Control of Expenditure against Budget


Ajit Kumar AJIT KUMARWISDOM IAS, New Delhi.

Rule 52 of the GFR lays down provisions relating to the Responsibility for control of Expenditure, which is as follows:
(1) Departments of the Central Government shall be responsible for the control of expenditure against the sanctioned grants and appropriations placed at their disposal. The control shall be exercised through the Heads of Departments and other Controlling Officers, if any, and Disbursing Officers subordinate to them.
(2) A Grant or Appropriation can be utilised only to cover the charges (including liabilities, if any, of the past year) which are to be paid during the financial year of the Grant or Appropriation and adjusted in the account of the year. No charges against a Grant or Appropriation can be authorized after the expiry of the financial year.
(3) No expenditure shall be incurred which may have the effect of exceeding the total grant or
appropriation authorized by Parliament by law for a financial year, except after obtaining a supplementary grant or appropriation or an advance from the Contingency Fund. Since voted and charged portions  as also the revenue and capital sections of a Grant / Appropriation are distinct and re-appropriation inter se is not permissible, an excess in any one portion or section is treated as an excess in the Grant / Appropriation.
(4) To have effective control over expenditure by the Departments, Controlling and Disbursing Officers subordinate to them shall follow the procedure given below:
 
(i) For drawal of money the Drawing and Disbursing Officer shall:-
 (a) Prepare and present bills for “charged” and “voted” expenditure separately.
(b) Enter on each bill the complete accounts classifications from major head down to the object
head of account. When a single bill includes charges falling under two or more object heads, the charges shall be distributed accurately over the respective heads.
(c) Enter on each bill the progressive total of expenditure up-to-date under the primary unit of
appropriation to which the bill relates, including the amount of the bill on which the entry is made.
(ii) (a) All Disbursing Officers shall maintain a separate expenditure register in Form GFR 9, for
allocation under each minor or sub-head of account with which they are concerned.
(b) On the third day of each month, a copy of the entries made in this register during the  receding month shall be sent by the officer maintaining it, to the Head of the Department or other designated Controlling Officer. This statement shall also include adjustment of an inward claim, etc., communicated by Pay and Accounts Officer directly to the DDO (and not to his Grant Controlling Officer). If there are no entries in the register in any month, a ‘nil’ statement
shall be sent.
(iii) (a) The Controlling Officer will maintain a broadsheet in Form GFR 10 to monitor the receipt of the return prescribed in the foregoing sub-clause;
(b) On receipt of the returns from Disbursing Officers, the Controlling Officer shall examine them and satisfy himself:-
(aa) that the accounts classification has been properly given;
(bb) that progressive expenditure has been properly noted and the available balances worked out
correctly;
(cc) that expenditure up-to-date is within the grant or appropriation; and
(dd) that the returns have been signed by Disbursing Officers. Where the Controlling Officer finds defects in any of these respects, he shall take steps to rectify the defect.
(iv) When all the returns from the Disbursing Officers for a particular month have been received
and found to be in order, the Controlling Officer shall compile a statement in Form GFR 11, in which he will incorporate –
 
(a) the totals of the figures supplied by Disbursing Officers;
(b) the totals taken from his own registers in Form GFR 9;
(c) the totals of such adjustments under the various detailed heads as communicated to him by
the Accounts Officer on account of transfer entries and expenditure debited to the grant as a result of settlement of inward account claims and not reckoned by his DDOs.
(v) If any adjustment communicated by the Accounts Officer affects the appropriation at the
disposal of a subordinate Disbursing Officer, the fact that the adjustment has been made shall be
communicated by the Controlling Officer to the Disbursing Officer concerned.
(vi) On receipt of all the necessary returns, the Head of the Department shall prepare a consolidated account in Form GFR 12, showing the complete expenditure from the grant or appropriation at his disposal upto the end of the preceding month.
(5) The Head of the Department and the Accounts Officer shall be jointly responsible for the
monthly reconciliation of the figures given in the accounts maintained by the Head of the Department with those appearing in the Accounts Officer’s books, and as per the reconciliation procedure laid down in the General Financial Rules.


Monday, 15th Feb 2016, 11:29:39 AM

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