Para 18.3.9 — CAM
Original Rule Text
18.3.9 Re-appropriation of Funds
18.3.9.1 Re-appropriation of funds from one primary unit of appropriation to another within a grant or appropriation may be sanctioned by a competent authority at any time before the close of the financial year. However, frequent re-appropriation of funds depicts poor budgeting and must be taken note of.
18.3.9.2 Re-appropriation of funds shall be made only when it is known or anticipated that the appropriation for the unit from which funds are to be transferred shall not be utilized in full and the funds proposed to be re-appropriated will not be needed.
18.3.9.3 Power for re-appropriation is subject to the provisions of Rule 10 of the Delegation of Financial Powers Rules, 1978, and also subject to such other general or specific guidelines as issued by the Finance Ministry from time to time.
18.3.9.4 It will be useful for the Head of Accounting Organization i.e. Pr.CCAs/CCAs/CAs(i/c) as the case may be and Budget Sections to analyse re-appropriations trends both of the past and current year from the view point of frequency, amount and the accounting heads, for appropriate corrective measures going forward.
What This Means
Re-appropriation allows transferring funds from one budget line to another within the same grant, sanctioned by the competent authority before the year ends. Funds can only be transferred when the source line will have savings and the destination line genuinely needs additional allocation. The power is governed by Rule 10 of the DFPR, 1978, and Finance Ministry guidelines. Frequent re-appropriation indicates poor budgeting and should be analyzed by the Head of Accounting Organization. Budget Sections must review savings/excess explanations from program divisions to avoid vague phrasing, especially for Appropriation Accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Re-appropriation transfers funds between primary units within the same grant — must be before year-end
- 2Source line must have genuine savings; destination must have genuine need — no speculative transfers
- 3Power governed by DFPR Rule 10 and Finance Ministry guidelines
- 4Frequent re-appropriation signals poor budgeting — must be analyzed for trends and corrective action
- 5Savings/excess explanations from program divisions must be specific, not vague — especially for Appropriation Accounts
Practical Example
In January, the Budget Section of a Ministry finds that the Training Head has Rs 8 crore in savings (due to cancelled overseas training programmes) while the IT Procurement Head needs Rs 5 crore more (for an urgent server upgrade). The Pr. CCA analyzes this: the re-appropriation power lies with the Secretary under DFPR Rule 10 since both are within the same Demand. The Secretary sanctions the transfer. The Budget Section records the specific reason: 'Savings due to cancellation of 3 overseas training batches; additionality for server infrastructure upgrade as per Board decision dated 15.11.2025.' This precise language will support the Appropriation Accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is frequent re-appropriation a concern?▼
Who has the power to sanction re-appropriation?▼
Why must savings/excess explanations be specific?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.