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Recommendations of the PAC in its 88th Report(1992-93).

Recommendations of the PAC in its 88th Report(1992-93).

G.I., M.F., O.M. No. 12(1)-E-(Co-ord.)/95, dated 23-8-1995

Sub.:- Recommendations of the PAC in its 88th Report(1992-93).

The undersigned is directed to invite the attention of all Ministries/Departments to the instructions issued vide this Ministry’s O.M. No. F. 1 (14)-E. II (A)/94, dated the 17th October,
1994, pursuant to the recommendations of the PAC made in its 60th Report (1990-91) and 74th Report (1991-92) of Excesses over Voted Grants/Charged Appropriations. It was emphasized vide these instructions that the Ministries/Departments should frame their estimates accurately after a careful and in-depth examination of the requirement of funds. It was also, inter alia stated that the authorities administering a grant/allocation shall be fully accountable for the control of expenditure against sanctioned estimates.

2. The Committee in its 88th Report (1992-93) has noted the above-mentioned instructions and has made the following further recommendations: –

(i) Ministries/Departments should observe the prescribed instructions regarding re• appropriation of funds from one unit of grant/appropriation to another and also ensure adherence to financial discipline.
(ii) Complete details of circumstances leading to overall excess expenditure under a grant or appropriation together with action taken to fix responsibility therefore, may invariably be made available to the Committee through the explanatory notes, at least from the Accounting Year 1994-95 onwards.
(iii) The Committee’s recommendation in its 60th Report regarding furnishing of detailed notes about savings of Rs. 100 crores and above, should be adhered to and the time schedule prescribed for this purpose should be. Scrupulously followed by all Ministries I Departments concerned while forwarding their explanatory notes to the Committee on the accounts for 1993-94 and onwards.

3. In this connection, attention is also invited to the instructions on re-appropriation of funds, issued vide this Ministry’s O.M. No. F. 1 (14)-E. II (A)/89, dated the 22nd February, 1990 and O.M. No. F. l (17)-E. II (A)/91, dated the 10th October, 1991. As per these instructions, any re-appropriation which has the effect of increasing the budget provision by more than 25% or Rs. I crore, whichever is more, under a sub-head, should be reported to Parliament along with the last batch of supplementary demands. A re-appropriation order which has the effect of increasing the budget provision by more than Rs. I crore under a sub-head, should also have the prior approval of Secretary (Expenditure). Moreover, any re-appropriation order issued after the presentation of the last batch of supplementary demands and exceeding the limit of 26% should have the prior approval of Secretary I Additional Secretary (Expenditure).

4. In view of the recommendations of the Public Accounts Committee, as mentioned in Para. 2 above, Ministries / Departments are requested to ensure strict compliance with the instructions issued vide this Ministry’s OM, dated 22-2-1990 and 10-10-1991, regarding re-appropriation of funds. As the basic responsibility for furnishing of explanatory notes on excess expenditure I savings under a grant or appropriation to the Committee, rests with the administrative Ministries, they may ensure that the details of circumstances leading to the excess expenditure/savings including the action taken to fix responsibility for the excess expenditure are brought out in the explanatory notes. The explanatory notes may be got vetted by the Budget Division in this Ministry.

5. The time-schedule prescribed for furnishing of the explanatory notes to the PAC should also be scrupulously followed. For this purpose, Ministries I Departments may institute a system of monthly monitoring by the Secretary’ of the Ministry I Department with the FA and the concerned AS/ Joint Secretaries. Monthly Progress, Reports in this regard may also be sent to the Monitoring Cell under this Department. Secretary (Expenditure) would also review the outstanding cases every quarter. Cases of inordinate delay in sending Action Taken Reports I Explanatory Notes by the Ministries would be considered for taking up with the Committee of Secretaries.

6. All the Ministries / Departments are requested to keep the above instructions in view for strict compliance.

Also read this...

  1. Action on the PAC’s recommendations – Reiteration of instructions on strict financial discipline.
  2. Power of re-appropriation of funds – Exercise thereof by various authorities.

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