Budget 2015-16 - Measures to Rationalise  the Financial Management  System - Distribution of approved Budget to the Districts and the implementing Agencies Instructions and Guidelines Regarding.




G.O.MS.No. 84                                                                             Date: 2nd July 2015

Read the Following:


1.  G.O.Ms.No.35 Fin(BG.I) Dept, dated 02.04.2015

2.Memo No. 4928-A/335/A1/BG.I/2015datedJune 08, 2015




1.        As informed in the reference second read above, the Finance Department has initiated certain measures to ensure that the approved Budget for the current financial year is made available to the departmentwithout any impediments duly dispensing   with   the   cumbersome   procedures.   Accordingly,    all   Head   of Departments   (HoDs)   and   the   Secretariat   Departments   were   requested   to distribute  the approved  budget  for 2015-16  to the district  offices  and the field implementing agencies duly apportioning the amount available for the remaining three quarters of the current financial  year after deducting  the amount  already released in the first quarter. While doing thus, the HODs were requested to take into account the seasonal, geographic, district-specific and project-specific circumstances and other relevant factors and prioritise the allocations to the Sub- ordinate Controlling  Officers (SCOs) and the Drawing and Disbursing Officers (DDOs) based on the actual requirement of funds for each of the remaining three quarters.The Departments have been given the freedom to seek funds according to theactual requirement foreach quarter based on theimplementation work plan, however, within the approved budgetary provision for 2015-16 financial year.



2.        The  purpose  of this  exercise  is to dispense  with  the  current  process  of quarterly Budget Releases and make available the budgeted amount to the department based on their requirement for the remaining three quarters, however subject to the drawalbeing  limited to the amount allocated for each quarter. The need for Administrative Order (AO) by the administrative department will also be dispensed with, barring the general guidelines for effective implementation, management, and monitoring. This would enable the departmentto prepare and implement  the  work  plan  for  all  programmes  approved  by  the  Government during  the  remaining  three  quarters  of  the  current  financial  year  with  the


confidence of receiving the required financing, instead of initiating the planning process and obtaining administrative order on a quarterly basis after receiving the budget release order, etc. The main objective is to increase implementation effectiveness and have a longer term programme execution horizon, action plan and above all fund availability.



3.        In  this  direction,it  is essential  to  allocate  the  approved  budget  (BE  for

2015-16)  for  the  remaining  three  quarters  amongst  all  unit  offices  under  the control of the department. Accordingly, an application has been provided in the the portals of the Director of Treasuries and Accounts   and Director of Works Accounts. The Head of the Department (HOD) shall distribute the budget for all Heads of Accounts (HOA) operated by them in the following manner:



i)        The HOD shall log in to the DTA / DWA portal with the User Name and Password that they normally use for budget authorization purposes. Thereafter  they shall propose  budget distribution  upto the sub-detailed Head of Account for every quarter.

ii)      Once the Head of Account is entered, the total budget provision for the year 2015-16, amount already authorised  and the balance available for distribution for remaining quarters will be displayed in the portal.

iii)    The default mode for the system on Treasury portal is to distribute the

remaining budget equally amongst three quarters. Such an allocation is tentative. Therefore, the HOD must review carefully with reference to the actual  requirement  based  on the work  plan  and  propose  allocation  to each quarter  and make necessary  revision in the allocation.  In case of DWA system there is no such indication and    allocation can be made directly after deducting the expenditure.

iv)     It is reiterated that the budget distribution should not to be a simplistic arithmetic  exercise,  but  based  on  realistic  requirement  of  funds  for financing the programme implementation plan.

v)      Once quarterly allocations are determined, the same shall be apportioned to the Subordinate Controlling Officers (SCOs) displayed on the screen.

vi)     The HOD shalldistribute the available budget to all SCOs under his / her control for all three quarters.

vii)    The HODs who traditionally  distribute the budget to the Drawing and Disbursement   Officers   (DDOs)   directly,   shall  distribute   the  budget amongst all DDOs for all three quarters and not limit to SCOs.

viii)  The  distribution  of  budget  shall  be  done  for  all  three  quarters  for  all

budget lines, including all Plan, Non-Plan, Capital and Revenue Heads.


ix)     The  HODs  must  complete  the  apportionment  of  budget  amongst  the SCOs  (and  DDOs,  where  it  is  done  directly  by  HODs)  for  all  three quarters latest by 5 PM on July 05, 2015.



4.        The  HOD  must  ensure  through  direct  and  strict  instructions  that  all Subordinate Controlling Officers (SCOs) in turn apportion the amount allocated to them by the HOD, for the three quarters based on the work plan, using the exisiting DTA / DWA portal, to all DDOs under their control on or before 5:00

PM  on  July  10,  2015.  The  District  Collectors  are  instructed  to  monitor  this process closely and ensure its completion ahead of the deadline indicated above. The entire budget must be apportioned without keeping any reserve fund at any operational level.



5.        The  Finance  Department  will  hold  consultations  with  the  departments between July 10 and 16, to review and agree on the allocation proposed by the HOD. Once the budget distribution for three quarters to the DDOs is accepted, the Finance Department will issue Budget Operations Orders for three quarters at a time that would enable every department  to operate the budget for the three quarters without any further restrictions.  However, the drawal for each quarter will be limited to the amount indicated by the department.



6.        Upon successful  data input and completion  of the review  and approval process  by  the  Finance  Department,  the  HOD  would  have  the  authority  to reallocate funds from one unit office to another (SCO to SCO / DDO to DDO) based on the requirement and preformance during the quarter. This, however, can be done only after completion of each quarter.



7.        The departments are requested to note that as far the Centrally Assisted Schemes  are  concerned,  they  shall  be  guided  by  the  DO  letter  of  Principal Finance  Secretary  dated June 08, 2015(Enclosed)  and the latest instructions  of Government of India. They are also requested to study the budget book carefully and  adhere   to  the  allocations   approved   therein.   They  shall  note  that  no additionality  will  be  considered  until  the  fourth  quarter,  unless  in  cases  of emergency or explicitly mandated by the Government. The departments are also informed that the apportionment of budget for three quarters for every SCO and DDO should be accompanied  by a detailed Work Plan and Budget (WPB) for each of these units for the remaining nine months.



8.        The  HOD  and  the  Secretary  concerned  are  requested  to  monitor  the expenditure  monthly  for all major programme  heads and take remedial  action



against those performing suboptimally. All HODs and the Secretaries will be provided access to expenditure data for monitoring in real time. Considering the extremely tight fiscal situation,the budget allocated for a quarter, if not utilised, may  not  be  available  in  the  next  quarter.  Hence,  Heads  of  Departments  are requird to be realistic in preparing their action plan and distributing their budget.



9.        The  Secretaries  of  the  Departments  /  HODs  /  District  Collectors  are requested   to   ensure   implementation   of   the   above   instructions   within   the stipulated timeframe. The Head of the Departments shall take active initiative in distribution of the budget to the districts / SCOs / DDO units for effective implementation  of this system from July 2015. The Director of Treasuries  and Accounts and Director of Works Accounts shall monitor the process of Budget distribution  at  State  level  whereas  the  District  Treasury  officers  monitor  the process at District level and the Sub Treasury Officers/Pay and Accounts Officers/Assistant Pay and Accounts Officers (Works) monitor the process at the DDO level.



10.      All are informed that the budget for the second quarter for the controlled heads of accounts will be authorised after the remaining budget is apportioned to all SCOs  and  DDOs  for the three  quarters  latest  by 5 PM on July 10, 2015; budget released in the first quarter is fully utilised; and the Budget Operations Order for the entire year is obtained from the Finance Department.



11.      Further  clarifications  or information  may be obtained  from the Deputy Finance  Secretary  (Budget),  Director  of  Treasuries  and  Accounts,  Director  of Works Accounts and the District Treasury Officers.











All Head of the Departments

All Special Chief Secretaries / Principal Secretaries / Secretaries to Government

All District Collectors

The Director of Treasuries and Accounts

The Pay and Accounts Officer

The Director of Works Accounts

The Director of IT, Finance Department

The District Heads of all Departments through HODs.


Copy to:

The Chief Secretary to Government of Andhra Pradesh

The Principal Secretary to the Chief Minister of Andhra Pradesh

The Registrar General of Hon'ble High Court of Telangana and Andhra Pradesh

The Accountant General of Andhra Pradesh

The Principal Auditor General of Andhra Pradesh The OSD to the Finance Minister of Andhra Pradesh The PS / OSD of all Hon'ble Ministers

All Officers of the Finance Department

All Sections of the Finance Department








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