FINANCE (BG.I) DEPARTMENT
Read the following:-
1. G.O.Ms.No.59, Finance (BG.I) Dept., dt.30-3-2001.
2. G.O.Ms.No.273, Finance (BG.I) Dept., dt.1-4-2003.
3. Memo No.11084-B/497/BG/A1/2001, dt.4-4-2001.
4. Memo No.6403/998/BG/A1/2001, dt.10-10-2001.
5. G.O.Ms.No.581, Finance (BG.I) Dept., dt.31-7-2004.
In the G.O.1st read above, Government have introduced Budget Release Order system during 2002-03 by releasing 50% of the budget provisions on the 1st April of the financial year so as to facilitate smooth flow of funds and to cut down unnecessary delay in the movement of files. The second instalment shall be released only after the review of the schemes and their achievement in performance indicators actual expenditure and subject to the actual receipt of inflows from Central Government, NABARD and other financial institutions. Thus, the second instalment will be released by the 1st October of each year equivalent to the amount of expenditure incurred out of 1st quarter or 25% of the total budget provision whichever is less. Further, each department shall finalize a review of their schemes and submit proposals for Revised Estimates for the current year as well as Budget Estimates for next year by the end of November each year. Then the Finance Department will estimate the overall availability of the resources for the balance period of the year as well as for the next year and finalize the Revised Estimates for the current year and Budget Estimates for the next by 25th December of each year. After finalization of R.E. for the current year, 3rd and final instalment for each scheme shall decided and released by 1st January every year.
In the G.O. 2nd read above, the procedure for issue of Budget Release Order (BRO) has been continued during 2003-04, but the limit of first instalment has been increased from 50% to 75% to cover the requirement for the first three quarters of the financial year to facilitate the HODs for obtaining administrative sanctions from the respective Departments of Secretariat wherever required and to furnish budget distribution statements to the DTA/Director of Works Accounts for getting the budget authorization. As per this order, the Finance Department will indicate the ceilings for the Revised Estimates for Non-Plan and Plan budget during December every year on the basis of updated projection of available resources on the review of the actual performance of the Departments. The HODs in turn shall indicate the requirement of funds for each scheme within the overall ceilings prescribed by the Finance Department. The BRO for the 2nd instalment for each scheme/project to cover the requirement of funds for the 4th quarter of the financial year will be issued by the Finance Department taking into consideration the ceilings already fixed for Revised Estimates.
Government have reviewed the system of issue of BROs and hereby decided to restore the procedure laid down in G.O.1st read above. Accordingly, 50% of the budget provision of 2004-05 will be considered for issue of BRO by Finance Department as 1st instalment under Plan and Non-Plan wherever necessary after duly deducting the amounts already released to the departments during the Vote on Account period of 2004-05. Balance 50% provision shall be released in two instalments i.e. 2nd instalment in October 2004 after taking stock of the overall financial position and 3rd and final instalment in January 2005 after taking into consideration R.E.2004-05.
The DTA/PAO/Director of Works Accounts shall take necessary action for authorizing the expenditure during 2004-05 to the HODs as per the BROs/LOCs issued by Finance Department wherever necessary. They shall also ensure that the amounts already authorized during the Vote on Account period shall got adjusted against the 50% provisions of BE 2004-05 and only the balance amounts have to be authorized to the HODs under Plan and Non-Plan.
All the HODs and the Departments of Secretariat shall approach the Finance Department for issuing of BROs under the group sub heads 04-EFC, 05-PMGY, 06-MSS and 10-CSS only on the basis of release of funds by Government of India/other agencies concerned.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
PRINCIPAL SECRETARY TO GOVERNMENT
All Departments of Secretariat
The Director of Treasuries & Accounts, A.P., Hyderabad.
The Director of Works Accounts, Hyderabad.
All the Heads of Departments
The Dy. Directors/District Treasury Officers in the State.
The Pay and Accounts Officer, Hyderabad.
All Officers and all Sections in Finance Department.
The A.G., A.P., Hyderabad.