Instructions for the preparation of Budget Estimates and submission on-line

BUDGET TOP PRIORITY
GOVERNMENT OF ANDHRA PRADESH
Budget Estimates 2015-16 – Instructions for the preparation of Budget Estimates and submission
on-line – Issued.

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FINANCE (Budget I) DEPARTMENT
G.O.MS.No. 206 Dated:05-11-2014.
Read the following:-
1. G.O.Ms.No.135, Finance & Planning (FW:BG) Department, dt:20.9.2000.
2. G.O.Ms.No.664, Finance (BG) Department, dt: 27.10.2001.
3. G.O.Ms.No.183, Finance (BG.I) Department, dt.30-06-2006.
4. G.O.Rt.No.2259, Finance (DCM.I) Department, dt.28-07-2014.
5. Circular Memo.No. Cir. Memo No.1889-A/229/A1/BG.I/2014, Dt.16-10-2014.
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O R D E R:
According to Para 13.19.1 of the A.P. Budget Manual, the Heads of Departments and Other Estimating Officers should prepare their estimates for both receipts and expenditure in duplicate and send one copy direct to the Finance Department, and the other to the Administrative departments of the Secretariat concerned.

RECEIPTS:

2. According to para 13.8 of the AP Budget Manual, the HODs and Other Estimating Officers should prepare budget estimates for receipts based on the existing rates of taxes, duties and fees etc., and no increase or reduction in such rates which has not been sanctioned by the Government should be proposed. The information shall be furnished in the enclosed proforma – A.

3. All the Heads of Departments and Other Estimating Officers are requested to furnish proposals for Revised Estimates 2014-15 and Budget Estimates 2015-16 in respect of Revenue Receipts and Loan Receipts with which they are concerned by giving full details of targets fixed as per performance indicators for each department.

NON – PLAN:

4. According to para 13.9 of the AP Budget Manual, the HODs and Estimating Officers shall make provisions for all sanctioned schemes, but not for schemes of new expenditure which has been submitted to the Government but not yet sanctioned. Information shall be furnished in proforma-B1.

5. Experience shows that every year many Departments are furnishing the estimates in a routine manner without examining the need for the continuation of the scheme and justification for the provisions claimed by the Departments. In view of the need to observe strict economy in expenditure, it has been decided to make a thorough review of the budget proposals furnished by the Departments. The Heads of Departments and other Estimating Officers are, therefore, requested to furnish the following information without fail in the column – 6 of proforma - B1 provided for recording justification.
(a) The objectives of the Scheme or work of the Department;
(b) Relevance of the programme to the over all objective in the present context;
(c) The justification for various categories of posts and number of posts in each category as existing in the Scheme or Department; and
(d) The consequences of its non-funding.

6. All the Heads of Departments and Other Estimating Officers are also requested to review the existing Non-Plan Schemes very critically, so that those schemes which do not serve any tangible purpose substantially are dropped or phased out or reduced and surplus staff available there under be reported to Finance (SMPC) Department immediately.

7. (i) The provisions under the concerned detailed heads i.e., standard objects of expenditure shall be included keeping in view the guidelines indicated in references 2nd read above. The provisions for Dearness Allowance, Leave Travel Concession, House Rent Allowances, Encashment of Earned Leave, Medical Reimbursement etc., shall be included under respective sub-detailed heads under “010 Salaries”.

(ii) The estimates for contingent expenditure shown under “Office Expenses” should be prepared with reference to the instructions laid down in para 13.16 of the A.P. Budget Manual. Details of the items of expenditure included, detailed reasons together with figures should be furnished along with the actuals for the past three years in respect of each item. Proper attention must be paid while estimating water and electricity charges which should take into account pending arrear bills, the increase in tariff rate etc., and provision for the amounts that will become payable in the year. Wherever arrears are included, detailed reasons together with figures would be furnished in the explanatory note.

P L A N :

8. The Heads of Departments and Estimating Officers are requested to see with particular care that provisions relating to schemes included in the Plan for RE 2014-15 and for Budget Estimates 2015-16 are exhibited separately and distinctly under Plan Estimates. As the Plan Schemes will also be subjected to pre-budget scrutiny on the lines to be indicated by the Finance Department, the estimates may be prepared with as much care as in the case of non-plan estimates. Provisions proposed for plan expenditure should under no circumstances be mixed up or merged with Non-Plan provisions. Wherever lumpsum provisions are made for Plan schemes in the Budget Estimates 2015-16 for want of details, they should be split up and exhibited under sub-detailed heads under detailed heads of appropriation such as Pay, Allowances under “Salaries” etc. The estimates should conform to the ceiling communicated by the Planning Department for Revised Estimates 2014-15 and Budget Estimates 2015-16 (proforma – B2).

New Schemes:

9. In the case of new schemes introduced during the year, the dates of introduction and the estimated expenditure for the current year should be mentioned in the remarks column. If provision is included in the Revised Estimates for the current year for any new item of expenditure not provided for in the Budget Estimates of the year it should be clearly stated in the ‘Remarks’ column whether it has been sanctioned by the competent authority and if so, the number and date of the proceedings sanctioning the expenditure should be quoted in every case (proforma –B3 for Non-Plan – B4 for Plan).

Budget Achievements:

10. The quantum of the work done by the Department, the physical targets achieved under the scheme during 2012-13 & 2013-14, the physical targets proposed to be achieved during 2014-15 and 2015-16 (proforma – C).

APFRBM Rules, 2006:

11. As per rule 6(1) of APFRBM Rules, 2006 the State Government shall at the time of presenting the Budget make following disclosures as required under Section 10 of APFRBM Act 2005.
(i) Form D-7 Statement of Assets (proforma – D).
(ii) Form D-8 Tax Revenues raised but not realized (proforma – E).
(iii) Form D-9 Statement of Miscellaneous liabilities outstanding (proforma – F).

12. All the Heads of Departments and Estimating Officers are therefore requested to furnish the relevant information in the prescribed proformae appended to this order along with the Budget Estimates 2015-16 invariably as these statements have to be presented to the Legislature.

13. The attention of Estimating Officers is invited to the following special points:

(i) Date of submission of Estimates: All estimates should be submitted to the Administrative Departments of the Secretariat concerned through on-line not later than 15thNovember, 2014. The Administrative Departments of Secretariat would forward the estimates with their comments to the Finance Department by
29thNovember, 2014 at the latest. Experience has shown that inspite of clear instructions, the Budget proposals in most of the cases are sent very late. Steps should, therefore, be taken to ensure that the dates prescribed above are strictly adhered to. If estimates are received after 29thNovember, 2014, Finance Department will not be able to intimate any changes made in the estimates of Departments as there
will not be sufficient time for considering representations against changes effected by this Department.

(ii) Accuracy and authority for estimates: It will be the responsibility of the Heads of Departments and Other Estimating Officers to see that no omissions or deviations are made in making provisions for any sanctioned scheme or any other item of expenditure covered by sanction of the competent authority for which provision
sought to have been made in Part- I of the Budget Estimates (sanctioned item). Similarly no provision should be made in Part – I of the Estimates, for any item of expenditure for which no sanction of Government exists. Provision should be made in the Budget Estimates for the coming year for all sanctioned schemes but not for
schemes of new service, which have been submitted to Government but not yet sanctioned. It has, however, been observed that the above procedure is not being followed by some Heads of Departments, who have been including provisions in the Budget Estimates for schemes which have not been sanctioned by Government. Certain Departments have also been proposing heavy increases in the existing provisions in the normal budget estimates without obtaining prior sanction of the Government. This procedure is irregular. The Heads of Departments and Other Estimating Officers are requested to observe the instructions in para 13.9 of the Budget Manual scrupulously while submitting the Budget Estimates 2015-16. While minor increases based on trends of actuals and admitted needs may be allowed, increases involving substantial amounts proposed over the existing provisions should be supported by Government orders sanctioning the increase duly enclosing copies of the relevant Government orders. Provision included in the Budget Estimates for the
schemes which have not been sanctioned by the Government are liable to be summarily rejected and no correspondence will be entertained on this account.

(iii) Economy: The attention of the Heads of Departments and other Estimating Officers is invited to the economy measure orders issued in G.O.Rt.No.2259, Finance (DCM-I) Department, dated:28-07-2014 and they are requested to frame the Revised Estimates 2014-15 and Budget Estimates 2015-16 keeping in view these measures.

(iv) Revised Estimate: The Revised Estimate besides enabling the Government to arrive at the approximate closing balance for the current year (that is the opening balance for the next year), are prima facie the best guide to the coming year’s estimates. It is, therefore, essential that Revised Estimates are prepared with great care and are as nearer as possible to the actuals by taking into account the reappropriation/surrenders made during the year 2014-15.

(v) Contract Appointments:The Heads of Departments / Estimating Officers shall ensure that sufficient provisions are made under the detailed head “ 300- Other Contractual Services” towards payment of remuneration to the persons appointed on contract/outsourcing basis. They are requested to furnish the relevant orders issued by the competent authority for engaging the persons on contract/outsourcing basis
while proposing provision in the Budget. They shall also furnish calculation sheet consisting of rate of contract, period of contract, no. of persons engaged on contract, outsourcing and the total amount required towards payment of remuneration in respect of each sanction order based on which they are proposing provision in the Budget.

(vi) Explanations for variations in figures: Estimating Officers are requested to furnish brief and clear explanations for material variations between the Budget and Revised Estimates of the current year and the Budget Estimates for coming year both under Receipts and Expenditure. They are informed that in the absence of explanations, any increase of expenditure included in their estimates is liable to be summarily rejected. While submitting the estimates, the variations, if any, between number and designation of the staff for which provision is made in the estimates and those already furnished by the Estimating Officers in the number statements should be explained in detail with reference to the orders sanctioning the additional staff, etc.

(vii) Estimates for Works: Provision should be made in Part – I of the Budget for works which have been sanctioned by the Government or the competent authority. All the Chief Engineers are requested to give full information as to whether the works for which provision is included by them in the Revised Estimates 2014-15 are for repairs to the existing buildings etc., or new works or works in progress and whether the
works have been sanctioned by the Government or competent authority. The number and date of order sanctioning each work, the amount of estimate both the original and the revised; the total expenditure incurred on the work to the end of the preceding financial year; and the amount required for expenditure during the current year and next year should invariably be given in the remarks accompanying the Budget
Estimates. If complete information is not furnished in proforma- G prescribed, in the case of any particular work, the provision proposed for will be omitted by the Finance Department.

(viii) The Heads of Departments and Other Estimating Officers are requested to furnish Number Statements as instructed in the Govt. Circular Memo.No.5th cited under each Plan Scheme for inclusion in Appendix ‘A’ to the detailed Budget Estimates along with the Budget Estimates for Plan Schemes.

(ix) The Heads of Departments are requested to ensure that the amounts allocated for supply of uniform to the “Office Subordinates” under the detailed head “250 Clothing, Tentage and Stores” shall be utilized for the same purpose without diverting for other purposes.

(x) The Estimates should be prepared only on the basis of existing sanctions and should not provide for any new scheme proposed for the consideration of the Government.

(xi) Provisions under grants-in-aid: Particulars, as per para 13.12.1 of the Andhra Pradesh Budget Manual, should invariably be furnished while sending the estimates. Statement showing details of charges and income of the institution receiving grantsin- aid for the previous years should also be furnished in the prescribed proforma along with the Number Statements showing the staff position, their scales of pay, etc.,
While furnishing the estimates under grants-in-aid, the Heads of Departments and Other Estimating Officers are requested to open the sub-detailed heads “311- Grantsin-aid towards salaries”, “312- Other Grants-in-aid” and provide the amounts separately under the above sub-detailed heads of account. In the absence of Number Statements showing the full particulars, scale of pay etc. the estimates under grantsin-aid towards salaries will not be considered.

(xii) The provision required for payment of obsequies to the family of the deceased Government Employees shall be made under the sub-detailed head of account 310 -Grants-in-aid -318 – Obsequies Charges”. The provision required for payment of contribution and subsidies shall be made under the detailed heads “320-Contributions and 330 - Subsidies respectively and not under sub detailed head 312 – Other Grants –
in-aid”. The provision for creation of capital assets which is to be passed on to the local bodies and other agencies has to be classified under Sub Detailed Head “319 Grants for creation of Capital Assets” under the detailed head “310 Grants in aid”. (xiii) Provision for maintenance of office vehicles to be made under the Sub Detailed Head “511 Maintenance of office vehicles” and the provision for Purchase of new motor
vehicles has to be proposed under “512 Purchase of Motor Vehicles” under the detailed head 510 Motor Vehicles. However the provision for purchase of motor vehicles shall be supported by specific sanction order from the Government and the provision for maintenance of motor vehicles shall be supported by statement from the Head of Department with regard to the number of vehicles available in the department as on 02-06-2014.

(xiv) All the Utility Payments i.e., Postage, Telephone, Water and Electricity Charges are to be fully provided under respective sub detailed heads 131- Service Postage, Telegram and Telephone Charges, 133 - Water and Electricity Charges under the detailed head 130 - Office Expenses as first charge under non-salary component.

(xv) The provision required for payment of “hiring charges of Private Vehicles” shall be made under the sub detailed head “130/134 - Hiring of Private Vehicles” based on the sanction orders. No provision shall be proposed under this head without specific sanction from the government for hiring of private vehicles for the department for a specific period.

(xvi) Separate estimates shall be sent for providing funds for fixed Travelling Allowance under the new sub detailed head “114 - Fixed Travelling Allowance” in Revised Estimates 2014-15 and Budget Estimates 2015-16 as per instructions issued in this Department Memo.No.16240/642/BG/A1/2002-2, dated 25-11-2002. Similarly requirement for conveyance allowance shall be proposed under “110/115 Conveyance Allowance”.

(xvii) Separate Estimates shall be sent for providing funds for payment of Wages to the Full Time Contingent Employees who are drawing minimum of time scale with DA as per Revised Pay Scales of 2010 separately under distinct sub-detailed head 020-Wages – 021-Daily Wage Employees – 022-Full Time Contingent
Employees as per instructions issued in this Department vide Circular Memo No.2823/202/A1/BG.I/2013, dt.02-07-2013.

(xviii) Where any large provision is proposed in respect of outstanding liabilities or arrear payments, full details should be furnished and the original sanction for incurring such expenditure should invariably be quoted.

(xix) Where any expenditure is dependent on finance from outside the State like Government of India, NABARD , Life Insurance Corporation, Central Warehousing Corporation etc., estimates should be based only on the last year’s actual release to State or on the basis of actual need whichever is lower and not on hypothetically assumed figures. In such cases, it is necessary to indicate specifically whether the entire amount or only a part of the amount is reimbursable from these agencies and whether this amount has been taken credit in their estimates of Revenue.

(xx) Scrutiny of estimates by the Administrative Department of Secretariat: The Administrative Departments of Secretariat are requested to scrutinize the estimates of the Departments under their control and forward to this Department with their comments thereon. The object of examination by the Administrative Departments is to detect excessive or inadequate provision in the Revised Estimates and Budget Estimates which they are in a position to do in the better way in view of their more intimate knowledge of working of the Departments under their administrative control.

(xxi) TheDepartments are requested to send proposals for Revised Estimates 2014-15 and Budget Estimates 2015-16 rounding of the figures to the nearest thousand of rupees against each sub-detailed head.
(xxii) The Heads of Departments are requested to send their proposals promptly particularly in respect of recoveries ofloans and interest receipts. They should send proposals for recoveries and disbursements under loans and advances and interest thereon based on the terms and conditions, imposed in the Government orders sanctioning the loans. 14. On-Line Submission: The budget proposals sought for 2015-16 through this circular shall be furnished by all departments through online only. All Heads of Departments and Other Estimating Officers are requested to visit Finance Department web-site on the Internet using the URL: http://www.apfinance.gov.in/ and “click” on the web-link “Finance Department Portal” provided in the home-page. Then follow the steps given below:

• This link will open “Finance Department Portal” web-page
• The User-ID and Password were already provided for submission of Number Statement.
• Please Log-in using the same User-ID and Password. Please enter them correctly and Log-in into application.
• A menu item “Budget Proposals-15-16” is displayed in the Menu Bar.
• Select the respective Non-Plan and Plan items along with concern Head of Accounts and enter the data.
• Saving of data can be done any point of time using ‘SAVE’ button.
• After completion of entries final submission to Finance Department can be done using ‘Final Submit’ in the menu bar and using the appropriate menu items.
• Deletion of entries can be done before Final Submission.
• After final submission no more deleting is allowed.
• Any further instructions can be seen on-line.
AJEYA KALLAM
PRINCIPAL SECRETARY TO GOVERNMENT

Proforma- A
RECEIPTS
Name of the HOD :
Administrative Department of Secretariat:
(Rupees in thousands)

Proforma- B1
EXPENDITURE
NON-PLAN
Demand No.________
Name of the HOD :
Administrative Department of Secretariat:
(Rupees in thousands)

Details
S.H.(XX)
010

Proforma- B2
EXPENDITURE
PLAN
Demand No.________
Name of the HOD :
Administrative Department of Secretariat:
Name of the Plan Scheme :
(Rupees in thousands)

Details
S.H.(XX)
010

Proforma- B3
EXPENDITURE FOR NEW SCHEMES
NON-PLAN
Demand No.________
Name of the HOD :
Administrative Department of Secretariat:
Name of the New Non-Plan Scheme :
(Rupees in thousands)

Details
S.H.(XX) Sub-heads will be indicated by Finance Department.
010
Note: Indicate G.O Number and date of the new scheme sanctioned.

Proforma- B4
EXPENDITURE FOR NEW SCHEMES
PLAN
Demand No.________
Name of the HOD :
Administrative Department of Secretariat:
Name of the New Plan Scheme :
(Rupees in thousands)

Details
S.H.(XX) Sub-heads will be indicated by Finance Department.
010
Note: Indicate G.O Number and date of the new scheme sanctioned.

Proforma- C
PROFORMA FOR FURNISHING INFORMATION ON PHYSICAL TARGETS AND
ACHIEVEMENTS
Name of the HOD :
Administrative Department of Secretariat:

Proforma - D
FORM D - 7
[See rule 6]
STATEMENT OF ASSETS

1. Assets above the threshold value of Rupees two lakh only to be recorded.
2. Reporting year refers to the second year preceding the year for which the annual
financial statement and demands for grants are presented.
3. The Statement in respect of physical assets is to be prepared based on asset register
maintained by the Government. The value to be indicated would be book-value, i.e.
acquisition cost netted for depreciation/impairment.

Proforma - E
Form D - 8
[See rule 6]
TAX REVENUES RAISED BUT NOT REALISED
(principal taxes)
(As at the end of the reporting year)