Instructions for preparation of Budget Estimates and submission online 2014


Government of Andhra Pradesh with G.O.Ms.No. 299 Dated:30-10-2013 issued :

O R D E R:

According to Para 13.19.1 of the A.P. Budget Manual, the Heads of Departments 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 departments of the Secretariat concerned.

RECEIPTS:

According to para 13.8 of the AP 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.

All  the  Heads  of  Departments  and  Other  Estimating  Officers  are  requested  to  furnish proposals  for  Revised  Estimates  2013-14  and  Budget  Estimates  2014-15  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.

NON – PLAN:

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

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 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 over all 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.         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 and surplus staff available there under be reported to Finance (SMPC) Department immediately.

7.         (i) The provisions under the concerned detailed heads i.e., standard objects of expenditure shall  be  included  keeping  in  view  the  guidelines  indicated  in  references  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”.

(ii)  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 A.P. Budget  Manual. Details  of  the  items  of  expenditure  included,  detailed  reasons  together  with  figures  should  be furnished along with the actuals for the past three years in respect of each item.    Proper attention must be paid while estimating water and electricity charges which should take into account pending arrear bills, the increase in tariff rate etc., and provision for the amounts that will become payable in the year.  Wherever arrears are included, detailed reasons together with figures would be furnished in the explanatory note.

P L A N :

8.          The Heads of Departments and Estimating Officers are requested to see with particular care that provisions relating to schemes included in the Plan for RE 2013-14 and for Budget Estimates 2014-15 are 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.  Wherever lumpsum provisions are made for Plan schemes in the Budget Estimates 2013-

14 for want of details, they should be split up and exhibited under sub-detailed heads under detailed heads of appropriation such as Pay, Allowances under “Salaries” etc. The estimates should conform to the ceiling communicated by the Planning Department for Revised Estimates 2013-14 and Budget Estimates 2014-15 (proforma – B2).

New Schemes:

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 – B4 for Plan).

 Budget Achievements:

10.       The quantum of the work done by the Department, the physical targets achieved under the scheme during 2011-12 & 2012-13, the physical targets proposed to be achieved during 2013-14 and

2014-15 (proforma – C). APFRBM Rules, 2006:

11.       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).

12.       All the Heads of Departments and Estimating Officers are therefore requested to furnish the relevant  information  in the  prescribed  proformae  appended  to this  order  along  with  the  Budget Estimates 2014-15 invariably as these statements have to be presented to the Legislature.

13.       The attention of Estimating Officers is invited to the following special points:

(i)        Date   of  submission   of  Estimates:   All  estimates   should  be  submitted   to  the Administrative  Departments  of the Secretariat  concerned  through  on-line  not later than 20th    November, 2013.   The Administrative  Departments of Secretariat would forward   the   estimates   with   their   comments   to   the   Finance   Department by 30th November, 2013 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 30th November, 2013, 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.

(ii)       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 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.   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 Budget Estimates 2014-15.  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.

 (iii)      Economy:  The attention of the Heads of Departments and other Estimating Officers is invited to the economy measure orders issued in G.O.Ms.No.175, Finance (DCM-I) Department, dated:01-07-2013  and they are requested to frame the Revised Estimates 2013-14 and Budget Estimates 2014-15 keeping in view these measures.

(iv)      Revised Estimate:  The Revised Estimate 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 2013-14.

v)       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.

(vi)      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.

(vii)     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 Engineers are requested to give full information as to whether the works for which provision is included by them in the Revised Estimates 2013-14 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.

(viii)    The Heads of Departments and Other Estimating Officers are requested to furnish Number Statements as instructed in the Govt. Circular Memo.No.5th     cited under each Plan Scheme for inclusion in Appendix ‘A’  to the detailed Budget Estimates along with the Budget Estimates for Plan Schemes.

(ix)      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.

(x)       The Estimates should be prepared only on the basis of existing sanctions and should not provide for any new scheme proposed for the consideration of the Government.

(xi)      Provisions  under  grants-in-aid:  Particulars,  as  per  para  13.12.1  of  the  Andhra Pradesh 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.

(xii)     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”.

(xiii)    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  provision  for  purchase  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 as on 1-4-2013.

(xiv)    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.

(xv)     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.

(xvi)    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 2013-14 and Budget Estimates 2014-15 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”.

(xvii)   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 2010 separately under distinct sub-detailed head 020-Wages – 021-Daily Wage Employees – 022-Full Time Contingent Employees  as per instructions  issued in this Department  vide Circular  Memo No.2823/202/A1/BG.I/2013, dt.02-07-2013.

(xviii)  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.

(xix)    Where   any  expenditure   is  dependent   on  finance   from  outside   the  State   like Government of India, NABARD , Life Insurance Corporation, Central Warehousing Corporation 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.

(xx)     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.

(xxi)    The Departments  are requested to send proposals  for Revised Estimates 2013-14 and Budget Estimates 2014-15 rounding of the figures to the nearest thousand of rupees against each sub-detailed head.

(xxii)   The Heads of Departments are requested to send their proposals promptly particularly in respect of  recoveries of  loans 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.

14.       On-Line  Submission:  The  budget  proposals  sought  for      2014-15  through  this circular shall be furnished by all departments through online only. All Heads of Departments and Other  Estimating  Officers  are requested  to visit Finance  Department  web-site  on the Internet using the URL:  http://www.apfinance.gov.in/   and “click” on the web-link “Finance Department Portal” provided in the home-page. Then follow the steps given below:

•   This link will open “Finance Department Portal” web-page

•   The  User-ID  and  Password  were  already  provided  for  submission  of  Number Statement.

•   Please Log-in using the same User-ID and Password. Please enter them correctly and Log-in into application.

•   A menu item “Budget Proposals-14-15” is displayed in the Menu Bar.

•    Select the respective Non-Plan and Plan items along with concern Head of Accounts and enter the data.

•   Saving of data can be done any point of time using ‘SAVE’ button.

•   After completion of entries final submission to Finance Department can be done using

‘Final Submit’ in the menu bar and using the appropriate menu items.

•   Deletion of entries can be done before Final Submission.

•   After final submission no more deleting is allowed.

•   Any further instructions can be seen on-line.

Budget Estimates 2014-15 Instructions for preparation submission online

1. G.O.Ms.No.135, Finance & Planning (FW:BG) Department, dt:20.9.2000.
2. G.O.Ms.No.664, Finance (BG) Department, dt: 27.10.2001.
3. G.O.Ms.No.183, Finance (BG.I) Department, dt.30-06-2006.
4. G.O.Ms.No.175, Finance (DCM.I) Department, dt.01-07-2013.
5. Circular Memo.No.3027/A/508/A1/BG I/2013 of Finance (BG.I) Department, Dt.21-09-2013.

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