. The Treasuries / sub-treasuries will allow drawal of money without the production of DA/DL from the Finance Department in respect of the items at Para 2 above subject to the limits of sub-allotment of each DDO and also subject to the terms and conditions in this circular. In respect of other items, concurrence of Finance Department, wherever necessary, should be obtained first and thereafter only, the proposal for DA/DL should be moved after fulfilling all the conditions.
5. It is clarified that this circular should not be construed as delegation of financial powers to subordinate authorities to sanction expenditure ,which will continue to be guided by the existing orders of the Government. In other words, sanction of the higher authorities (including concurrence of the Finance Department ) will have to be obtained as required under the existing orders/ rules.
6. The existing system of obtaining DA/DL from Finance Department in respect of items other than those mentioned at para 2 above will continue. However, irrespective of the continuing system of DA/DL, the departments concerned are solely responsible for proper classification and monitoring of their expenditure to ensure that their expenditure, including salaries & wages, does not exceed the authorized budget provision. If any department finds that the budget provision under salaries & wages is less than the actual requirement, it has to restrict expenditure under non-salary items to make up the shortfall under salaries & wages. On the other hand, if there is surplus provision under salaries & wages, the same cannot be diverted for other purposes but has to be surrendered in due course.
7. It may be carefully noted that salary provision under each demand has been made after taking into account the fresh doses of Dearness Allowance likely to be sanctioned during the year. The provision will be reviewed and suitably adjusted at the RE stage on the basis of DA actually sanctioned during the year.
8. The following further instructions may be followed by all concerned for the purpose of obtaining DA/DL against the budget:- (i) Moving a number of proposals separately to Finance Department for issue of DA/DL, not only entails unnecessary multiplication of paper-work but also makes monitoring of expenditure difficult and cumbersome. To avoid this, the Administrative Department should move ONE CONSOLIDATED PROPOSAL per month for issue of DA/DL for each broad item of expenditure, like OE/MV/Maintenance/Machinery & Equipments / Grant & Contribution etc. (ii) Purchase of vehicles and furniture has been banned under the orders of the Cabinet. Therefore, no proposal for DA/DL for purchase of vehicle and furniture should be moved. In exceptional cases, the Department should follow the procedure laid down in this Department’s O.M. NO.BUD/1-1/2004-05 (pt), dated 31/7/04. (iii) In addition to the existing formats indicating the detailed Budget provision and other details, the Administrative Department should indicate the following information on its file (NOTE-SIDE) while moving any proposal for issue of DA/DL. (a) Broad item of expenditure for which DA/DL is proposed (b) Total budget provision for the items of expenditure (as indicated at Col.8-15) of the enclosed Budget Analysis-I) (c) DA/DL already obtained. (d) DA/DL for which proposals have been already moved but DA/DL not yet issued, (e) Balance available (b-c-d) (f) Amount of present proposal. (g) A clear statement that the work/supply relating to the amount of DA/DL proposed has been completed and that the amount is required for immediate disbursement to the actual payee. (h) The information or statement required under (a) to (g) above must be recorded on the ‘Note-side’ under the signature of the Head of Administrative Department concerned. Files moved by any other officer of the administrative department will be considered by the Finance Department only in case of (i) extreme urgency and (ii) the Head of Administrative Department being away on tour or otherwise – these two facts being clearly recorded on the file. (A broad item-wise analysis of the Non-Plan Budget for 2006-2007 is enclosed at BUDGET ANALYSIS –I for guidance) (iv) The Departments should ensure that their expenditure are regulated as per para 3(c) above. (v) Each proposal for DA/DL should contain a DDO-wise /Treasury-wise break-up to facilitate issue of DA/DL and subsequent authentication by the Director of Treasuries & Accounts. (vi) The usual procedure of obtaining proposals from subordinate authorities, exercise of necessary administrative scrutiny, issue of expenditure sanction etc shall be scrupulously followed irrespective of issue of these instructions or of issue of DA/DL by the Finance Department.
9. Sub-allotment of funds among the DDOs, in respect of items of expenditure regulated by DA/DL, shall be made by the department concerned for internal control/ regulation of their expenditure . These DDO-wise sub-allotments will not, however, be followed by the treasuries which will allow claims only when such claims are supported by the DA/DL issued by the Finance Department.
10. The Revised Estimates, 2006-2007 along with the incumbent-wise salary statement as on 31/3/06 in the prescribed format and Budget Estimates, 2007-2008 may please be furnished latest by 31st September 2006. A separate communication will follow, in this regard.
11. You are requested kindly to issue suitable instructions to all concerned subordinate authorities under your administrative control, for strict compliance.
12. Kindly acknowledge the receipt of this letter. Yours faithfully
Sd/- H.K. KHULU FINANCE COMMISSIONER
No. BUD/1-3/2004-05/I Dated Kohima, the 18th May, 2006
Copy for information and necessary action to :- 1. The Development Commissioner (with 5 spare copies) 2. All Heads of Departments. 3. The Director of Treasuries & Accounts, Nagaland, Kohima. 4. All Deputy Commissioners /Addl. Deputy Commissioners. 5. All Treasuries /Sub- Treasuries Officers. 6. All Officers /Branches of Finance Department.
Copy also forwarded for information to :- 1. The Chief Secretary, Nagaland, Kohima. 2. The Special Secretary to the Governor, Nagaland, Kohima. 3. The Principal Secretary to Chief Minister, Nagaland, Kohima. 4. The Principal Private Secretary to Speaker, Nagaland. 5. Sr. P.S to all Ministers/ Ministers of State.
H.K. KHULU FINANCE COMMISSIONER |
