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

GOVERNMENT OF TELANGANA ABSTRACT

Budget Estimates 2015-16 – Instructions for the preparation of Budget Estimates and submission on-line – Issued.

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FINANCE (BG) DEPARTMENT

G.O.MS.No. 46 Dated:24-12-2014.
Read the following:-

1. G.O.Ms.No.135, Finance & Planning (FW:BG) Department, dt.20-09-2000.
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. Circular Memo No.5113/A/154/A1/BG/2014 of Finance (BG) Department, dt.17-12-2014.
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O R D E R:
According to Para 13.19.1 of the 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 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 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 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 Re-organisation of the State, 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 – 5 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 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.

7. (i) The provisions under the concerned detailed heads i.e., standard objects of expenditure
shall be included keeping in view of the guidelines indicated in references 4th read above. The provisions for Dearness Allowance, Interim Relief, 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 Budget Manual. Details of the items of expenditure included, detailed reasons. 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 2015-16 which is relevant to the State of Telengana only 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. The estimates should confirm to the ceiling communicated by the Planning Department for 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 NonPlan – B4 for Plan).

FRBM Rules, 2006:

10. As per rule 6(1) of FRBM Rules, 2006 the State Government shall at the time of presenting the Budget make following disclosures as required under Section 10 of FRBM 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).

11. 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.

12. 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 9th January,2015. The Administrative Departments of Secretariat would
forward the estimates with their comments to the Finance Department by
17th January,2015 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 17th January,2015. 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.
Departments have also been requested not to propose heavy increases in the existing
provisions in the normal budget estimates without obtaining prior sanction of the
Government. 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 RE 2014-15 Budget Estimates 2015-16 and budget. 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) 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.

(iv) Explanations for variations in figures: Estimating Officers are requested to furnish
brief and clear explanations for Revised Estimates of the current year and the Budget
Estimates for coming year under Receipts and Expenditure. They are informed that in
the absence of explanations, any increase of expenditure, 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.

(v) 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 Budget Estimates 2015-16 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 next financial 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.

(vi) 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.

(vii) 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.

(viii) Provisions under grants-in-aid: Particulars, as per para 13.12.1 of the Budget
Manual, should invariably be furnished while sending the estimates. Statement
showing details of charges and income of the institution receiving grants-in-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- Grants-in-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 grants-in-aid
towards salaries will not be considered.

(ix) 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”.

(x) Provision for maintenance of office vehicles to be made under the Sub Detailed Head
“511 Maintenance of office vehicles” under the detailed head 510 Motor Vehicles.
The Head of Department with regard to the number of vehicles available in the
department.

(xi) 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.

(xii) 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.

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

(xiv) 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, Government of Andhra Pradesh.

(xv) 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.

(xvi) Where any expenditure is dependent on finance from outside the State like
Government of India, NABARD , JICA etc., estimates should be based only on the
last year’s actual release to State of Telangana Districts 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.

(xvii) 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 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.

(xviii) The Departments are requested to send proposals for Revised Estimates 2014-15
Budget Estimates 2015-16 rounding of the figures to the nearest thousand of rupees
against each sub-detailed head.

(xix) The Heads of Departments are requested to send their proposals promptly particularly
in respect of recoveries of loans 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.

13. All Heads of Departments and other Estimating Officers are therefore requested to furnish the Budget Estimates in the proforma provided on-line by 09-01-2015 as the latest to the concerned Budget Estimate Sections (EBS) through Finance Department Portal and also in CFMS Portal.

14. On-Line Submission: RE 2014-15 and BE 2015-16 sought for through this orders 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://finance.telangana.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 from 24-12-2014.
• Please Log-in using the User-ID and Password. Please enter them correctly and Login
into application.
• A menu item “Budget Proposals 2015-16” 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.
• All formats of Non-Plan and Plan needs to be filled in by the Secretariat Departments.
• 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.

15. Online Submission through CFMS MODULE
The Government is in the process of operationalizing Comprehensive Financial Management System (CFMS) in order to establish state-of-the art IT applications for effective public financial management, for providing seamless and dynamic interface with all stake holders and facilitate realtime resource management, both financial and human. The CFMS will usher in automation of all government processes relating to preparation of budget, release of funds, incurring of expenditure, processing of bills by the DDOs and the Treasuries, preparation of accounts maintenance of electronic data, etc.

16. In order to implement Budget Preparation Modules the Government has decided to collect the online Budget Estimates from the HoDs through CFMS portal in addition to the regular Finance Department Portal as a parallel run. Hence, all the HoDs are directed to submit their Budget Estimates through CFMS Module in addition to Finance Department Portal.

17. Steps involved in preparation of Budget Estimates:

1. Logon with the Comprehensive Financial Management System (CFMS) portal at
URL:https://cfms.telanganafin.gov.in with user ID, Password used for number
statements uploading.

2. Go to the Budget Management → Budget Preparation → Budget Forms.

3. Then, Click on “Show” button to view the particular form along with Heads of
Accounts applicable. (All the Heads of Account details will be displayed as per the
Details stored in CFMS database).

4. After entering the Budget Estimates on the screen, click on the “Save” button to save
the changes.

5. After saving the Estimates, Click on “Submit” button to approve/submit the final
Estimates to Administrative Department of Secretariat.

18. For any assistance/help/clarification in using the CFMS for validation of Employee data,
preparation of Number Statements the HODs may contact the Help Desk Team.

1. 7032929310 6. 9951574888
2. 7032929311 7. 8142567304
3. 7032929312 8. 9052574327
4. 7032929313 9. 9160376973
5. 7032929314 10. 9573531581

19. The CFMS portal data entry is being done this year as trial basis, so that all departments
became familiar interface. From next fiscal year onwards, CFMS interface only would be used.

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF TELANGANA)
V. NAGI REDDY
PRINCIPAL SECRETARY TO GOVERNMENT