Appendix I - Re-appropriation Rules | KartavyaDesk
Original Rule Text
(i) If sufficient savings are available within the same section of the relevant grants for meeting additional expenditure to the extent mentioned in column 2 of the Annex A, re-appropriation can be made, subject to report to Parliament; (ii) Report to Parliament should ordinarily be made through the ensuing batch of Supplementary Demands for Grants, failing which by adding an Annex in the Detailed Demands of the Ministry/ Department for the ensuing year; (iii) A suitable write-up of such cases where possible, may also be made in the Notes on Demands for Grants of the Ministry/Department; (iv) Mere depiction of augmented provisions in the Revised Estimates included in the Demands for Grants will not be adequate to meet the requirement to incur expenditure. In cases where the financial limits of ‘New Service’/ ‘New Instrument of Service’ are attracted, approval of Parliament may be obtained for incurring such expenditure through Supplementary Demands for Grants; (v) The provisions in the Vote on Account’ are not intended to be used for expenditure on any ‘New Service’. In cases of urgency, expenditure on
What This Means
Appendix I of the Delegation of Financial Powers Rules, 1978, deals with re-appropriation of funds within the same grant. Basically, if a department has savings in one area (section) of its budget, it can move those funds to another area within the *same* overall grant to cover additional expenses. However, this isn't a free-for-all. The amount that can be moved is limited, as specified in Annex A of the rules. The key is that Parliament needs to be informed about this transfer of funds.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Re-appropriation is allowed only within the same grant and section.
- •The amount of re-appropriation is limited as per Annex A.
- •Parliament must be informed of the re-appropriation.
- •Reporting to Parliament is done through Supplementary Demands for Grants or an Annex in the Detailed Demands.
- •Revised Estimates alone are insufficient; formal parliamentary approval is needed for 'New Service' or 'New Instrument of Service' exceeding financial limits.
Practical Example
The Ministry of Rural Development, under Secretary Sharma, finds that its 'Rural Housing' section has savings of ₹50 lakhs due to a delay in a particular project. Meanwhile, the 'Rural Sanitation' section needs an additional ₹40 lakhs to complete a crucial sanitation drive. According to Annex A, the Ministry is allowed to re-appropriate up to ₹45 lakhs within the same grant. Secretary Sharma approves the re-appropriation of ₹40 lakhs. This re-appropriation must be reported to Parliament through the next Supplementary Demands for Grants. Simply showing the increased allocation in the Revised Estimates is not enough; it needs to be formally reported.
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 the re-appropriation involves a 'New Service'?▼
How do I report the re-appropriation to Parliament?▼
Can I use funds from the 'Vote on Account' for a 'New Service'?▼
What does 'sufficient savings' mean in the context of this rule?▼
Where can I find the financial limits mentioned in Annex A?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Appendix I of the Delegation of Financial Powers Rules, 1978, if a department wishes to re-appropriate funds to cover additional expenditure, under what condition is this permissible?
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