KartavyaDesk

Rule 4 - NER Funds | KartavyaDesk

DFPR 1978delegation

Original Rule Text

Government of India’s decision (2): Re-appropriation of funds earmarked for NER - It is noted that lump sum funds are earmarked to various Ministries/Departments, for northeast areas under non-functional heads, i.e., Major Heads 2552, 4552, and 6552. These non-functional heads are merely control heads from which no actual expenditure is made during the normal course (except in case of Ministry of Development of NER). For incurring expenditure, these funds are mandatorily routed from the non-functional heads to the functional heads in the respective schemes. The use of NER heads for obtaining appropriation from Parliament and subsequent re-appropriation to respective functional heads arises from the need to capture the allocation for the NER region in the budget documents. Re-appropriations from these non-functional heads are therefore unavoidable and technical in nature.

What This Means

Rule 4 of the Delegation of Financial Powers Rules, 1978, as clarified by Government of India's decision (2), deals specifically with how funds earmarked for the North Eastern Region (NER) are managed. Think of it like this: the government sets aside money for projects in the NER under special 'holding' accounts (Major Heads 2552, 4552, and 6552). These aren't where the money is actually spent from directly, except for the Ministry of Development of NER. They are used to show how much money is allocated to the NER in the budget.

To actually use the money for a specific project, the funds must be moved ('re-appropriated') from these holding accounts to the correct project accounts within the relevant ministry or department. This movement is considered a technical requirement because it's necessary to track NER allocations and ensure the money reaches its intended purpose. This process ensures transparency and accountability in the allocation and utilization of funds for the development of the North Eastern Region. It affects all ministries and departments that receive funds earmarked for NER projects.

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

Key Points

  • •Funds for NER are initially earmarked under non-functional Major Heads (2552, 4552, 6552).
  • •These non-functional heads are primarily for budgetary control and tracking NER allocations.
  • •Expenditure is incurred from functional heads within specific schemes.
  • •Re-appropriation from non-functional to functional heads is mandatory for spending NER funds.
  • •This process ensures NER allocations are captured in budget documents and used for intended purposes.

Practical Example

The Ministry of Tribal Affairs receives ₹50 crore earmarked for the NER under Major Head 2552 for a new skill development program. This ₹50 crore sits in the non-functional account. To actually launch the program and pay for training, materials, and instructors, the Ministry's Finance Officer, Mr. Sharma, must initiate a re-appropriation request. He needs to move the ₹50 crore from Major Head 2552 to the functional head associated with the skill development program (e.g., a specific sub-head under 'Skill Development Initiatives'). Once approved, the funds are available for expenditure on the program. Without this re-appropriation, the money remains inaccessible, and the skill development program cannot proceed.

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

Frequently Asked Questions

What are Major Heads 2552, 4552, and 6552?▼
These are non-functional heads used to earmark funds for the North Eastern Region (NER) in the budget. They act as control heads for tracking NER allocations.
Why is re-appropriation necessary for NER funds?▼
Re-appropriation is required to move funds from the non-functional NER heads to the functional heads associated with specific schemes and projects, allowing for actual expenditure.
Who is responsible for initiating the re-appropriation process?▼
The responsibility typically lies with the Finance Officer or equivalent within the concerned Ministry or Department receiving the NER funds.
Is the Ministry of Development of NER also required to re-appropriate funds?▼
The rule states that the Ministry of Development of NER is an exception to the rule that no actual expenditure is made from the non-functional heads during the normal course. However, for specific projects, they may still need to re-appropriate funds depending on the nature of the expenditure.
What happens if re-appropriation is not done?▼
If re-appropriation is not carried out, the funds earmarked for NER will remain inaccessible, and the intended projects or schemes cannot be implemented.

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 Government of India's decision (2) under Rule 4 of the Delegation of Financial Powers Rules, 1978, funds earmarked for the North Eastern Region (NER) are initially parked under which type of Major Heads?

Related Rules

Annexure IIDFPR 2024 - Annexure IIAppendix IDFPR 2024 - Appendix IRule 20DFPR 2024 - Rule 20 - (Expenditure from or incidence of charges on contingency fund of India)Rule 10DFPR 2024 - Rule 10 - (Re-appropriation)Rule 14DFPR 2024 - Rule 14 - (Insurance of Government property)

Need help understanding this rule?

Ask Niti — your AI assistant for DFPR 1978 and other government rules