MS-81: Control of Expenditure with reference to Budget Provisions – One time and On-line Budget Authorization and preparation of distribution statement by HODs - Further instructions – Issued.

GOVERNMENT OF ANDHRA PRADESH ABSTRACT Control of Expenditure with reference to Budget Provisions – One time and On-line Budget Authorization and preparation of distribution statement by HODs - Further instructions – Issued. FINANCE (BG.I) DEPARTMENT G.O.Ms.No.81 Dated:27-03-2012. Read the following:- 1. G.O.Ms.No.207, Fin. & Plg. (FW.BG) Dept., dated 17-12-1997. 2. G.O.Ms.No.59, Finance (BG.I) Department, dated 30-3-2001. 3. G.O.Ms.No.278, Finance (TFR.I) Department, dated 22-9-2006. 4. G.O.Ms.No.297, Finance (TFR.I) Department, dated 10-10-2006. 5. G.O.Ms.No.147, Finance (BG.I) Department, dated 11-7-2011. 6. G.O.Ms.No.190, Finance (BG.I) Department, dated 02-09-2011. 7. G.O.Ms.No.241, Finance (BG.I) Department, dated 29-10-2011. … O R D E R: In the reference 1st read above, Government have issued instructions to enable the HODs for furnishing distribution statements to the Director of Treasuries and Accounts for scrutiny and onward transmission to the treasury officers in the districts and P.A.O. in the headquarters at the beginning of the financial year itself. As per these orders, the DTA has to issue authorization for four quarters at a time and forward to the treasury officers in the districts in the beginning of the financial year itself which will be valid for the full financial year. 2. In the reference 2nd read above, Government have introduced Budget Release Order (BRO) system to have a uniform flow of funds for the departments soon after the appropriation act is communicated by the Finance Department. 3. In the reference 3rd read above, instructions have been issued for release of funds for the execution of works commissioned by Non-PWD Engineering Departments through BRO/LOC. Similarly, in the reference 4th read above, instructions were issued for strengthening the bill drawal and payment procedure to the extent of funds released by the Government in respect of civil construction and repair works undertaken by the Corporations/Autonomous bodies under the control of State Government. 4. In the reference 5th to 7th read above, orders have been issued for implementation of “Green Channel Scheme” for smooth flow of funds to the flagship programes/schemes. 15. At present, the Heads of Departments prepare distribution statements based on the BROs issued by the Finance Department and administrative sanctions issued by the concerned Secretariat Department in respect of items of expenditure under all Plan schemes and certain items of Non-Plan. They submit these statements for the authorization of the DTA/DWA in the month of April/May of every year. Similarly, the HODs also prefer distribution statements to the DTA/DWA under all Non-Plan non-BRO items for authorization of expenditure on quarterly basis. The entire process of preparation of the two sets of distribution statements by the HODs and issue of authorization by the DTA/DWA is often delayed inordinately leading to a reduction in the working season. 6. With a view to reducing such delays, Government hereby introduces one time On- line distribution and authorization system from 1st April, 2012. This system will be effective after approval of the Appropriation Act relating to the Budget 2012-13 by the State Legislature. In order to save delay in processing of distribution statements by the HODs for preferring the authorization of DTA/DWA, all the HODs and Chief Controlling Officers are requested to prepare the distribution statements based upon the proposals made in the Budget 2012-13 in respect of all Non-BRO items of Non-Plan budget. In respect of BRO items of expenditure under Plan and Non-Plan, the HODs are requested to prepare distributions statements and await issue of the On-line BRO by the Finance Department on 1st April, 2012. 7. The following procedure shall be followed by the HODs/Chief Controlling Officers and the Director of Treasuries and Accounts/Director of Works Accounts in authorizing expenditure: I. The HODs/ Chief Controlling Officers of the respective departments shall prepare district as well as Headquarters Offices budget for all the sub-heads by distributing the appropriations upto a minimum of 75% of annual allocation for Non-BRO items under Non-Plan among the various subordinate officers by 1st April. II. The HODs and Chief Controlling Officers shall prepare the distribution statements for the ongoing State Plan schemes also by 1st April. III. The HODs and Chief Controlling Officers shall enter the distribution statements Online in the DTA / DWA Portal as the case may be for enabling the DTA / DWA for issue of authorization and onward transmission to the concerned DTOs and JD(works)/PAOs(works). However, one set of distribution statement shall be sent by the concerned HOD to the respective subordinate offices in hard copy in case there is no Online connectivity to their Unit offices. 2IV. The authorization statement at para 7(1) above should be issued by the DTA/DWA On-line by 7th of April every year and will be valid for the relevant period in the financial year. V. The DTOs /PAO,Hyd./JD(works)/PAOs(works) in the districts shall take cognizance of the On-line authorization issued by the DTA/DWA and need not immediately insist for the ink-signed copy from the DTA/DWA. Ink signed copy should be sent subsequently. VI. The expenditure at any point of the financial year should, however, be regulated only on the basis of the authorized statements communicated by the DTA/DWA on half-yearly/ quarterly/ monthly cumulative basis as the case may be. VII. The HODs and Chief Controlling Officers are authorized to reallocate the amounts already authorized duly revising the earlier distribution statements. In such a case the DTA / DWA shall make available the Portal to the HODs for reallocation. VIII. In respect of reappropriations made at the level of HODs as per delegations of powers, the HODs will furnish proposals based on actual expenditure incurred to DTA/DWA for issue of authorization in favour of the subordinate officers to whom increases are made by way of reappropriation . In respect of reappropriation to be issued by Finance Department the HODs has to furnish the surrender of authorization from the concerned subordinate officers for whom decrease is proposed along with reappropriation proposals to the Government IX. Any additional funds over and above the budget provisions, sanctioned in relaxation of treasury control orders, shall require authorization from DTA/DWA for drawal of amount on the above manner. All proposals for additional funds released must be accompanied by distribution statements in future. X. The same procedure of authorizing and approving of the distribution statements submitted by the District Heads of various Departments will be followed by the D.T.Os/ JD (works)/PAOs (works). The District Heads are permitted to distribute the amount further between their subordinate offices for the whole year at one point of time and DTOs/ JD(works)/PAOs have to issue authorization for the whole year at one time only. The regulation of expenditure will be on half- yearly//quarterly/monthly cumulative basis as the case may be. 38. The above instructions/directions are subject to any ways and means instructions that may be issued from time to time by the Government. 9. The above order is available on ‘http://goir.ap.gov.in’ (BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH) V. BHASKAR PRINCIPAL SECRETARY TO GOVERNMENT. To All Departments of Secretariat All Heads of Departments The Director of Treasuries & Accounts, A.P., Hyderabad. The Director of Works Accounts, Hyderabad. The Pay and Accounts Officer, Hyderabad. The Dy. Directors/District Treasury Officers in the State. The Director (IT), Finance Department. Copy to: The A.G., A.P., Hyderabad. All Sections in Finance Department. All Officers in Finance Department. Peshi of PFS / PFS (R&E) / PFS (FP)/PFS (IF) / Secy. (W&P). SF/SC. // FORWARDED :: BY ORDER // SECTION OFFICER 4