Expenditure control & Management 4.2.3A

Expenditure Management Introduction – It is the art and science of managing the budget – Essential for any organised activity – A process of procuring & judicious use of resources with a view to maximise the value of the organisation – The objective is to manage the expenditure effectively to ensure efficient utilisation of various resources 4.2.3A

Duties and responsibilities of controlling officer Should manage the expenditure within the budget allocation Expenditure should be incurred for the purpose which fund has been earmarked Expenditure incurred serves the larger public interest Adequate control mechanism should be established in the units under his/her control for prevention/ detection of error/irregularities in financial proceedings and also to guard against waste and loss of public money 4.2.3A

Duties - contd Mechanism of check established at (iv in pre ppt) are effectively applied All sanctions, orders shall come into force from date of issue unless otherwise specified 4.2.3A

Control of expenditure as per budget Rule 52 – General Financial Rule Responsibility for control of Expenditure :  Grant or Appropriation can be used only to cover the charges ( including liability if any of the past year ) which are to be paid during the financial year of the Grant or Appropriation and adjusted in the account of the Year  No charges against a Grant or Appropriation can be authorised after the expiry of the financial year  No expenditure shall be incurred which may have the effect of exceeding the total grant or appropriation authorised by Parliament by Law for a financial year 4.2.3A

Expenditure management – Procedure for effective control For drawl of money the DDO shall :  Prepare and present the bills for ‘ charged’ and ‘voted’ expenditure separately  Enter on each bill the complete account classification from major head to the object head of the account  Enter on each bill the progressive total of expenditure up-to-date under the primary unit of appropriation to which the bill relates, including the amount of bill on which the entry is made 4.2.3A

Procedure for effective control of expenditure All DDOs shall maintain separate expenditure register for allocation under each minor/sub- head of account On the third day of each month a copy of entries made in this register shall be send to the Head of the Department or other designated controlling officer This statement shall also include adjustment of an inward clam communicated by the Pay and Accounts Officer directly to the DDO 4.2.3A

Procedure for effective control of expenditure The account classification for each bill should be properly given Progressive expenditure available balance should be worked out correctly Expenditure up-to- date should be within grant/ appropriation 4.2.3A

Tips for effective management of expenditure Proper planning / annual plan by circles/ regions/divisions Tendency to hoard budget allotment should be avoided Time lag between plan, administrative approval, budget allotment, estimate sanction, work allotment, work completion, booking of expenditure should be properly worked out to avoid spill over of the work 4.2.3A

Expenditure should not be incurred under any head in excess of the sanctioned allotments. Expenditure should not be incurred under any head in excess of the sanctioned allotments. If the existing allotment is inadequate, the next higher authority must be approached well in advance for placing additional funds. If the existing allotment is inadequate, the next higher authority must be approached well in advance for placing additional funds. Until additional funds are received or at least a clear and written commitment to this extent is received, expenditure should not be incurred in excess of the allotment. Until additional funds are received or at least a clear and written commitment to this extent is received, expenditure should not be incurred in excess of the allotment. Expenditure Control tips 4.2.3A

If at any stage, funds are surplus to the requirements under any head, the amount of the probable excess should be promptly surrendered. If at any stage, funds are surplus to the requirements under any head, the amount of the probable excess should be promptly surrendered. Such an action will ensure that there is no lapse at the end of the year. Such an action will ensure that there is no lapse at the end of the year. A systematic watch be kept over the expenditure, and A systematic watch be kept over the expenditure, and Progressive expenditure be compared every month with the proportionate allotments under each head. Progressive expenditure be compared every month with the proportionate allotments under each head A

System lacunae DGSND Civil electrical work – lack of coordination between various wings Mismatch between accounts in units and DPA Budget delay Suspense account 4.2.3A

Government initiatives Emphasis shifted from outlays to out comes Enhanced delegation of powers Emphasis on actual use of fund than mere transfer of funds Disclosure of information on public domain 4.2.3A