Section 5 in The Rules for Payment of Grant-in-Aid to Non-Government Allopathic Institutions & Red Cross Societies, 1970
5. Assessment of Annual Recurring Grant.
(a)Annual recurring grant will be given on the basis of the approved recurring expenditure of the previous year as stated in Col. No. 3(i) and allowing for the annual increment of the staff of the institution.(b)Approved expenditure shall be arrived at according to Rules and such other instructions that may hereafter be issued from time to time by the Director.(c)For annual grants the Institutions should submit alongwith the annual audited statement showing expenditure against each items in the preceding three years (including the year of the audited accounts). Any abnormal increase under any detailed head (increase exceeding 5%) should be explained in a explanatory note which should accompany such statement.(d)Save otherwise provided no expenditure on repairs of building for which rent is claimed is admissible for grant-in-aid as such repairs are to be done by the landlord.(e)Legal expenses are not admissible for grant-in-aid as they are not recurring charges. Exceptional cases should however be referred to the Director with details for orders, regarding the admissibility of the expenditure.(f)Re-payment of loans or the amount transferred to the Revenue Fund is not an expenditure admissible for the purpose of grant-in-aid.(g)The expenditure which is incurred to meet the liabilities of any previous period but included in the expenditure of the year on which the grant is based is not admissible for the purpose of grant-in-aid.(h)In special cases such as when a new Hospital/Dispensary/Maternity Centre/Red Cross Society is started or a new experiment or project undertaken or an institution has to face serious financial hardships/grants may be sanctioned on the basis of the current year's budget estimates provided that if the whole amount of the grant is not spent during the year, the saving shall be recovered from the institution or deducted from the next year's grant.
