Telangana Budget Estimates 2016-17 – Instructions GO 154


According to Para 13.19.1 of the Budget Manual, the Heads of Depart ments and Other Estimating Officers should prepare their estimates for both receipts and expenditure in duplicate and send one copy direct to the Finance Department, and the other to the Administrative depar tments of the Secretariat concerned.

Number Statements:

2.1 According to Para 13.2.1 of the Budget Manual, the Heads of Departmen ts and the Other Estimating Officers have to submit Number Statements to the Finance Department giving particulars of posts of Permanent, Temporary and Supernu merary establishment (both Gazetted and Non-Gazetted) the sanctioned monthly pay, the Special pay if any and the fixed allowances attached to the posts or individuals that will be drawn on the 1st April of the following year and Number of Officers at the each rate of pay for whom provis ion will be made in the Departmental Estimates.

2.2 The Heads of Departments and the other estimating officers are requested to follow the guidelines given below scrupulously while furnishing number statements for the year 2016-17 to the Government.

i) When post is allotted to the Government of Telanganaand ordersto serve or final allocation orders issued by Government of India to this effect, the departments are requestedtomake sufficient Budget provision to the each category after taking in to consideration of employees allotted and to be allotted to Telangana State as per final allocation orders of Government of India.

ii) After formation of State of Telangana, if any posts are created in the department in addition to the sanctioned/allotted strength, the departments are requested to take action to include the newly created posts (if any) in the number statements.

iii) The cadre strength indicated in the Number Statements should be in conformity with the orders to serve and final allocation orders issued by Government of India duly indicating the numbers where orders were issued by Government of India invariably in the Proforma-I provided On-line.

iv) The cadre strength indicated in the Number Statements should be in conformity with the cadre strength fixed by Finance (HRM) Department.

v) The Number Statements in respect of posts under Plan and Non-Plan shall be submitted separately under respective Major, Minor and Sub-Heads of Accounts in the Proforma-I provided On-line.

vi) In respect of posts for which salaries paid from Grants-in-Aid towards salaries, the Heads of Departments shall submit the Number Statements separately under respective Major, Minor and Sub-Heads of Accounts in the Proforma-II provided on-line.

vii) Public Works Engineering Departments shall submit Number Statements for Work-Charged Establishment under various schemes, projects and who are being paid on par with the regular Government Employees in Proforma-III provided on-line.

viii) The details of the appointments made on Contract / Outsourcing through an agency, category-wise shall be furnished alongwith the provisions required for full year under the detailed Head ‘300-Other Contractual Services’ in the Proforma-IV provided on-line.

ix) The number of posts and scale of pay attached to the post shall be furnished in the appendix ‘A’ ( Proforma –V) provided on-line.

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x) Information regarding number of Anganwadi Workers, Homeguards and Village Revenue Assistants (VRA) engaged by the respective HODs shall be furnished in the Proforma-VI provided on-line.

2.3. The HODs are informed that the expenditure under all Heads of Accounts including Salaries shall be regulated with reference to Budget provisions. In the absence of Number Statements, the responsibility for any shortfall or excess in the estimates fixed by Finance Department lies with the HODs concerned.

2.4 All Heads of Departments and other Estimating Officers are therefore requested to furnish the Number Statements in the Proforma provided online by 20-11-2015 at the latest to the concerned Finance (EBS) Sections.

RECEIPTS:

3.1. According to para 13.8 of the Budget Manual, the HODs and other Estimating Officers should prepare budget estimates for receipts based on the existing rates of taxes, duties and fees etc., and no increase or reduction in such rates which has not been sanctioned by the Government should be proposed. The information shall be furnished in the enclosed Proforma – A.

3.2 All the Heads of Departments and Other Estimating Officers are requested to furnish proposals for Revised Estimates 2015-16 and Budget Estimates 2016-17 in respect of Revenue Receipts and Loan Receipts with which they are concerned by giving full details of targets fixed as per performance indicators for each department.

3.3 All the Heads of Departments may explore new base for improving their receipts and curb the leakages from bottom level to top by strict vigilance and improve the performance of the employees by fixing required personal performance indicators at each level.

NON – PLAN:

4. According to para 13.9 of the Budget Manual, the HODs and Estimating Officers shall make provisions for all sanctioned schemes, but not for schemes of new expenditure which have been submitted to the Government but not yet been sanctioned. Information shall be furnished in proforma-B1.

5. Experience shows that every year many Departments are furnishing the estimates in a routine manner without examining the need for the continuation of the scheme and justification for the provisions claimed by the Departments. In view of the need to observe strict economy in expenditure, it has been decided to make a thorough review of the budget proposals furnished by the Departments. The Heads of Departments and other Estimating Officers are, therefore, requested to furnish the

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following information without fail in the column – 6 of Proforma – B1 provided for recording justification.

(a) The objectives of the Scheme or work of the Department;

(b) Relevance of the programme to the overall objective in the present context;

(c) The justification for various categories of posts and number of posts in each category as existing in the Scheme or Department; and
(d) The consequences of its non-funding.

6.1. All the Heads of Departments and Other Estimating Officers are also requested to review the existing Non-Plan Schemes very critically, so that those schemes which do not serve any tangible purpose substantially are dropped or phased out or reduced.

6.2. The committed expenditure (Fixed Costs – Staffing, maintenance, rents, vehicles, water, electricity, etc.) has to be budgeted for every operational unit of every department – starting at the lowest level and moving upto HOD.

6.3. The provisions under the concerned detailed heads i.e., standard objects of expenditure shall be included keeping in view of the guidelines indicated in reference 2nd read above. The provisions for Dearness Allowance, Leave Travel Concession, House Rent Allowances, Encashment of Earned Leave, Medical Reimbursement etc., shall be included under respective sub-detailed heads under “010 Salaries”.

6.4. The estimates for contingent expenditure shown under “Office Expenses” should be prepared with reference to the instructions laid down in para 13.16 of the Budget Manual. Details of the items of expenditure included, detailed reasons together with figures should be furnished. Proper attention must be paid while estimating water and electricity charges.

6.5. Utility Payments:

Each Head of the Department/Office/Unit / DDO shall be personally responsible for utmost economy under all sub heads under `Non-salary O&M’. They should take special care to ensure that utility charges for water supply, electricity, telephones, petrol, rents etc are calculated in accordance with the latest instructions from the Government.

6.6. It has also been noticed that utility payments to statutory authorities and rents to the respective owners are delayed for months and years and allowed to accumulate as arrears, which are then claimed as pending bills. It is, therefore, ordered that each Head of Office shall be take carefor timely and full payments on these items.

6.7. Energy Auditing:

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All HODs/Heads of Offices are required to keep personal check on power consumption and take necessary steps to take up energy Audit and also make sure that power bills are paid promptly and fully. Recent improvements in technology have brought out many energy-saving devices that are based on conventional as well as non-conventional sources. All HODs are requested to take up a phased program to convert their offices to low-energy consumption devices and effect savings in their energy charges in the long run.

P L A N :

7. Government is in process of building “Bangaru Telangana”, hence it is essential have a clear vision and approach to the Plan Budget of the State.It is important to improve the infrastructure facilities in the state. Which improves standards of the people in the sectors like Drinking water, Education, Health, Roads and Transport.

The Heads of Departments and Estimating Officers are requested to see with particular care that provisions relating to schemes included in the Plan 2016-17 as flagship programmes of State of Telenganaare exhibited separately and distinctly under Plan Estimates. As the Plan Schemes will also be subjected to pre-budget scrutiny on the lines to be indicated by the Finance Department, the estimates may be prepared with as much care as in the case of non-plan estimates. Provisions proposed for plan expenditure should under no circumstances be mixed up or merged with Non-Plan provisions. The estimates should confirm to the ceiling communicated by the Planning Department for Budget Estimates 2016-17(proforma – B2).

The head of Departments are requested to purpose the schemes under Centrally Assisted State Planafter careful examination of each scheme with Government of India schemes and also Central and State share correctly.

New Schemes:

8. In the case of new schemes introduced during the year, the dates of introduction and the estimated expenditure for the current year should be mentioned in the remarks column. If provision is included in the Revised Estimates for the current year for any new item of expenditure not provided for in the Budget Estimates of the year it should be clearly stated in the ‘Remarks’ column whether it has been sanctioned by the competent authority and if so, the number and date of the proceedings sanctioning the expenditure should be quoted in every case (Proforma –

B3 for Non-Plan and Proforma –B4 for Plan).

FRBM Rules, 2006:

9. As per rule 6(1) of APFRBM Rules, 2006 the State Government shall at the time of presenting the Budget make following disclosures as required under Section 10 of APFRBM Act 2005.

(i) Form D-7 Statement of Assets (Proforma – D).

(ii) Form D-8 Tax Revenues raised but not realized (Proforma – E).
(iii) Form D-9 Statement of Miscellaneous liabilities outstanding (Proforma – F).

10. All the Heads of Departments and Estimating Officers are therefore requested to furnish the relevant information in the prescribed proforma appended to this order along with the Budget Estimates 2016-17 invariably as these statements have to be presented to the Legislature.

Special Points:

11. The attention of all Secretariat Departments, Head of the Departments and Estimating Officers are invited to the following special points:

• Avoid speculative estimations or over / under projections.

• Rationalise the Grants-in-Aid expenditure relating to the departments.
• All Non-Plan expenditure to be consolidated for each department.

• Projections for maintenance, office establishment – vehicles, rents, water and electricity, office stationary – outsourced services, welfare and subsidy programs, etc., based on the actual needs with proper justification.

12. Date of submission of Estimates:

• Allestimates should be submitted to the Administrative Departments of the Secretariat concerned through on-line not later than20-11-2015.

• The Administrative Departments of Secretariat would forward the estimates with their comments to the Finance Department by 25-11-2015 at the latest.

• Experience has shown that inspite of clear instructions, the Budget proposals in most of the cases are sent very late. Steps should, therefore, be taken to ensure that the dates prescribed above are strictly adhered to. If estimates are received after 20-11-2015, Finance Department will not be able to intimate any changes made in the estimates of Departments as there will not be sufficient time for considering representations against changes effected by this Department.

13. Accuracy and authority for estimates:

• Accuracy and authority for estimates: It will be the responsibility of the Heads of Departments and Other Estimating Officers to see that no omissions or deviations are made in making provisions for any sanctioned scheme or any other item of expenditure covered by sanction of the competent authority for which provision sought to have been made in Part- I of the Budget Estimates (sanctioned item). Similarly no provision should be made in Part – I of the

Estimates, for any item of expenditure for which no sanction of Government exists. Provision should be made in the Budget Estimates for the coming year for all sanctioned schemes but not for schemes of new service, which have

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been submitted to Government but not yet sanctioned. It has, however, been observed that the above procedure is not being followed by some Heads of Departments, who have been including provisions in the Budget Estimates for schemes which have not been sanctioned by Government. Departments have also been requested not to propose heavy increases in the existing provisions in the normal budget estimates without obtaining prior sanction of the Government. The Heads of Departments and Other Estimating Officers are requested to observe the instructions in para 13.9 of the Budget Manual scrupulously while submitting the RE 2015-16 Budget Estimates 2016- 17. While minor increases based on trends of actuals and admitted needs may be allowed, increases involving substantial amounts proposed over the existing provisions should be supported by Government orders sanctioning the increase duly enclosing copies of the relevant Government orders. Provision included in the Budget Estimates for the schemes which have not been sanctioned by the Government are liable to be summarily rejected and no correspondence will be entertained on this account.

• It will be the responsibility of the Heads of Departments and Other Estimating Officers to see that no omissions or deviations are made in making provisions for any sanctioned scheme or any other item of expenditure covered by sanction of the competent authority for which provision sought to have been made in Part- I of the Budget Estimates (sanctioned item).

• Similarly no provision should be made in Part – I of the Estimates, for any item of expenditure for which no sanction of Government exists.

• Provision should be made in the Budget Estimates for the coming year for all sanctioned schemes but not for schemes of new service, which have been submitted to Government but not yet sanctioned. It has, however, been observed that the above procedure is not being followed by some Heads of Departments, who have been including provisions in the Budget Estimates for schemes which have not been sanctioned by Government.

• Certain Departments have also been proposing heavy increases in the existing provisions in the normal budget estimates without obtaining prior sanction of the Government. This procedure is irregular.

14. Economy:In order to ensure effective and optimum utilization of the resources, it is necessary to observe economy in expenditure and also avoid such expenditure which does not result in benefits commensurate with the expenditure. Heads of Departments and other Estimating Officers are therefore, advised to analyse the expenditure incurred on all non-salary items and should make efforts to save money for the next financial year. For any deviation in this regard they must give substantial justification. They are requested to frame the Revised Estimates 2015-16 and Budget Estimates 2016-17 accordingly, keeping in view the above measures.

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15. Revised Estimates: The Revised Estimates besides enabling the Government to arrive at the approximate closing balance for the current year (that is the opening balance for the next year), are prima facie the best guide to the coming year’s estimates. It is, therefore, essential that Revised Estimates are prepared with great care and are as nearer as possible to the actuals by taking into account the Reappropriation/surrenders made during the year 2015-16.

16. Contract Appointments:The Heads of Departments / Estimating Officers shall ensure that sufficient provisions are made under the detailed head “ 300- Other Contractual Services” towards payment of remuneration to the persons appointed on contract/outsourcing basis. They are requested to furnish the relevant orders issued by the competent authority for engaging the persons on contract/outsourcing basis while proposing provision in the Budget. They shall also furnish calculation sheet consisting of rate of contract, period of contract, no. of persons engaged on contract, outsourcing and the total amount required towards payment of remuneration in respect of each sanction order based on which they are proposing provision in the Budget.

17. Explanations for variations in figures: Estimating Officers are requested to furnish brief and clear explanations for material variations between the Budget and Revised Estimates of the current year and the Budget Estimates for coming year both under Receipts and Expenditure. They are informed that in the absence of explanations, any increase of expenditure included in their estimates is liable to be summarily rejected. While submitting the estimates, the variations, if any, between number and designation of the staff for which provision is made in the estimates and those already furnished by the Estimating Officers in the number statements should be explained in detail with reference to the orders sanctioning the additional staff, etc.

18. Estimates for Works: Provision should be made in Part – I of the Budget for works which have been sanctioned by the Government or the competent authority. All the Chief Engineersare requested to give full information as to whether the works for which provision is included by them in the Revised Estimates 2015-16 are for repairs to the existing buildings etc., or new works or works in progress and whether the works have been sanctioned by the Government or competent authority. The number and date of order sanctioning each work, the amount of estimate both the original and the revised; the total expenditure incurred on the work to the end of the preceding financial year; and the amount required for expenditure during the current year and next year should invariably be given in the remarks accompanying the Budget Estimates. If complete information is not furnished in proforma- G prescribed, in the case of any particular work, the provision proposed for will be omitted by the Finance Department.

19. The Heads of Departments and Other Estimating Officers are requested to furnish Number Statements under each Plan Scheme for inclusion in Appendix ‘A’ to the detailed Budget Estimates along with the Budget Estimates for Plan Schemes.

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20. The Heads of Departments are requested to ensure that the amounts allocated for supply of uniform to the “Office Subordinates” under the detailed head “250 Clothing, Tentage and Stores” shall be utilized for the same purpose without diverting for other purposes.

21. Provisions under grants-in-aid: Particulars, as per para 13.12 of the Budget Manual, should invariably be furnished while sending the estimates. Statement showing details of charges and income of the institution receiving grants-in-aid for the previous years should also be furnished in the prescribed proforma along with the Number Statements showing the staff position, their scales of pay, etc., While furnishing the estimates under grants-in-aid, the Heads of Departments and Other Estimating Officers are requested to open the sub-detailed heads “311- Grants-in-aid towards salaries”, “312- Other Grants-in-aid” and provide the amounts separately under the above sub-detailed heads of account. In the absence of Number Statements showing the full particulars, scale of pay etc. the estimates under grants-in-aid towards salaries will not be considered.

22. The provision required for payment of obsequies to the family of the deceased Government Employees shall be made under the sub-detailed head of account 310 – Grants-in-aid -318 – Obsequies Charges”. The provision required for payment of contribution and subsidies shall be made under the detailed heads “320-
Contributions and 330 – Subsidies respectively and not under sub detailed head
312 – Other Grants – in-aid”. The provision for creation of capital assets which is to be passed on to the local bodies and other agencies has to be classified under Sub Detailed Head “319 Grants for creation of Capital Assets” under the detailed head “310 Grants in aid”.

23. Provision for maintenance of office vehicles to be made under the Sub Detailed Head “511 Maintenance of office vehicles” and the provision for Purchase of new motor vehicles has to be proposed under “512 Purchase of Motor Vehicles” under the detailed head 510 Motor Vehicles. However, the provisionforpurchase of motor vehicles shall be supported by specific sanction order from the Government and the provision for maintenance of motor vehicles shall be supported by statement from the Head of Department with regard to the number of vehicles available in the department.

24. All the Utility Payments i.e., Postage, Telephone, Water and Electricity Charges are to be fully provided under respective sub detailed heads 131- Service Postage, Telegram and Telephone Charges, 133 – Water and Electricity Charges under the detailed head 130 – Office Expenses as first charge under non-salary component.

25. The provision required for payment of “hiring charges of Private Vehicles” shall be made under the sub detailed head “130/134 – Hiring of Private Vehicles” based on the sanction orders. No provision shall be proposed under this head without specific sanction from the government for hiring of private vehicles for the department for a specific period.

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26. Separate estimates shall be sent for providing funds for fixed Travelling Allowance under the new sub detailed head “114 – Fixed Travelling Allowance” in Revised Estimates 2015-16 and Budget Estimates 2016-17 as per instructions issued in this Department Memo.No.16240/642/BG/A1/2002-2, dated 25-11-2002. Similarly requirement for conveyance allowance shall be proposed under “110/115 Conveyance Allowance”.

27. Separate Estimates shall be sent for providing funds for payment of Wages to the Full Time Contingent Employees who are drawing minimum of time scale with DA as per Revised Pay Scales of 2015 separately under distinct sub-detailed head 020-Wages – 021-Daily Wage Employees – 022-Full Time Contingent Employees as per instructions issued in Circular Memo No.2823/202/A1/BG.I/2013 Finance (BG) Department, dt.02-07-2013.

28. Where any large provision is proposed in respect of outstanding liabilities or arrear payments, full details should be furnished and the original sanction for incurring such expenditure should invariably be quoted.

29. Where any expenditure is dependent on finance from outside the State like Government of India, NABARD etc., estimates should be based only on the last year’s actual release to State or on the basis of actual need whichever is lower and not on hypothetically assumed figures. In such cases, it is necessary to indicate specifically whether the entire amount or only a part of the amount is reimbursable from these agencies and whether this amount has been taken credit in their estimates of Revenue.

30. Scrutiny of estimates by the Administrative Department of Secretariat: The Administrative Departments of Secretariat are requested to scrutinize the estimates of the Departments under their control and forward to this Department with their comments thereon. The object of examination by the Administrative Departments is to detect excessive or inadequate provision in the Revised Estimates and Budget Estimates which they are in a position to do in the better way in view of their more intimate knowledge of working of the Departments under their administrative control.

31. TheDepartments are requested to send proposals for Revised Estimates 2015-16 and Budget Estimates 2016-17 rounding of the figures to the nearest thousands of rupees against each sub-detailed head.

32. The Heads of Departments are requested to send their proposals promptly particularly in respect of recoveries ofloans and interest receipts. They should send proposals for recoveries and disbursements under loans and advances and interest thereon based on the terms and conditions, imposed in the Government orders sanctioning the loans.
According to Para 13.19.1 of the Budget Manual, the Heads of Depart ments and Other Estimating Officers should prepare their estimates for both receipts and expenditure in duplicate and send one copy direct to the Finance Department, and the other to the Administrative depar tments of the Secretariat concerned.

Number Statements:

2.1 According to Para 13.2.1 of the Budget Manual, the Heads of Departmen ts and the Other Estimating Officers have to submit Number Statements to the Finance Department giving particulars of posts of Permanent, Temporary and Supernu merary establishment (both Gazetted and Non-Gazetted) the sanctioned monthly pay, the Special pay if any and the fixed allowances attached to the posts or individuals that will be drawn on the 1st April of the following year and Number of Officers at the each rate of pay for whom provis ion will be made in the Departmental Estimates.

2.2 The Heads of Departments and the other estimating officers are requested to follow the guidelines given below scrupulously while furnishing number statements for the year 2016-17 to the Government.

i) When post is allotted to the Government of Telanganaand ordersto serve or final allocation orders issued by Government of India to this effect, the departments are requestedtomake sufficient Budget provision to the each category after taking in to consideration of employees allotted and to be allotted to Telangana State as per final allocation orders of Government of India.

ii) After formation of State of Telangana, if any posts are created in the department in addition to the sanctioned/allotted strength, the departments are requested to take action to include the newly created posts (if any) in the number statements.

iii) The cadre strength indicated in the Number Statements should be in conformity with the orders to serve and final allocation orders issued by Government of India duly indicating the numbers where orders were issued by Government of India invariably in the Proforma-I provided On-line.

iv) The cadre strength indicated in the Number Statements should be in conformity with the cadre strength fixed by Finance (HRM) Department.

v) The Number Statements in respect of posts under Plan and Non-Plan shall be submitted separately under respective Major, Minor and Sub-Heads of Accounts in the Proforma-I provided On-line.

vi) In respect of posts for which salaries paid from Grants-in-Aid towards salaries, the Heads of Departments shall submit the Number Statements separately under respective Major, Minor and Sub-Heads of Accounts in the Proforma-II provided on-line.

vii) Public Works Engineering Departments shall submit Number Statements for Work-Charged Establishment under various schemes, projects and who are being paid on par with the regular Government Employees in Proforma-III provided on-line.

viii) The details of the appointments made on Contract / Outsourcing through an agency, category-wise shall be furnished alongwith the provisions required for full year under the detailed Head ‘300-Other Contractual Services’ in the Proforma-IV provided on-line.

ix) The number of posts and scale of pay attached to the post shall be furnished in the appendix ‘A’ ( Proforma –V) provided on-line.

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x) Information regarding number of Anganwadi Workers, Homeguards and Village Revenue Assistants (VRA) engaged by the respective HODs shall be furnished in the Proforma-VI provided on-line.

2.3. The HODs are informed that the expenditure under all Heads of Accounts including Salaries shall be regulated with reference to Budget provisions. In the absence of Number Statements, the responsibility for any shortfall or excess in the estimates fixed by Finance Department lies with the HODs concerned.

2.4 All Heads of Departments and other Estimating Officers are therefore requested to furnish the Number Statements in the Proforma provided online by 20-11-2015 at the latest to the concerned Finance (EBS) Sections.

RECEIPTS:

3.1. According to para 13.8 of the Budget Manual, the HODs and other Estimating Officers should prepare budget estimates for receipts based on the existing rates of taxes, duties and fees etc., and no increase or reduction in such rates which has not been sanctioned by the Government should be proposed. The information shall be furnished in the enclosed Proforma – A.

3.2 All the Heads of Departments and Other Estimating Officers are requested to furnish proposals for Revised Estimates 2015-16 and Budget Estimates 2016-17 in respect of Revenue Receipts and Loan Receipts with which they are concerned by giving full details of targets fixed as per performance indicators for each department.

3.3 All the Heads of Departments may explore new base for improving their receipts and curb the leakages from bottom level to top by strict vigilance and improve the performance of the employees by fixing required personal performance indicators at each level.

NON – PLAN:

4. According to para 13.9 of the Budget Manual, the HODs and Estimating Officers shall make provisions for all sanctioned schemes, but not for schemes of new expenditure which have been submitted to the Government but not yet been sanctioned. Information shall be furnished in proforma-B1.

5. Experience shows that every year many Departments are furnishing the estimates in a routine manner without examining the need for the continuation of the scheme and justification for the provisions claimed by the Departments. In view of the need to observe strict economy in expenditure, it has been decided to make a thorough review of the budget proposals furnished by the Departments. The Heads of Departments and other Estimating Officers are, therefore, requested to furnish the

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following information without fail in the column – 6 of Proforma – B1 provided for recording justification.

(a) The objectives of the Scheme or work of the Department;

(b) Relevance of the programme to the overall objective in the present context;

(c) The justification for various categories of posts and number of posts in each category as existing in the Scheme or Department; and
(d) The consequences of its non-funding.

6.1. All the Heads of Departments and Other Estimating Officers are also requested to review the existing Non-Plan Schemes very critically, so that those schemes which do not serve any tangible purpose substantially are dropped or phased out or reduced.

6.2. The committed expenditure (Fixed Costs – Staffing, maintenance, rents, vehicles, water, electricity, etc.) has to be budgeted for every operational unit of every department – starting at the lowest level and moving upto HOD.

6.3. The provisions under the concerned detailed heads i.e., standard objects of expenditure shall be included keeping in view of the guidelines indicated in reference 2nd read above. The provisions for Dearness Allowance, Leave Travel Concession, House Rent Allowances, Encashment of Earned Leave, Medical Reimbursement etc., shall be included under respective sub-detailed heads under “010 Salaries”.

6.4. The estimates for contingent expenditure shown under “Office Expenses” should be prepared with reference to the instructions laid down in para 13.16 of the Budget Manual. Details of the items of expenditure included, detailed reasons together with figures should be furnished. Proper attention must be paid while estimating water and electricity charges.

6.5. Utility Payments:

Each Head of the Department/Office/Unit / DDO shall be personally responsible for utmost economy under all sub heads under `Non-salary O&M’. They should take special care to ensure that utility charges for water supply, electricity, telephones, petrol, rents etc are calculated in accordance with the latest instructions from the Government.

6.6. It has also been noticed that utility payments to statutory authorities and rents to the respective owners are delayed for months and years and allowed to accumulate as arrears, which are then claimed as pending bills. It is, therefore, ordered that each Head of Office shall be take carefor timely and full payments on these items.

6.7. Energy Auditing:

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All HODs/Heads of Offices are required to keep personal check on power consumption and take necessary steps to take up energy Audit and also make sure that power bills are paid promptly and fully. Recent improvements in technology have brought out many energy-saving devices that are based on conventional as well as non-conventional sources. All HODs are requested to take up a phased program to convert their offices to low-energy consumption devices and effect savings in their energy charges in the long run.

P L A N :

7. Government is in process of building “Bangaru Telangana”, hence it is essential have a clear vision and approach to the Plan Budget of the State.It is important to improve the infrastructure facilities in the state. Which improves standards of the people in the sectors like Drinking water, Education, Health, Roads and Transport.

The Heads of Departments and Estimating Officers are requested to see with particular care that provisions relating to schemes included in the Plan 2016-17 as flagship programmes of State of Telenganaare exhibited separately and distinctly under Plan Estimates. As the Plan Schemes will also be subjected to pre-budget scrutiny on the lines to be indicated by the Finance Department, the estimates may be prepared with as much care as in the case of non-plan estimates. Provisions proposed for plan expenditure should under no circumstances be mixed up or merged with Non-Plan provisions. The estimates should confirm to the ceiling communicated by the Planning Department for Budget Estimates 2016-17(proforma – B2).

The head of Departments are requested to purpose the schemes under Centrally Assisted State Planafter careful examination of each scheme with Government of India schemes and also Central and State share correctly.

New Schemes:

8. In the case of new schemes introduced during the year, the dates of introduction and the estimated expenditure for the current year should be mentioned in the remarks column. If provision is included in the Revised Estimates for the current year for any new item of expenditure not provided for in the Budget Estimates of the year it should be clearly stated in the ‘Remarks’ column whether it has been sanctioned by the competent authority and if so, the number and date of the proceedings sanctioning the expenditure should be quoted in every case (Proforma –

B3 for Non-Plan and Proforma –B4 for Plan).

FRBM Rules, 2006:

9. As per rule 6(1) of APFRBM Rules, 2006 the State Government shall at the time of presenting the Budget make following disclosures as required under Section 10 of APFRBM Act 2005.

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(i) Form D-7 Statement of Assets (Proforma – D).

(ii) Form D-8 Tax Revenues raised but not realized (Proforma – E).
(iii) Form D-9 Statement of Miscellaneous liabilities outstanding (Proforma – F).

10. All the Heads of Departments and Estimating Officers are therefore requested to furnish the relevant information in the prescribed proforma appended to this order along with the Budget Estimates 2016-17 invariably as these statements have to be presented to the Legislature.

Special Points:

11. The attention of all Secretariat Departments, Head of the Departments and Estimating Officers are invited to the following special points:

• Avoid speculative estimations or over / under projections.

• Rationalise the Grants-in-Aid expenditure relating to the departments.
• All Non-Plan expenditure to be consolidated for each department.

• Projections for maintenance, office establishment – vehicles, rents, water and electricity, office stationary – outsourced services, welfare and subsidy programs, etc., based on the actual needs with proper justification.

12. Date of submission of Estimates:

• Allestimates should be submitted to the Administrative Departments of the Secretariat concerned through on-line not later than20-11-2015.

• The Administrative Departments of Secretariat would forward the estimates with their comments to the Finance Department by 25-11-2015 at the latest.

• Experience has shown that inspite of clear instructions, the Budget proposals in most of the cases are sent very late. Steps should, therefore, be taken to ensure that the dates prescribed above are strictly adhered to. If estimates are received after 20-11-2015, Finance Department will not be able to intimate any changes made in the estimates of Departments as there will not be sufficient time for considering representations against changes effected by this Department.

13. Accuracy and authority for estimates:

• Accuracy and authority for estimates: It will be the responsibility of the Heads of Departments and Other Estimating Officers to see that no omissions or deviations are made in making provisions for any sanctioned scheme or any other item of expenditure covered by sanction of the competent authority for which provision sought to have been made in Part- I of the Budget Estimates (sanctioned item). Similarly no provision should be made in Part – I of the

Estimates, for any item of expenditure for which no sanction of Government exists. Provision should be made in the Budget Estimates for the coming year for all sanctioned schemes but not for schemes of new service, which have

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been submitted to Government but not yet sanctioned. It has, however, been observed that the above procedure is not being followed by some Heads of Departments, who have been including provisions in the Budget Estimates for schemes which have not been sanctioned by Government. Departments have also been requested not to propose heavy increases in the existing provisions in the normal budget estimates without obtaining prior sanction of the Government. The Heads of Departments and Other Estimating Officers are requested to observe the instructions in para 13.9 of the Budget Manual scrupulously while submitting the RE 2015-16 Budget Estimates 2016- 17. While minor increases based on trends of actuals and admitted needs may be allowed, increases involving substantial amounts proposed over the existing provisions should be supported by Government orders sanctioning the increase duly enclosing copies of the relevant Government orders. Provision included in the Budget Estimates for the schemes which have not been sanctioned by the Government are liable to be summarily rejected and no correspondence will be entertained on this account.

• It will be the responsibility of the Heads of Departments and Other Estimating Officers to see that no omissions or deviations are made in making provisions for any sanctioned scheme or any other item of expenditure covered by sanction of the competent authority for which provision sought to have been made in Part- I of the Budget Estimates (sanctioned item).

• Similarly no provision should be made in Part – I of the Estimates, for any item of expenditure for which no sanction of Government exists.

• Provision should be made in the Budget Estimates for the coming year for all sanctioned schemes but not for schemes of new service, which have been submitted to Government but not yet sanctioned. It has, however, been observed that the above procedure is not being followed by some Heads of Departments, who have been including provisions in the Budget Estimates for schemes which have not been sanctioned by Government.

• Certain Departments have also been proposing heavy increases in the existing provisions in the normal budget estimates without obtaining prior sanction of the Government. This procedure is irregular.

14. Economy:In order to ensure effective and optimum utilization of the resources, it is necessary to observe economy in expenditure and also avoid such expenditure which does not result in benefits commensurate with the expenditure. Heads of Departments and other Estimating Officers are therefore, advised to analyse the expenditure incurred on all non-salary items and should make efforts to save money for the next financial year. For any deviation in this regard they must give substantial justification. They are requested to frame the Revised Estimates 2015-16 and Budget Estimates 2016-17 accordingly, keeping in view the above measures.

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15. Revised Estimates: The Revised Estimates besides enabling the Government to arrive at the approximate closing balance for the current year (that is the opening balance for the next year), are prima facie the best guide to the coming year’s estimates. It is, therefore, essential that Revised Estimates are prepared with great care and are as nearer as possible to the actuals by taking into account the Reappropriation/surrenders made during the year 2015-16.

16. Contract Appointments:The Heads of Departments / Estimating Officers shall ensure that sufficient provisions are made under the detailed head “ 300- Other Contractual Services” towards payment of remuneration to the persons appointed on contract/outsourcing basis. They are requested to furnish the relevant orders issued by the competent authority for engaging the persons on contract/outsourcing basis while proposing provision in the Budget. They shall also furnish calculation sheet consisting of rate of contract, period of contract, no. of persons engaged on contract, outsourcing and the total amount required towards payment of remuneration in respect of each sanction order based on which they are proposing provision in the Budget.

17. Explanations for variations in figures: Estimating Officers are requested to furnish brief and clear explanations for material variations between the Budget and Revised Estimates of the current year and the Budget Estimates for coming year both under Receipts and Expenditure. They are informed that in the absence of explanations, any increase of expenditure included in their estimates is liable to be summarily rejected. While submitting the estimates, the variations, if any, between number and designation of the staff for which provision is made in the estimates and those already furnished by the Estimating Officers in the number statements should be explained in detail with reference to the orders sanctioning the additional staff, etc.

18. Estimates for Works: Provision should be made in Part – I of the Budget for works which have been sanctioned by the Government or the competent authority. All the Chief Engineersare requested to give full information as to whether the works for which provision is included by them in the Revised Estimates 2015-16 are for repairs to the existing buildings etc., or new works or works in progress and whether the works have been sanctioned by the Government or competent authority. The number and date of order sanctioning each work, the amount of estimate both the original and the revised; the total expenditure incurred on the work to the end of the preceding financial year; and the amount required for expenditure during the current year and next year should invariably be given in the remarks accompanying the Budget Estimates. If complete information is not furnished in proforma- G prescribed, in the case of any particular work, the provision proposed for will be omitted by the Finance Department.

19. The Heads of Departments and Other Estimating Officers are requested to furnish Number Statements under each Plan Scheme for inclusion in Appendix ‘A’ to the detailed Budget Estimates along with the Budget Estimates for Plan Schemes.

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20. The Heads of Departments are requested to ensure that the amounts allocated for supply of uniform to the “Office Subordinates” under the detailed head “250 Clothing, Tentage and Stores” shall be utilized for the same purpose without diverting for other purposes.

21. Provisions under grants-in-aid: Particulars, as per para 13.12 of the Budget Manual, should invariably be furnished while sending the estimates. Statement showing details of charges and income of the institution receiving grants-in-aid for the previous years should also be furnished in the prescribed proforma along with the Number Statements showing the staff position, their scales of pay, etc., While furnishing the estimates under grants-in-aid, the Heads of Departments and Other Estimating Officers are requested to open the sub-detailed heads “311- Grants-in-aid towards salaries”, “312- Other Grants-in-aid” and provide the amounts separately under the above sub-detailed heads of account. In the absence of Number Statements showing the full particulars, scale of pay etc. the estimates under grants-in-aid towards salaries will not be considered.

22. The provision required for payment of obsequies to the family of the deceased Government Employees shall be made under the sub-detailed head of account 310 – Grants-in-aid -318 – Obsequies Charges”. The provision required for payment of contribution and subsidies shall be made under the detailed heads “320-
Contributions and 330 – Subsidies respectively and not under sub detailed head
312 – Other Grants – in-aid”. The provision for creation of capital assets which is to be passed on to the local bodies and other agencies has to be classified under Sub Detailed Head “319 Grants for creation of Capital Assets” under the detailed head “310 Grants in aid”.

23. Provision for maintenance of office vehicles to be made under the Sub Detailed Head “511 Maintenance of office vehicles” and the provision for Purchase of new motor vehicles has to be proposed under “512 Purchase of Motor Vehicles” under the detailed head 510 Motor Vehicles. However, the provisionforpurchase of motor vehicles shall be supported by specific sanction order from the Government and the provision for maintenance of motor vehicles shall be supported by statement from the Head of Department with regard to the number of vehicles available in the department.

24. All the Utility Payments i.e., Postage, Telephone, Water and Electricity Charges are to be fully provided under respective sub detailed heads 131- Service Postage, Telegram and Telephone Charges, 133 – Water and Electricity Charges under the detailed head 130 – Office Expenses as first charge under non-salary component.

25. The provision required for payment of “hiring charges of Private Vehicles” shall be made under the sub detailed head “130/134 – Hiring of Private Vehicles” based on the sanction orders. No provision shall be proposed under this head without specific sanction from the government for hiring of private vehicles for the department for a specific period.

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26. Separate estimates shall be sent for providing funds for fixed Travelling Allowance under the new sub detailed head “114 – Fixed Travelling Allowance” in Revised Estimates 2015-16 and Budget Estimates 2016-17 as per instructions issued in this Department Memo.No.16240/642/BG/A1/2002-2, dated 25-11-2002. Similarly requirement for conveyance allowance shall be proposed under “110/115 Conveyance Allowance”.

27. Separate Estimates shall be sent for providing funds for payment of Wages to the Full Time Contingent Employees who are drawing minimum of time scale with DA as per Revised Pay Scales of 2015 separately under distinct sub-detailed head 020-Wages – 021-Daily Wage Employees – 022-Full Time Contingent Employees as per instructions issued in Circular Memo No.2823/202/A1/BG.I/2013 Finance (BG) Department, dt.02-07-2013.

28. Where any large provision is proposed in respect of outstanding liabilities or arrear payments, full details should be furnished and the original sanction for incurring such expenditure should invariably be quoted.

29. Where any expenditure is dependent on finance from outside the State like Government of India, NABARD etc., estimates should be based only on the last year’s actual release to State or on the basis of actual need whichever is lower and not on hypothetically assumed figures. In such cases, it is necessary to indicate specifically whether the entire amount or only a part of the amount is reimbursable from these agencies and whether this amount has been taken credit in their estimates of Revenue.

30. Scrutiny of estimates by the Administrative Department of Secretariat: The Administrative Departments of Secretariat are requested to scrutinize the estimates of the Departments under their control and forward to this Department with their comments thereon. The object of examination by the Administrative Departments is to detect excessive or inadequate provision in the Revised Estimates and Budget Estimates which they are in a position to do in the better way in view of their more intimate knowledge of working of the Departments under their administrative control.

31. TheDepartments are requested to send proposals for Revised Estimates 2015-16 and Budget Estimates 2016-17 rounding of the figures to the nearest thousands of rupees against each sub-detailed head.

32. The Heads of Departments are requested to send their proposals promptly particularly in respect of recoveries ofloans and interest receipts. They should send proposals for recoveries and disbursements under loans and advances and interest thereon based on the terms and conditions, imposed in the Government orders sanctioning the loans.

Telangana Budget Estimates 2016-17 – In structions for the preparation of Number State ments and Budget Estimates and submission on-line

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