Finance Dept draws new guidelines for fund drawal in view of ECI's code of conduct
Source: Hueiyen News Service

Imphal, March 13 2014 : The State Finance Department has issued new guidelines for drawal of funds keeping in view of the model code of conduct announced by the Election Commission of India (ECI) and the need to streamline sanction and drawal of funds at the fag end of the financial year 2013-14 .

In this regard, an office memorandum was issued by Additional Chief Secretary (Finance) of State Government RR Rashmi yesterday. According to the office memorandum, the departments concerned should accord sanction and deposit the entire amount in MH-8449-OD (in respect of non-engineering departments) and MH-8443-CD (in respect of engineering departments) for works, schemes and activities under SPA, scheme-wise ACA, NEC, NLCPR and 13th FC Grants classified as Plan grants.

However, payments can be made for ongoing works.

In respect of funds earmarked as State's share of CSS/CPS/SPA, the entire budgeted amount should be sanctioned and deposited under MH-8449-OD, provided the corresponding central share has been released.

However, for those schemes for which the central share have not been received, the budgeted amount should be surrendered by the department concerned and indicate the savings to the State Finance and Planning Department.

The memorandum further mentioned that for civil works which are budgeted under Plan (unearmarked portion), non-engineering departments should draw the sanctioned amount on AC bill for deposit to the work agency concerned.

In respect of the engineering departments and non-engineering departments (for which work would be executed by State engineering departments), the entire sanctioned amount should be deposited under MH-8443-CD.However, payments can be made for ongoing works.

For beneficiary oriented scheme under Plan, the departments concerned should accord expenditure sanction as per DFPR and deposit the entire amount under MH-8449-OD.This should be applied to all cases even where selection of beneficiaries has been completed.

While for fresh works or activities taken up under CSS, CPS and 13th FC Grants categorized under Non-Plan, sanction may be accorded if funds have been received and authorized during the current year.

In other cases, the departments concerned should surrender the budgeted amount and indicate the savings to the State Finance and Planning Department.

In cases where the funds have been received from the Centre but are either not authorized or not sanctioned, the amount should be authorized by the Finance Department in the next financial year strictly based on indication of savings/surrender by the department concerned and the Treasuries certifying the non-drawal/utilizations of the funds.

The memorandum further said that the Finance Department should give AC drawl permission including in cases requiring deposit to work agency or MH-8449-OD while concurring to expenditure sanction.

All department should mention the same in the body of the sanction order on the basis of specific UO Number given by the Finance Department at the time of concurrence to the expenditure sanction order and refer to the relevant UO Number of the Finance Department according to such permission.

For sanctions not requiring concurrence/authentication by Finance Department as per the DFPR, the existing system of issue of AC drawal permission by Finance Department should continue.

Further, the PIB proposals which are funded out of SPA/ACA only should be submitted to Finance Department immediately.

The memorandum also mentioned that no encashment permission proposal should be entertained by Finance Department if expenditure sanction was accorded on or after March 5 except for payments for ongoing works and non-scheme/non-project related payments.

The HODs and Treasury Officers/STOs concerned have been ordered to ensure strict compliance of the guidelines with immediate effect.

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