Section 3 in Delegation of Financial Powers Rules, 1978
3. Budgeting.
(1)Finance Department will indicate in advance the ceilings of committed expenditure for various Departments under different Major Heads. The provisions in the First Edition Budget in respect of schemes which have continued for more than two years will be admitted by the Finance Department on the basis of past actuals as reported by the Controlling Officers and the Accountant-General, with such trend increases and other adjustments as considered necessary.[Controlling Officers should, however, indicate the items of non-recurring expenditure proposed to be incurred with sufficient jurisdiction. Provision for loans shall be made only through New Demand Schedules for which adequate justification with necessary details should be furnished. In case of revenue earning non-plan schemes, details of anticipated receipts, where the amount exceeds Rs. 50,000 should be given indicating the basis of calculation and explaining short-falls, if any.](2)Files relating to continuing non-plan schemes which have been in operation for less than two years will be sent to the Finance Department for pre-Budget scrutiny and concurrence in the individual proposals.(3)On receipt of the First Edition Budget and the files referred to above, Finance Department will examine the same and prepare consolidated Budget slips by Major Heads as far as possible, on points where clarification is needed. Copies of these consolidated slips will be sent to the Administrative Departments and the Heads of Departments concerned. The matter will be finalised and necessary provision will be admitted by the Finance Department as far as possible, after discussion with representatives of the Administrative Department and the Heads of Departments instead of through correspondence. In case any point remains unsettled, the same will be noted and examined before issue of expenditure sanction.(4)The planning and Co-ordination Department will indicate in advance plan ceilings for various Departments under different Heads/Schemes. On receipt of intimation from the Planning and Co-ordination Department, the Administrative Department will get their budget proposals for Plan Schemes scrutinised by a Committee consisting of the Secretary of the Department the concerned Head of Department. Financial Adviser of the Department and a representative each of the Finance and the Planning and Co-ordination Department. Proposals relating to Central Sector Schemes will also be scrutinised by the Committee. The proceedings of the Committee signed by the members will be forwarded to the Finance Department and Planning and Co-ordination Department. On the basis of the proceedings of the Committee the Administrative Department will furnish new demand Schedules to the Finance Department Supplementary instructions in the matter will be issued by the Financial Department from time to time.(5)Budget provision will ordinarily be considered for works projects for which administrative approval has been accorded, other cases may be considered by the Finance Department on merit.(6)No lump sum provision shall ordinarily be made in the Budget except for works costing less than Rs. 10 lakhs. For making lump sum provision, however, estimates shall not be split up to keep expenditure below the monetary limit of Rs. 10 lakhs to avoid separate exhibition. Where works originally estimated to cost less than Rs. 10 lakhs exceed the limit during the course of execution, budget provision shall specifically be made for each such work as early as possible.
