APPENDIX XI

 APPENDIX 11

(See Paragraph 67)

SYSTEM OF APPROPRIATION CONTROL

സാധാരണയായി ചോദ്യങ്ങളൊന്നും ചോദിച്ചുകാണുന്നില്ല. 

Abstract

Budgetary control—Regulation of expenditure with

reference to Appropriation—Procedure to be

followed in Treasuries—Orders issued

FINANCE DEPARTMENT

G. O. (P) No. 49/74/Fin. Dated, Trivandrum, 1st March 1974.

ORDER

At present there is no independent check in the Treasuries regarding the availability of
appropriations before a bill is passed for payment. Instances of expenditure incurred without budget
provision or in excess of budget provision have come to the notice of Government and the Public
Accounts Committee. Since such irregularities come to notice after the event, Government can at best
take disciplinary action against the officers concerned as a deterrent to repetition of such irregularities.
The question of streamlining the Treasury procedures with a view to guard against excess drawals by
department has been under the consideration of the Government. Excess drawals can be effectively
checked only if the Treasury could make an independent check of the availability of budget provision.
With this end is view, Government are blessed to issue the following orders:—
(i) Paragraph 68 of the Budget Manual enjoins on the Chief Controlling authorities to distribute
the appropriation among his subordinate Controlling Officers who in turn will distribute it among the
disbursing officers. This should be done as soon as the budge is passed, and in any case not later than
20th April. The provision for certain items like pay and allowances is, however, retained by the Chief
Controlling Officers and the progress of expenditure is watched through monthly statements of
expenditure from the subordinate officers. With the recasting of budgetary and accounting heads from
1974-75, the distribution of provision and the booking of expenditure have to be done with reference to the mew units of appropriation. The Heads of

Departments and other Chief controlling authorities will, within the time limit prescribed in the Budget

Manual, distribute the provision to the extent necessary under each unit of appropriation given in the

Annexure to this Order among their subordinate officers each of whom will further distribute the

appropriation among the disbursing officers subordinate to him.

(ii) The Controlling Officer immediately superior to each drawing officer will communicate

direct to the Treasury with which the respective drawing officer has got transactions, the allotments

under each unit of appropriation placed at the disposal of that drawing officer. If one drawing officer

has got transactions with more than one treasury, separate allotments for operation at each Treasury

should be made by the concerned superior office, under intimation to the Treasuries.

(iii) In respect of the provision directly operated by the Head of the Department OR the Chief

controlling authority, he should intimate the concerned Treasury the budget allotments at his disposal

with reference to the budget documents to facilitate verification by the Treasuries

(iv) An appropriation Control Register will be maintained in all the Treasuries. This Register

will be maintained drawing officer wise, allotting sufficient number for pages consecutively for each

drawing officer. New Registers will be opened for each financial year. Separate volumes of this

Register may be maintained for each major or sub-major head of account, or groups of major heads,

according to the number of drawing officers. Orders prescribing the form of the register will e issued

separately in consultation with the Director of Treasuries

(v) To enable the treasuries to maintain the appropriation Control Register correctly, the Chief

Controlling Officer should furnish a list of Sub Controlling officers to the respective District/Sub

Treasuries at which the latter are authorised to draw. The Sub Controlling Officers will similarly

furnish a list of drawing officers under their control to the Treasury Officers concerned. Any changes

in the lists once given should be promptly intimated. Each Treasury will maintain a Register of

drawing officers with the names of their Controlling Officers.

(vi) As and when the allotment order is received in the Treasury, necessary entries will b made in the

Appropriation Control, Register under the attestation of a responsible Supervisory Officer. When a bill

is presented for payment at the Treasury, the availability of budget provision to cover the payment will

be checked with reference to the entries in the above register. The progressive total of the expenditure

will be struck after each transaction. In case the balance provision according to the Register is not

adequate to cover the payment, the bill should be returned noting that fact.

(vii) Since the distribution of budget provision among the various drawing officers in the

departments down to the lowest level will be completed only by 20th April, the Treasuries are

authorised to make payments during the month of April pending receipt of allotment orders. The

amounts paid thus should be promptly entered in the relevant columns in the Appropriation Control

Register. But on no account should payment be made in respect of items that ate covered by this

scheme to any Drawing Officer after 1st May unless the allotment order from his Superior Officer is

received in the Treasury.

(viii) If for any reason the allotment letter is lost or destroyed, a duplicated may be issued

indicating boldly in red ink “Duplicate”. In such cases, the Treasury Officers will take special

precaution to avoid duplicate entries in the Appropriation Control Register.

(ix) Disbursements relating to salaries, wages and pensions will be exempted from the purview

of the above scheme. “Salaries” include all emoluments paid to Government employees but exclude

travelling allowance, permanent travelling allowance and permanent conveyance allowance. Wages

include pay of menials and other contingent staff.

(x) The expenditure on P.T.A. and P.C.A. has to be debited ti the detailed heads “Travel

Expenses”. At present these amounts are drawn along with salary. From first april 1974 the claims

relating to P.T.A. and P.C.A. will be preferred separately in T.A. bills as ti facilitate the correct booking

of expenditure under “Travel Expenses”.

(xi) The Drawing Officers will prefer the claims relating to each unit appropriation mentioned in

the Annexure separately

so that the Treasuries could check up the availability of provision before making payments.

(xii) If a Drawing Officer has to separate funds provided under different major heads and/OR

controlled by different Controlling Officers, separate allotment orders relating to the provision under

each major head will be issued by the respective Controlling authorities.

2. The system of appropriation control by the Treasuries outlined above will be introduced in respect

of the following departments from 1st APRIL 1974.

(i) Health Services

(ii) General Education

(iii) Collegiate Education

(iv) Technical Education

(v) Industries & Commerce

(vi) Agriculture

(vii) Medical colleges

(viii) Indigenous Medicines

(ix) Community Development

(x) Animal Husbandry

(xi) Dairy

(xii) Co-operation

(xiii) Harijan Welfare

(xiv) Land Revenue AND

(xv) Police

3. The Director of Treasuries will issue necessary detailed instructions to the Treasury Officers to

ensure effective implementation of the Scheme

4. A review of the scheme will be made towards the close of the financial year 1974-75 and its

coverage extended to other department. Any modification found necessary in actual working of the

Scheme, by the Director of Treasuries OR by any Head of Department may be suggested in due course.

5. Necessary amendments to the relevant Codes will be issued separately.

By order of the Governor,

P. VELLAYUDHAN NAIR,

Special Secretary to Government

(Finance).

To

The Accountant General, Kerala, Trivandrum

All Heads of Departments and Offices

All Officers of the Government Secretariat

All Departments and Sections on the Government Secretariat

The Superintendent of Government Presses, Trivandrum

The Registrar, High Court, Ernakulam (with C.L.)

The Secretary to Governor

The Director of Treasuries, Trivandrum.