paragraphs 83 to 86.

 REAPPROPRIATION

83. Definition.—Reappropriation, as defined in Chapter 11, is the transfer of funds from one unit of appropriation to another. With effect from 1974-75, the detailed heads of account, wherever they occur in the Budget Estimates, are treated as distinct units of appropriation. As such, transfer of funds from one such detailed head to another is also to be treated as reappropriation, and not redistribution.

84. General restrictions.—(1) The power to reappropriate between minor heads within a grant is exclusively that of the Finance Department, and its reserve power to refuse reappropriation is a check on overspending, and it should encourage the departments to be watchful about potential excesses. The power to reappropriate between heads subordinate to a minor head has, however, been delegated to the Administrative Department of the Secretariat and the Chief Controlling Officers mentioned in column 4 of Appendix 9, and, to a limited extent, to the subordinate officers of the Public Works Department and the Public Health Engineering Department (Superintending Engineers and Executive Engineers). This is subject to the following conditions, besides the further restrictions mentioned in the succeeding sub¬paragraphs and any special restriction which may be imposed in individual cases:— 

(i)  The  expenditure  should  be  under  the  general  control  of  the  Administrative

Department  or  the  general  or  direct  control  of  the  officer  sanctioning  the

reappropriation. 

(ii) The reappropriation should not involve the undertaking of a recurring liability, ie., a liability which extends beyond the current financial year.

(iii) It should not be for the purpose of meeting expenditure on an object for which has been made in the Original or Supplementary Appropriation Act for the year, unless the authority competent to sanction reappropriations of this kind (Finance Department has already sanctioned a reappropriation for the same object.

(iv) The reappropriation should not involve transfer of funds provided for Plan schemes to meet non-plan expenditure or funds provided for Centrally Sponsored Plan Schemes. Such reappropriations will, when necessary, be sanctioned only by Government in the Finance Department.

Note.—1.Condition (ii) will not apply, if sanction for undertaking the liability has already been issued, with the concurrence of the Finance Department, and the reappropriation is in pursuance thereof.

2. Conditions (iii) will not apply, if the reappropriation is for meeting expenditure with the Department initially expected to incur during the previous year, but had to postpone to the current year. E.g., expenditure on a work in progress, which the department expected to complete and pay for during the preceding year, and for which, therefore, no provision was made in the Original Appropriation Act for the current year.

(2) No reappropriation is permissible between grants, or between the charged and voted sections or the revenue and capital sections of the same grant or for meeting expenditure on a ‘new service’ not contemplated in the budget estimates for the year. In the case of a sub or detailed head under which a reduction for probable savings had initially been made, savings to the extent necessary to offset the reduction should first be surrendered to the Finance Department, before any amount is reappropriated therefrom. Reappropriation is permissible only when there is a definite or reasonable chance of saving under the unit to be reduced, or it is meant to curtail expenditure under that unit to meet more urgent additional expenditure under another. Reappropriation, as a temporary device, even when there is no likelihood of saving under the unit to be reduced, in the hope of restoring the cut later from savings under other units, is objectionable and irregular.

Note:—1. The amount reappropriated should invariably be a multiple of Rs. 100.

2. If the excess or saving under a unit of appropriation does not exceed Rs. 100, it need not be regularised provided the grant as a whole (revenue portion of capital portion, as the case may be) is not exceeded thereby, and the unit if not one the provision for which had been specifically reduced by the Legislature.

(3) If the appropriation under a unit is reduced by reappropriation or resumption, the expenditure debitable to the unit should be restricted to the reduced appropriation. No authority subordinate to the one which sanctioned the reduction may increase the appropriation in exercise of its own powers of reappropriation, without the prior consent of the authority which reduced the appropriation. If the reduction was ordered by Government in the Finance Department its consent should be sought through Government in the Administrative Department concerned.

85. Special powers of officers of the Public Works and Public Health Engineering Department.— (1) Subject to the restrictions mentioned in the preceding paragraph and in relaxation of the general rule that only the Administrative Departments of the Secretariat and the Chief Controlling Officers listed in column 4 of Appendix 9 may reappropriate between sub-head within a minor head, Superintending Engineers and Executive Engineers of the Public Works Department and the Public Health Engineering Department may, in respect of funds placed at their disposal, sanction reappropriation between heads subordinate to a minor head, provided the amount reappropriated from/ to a single major does not exceed Rs. 25,000 in the case of Superintending Engineers and Rs. 10,000 in the case of Executive Engineers are empowered to reappropriate up to Rs.5,00,000* from one major work to another. Since, under the revised system of accounting introduced with effect from 1st April, 1974, each project is treated as a distinct minor head, the Chief Engineers, Superintending Engineers and Executive Engineers are no longer empowered to reappropriate from one project head to another.

(2) As an exception to condition (iii) mentioned in paragraph 84 (1), the Chief Engineers, Superintending Engineers and Executive Engineers of both departments may reappropriate funds for meeting expenditure on anew minor works, even if no provision for the purpose had been made in the budget, subject to the condition that the cost of such work does not exceed Rs. 2,500.

**Note.—Conditions (iii) mentioned in Para 84 (i) will not apply in the case of distribution/ reappropriation of funds by Chief Engineer to works which are included in the works appendix or specifically authorised to be taken up by competent authority costing less than Rs. 2 lakhs each out of the lump provision in the budget doe such works.

  (3) The powers of reappropriation delegated to the officers of the Public Works Department and the Public Health Engineering Departments are subject to the following further restrictions:—

  (i) The reappropriation should not involve transfer of funds for meeting expenditure on a work or project not yet administratively and technically sactioned by the competent authority.

  (ii) It should no resuit in appropriation of funds in excess of the amount of estimate, if technical sanction has already been accorded.

(iii) Reappropriation will not be effected from provision made for works for which tied assistance is available.

*(iv) Reappropriation will not be made between provisions for works pertaining to different Departments.

*(v) No funds will be provided by reappropriation or by redistribution for works which are not included in the “Works Appendix” or specifically authorised to be taken up by Government.

86. Form of application/sanction for reappropriation of funds.—(1) When a reappropriation is sanctioned, the authority which accords the sanction should draw up its proceedings in Form KBM 22, and forward one copy direct to the Accountant General. Besides, in the case of sanctions issued by the Chief Controlling Officers, two copies of the sanction should be forwarded to Government in the Administrative Department will retain one copy, and transmit the other to the Finance Department.

  (2) In the case of proposals which the Chief Controlling Officers are not competent to sanction, the application for reappropriation (also Form KBM 22) should be submitted, in duplicate, to Government in the Administrative Department. The Administrative Department will accord sanction, if competent to do so, or pass on the application to the Finance Department.

  (3) Separate statements should be prepared in respect of reappropriations affecting the “charged” and “voted” sections and revenue capital portions each grant. The reasons for the variations (excess/saving) should be explained fully and clearly on the reverse of each statement (Form KBM 22), or if, more convenient, in a sheet attached, indicating the quantum of excess/saving attributable to each reason. It should be remembered that the reasons furnished may ultimately have to be incorporated in the Appropriation Accounts, which are examined by the Public Accounts Committee of the Legislature. As such, the authority sanctioning the reappropriation should personally ensure that the reasons given are full, frank, forthright, and specific (i.e., nit in general terms).