Para 2.6 — This para covers the budgetary framework and the P

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.

2.6.7 The pre-check to be applied to all payments by the departmentalized Accounts Offices includes a check against provision of funds also. It is an important part of the functions of the PAO to see that no payment is made in excess of the budget allotment. At the time of conducting pre-check by Pay and Accounts Officer in PFMS, available budget under each object head would be shown in PFMS for the purpose of bill passing and expenditure control. In order to exercise an effective check in this regard, a separate register DDO-wise Bill Passing cum Expenditure Control Register in Form CAM-9, should be maintained in the Accounts Office which do not process bill in PFMS for each drawing officer and by sub-heads and units of appropriation so as to ensure at the time of passing each bill that the amount of the bill under check is covered by budget allotment.

(a) that no part of amount claimed has been drawn previously

(b) that a note of arrear claim has been made in Pay Bill Register for the period to which the claim pertains. (para 2.6 of Subsidiary Instructions to CGA (R&P) Rules, 2022).

(xvii) that all relevant supporting documents duly signed and verified are made available with the bill in case of payment of miscellaneous dies i.e. HRA, CEA, Hostel Subsidy etc.

(xviii) that recovery of NPS subscriptions are made from the 1st salary of newly recruited employees covered under NPS. Timelines for receipt of NPS bill from DDO and remittance of both contributions to trustee bank are reiterated in para 7.20.2 of this manual. It should be checked whether the contributions towards NPS are correctly recovered from the Government

servants covered under NPS and bills for drawing Government's Contributions are drawn/submitted along with the pay bills.

2.16.2 CHECK OF LAST PAY CERTIFICATES

(i) The last pay certificates (in form RPR 2) are issued by DDOs in the event of transfer of a Government servant to another post or office under the jurisdiction of another drawing officer.

(ii) In checking these certificates, it should be seen:

(a) that the certificate is in the prescribed form and has been properly drawn up;

(b) that the joining time availed of and the joining time pay are in conformity with Central Civil Services (Joining Time) Rules 1979 as amended from time to time.

(c) that no compensatory allowance is drawn during joining time except as provided in S.R. 7-C; and

(d) that pay or leave salary, if due for a period prior to joining time is drawn according to rates noted in the last pay certificate.

(1) The term 'undisbursed pay and allowance' includes only the pay and allowances due to an employee, but for some reasons not paid.

(2) Undisbursed pay and allowances if in cash, the same may be retained by the Drawing Officer for a period not exceeding 3 months, provided suitable arrangements exist in his office for the safe custody of the money. The undisbursed pay and allowances should be refunded by short drawals from the bills and may be taken in reduction of expenditure under various detailed heads, if these are refunded in the same accounting year. Such recoveries pertaining to previous year shall be recorded under distinct minor head 'Deduct Recoveries of Overpayments' below the concerned major/sub-major head in the Accounts.

(3)The refunds against the undisbursed pay and allowances should be noted against the short drawals in the original bills.

(iii) The check to be exercised by the PAO may be limited to watch against the total number of posts sanctioned, the total number of persons in each section of establishment who are

(a) drawing duty pay and

(b) are on leave including extra-ordinary leave or under suspension. The PAO shall maintain an Establishment Check Register (Form CAM 24) separately for each DDO under his payment and accounting control. All sanctions for creation of posts will be noted in this register in the relevant columns. The posting in the register will include the number for whom claims have been shown as paid in the monthly bill. This is necessary to ascertain the total number of persons paid salary against the sanctioned posts during a month. However, it would be the responsibility of the DDO to ensure that no claims are presented to the PAO in excess of the sanctioned strength of staff. This will be put to test-check during Internal Audit.

(iv) Though it is the primary duty of the DDO to obtain the sanction for extension/continuance of the temporary posts well in time, it is equally the responsibility of the PAO to ensure that salary

claims are not entertained and paid as a matter of course even beyond the date of expiry of the sanctioned post.

(v) In cases where the sanction for the continuance of a temporary post otherwise a part of regular establishment is continued from year to year is not forthcoming even after three months from the date when it expired, payments should be made only after obtaining prior approval of the FA. In cases where posts are sanctioned for a specific period, payment beyond the sanctioned period should be made only with the approval of the FA, if sanction for continuation of post is not available. This would apply mutatis- mutandis to Cheque Drawing DDOs.

(vi) All cases of death, retirement, resignation and permanent transfer out of the establishment as also important events like suspension, withholding of increment etc. shall be noted in the CAM-23 register under the attestation of the AAO.

What This Means

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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

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.