GOVERNMENT OF NAGALAND
( BUDGET BRANCH)
No. BUD/1-3/2004-05/II Dated Kohima the 18th May, 2006
All Principal Secretaries / Commissioners & Secretaries /
Secretaries to the Government of Nagaland
Sir / Madam.
Sub :- PLACEMENT OF BUDGET FOR THE YEAR 2006-07 (STATE PLAN).
I am directed to address you on the subject noted above and to place at your disposal the entire budget provision under ‘STATE 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
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 State Plan:
(a) The Controlling Officers 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 total 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) 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 all 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.
(c) 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.
(d) 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 up to the end of each month in FORM given at ANNEXURE II, within the 7th of the month following the month under report.
(e) It shall be the sole personal responsibility of the DDO to ensure that his drawal does not exceed the sub-allotment given to him 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.
(f) The Treasury /Sub-Treasury Officers are to refuse payment, against the items under para 2 above, if any claim for drawal by any DDO exceeds the sub-allotment communicated to them by the Finance Department, except for the provisions under DA/DL.
(g) Each HOD should consolidate the MES submitted by the DDOs (as prescribed at (d) above) in the FORMAT given at ANNEXURE –III, 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 should be furnished to the Finance Department (Budget Branch).
3. 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.
4. 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.
5. Proposals for issue of DA/DL under State Plan must be moved only after fulfilling the following conditions :-
(i) That the related work/scheme has been actually completed/implemented and that payments are due for immediate disbursement.
(ii) Clearance of Planning Department has been obtained.
(iii) A write-up for publicizing the work/scheme has been enclosed.
(iv) Proposals should be supported with Completion Certificate/Progress Report countersigned by Head of Administrative Department. The proposal of the Head of Department , which must be placed on file while moving for DA/DL, must indicate the details of the total scheme/work/ supply and the exact level of completion. While endorsing the proposal to the Finance Deptt, the head of the Administrative Department concerned must specifically record on the ‘Note Side’ under his/her own signature that he/she is personally satisfied about the level of completion as well as to the immediate requirement of funds for disbursement. It may be noted that no proposal for issue of DA/DL will be entertained by the Finance Deptt. unless the Head of the Administrative Department concerned makes specific endorsement on the above lines.
(v) Endorsement of files to Finance Department by any other Officer will be summarily rejected without any scrutiny unless it is clearly indicated that (a) the Head of Administrative Department is out of station and (b) that the matter is so urgent that it cannot be delayed until the return of the Head of Administrative department.
6. The existing system of obtaining DA/DL from Finance Department in respect of items, other than items at para 2, 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. It has been noticed that the provision of funds for salary/wage under State Plan is short of actual requirement. Since payment of salary/wage is being allowed without the necessity of obtaining Drawal Authority from the Finance Department, the departments concerned draw their salary/wage bills from the Treasuries even though the required funds are not available. This leads to widening of overall deficit which has serious adverse effect on the State finances. All the concerned departments are pre-cautioned that no salary/wage bill will henceforth be allowed by the Treasuries if the same is not within the authenticated sub-allotment. To ensure that the employees do not suffer on this count, the concerned departments should, in their consolidated DDO-wise sub-allotment, provide for adequate funds for salary/wage by reducing the provision of funds under other State Plan schemes.
7. (a) It may be noted that funds pertaining to the schemes covered by TFC grant, Central earmarked ACA, one-time ACA, Negotiated loans under State Plan and schemes under Non Lapsable Central Pool Resources (NLCPR), as indicated in the statement –I, shall not be released until and unless the Central assistance and Negotiated loans, as the case may be, is credited to the accounts of the State Government. Therefore the Departments should, in their expenditure proposal, invariably indicate the status/category of the schemes whether the same is against TFC/ACA/one-time ACA/ NLCPR or Negotiated loans. The Departments should also indicate salary & non- salary and work/non-work component separately when submitting expenditure proposal of the above schemes. No diversion of fund will be allowed from any of the schemes under aforesaid categories and under State Earmarked Schemes.
(b) No release of fund under Loan component will be made unless the department concerned hand over the cheque/draft received from the Financial Institution and the same credited to the State Government account. It has been noticed that some departments did not credit or delayed the credit of cheques / draft received from the Financial Institution. Such delays caused unnecessary loss to the Government. Non- crediting of cheques on the part of the departments, to Government account, is highly irregular and objectionable. All concerned may kindly take careful note of this and ensure that any cheque/draft received are immediately handed over to the Finance Department. Any loss to Government for delay in crediting such cheques/drafts into Government Account will be recovered from the person responsible for such delay.
(c) The department having TFC grant for upgradation/special problem/local bodies should indicate the salary component, if any, included therein. Release against TFC grants will be made only after the credit of the same to the State Government account by the GOI. To ensure prompt release of TFC grant by the GOI the concerned department should ensure preparation and submission of schemes, SLEC approvals, utilization certificate etc in time to the Finance department as well as to the Ministry concerned.
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.
(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.
(A broad item-wise analysis of the Plan Budget for 2006-2007 is enclosed at BUDGET ANALYSIS – II for guidance)
(iv) 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.
(v) 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.
(vi) The Departments having work-charged establishment are required to ensure that the expenditure on work-charged salary are met from the provision for the project/ work on which these employees are engaged, that the size of the work-charged establishment is regulated strictly as per the recommendation of the Work-charged and Casual Employees Commission duly approved by the Cabinet and that the work-charged salary is booked strictly as per the classification of the provision made in the Budget (usually this expenditure is classified under State-Plan-Capital expenditure ) No proposal for issue of DA/DL for work-charged salary shall be moved without obtaining the clearance of the Planning Department.
(vii) All the departments having work-charged establishment should immediately furnish a STATEMENT (in duplicate) indicating the PLAN scheme/Head of Account under which the work-charged salary will be accommodated, also indicating the actual requirement of fund for work-charged salary in total and under each Plan scheme/ Head of account. No proposal for issue of DA/DL either for work-charged salary or for other Plan expenditure of the Departments having work-charged establishments should be moved until and unless the aforesaid statement is furnished to the Finance Department. (A prescribed format for this statement is attached at Annexure IV).
(viii) Proposal for issue of DA/DL for work-charged salary should be against the particular work/ scheme on which the work-charged employees are engaged and the budget provision under the related work/scheme must be indicated –which should tally with the statement under item (vii) above.
(ix) The Departments having Boards/ Corporations/ Companies under them must move proposals for issue of DA/DL for providing assistance to these PSUs only against the PLAN Budget provision. The expenditure must be classified under Capital Section as ‘investment’-irrespective of whether the PSUs utilize the assistance for salaries etc. Any increase required in the plan budget provision in respect of any PSU must be accommodated within state plan approved outlay of the department concerned by suitable adjustment of other plan expenditure, with the approval of the Planning Department.
9. Sub-allotment of funds among the DDOs in respect of items under DA/DL may 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 (in respect of items other than those mentioned at para 2) which will allow claims only when such claims are supported by the DA/DL issued by the Finance Department).
10. The Planning Department is requested kindly to ensure the following while according clearance to the proposals of the Departments for release of funds under State Plan and CSS/CPS/NEC etc.
(a) Indicate the categories of the scheme such as Normal State Plan/TFC/ACA/One-Time ACA/NLCPR/Negotiated Loan etc.
(b) Release of funds cleared by the Planning Department may kindly be monitored with reference to the total approved plan allocation of the department concerned to ensure that clearance is not accorded by the Planning Department for release of more fund than allocated to the department concerned.
(c) The requirement of fund for normal salary, scholarship/ stipend etc may kindly be taken into account while working out the availability of state plan fund for Planning clearance.
(d) No proposal for release of fund against Negotiated Loan component may be cleared until and unless the department concerned specifically certifies that the related cheque/draft has been received and handed over to the Finance Department. Salary proposed to be met out of the loan component, if any, should be deducted for the purpose of working out availability of fund for according Planning Clearance against loan component.
(e) While according Planning clearance for work charged salaries, it should be ensured that the number of work charge employees of the department is in keeping with the recommendation of the Work Charge Employees Commission and duly approved by the Cabinet. Also, it may be ensured that the Department restricts its expenditure on work-charged salaries to the funds placed for the purpose by the Planning Department. No additional Non-Plan funds will be provided by Finance Department for paying work charged salaries.
(f) Planning clearance in respect of schemes, for which specific funds are released by the Ministry concerned (e.g. schemes under ACA, CSS, NEC, NLCPR etc), must be restricted to the actual amount released by the Ministry concerned from time to time.
11. The Revised Estimates, 2006-2007 along with the incumbent-wise salary statement in the prescribed format and Budget Estimates, 2007-2008 may please be furnished latest by 31st September 2006 positively for which a separate communication will follow.
12. You are requested kindly to issue suitable instructions to all concerned subordinate authorities under your administrative control for strict compliance.
13. Kindly acknowledge the receipt of this letter.
No. BUD/1-3/2004-05/II 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 )