No. 01(14)/2016-E.JI(A) (Vol III)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated 01st April, 2024

OFFICE MEMORANDUM

Subject: Revised guidelines on financial Limits to be observed in determining cases relating to New Service (NS) / New Instrument of Service (NIS) – Amendment to Annexure-I of Appendix-3 of General Financial Rules 2017.

Attention is invited towards Annexure-I of Apendix-3 of General Financial Rules (GFR) 2017 regarding financial limit to be observed in determining cases relating to New Service/New Instrument of Service (NS/NIS) [Rule 63 of GFRs 2017).

2. In this regard, it Is stated that Budget Division of Department of Economic Affairs vide their O.M. No. F.1(22)-B(AC)/2022 dated 23rd February, 2024 issued revised financial limits relating to NS/NIS and guidelines in supersession of their O.M. No. F.1(23)/B(AC)/2005 dated 25th May, 2006 so as to ensure uniformity, consistency, administrative efficiency and financial discipline by the Ministries/Departments.
3. Accordingly, it has been decided to amend the Annexure 1 to Appendix-3 of GFRs 2017 by replacing the O.M. dated 25th May 2006 with O.M. dated 23rd February, 2024 issued by Budget Division of Department of Economic Affairs as mentioned in the para above. A copy of the Budget Division of Department of Economic Affairs O.M. dated 23 February, 2024 is attached herewith.
4. This issues with the approval of Competent Authority.

(Chandra Prakash Kushwaha)

Under Secretary to the Government of India

To

All Ministries/ Departments of the Government of India,
Financial Advisers of al] Ministries/Departments of Government of India

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Compilation of amendments in GFR 2017 upto 31.01.2023

Ch.-1 – INTRODUCTION

Rule 1 Short Title and Commencement: These rules may be called General Financial Rules, 2017 and they shall come into force at once and shall be applicable to all Central Government Ministries/Departments, attached and subordinate bodies. The provisions contained in GFRs are deemed to be applicable to Autonomous Bodies except to the extent the bye-laws of an Autonomous Body provides for separate Financial Rules which have been approved by the Government.

DoE: Amendments in General Financial Rules (GFR) 2017

Rule 2 Definition: In these rules, unless the context otherwise requires-

(i) “Accounts Officer” means the Head of an Office of Accounts or the Head of a Pay and Accounts Office set up under the scheme of departmentalization of accounts;

(ii) “Administrator” means Administrator of a Union Territory, by whatever name designated;

(iii) “Appropriation” means the assignment, to meet specified expenditure, of funds included in a primary unit of appropriation;

(iv) “Audit Officer” means the Head of an Office of Audit;

(v) “Competent Authority” means, in respect of the power to be exercised under any of these Rules, the President or such other authority to which the power is delegated by or under these Rules, Delegation of Financial Power Rules or any other general or special orders issued by the Government of India;

(vi) “Comptroller and Auditor General” means the Comptroller and Auditor General of India;

(vii) “Consolidated Fund” means the Consolidated Fund of India referred to in Article 266 (1) of the Constitution;

(vill) “Constitution” means the Constitution of India;

(ix) “Contingency Fund” means the Contingency Fund of India established under the Contingency Fund of India Act, 1950, in terms of Article 267 (1) of the Constitution;

(x) “Controlling Officer’ means an officer entrusted by a Department of the Central Government with the responsibility of controlling the incurring of expenditure and/or the collection of revenue. The term shall include a Head of Department and also an Administrator;

(xi) “Department of the Government of India” means any of the Ministries, Departments, Secretariats and Offices as notified from time to time and listed in the First Schedule to the Government of India (Allocation of Business Rules);

(xii) “Drawing and Disbursing Officer” means a Head of Office and also any other Gazetted Officer so designated by a Department of the Central Government, a Head of Department or an Administrator, to draw bills and make payments on behalf of the Central Government. The term shall also include a Head of Department or an Administrator where he himself discharges such function;

(xiii) “Ministry of Finance” means the Ministry of Finance of the Central Government;

(xiv) “Financial Year” means the year beginning on the ist of April and ending on the 3ist of March following;

(xv) “Government” means the Central Government;

(xvi) “Government Account” means the account relating to the Consolidated Fund, the Contingency Fund and the Public Account; as defined in these rules;

(xvii) “Head of the Department” means an authority or person (not below the rank of a Deputy Secretary to the Government of India), declared by the concerned Department in the Government of India as a Head of Department in relation to an identifiable establishment or establishments to exercise the delegated financial powers under these Rules;

(xvill) “Head of Office’ means (a) a Gazetted Officer declared as such in the Delegation of Financial Powers Rules and (b) any other authority declared as such under any general or special orders of the competent authority;

(xix) “Local Body” means an authority legally entitled or specially empowered by Government to administer a local fund;

(xx) “Local Fund” means a local fund as defined in Rule 652 of the Treasury Rules;

(xxi) “Non-recurring expenditure” means expenditure other than recurring expenditure;

(xxii) “President” means the President of India;

(xxiii) “Primary unit of appropriation” means a primary unit of appropriation referred to in Rule 8 of the Delegation of Financial Powers Rules;

(xxiv) “Public Account” means the Public Account of India referred to in Article 266 (2) of the Constitution;

(xxv) “Public Works” means civil/ electrical works including public buildings, public services, transport infrastructure etc., both original and repair works and any other project, including infrastructure which is for the use of general public;

(xxvi) “Re-appropriation” means the transfer of funds from one primary unit of appropriation to another such unit;

(xxvii) “Recurring expenditure” means the expenditure which is incurred at periodical intervals for the same purpose. Expenditures other than recurring expenditure are nonrecurring expenditure;

(xxviii) “Reserve Bank” means the Reserve Bank of India or any office or agency of the Reserve Bank of India and includes any Bank acting as the agent of the Reserve Bank of India in accordance with the provisions of the Reserve Bank of India Act, 1934 (Act II of 1934);

(xxix) “Subordinate authority” means a Department of the Central Government or any authority subordinate to the President;

(xxx) “Treasury Rules” means the Treasury Rules of the Central Government;

(xxxi) CAPEX model: In the CAPEX Model, Capital expenditures is used by the buyer to straightway purchase goods followed by procurement of consumables, arranging comprehensive maintenance contract after warranty period and finally disposing the product after useful life;

(xxxii) OPEX model: In the OPEX model, the Seller provides the goods, maintains it and also provides the consumables as required and finally takes back the goods after useful / contracted life. The expenditure is made by the Buyer in a staggered manner as per the terms and conditions of the contract.

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Review of Existing Government Guarantees as per GFRs: FinMin OM dated 23.04.2021

F. No. 12(4)-B(SD)/2021
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division

Room No. 221-A, North Block,
New Delhi, the 23th April 2021

OFFICE MEMORANDUM

Subject: Review of Existing Government Guarantees as per GFRs – reg.

Rule 281 of GFRs provides that Financial Advisers should review Govt. guarantee issued by the Ministries/Deptts. annually and furnish review report to this Department by 30″ April every year. They are also required to furnish data on guarantees in GFR 25 format by 10″ April every year. The review which needs to be undertaken by the respective Financial Advisers should address the following aspects:

1. The review should cover the period from 01.04.2020 to 31.03.2021. For the purpose of examining correctness of guarantee fee payment, outstanding payment of principal and interest as on 31.03.2020 should be reckoned to apply the admissible rate of guarantee fee. The amount of guarantee fee so calculated should be paid on 01.04.2020 in advance for the period of review i.e. 01.04.2020 to 31.03.2021.
2. Review should be conducted at the level of Financial Adviser of the respective Min./Deptt.
3. Review should be conducted for all guarantees given by the Min./Deptt. and a consolidated report should be furnished to Budget Division (Ministry of Finance).
4. Report should say whether the borrower is discharging repayment and interest obligations as per terms of loan. If not, corrective measures taken/being taken by the Min./Deptt. are to be indicated in the review report.
5. Whether all covenants and conditions of loan and guarantee are being followed by the borrower.
6. Whether the borrower has paid correct amount of guarantee fee to the Govt. (to be assessed with reference to the approval of guarantee fee rate given by the Govt.).
7. Whether the guarantee fee has been paid on time. Guarantee fee is to be paid initially before giving guarantee and thereafter on 1st April every year in advance. Delayed payment attracts penal guarantee fee i.e. double the normal guarantee fee for the period of delay/default.
8. Whether the Min./Deptt. is maintaining the register and records of guarantees.

2. Annual Review reports submitted by Ministries/Deptts. should address the above aspects and must include information as per Form GFR 25 (copy enclosed) indicating outstanding guarantees as on 31.03.2021. It must be ensured that all the columns of Form GFR 25 needs to be religiously filled against each individual guarantee taken by the Ministry/Deptt. Ministries/Deptts.

3. Ministries/Departments are also requested to ensure that information provided by them as per GFR 25 (indicating outstanding guarantees as on 31.03.2021) should tally with the information which would be provided to Office of Controller General of Accounts in relation to Statement No. 4 for preparation of Union Finance Accounts. Further, in case revised statement will be furnished to Office of CGA, copy of the same may be marked to Budget Division.

4. Ministries/Deptts. are, therefore, again requested to conduct annual review of guarantees covering the points highlighted above and submit the review reports latest by 30.04.2021 positively. Reports may be submitted via email at raja.sr[at]nic.in/nikesh.mudgal[at]nic.in.

(S. R. Raja)
Under Secretary to the Government of India

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No Political or Outside Influence by Government servant or by their close relatives in respect of service matters – CGDA order dated 11.01.2021

रक्षा लेखा महानियंत्रक
Controller General of Defence Accounts
उलन बटार मार्ग, पालम, दिल्‍ली छावनी-110010
Ulan Batar Road, Palam, Delhi Cantt 110010

No. AN/XIII/13006/ Vol-XXII

Dated 11.01.2021

To

The PCDAs/ CDAs
The PIFAs/ IFAs

(Through website)

Subject: Prohibition on bringing any political or outside influence by Govt. servant or by their close relatives in respect of service matters.

Reference: This HQrs_ letter bearing No. even dated 30.05.2017 & 12.09.2018.

Please refer DOP&T OM bearing F.No.11013/08/2013 -Estt.(A-III) dated 31.08.2015and communication cited under reference containing guidelines regarding representation from Government servants on service matters.

2. As per existing instructions/ guidelines, wherever, in any matter connected with his service rights or conditions, a Government servant wishes to press a claim or to seek redressal of a grievance, the proper course for him is to address his immediate Official Superior, or Head of his Office, or such other authority at the appropriate level who is competent to deal with the matter in the Organization.

Central government employees representation on their service matters – CGA

3. However, it has been observed that instances of bringing outside as well as political influence by the official and their close relatives in matters like transfer etc. are on the rise.

Such trend has been viewed seriously by the Competent Authority and it has been decided that representation received through proper channel will only be entertained and other representation from relatives/other source will be recorded. Further, the officials concerned may be liable for disciplinary action for such transgression and violation of provisions of CCS (Conduct) Rules, 1964.

4. The contents of this communication may be disseminated to all officers/ staff Serving in your organization.

(Rajeev Ranjan umar)
Dy. CGDA (Admin)

Source: CGDA

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F.No. 12(13)- B(W&M)/2020
Ministry of Finance
Department of Economic Affairs
( Budget Division )

New Delhi,
28th September, 2020.

OFFICE MEMORANDUM

Subject: Cash Management System in Central Government – Guidelines for expenditure control in Q3 (October, 2020 to December, 2020).

Attention of Ministries/ Departments is drawn to this Ministry’s O.Ms. of even number dated 8.4.2020 and 23.6.2020 regarding modified exchequer control based expenditure management under Cash Management system in Central Government.

2. With a view to manage the cash flows of the Government, it has been decided to retain and continue with the same expenditure management measures, stipulated for Q1 and Q2, for Q3 (October, 2020 to December, 2020) of FY 2020-21.

3. However, during Quarter 3, Demand No.6 – Department of Fertilizers, Demand No.19 – Defence Services (Revenue) and Demand No.20 -Capital Outlay on Defence Services are re-classified as Category ‘A’.

4, Other conditions stipulated in this Ministry’s O.Ms. dated 8.4.2020 and 23.6.2020, the details of which are given below, will continue to be followed:

• Monthly Expenditure Plan (MEP) for October, November and December will mirror the MEP stipulation that were spelt out for April, May and June 2020;
• Expenditure on ‘salaries’ and ‘pensions’ will be as per actual requirement and shall be within the overall limits prescribed under cash management guidelines;
• The amounts that remain unspent in a month will not be available for automatic carry-forward into the next month. The amounts that remained unspent in a Quarter will not be available for automatic carry-forward into the next Quarter. Specific approvals of Secretary, Department of Expenditure shall be
  obtained by the Ministries/ Departments for utilising these unspent amounts;
• Ministries /Departments while utilising their allocations shall take utmost care not to bunch up expenditures/ releases in a bid to improve their pace of expenditure leading to parking of funds. In this time of acute cash stress, utmost care may be taken to avoid releases that can contribute to idle parking of funds, and
• Items of large expenditure would continue to be governed by the guidelines issued in this Ministry’s O.M. F.No.12(13)-B(R)/2016 dated 21.8.2017.

5. This has the approval of Secretary, Department of Expenditure.

(Vyasan R)
Deputy Secretary (Budget)

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DoE – Financial powers were assigned to evaluate / approve all publicly supported schemes / projects to implement all new schemes / sub-schemes.

F.No.42(02)/ PFC-1/2014
Ministry of Finance
Department of Expenditure
PFC-I Division

North Block, New Delhi
Dated: 4th June, 2020

OFFICE MEMORANDUM

Subject: Appraisal and Approval of all Public Funded Schemes / Sub-Schemes – reg.

Reference is invited to DoE OM No.24(35)/PF-11/2012 dated 5-8-2016 vide which financial powers have been delegated for appraising/ approving all public funded schemes/projects. In terms of para 4(i) of the OM of even number, for initiating all new schemes/ sub-schemes , ‘in-principle’ approval will be taken from Department of Expenditure. It may be appreciated that in the wake of COVID-19 pandemic, there is an unprecedented demand on public financial resources, and a need to use resources prudently in accordance with emerging and changing priorities. However, many new proposals for ‘in-principle’ approval are being received from Ministries/ Departments.

2. In view of the circumstances prevailing in the current financial year, the undersigned is directed to convey the following:-

• No new proposal for a scheme/ sub-scheme , whether under delegated powers to Administrative Ministry including SFC proposals or through EFC should be initiated this year (FY 2020-21) except the proposals announced under the Pradhan Mantri Gareeb Kalyan Package, Atma Nirbhar Bharat Abhiyan package and any other special package /announcement. ‘In-principle’ approval for such schemes will not be given in this financial year.
• The initiation of new schemes already appraised/ approved in Financial Year 2020-21 under the delegated powers of the Administrative Ministries including SFC proposals (schemes upto Rs. 500 Crore) (exception as mentioned in (i) above), will remain suspended for one year till 31st March, 2021 or till further orders whichever is earlier. This is applicable for those schemes as well, for which ‘in-principle’ approval has already been given by Department of Expenditure. A list of all such schemes (as per the enclosed proforma) may be sent to DoE by FAs of the Ministries / Departments by 30th June, 2020.
• The continuation of all existing schemes will be governed by the DoE OM No. 42(02)/PF- 11/2014 dated 10-01-2020 by which an interim extension for all the ongoing schemes has already been given till 31st March, 2021 or till the date of recommendations of 15th Finance Commission come into effect, whichever is earlier. This is applicable for all the schemes, whether under delegated powers to Administrative Ministries/ Departments, through SFC or through EFC which the Ministry/Department wants to continue without changing their scope, nature, coverage and without creating any additional posts. It has also been reiterated therein that continuation of all schemes would be based on an outcome review based on evaluation. The continuing schemes need to be appraised and approved further for the period of 2021-22 to 2025-26 after 15th Finance Commission recommendations are accepted and resource position of public exchequer is clear. This would also be depend upon the evaluation and the outcome review.
• No funds may be released for schemes which are not in strict conformity to the instructions given above and also in terms of DoE OM No. 24(35)/PF-11/2012 dated 05-08-2016 and No. 42(02)/PF-11/2014 dated 10-01-2020, nor should budgetary provisions be made available by re-appropriation to such schemes.
• Any exception to the above guidelines shall require specific approval of the Department of Expenditure.

Also read: Stepping up of pay of senior Assistants of CSS drawing less pay on promotion in the Section Officers Grade than their juniors

3. This issues with the approval of Secretary (Expenditure).

(Dr. Shivalli M. Chouhan)
Director (PFC-I)

Download PDF – DoE

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RTGS systems – increase in operating hours

Office of the Controller General of Accounts
Ministry of Finance
Department of Expenditure

Mahalekha Niyantrak Bhawan
E Block, INA, New Delhi
Dated: 28th August 2019

No. S-11012/2/3(17)/RBl/2015/GBA/1468-1512

Office Memorandum

Sub:- RTGS systems – increase in operating hours

Please find enclosed herewith a letter No. DGBA. GBD. 438/41.07.001/2019-20 dated August 26, 2019 alongwith its annexure regarding increase in the operating hours of Real Time Gross Settlement (RTGS) with effect from August 26, 2019 received from Department of Government and Banks Accounts, Reserve Bank of India, Mumbai for information and necessary action.

Sd/-
(Hanumaiah.K)
Deputy Controller General of Accounts (AR&GBA)
RESERVE BANK OF INDIA
www.rbi.org.in

DGBA.GBD.No. 438/41.07.001/2019-20

August 26, 2019

The Controller General of Accounts
Office of the Controller General of Accounts
Ministry of Finance, Department of Expenditure

Mahalekha Niyantrak Bhawan
E Block, INA
New Delhi – 110 023

Dear Sir

RTGS System-Increase in operating hours

Reserve Bank of India has vide its circular DPSS(CO) RTGS No.364/04.04.016/2019-20 dated August 21, 2019 decided to increase the operating hours Of RTGS and commence operations for customers and banks from 7.00 am with effect from August 26, 2019 (copy enclosed).

It is informed that, in e-Kuber QPX, a business day is divided into 12 business sessions, starting from 8.00 am up to 8.00 pm. The system-based consolidation process is executed at the end of each business session for accounting as well as generation of the Credit Notifications for e-Receipts and Return Notifications for e-Payments.

It has been decided that with effect from August 26, 2019 an additional business session starting from 7.00 am has been added in e-Kuber QPX. Accordingly all e-Receipts and e­ Payments will be processed, system-based consolidation process will be executed for accounting as well as all notifications for Government a-Receipts and e-Payments will be generated and transmitted to Government for the additional business session also.

This is for your kind information please.

Yours faithfully

(L.S. Bhati)
Asstant Manager
Encl: As above

RESERVE BANK OF INDIA
www.rbi.org.in

RBl/2019-20/46

DPSS (CO) RTGS No.364/04.04.016/ 2019-20
August 21, 2019

The Chairman / Managing Director / Chief Executive Officer
of member banks participating in RTGS

Madam / Dear Sir,

Real Time Gross Settlement (RTGS) System – Increase in operating hours

A reference is invited to the circular DPSS / CO/RTGS No. 2488/04.04.016/2018-19 dated May 28, 2019 on ‘Real Time Gross Settlement (RTGS) System – Extension of Timings for Customer Transactions’.

At present, the RTGS system is available for customer transactions from 8:00 am to 6:00 pm and for inter-bank transactions from 8:00 am to 7:45 pm. In order to increase the availability of the RTGS system, it has been decided to extend the operating hours of RTGS and commence operations for customers and banks from 7:00 am.

The RTGS time window with effect from August 26, 2019 will, therefore, be as under:

1. This directive is issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007).

Yours faithfully,
(P Vasudevan)

Sd/-
Chief General Manager

Source: CGA

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Dated: 17.05.2017

F.N.11/0280/1617-MR&C

ADVISORY

Subject: Publishing of Tender Notices by all Central Government Ministries/ Departments/ Attached subordinate offices/ Field offices as per new GFR -reg.

1.Attention of all Central Government Ministries/ Departments/ Attached Subordinate offices/ Field offices is drawn to the provisions as given in the recently amended General Financial Rules (GFR) 2017, in respect of tender advertisements for procurement of goods and services.  In this connection, Rule 161(i & ii), 183(ii) and 201(ii) etc. may be referred to.

2.These rules have done away with the need for publishing advertisements in newspapers for procurement of goods and services.  This has now been replaced with mandatory e-publishing of advertisement on Central Public Procurement Portal (CPPP) at www.eprocure.gov.in and on GeM.

3.In case Ministry/Department/Attached Subordinate office/Field office, still insists that the advertisement should be published in newspapers, a request to DAVP should be sent in a signed letter stating that Competent Authority has approved publication of newspaper advertisement/s despite new GFR provisions.  In such cases too, only window advertisement should be published in newspapers alongwith publication on CPPP, GeM and website of respective organisations.

4. This issues with the approval of Competent Authority.

sd/-

(R.C. Joshi)

Director (MR&C)

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AN/IA/l004/Circular

CIRCULAR

To,

The CDA RTC
The IFA (CC)
All Sub-offices
All Sections of Main Office

Sub: – Enhancement of powers to Assistant Accounts Officer (Group -B) in DAD

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No.7(1)/E.Coord.l2014
Government of India
Ministry of Finance Department of Expenditure

North Block, New Delhi, 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.

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.

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 outstanding in their Public Account in respect of Central and Centrally Sponsored Schemes. This requirement may be scrupulously enforced.

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)

Source: www.finmin.nic.in
[http://finmin.nic.in/the_ministry/dept_expenditure/notification/emre/Austerityinstructions2014.pdf]

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