Rule 4 - NER Funds
Original Rule Text
Rule 4: Provision of funds by Parliament- After the Appropriation Bill is passed by Parliament and assented to by the President, the amounts so authorised become available to the concerned Departments of the Government of India to meet sanctioned expenditure.
4. Reporting Limit to Parliament on Re-appropriation - Any order for re-appropriation, issued during a financial year, which has the effect of increasing the budget provision under any line item ending at an object head by more than 20% of Budget Estimates or ` 100 crore, whichever is more, shall be reported to the Parliament along with the last batch of Supplementary Demands of the financial year. However, if such an order is issued after the last batch of supplementary demands, prior approval of Department of Expenditure shall be obtained by the concerned Department.
[Ministry of Finance DoE O.M. No. 01(14)/2016-E.II(A)(Part-III), dated 01.04.2024]
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.
2. Considering the technical nature of the re-appropriation, this Department has decided the following:
4. Cases involving waiver of recovery of more than Rs. 2,00,000/- (Rupees two lakh only) should be referred to this Department. Such cases may be forwarded along with a detailed note covering information on para 3 along with the filled in checklist as below.
Checklist for waiver recovery
1. Name 2. Designation 3. Amount for waiver 4. Reason for overpayment 5. Date of Detection of Overpayment 6. Date of issue of order of recovery 7. Date of representation submitted by Officer/ official mentioning financial hardship 8. Date of Disposal of Representation and decision taken on the same. 9. Category of exemption as per DoP&T’s OM dated 02.03.2016 10. Relevant Rules under which pay fixation or allowance drawn resulted to overpayment
11. Whether Administrative Ministry is satisfied that loss does not disclose a defect in rules or procedures or there has not been any serious negligence on the part of any Government servant which may call for disciplinary action by a higher authority. 12. Whether verification of Service Book have been done periodically. If yes, why such wrong fixation was not detected in such verification. 13. Why such wrong fixation was not detected during internal audit.
[Ministry of Finance DoE O.M. No. 01(14)/2016-E.II(A)(Vol.III), dated 01.04.2024]
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
- 1Funds for NER are initially earmarked under non-functional Major Heads (2552, 4552, 6552).
- 2These non-functional heads are primarily for budgetary control and tracking NER allocations.
- 3Expenditure is incurred from functional heads within specific schemes.
- 4Re-appropriation from non-functional to functional heads is mandatory for spending NER funds.
- 5This 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?▼
Why is re-appropriation necessary for NER funds?▼
Who is responsible for initiating the re-appropriation process?▼
Is the Ministry of Development of NER also required to re-appropriate funds?▼
What happens if re-appropriation is not done?▼
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?