Para 2.6 — CAM
Original Rule Text
2.6 BUDGET PROVISIONS AND CHECK AGAINST BUDGET PROVISION
2.6.1 Articles 112 to 116 of the Constitution contain the important financial provisions that describe the control, which Parliament exercises over expenditure from the CFI. Some important aspects of the budgetary system are indicated in below.
2.6.2 The Finance Ministry places before the Parliament under Article 112(1) of the Constitution an Annual Financial Statement giving the estimated receipts and expenditure of the Central Government for the ensuing financial year. This statement, also called the 'Budget', is presented on the first of February. The statement not only includes the estimated receipts and expenditure for the ensuing financial year but also contains revised provisions for the current year besides actuals for the previous three years. .
2.6.3 The Budget presented before Parliament is based on the Revised Estimates/Budget Estimates prepared by various individual offices duly vetted and consolidated by the Heads of Departments/Ministries, and the final allocations approved by the Ministry of Finance.
2.6.4 Vote on Account If the Appropriation Bill seeking authorization of the Parliament to make expenditure in consonance with the Budget proposal is likely to be passed after the start of the financial year to which it corresponds then pending the completion of the procedure prescribed in Article 113 of the Constitution for the passing of the Budget, the Finance Ministry may need to obtain a ‘Vote on Account’ to cover expenditure for a brief period in accordance with the provisions of Article 116 of the Constitution. Funds made available under Vote on Account are
2.6.5 No expenditure incurred from the Consolidated and Contingency Funds of India on or after 1st April of a financial year, under the provisions of Articles 114 to 116 and 267(1) of the Constitution, will be protected by law unless authorised by an Appropriation Act passed in accordance with the provisions of Article 114. All disbursements from the Consolidated Fund during a financial year, which are not authorised by the Annual Appropriation Act passed by the Parliament before the close of the year, will, therefore, be challenged by Audit as unauthorised expenditure, until regularized by an Appropriation Act. The Pay and Accounts Officers should note this.
2.6.6 The check against provision of funds should be directed primarily to ascertaining that the money sought to be spent is to be applied to the purpose or purposes for which the Grants and Appropriations specified in the Schedule to an Appropriation Act passed under Article 114 of the Constitution were intended to provide and that the amount of expenditure against each Grant or Appropriation does not exceed the amount included in that Schedule. A gist of the classification so far issued on the types of transactions that could be treated as ‘charged’ expenditure under the provisions of the Constitution is included as APPENDIX 2.1 to this chapter.
What This Means
This para covers the budgetary framework and the PAO's responsibility to check every payment against available budget. Articles 112-116 of the Constitution govern how Parliament controls government expenditure through the Annual Financial Statement (Budget), presented on February 1. If the Appropriation Bill is delayed past April 1, a Vote on Account under Article 116 provides interim spending authority. The PAO must ensure that no payment exceeds the budget allotment by maintaining a DDO-wise Bill Passing cum Expenditure Control Register (Form CAM-9) for each drawing officer, organized by sub-heads and units of appropriation. PFMS shows available budget under each object head during bill processing. Any expenditure not authorized by an Appropriation Act will be challenged by Audit as unauthorized.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The Budget (Annual Financial Statement) is presented to Parliament on February 1 under Article 112 of the Constitution
- 2Vote on Account under Article 116 provides interim spending authority if the Appropriation Bill is delayed
- 3All disbursements must be authorized by an Appropriation Act or they will be challenged by Audit
- 4PAOs must maintain a DDO-wise Bill Passing cum Expenditure Control Register (Form CAM-9) to track spending against allotments
- 5PFMS displays available budget under each object head at the time of bill processing for expenditure control
Practical Example
In early April, the Appropriation Bill has not yet been passed. The Ministry operates under a Vote on Account, which provides limited spending authority. A DDO submits a bill for office furniture. The PAO checks Form CAM-9 and PFMS to confirm that the expenditure under the relevant object head is within the Vote on Account allocation. Since the furniture purchase would push spending beyond the allotted amount, the PAO declines the payment and advises the DDO to wait until the full budget is approved or seek additional allocation from the controlling authority.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if expenditure is incurred without an Appropriation Act?▼
What is Form CAM-9?▼
What is a Vote on Account?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.