Para 2.7 — CAM
Original Rule Text
2.7 EXCESS OVER BUDGET PROVISION:
2.7.1 If the amount of any bill leads to excess over the budget allotment, the Pay and Accounts Officer should decline payment under advice to the authority controlling the grant so that the latter could arrange for additional funds. An Appropriation Audit Register Form CAM-62 shall be maintained for this purpose. In case of an urgent requirement of expenditure attracting the provisions of New Service/New Instruments of Service and thereby supplementary demands through the approval of Parliament, the same should be referred to Ministry of Finance. The excess expenditure in such cases can be allowed by the concerned FAs only on the specific approval of Secretary (Expenditure) that the necessary funds will be made available through the next batch of supplementary demands for grant. Rule 61 of GFR, 2017 may be referred in this regard.
2.7.2 In cases where payment of a bill/claim would lead to excess over the provision under any unit of appropriation, the payment may be made by the PAO only on receipt of Contingency Fund Advance; approval of Secretary (Expenditure) (where NS/NIS is attracted) or an assurance in writing from the Ministry/Head of Department controlling the grant (where NS/NIS is not attracted) in terms of APPENDIX 10 of GFR, 2017.
2.7.3 If such a contingency for inevitable payment of a bill arises towards the close of financial year the orders of the Financial Advisor on behalf of the Chief Accounting Authority will have to be sought in terms of APPENDIX – 10 of GFR 2017, and the expenditure under the grant as a whole is likely to be exceeded. In case the additional funds required and being made available
merely by re-allocation (and not by re- appropriation) of savings, if any under the same sub-head of appropriation - the related claim will be passed for payment only after additional funds are allocated in writing by the controlling officer.
What This Means
When a bill would cause expenditure to exceed the budget allotment, the PAO must refuse payment and inform the authority controlling the grant so they can arrange additional funds. An Appropriation Audit Register (Form CAM-62) tracks this. If the excess involves a New Service or New Instrument of Service, it must be referred to the Ministry of Finance, and the excess can only be allowed with specific approval from Secretary (Expenditure) that supplementary demands will be presented to Parliament. For non-NS/NIS cases, the PAO can proceed only after receiving a written assurance from the Ministry or Head of Department. Near the close of a financial year, if additional funds come only through reallocation within the same sub-head (not re-appropriation), the claim can be passed only after the controlling officer allocates funds in writing.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1PAO must decline payment if a bill would exceed budget allotment, and advise the grant-controlling authority
- 2Form CAM-62 (Appropriation Audit Register) is maintained to track such situations
- 3New Service/New Instrument of Service cases require Secretary (Expenditure) approval and supplementary demands to Parliament
- 4Non-NS/NIS cases require a written assurance from the Ministry or Head of Department per Appendix 10 of GFR 2017
- 5Year-end claims from reallocation of savings within the same sub-head need written allocation from the controlling officer
Practical Example
In February, a Ministry's DDO submits a bill for conference expenses that would push total spending beyond the grant. The PAO checks Form CAM-62, confirms the excess, and declines payment. The Ministry's Financial Advisor reviews the situation and finds savings under the same sub-head from an unspent travel budget. The FA issues a written reallocation order to the PAO, who then passes the conference bill since the funds are now available within the same sub-head without needing formal re-appropriation or supplementary demand.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can a PAO make a payment that exceeds the budget allotment?▼
What is the difference between reallocation and re-appropriation?▼
What is Form CAM-62?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.