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SECTION 4(b) (xi) BUDGET AND BUDGETARY CONTROL

Introduction

Essentials of a Budget
(a) Funds in the budget are provided by categories of expenditure e.g. there are separate heads for Pay and Allowances of Military Personnel and Civilians.

(b) Allotment of funds in the budget for one category of expenditure cannot normally be used for another category e.g. funds provided for Transportation charges cannot be used for miscellaneous expenses.

(c) No items of public expenditure should be incurred unless provision exists to meet it in the sanctioned budget.

(d) Provision of funds under a particular head does not constitute sanction to incur expenditure unless an authority vested with powers on his behalf by the Govt sanctions it.

(e) Powers are vested in different authorities by Government to incur public expenditure only up to defined financial limits and periods.

(f) The ultimate responsibility for seeing that expenditure does not exceed the corresponding budget allotment rests on the Head of the Establishment.

(g) Budget is broadly divided into centrally and locally controlled heads. Control in respect of centrally controlled heads is exercised at Central Headquarters whereas in case of locally controlled heads allotment of funds is made to lower formations that are responsible to exercise control and to ensure that the expenditure does not exceed the allotment.

(h) The controlling authorities at Headquarters are responsible for allotting funds under locally controlled heads. They make these allotments with the concurrence of financial authorities at the Headquarters, after keeping back a certain amount as reserve to meet any unforeseen calls from lower formations.

(j) It is the responsibility of the authorities to which allotments are made to watch the progress of expenditure and to see that it does not exceed the allotments. In order to help the controlling authorities to exercise proper control over expenditure against allotments, the Controller of Defence Accounts notify the local controlling authorities by 25 th of the month, following that to which they relate showing the serial numbers of claims admitted in audit and the amounts debited against the allotment.

(k) Controllers of Defence Accounts are also responsible to watch progress of expenditure against sanctioned allotments and to bring to the notice of the allottees and the immediate higher authorities cases in which the progress of expenditure is, in their opinion, abnormally heavy or unusually low.

(l) Where additional funds under a particular heads are required, an application in this regard has to be made to the Central Controlling authority, well in advance, explaining fully the reasons thereof. Similarly, where savings can be foreseen, surrenders are required to be made immediately, explaining the reasons thereof.

(m) Saving under one head cannot be re-appropriated to meet excess expenditure under another head unless so authorised by DGQA HQ/Min of Defence.
5. Details of funds allotted to various heads and expenditure including to Tech Committees for last three years is enclosed as Annexure 2.
 

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