Un-utilized funds to lapse on Dec 31
Excelsior Correspondent
JAMMU, Oct 16: The State Government today came out with series of reforms pertaining to expenditure especially during last quarter of current financial year from January 1 to March 31, 2018 and announced that all unutilized funds over and above 30 per cent of the budgeted amount will be automatically forfeited and won’t be allowed to be used for any other purposes after December 31, 2017.
The reforms announced today by the State Government said that all powers related to re-appropriation and re-distribution of funds vested in the Administrative Departments, Head of Departments (HoDs) and Drawing and Disbursement Officers (DDOs) have been withdrawn.
“All the un-utilized funds over and above 30 per cent of the budgeted amount on both Revenue and Capex side as on December 31, 2017, shall be automatically forfeited and will not be allowed to be used for any other purposes,’’ the Government order said.
It added that only 30 per cent budget allocation on both Revenue and Capex side will be allowed for utilization during last quarter of current financial year i.e. from January 1, 2018 to March 31, 2018.
This, according to official sources, has been done to ensure that there were no financial irregularities during last quarter of the financial year as earlier it was seen that maximum budgetary allocations were spent during this period and that two in the last month of last quarter i.e. March.
It may be mentioned here that the Finance Department had for the first time in fiscal history of Jammu and Kashmir, released 50 per cent of this year’s budget allocation to all the Departments in February 2017 i.e. nearly two month before the start of the financial year to ensure timely execution of developmental works.
While allowing only 30 per cent expenditure during last quarter of the financial year, the Government has fixed limit of expenditure for the month of March to only 15 per cent of the budget estimates.
“All powers related to re-appropriation and re-distribution of funds vested in the Administrative Departments, HoDs and DDOs have been withdrawn and any proposal for re-appropriation will be considered on merits in the Finance Department only in respect of savings to be utilized for authorized pending work done liabilities, salary shortfalls etc,’’ the Government order said.
It added that payments in the last month will be made only for goods and services already procured and no amount will be release in advance except for making payments to contractors under terms of duly executed contracts so that Government would not renege on its legal or contractual obligations or any other exception case with the approval of the Finance Department.
“Rush of expenditure on procurement should be avoided during last month of the year so as to ensure that all procedures are complied with and there in no infructuous or wasteful expenditure,’’ the order said and advised Director Finance/Financial Advisors to specifically monitor this aspect in their respective Departments.
The order said proposals of Advance Drawl, Revalidation, Authorization etc, if any, pertaining to financial year of 2017-18 will be submitted to the Finance Department well before February 28, 2018.
“No such proposal will be entertained by the Finance Department after February 28,’’ it added.
The Government order said proposals for parking of money in ‘Civil Deposits’ in order to avoid lapsing of funds will not be entertained and processed.
“Issuance of ‘Hundies’ has already been banned. The Departments are advised not to move any proposal in this regard,’’ it added.
It directed that the Treasury Officer will not entertain any bill/cheque for payment after working hours on March 29, 2018 pertaining to the financial year of 2017-18 and all DDOs have been advised to plan their bill presentations accordingly at the treasury.
“Under circumstances, any Bill in respect of financial year 2017-18 will be received in the treasuries on the last two working days i.e. March 30 and 31, 2018, the date on which only payments will be made and accounts reconciled,’’ the order said.
It called upon the Administrative Secretaries to effectively supervise as they will be responsible for ensuring compliance of the measures listed today by the State Government.
“The Financial Advisors will assist the respective Departments in securing compliance with these measures and also submit regular report to the Finance Department,’’ the order said.
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