Para 18.3.12 — CAM

18.3.12 Excess Expenditure under APPENDIX-10 of GFR 2017 18.3.12.1 Since most of Central Government expenditure is effected through PFMS, a check to ensure that individual Ministries/Departments are within the ceilings of Demand for Grants, and payments are made from the budget line authorised by the legislature is inbuilt. However, any overriding of the budgetary ceilings in the system, should be done only with appropriate approvals.

 When Program Divisions communicate surrender of the funds to the Budget Division, there may be some expenditure in some attached/subordinate offices under their control which may be in the pipeline. There may also be instances where they may have authorised some budget to some other Ministries/organizations such as CPWD, BRO, DAVP, etc. While communicating surrender of budget, they might not have factored in fully these instances of expenditure in pipeline or funds authorised to other Ministries.

 Under these circumstances if the Budget Division reduces their BE and allocates the same to some other Division, following aberrations may take place:

o The Division may overspend due to expenditure in the pipeline getting matured or in the event of CPWD/BRO/DAVP, etc. booking more expenditure out of budget authorised to them.

o The Division which has been given the additional funds will also book the expenditure out of additional funds provided to them.

 The close coordination between the Budget Division and the Principal Accounts Office helps in avoiding this situation. The Budget Division should advise the Principal Accounts Office to ensure that no further booking of expenditure is allowed to the Division which has surrendered the funds. Budget Division should also get the details of the funds authorised to other Ministries by the Division from the Principal Accounts Office and request the Division to restrict the authorizations to the extent required. This will ensure containment of expenditure within the reallocated budget.