Guidelines on expenditure management & economy instructions - VAT - Delhi - F. No. 3(12)/Fin(T&E)/08-09/jsfin/90

Guidelines on expenditure management economy instructions Government of National Capital Territory of Delhi Finance Department, 4th Level, 'A' Wing, Delhi Secretariat, New Delhi-110113 F. No. 3(12)/Fin(T E)/08-09/jsfin/90 Dated: 20.02.09 Sub: - Guidelines on expenditure management economy instructions. Attention is invited to OM No. 7(1) E.Coord/2008 dated 5th June 2008 circulated by the Department of Expenditure, Ministry of Finance, Government of India to all departments on the above mentioned subject. It may further be noted that in the current year the revenue growth has been less than the expectation, thereby leading to a shortfall in resources of about Rs. 1300 Crores. By the end of January 2009, we have reached about 76 % of expenditure of the Plan Outlay of Rs. 10000 Crores in the current year. It may be noted that due to better management of expenditure, bulk of the plan expenditure has been utilized by achieving a more even level of expenditure through the year. However, individual departments may also take care to avoid rush of expenditure in the month of March. 2 In view of the anticipated shortfall in receipts, the matter has been reviewed at the level of the Government and it has been decided that economy instructions should be reiterated, particularly with reference to the following: a) Proposals for foreign visits, for purchase of vehicles, equipments and furniture and for entertainment through lunches/dinners will be considered strictly on merits. Preference may be given for purchase of CNG driven vehicles. b) Expenditure on advertisement should be rationalised. Advertisement expenditure on tenders may be reduced through e-tendering. c) Disposal of obsolete and condemned vehicles, equipments and materials may be done, to get the best salvage value at the earliest through invitation of offers for disposal on 'as is where is basis' and e-auctioning. d) It has been observed that some departments obtain approval for some of the expenditure in the last month of the financial year, but are unable to utilise the sanctions during the year. Consequently they send proposal for revalidation of expenditure in the next financial year. To avoid such cases of multiple file movements, departments are advised to phase out their expenditure to the next financial year, instead of rushing through in the month of March. e) Departments may pursue sanction of funds from Govt. of India under Centrally Sponsored Schemes, Central Road Fund and Additional Central Assistance like under JNNURM. Identification of projects for external finance and public private partnerships may also be pursued, in order to mobilize extra budgetary resources. f) Small schemes with little economic impact and small outlays (under Plan as well as Non-Plan) may be subjected to zero-based budgeting and committed expenditure may be shifted to Non-Plan side, if necessary. g) All transactions must be made through electronic fund transfer so as to simplify and speed up the transactions. h) Keeping in view the fund flow in the Government, commitments to new projects and items of expenditure will be carefully scrutinized in Finance and Planning Departments. Departments are advised to reprioritise their proposals by giving priority to the completion of the ongoing projects and works as well as Common Wealth Games Projects/Works. They may defer their new proposals appropriately, which could be taken up in due course. Sd/- (V.V. BHAT) PR SECRETARY (FINANCE) To all concerned All Pr. Secretaries/Spl. Secretaries/Addl. Secretaries/HODs Govt. of NCT of Delhi, Delhi/New Delhi Heal of all Local/Autonomous Bodies/Public Undertakings, Govt. of NCT of Delhi