Railway Accounts Department Examinations

Showing posts with label Re-appropriation. Show all posts
Showing posts with label Re-appropriation. Show all posts

Monday, December 12, 2022

Reappropriation / Redistribution


Re-appropriation / Redistribution Rules

By Nageswara Rao M 949243260

Definition:  


  • The transfer of funds,


  • Originally assigned for expenditure on a specific object


  • To supplement the funds sanctioned for other objects. 

 

  • New word for Reappropriation is Redistribution



In Simple:


Father gave money Rs. 1000 to son to go for a Picnic.  Bifurcation of Rs. 1000:

Rs. 300 for transport, Rs. 300 for Food, Rs. 300 for accommodation and Rs. 100 for miscellaneous.


However the son is permitted to re-appropriate the amount as per his needs (within the bifurcated figures)  i.e., From Food to Miscellaneous.  But he can’t  reappropriate beyond the permissible amount and requirements. 


Object: 


  • The whole object is to ensure that, as far as possible,


  • funds which are not required are withdrawn from disbursing officers as soon as it is definitely known that they are not required,


  • and incidentally to provide that any really unavoidable expenditure is met from such savings as far as  possible.







Salient Features:


  • Codal Provisions:  375F to 381F


  • Important administrative tool in the hands of the executive in budget execution, without going to Parliament on trivial issues.


  • Prior Finance Concurrence is required.


  • Annexure I of Appropriation Accounts – deals with the irregular Re-appropriations


  • Should not be randomly / unsystematically


  • Administration should review the position as a whole at intervals and carry out necessary re-appropriations. 


  • The whole object is to ensure that, as far as possible,


  • funds which are not required are withdrawn from disbursing officers as soon as it is definitely known that they are not required, 


  • and incidentally to provide that any really unavoidable expenditure is met from such savings as far as possible.


  • Save for Budgetary review periods, re-appropriations are open throughout the year. 


  • Sanction Order of re-appropriations should be generated from Budget VPN (Virtual Private Network) or VeRBS – VPN enabled Rail Budget System through reappropriation Module only, so that changed funds position gets reflected in the system.



  • PAC and C&AG are critical of large scale re-appropriations and frequent re-appropriations as they tend to undermine Parliamentary Authority over Railway finances. Hence it needs to be justified with reasons.


  • Funds cannot not be reappropriated to a work not having administrative approval and technical sanction •of competent authority.


  • Amount reappropriated to any work shall not exceed the sanctioned cost of that work. 


  •  Re-appropriations cannot be done against the outlay and during the currency of 'Vote on Account' allotment.


  • No reappropriations may be done after the issue of RE/RG. Urgent requirements, if any, may be projected at the supplementary stage in February and/or Final Estimates in March.


  • Any number of Re-appropriations are permitted, but no re-appropriation can be done to restore funds withdrawn during the year.  


  • These relaxations vary from year to year and are communicated through Spending Limit orders.    


  • When orders are issued by the Railway Board authorizing the railway administrations to incur expenditure to a certain extent over and above the allotment sanctioned for them, they should be taken as "expenditure orders" as distinct from "Budget orders".


  • No cognizance of these orders should be taken while sanctioning re-appropriations or in distributing the sanctioned allotment over the various sub-heads.









Railway Board - Re-appropriation Powers

Allowed


Not allowed

From

To


From

To

One Sub Major Head 

Another Sub Major Head 


Revenue 

Capital

One Plan Head 

Another Plan Head


Capital

Revenue

One item under Bulk orders of Plan Head 21 - Rolling Stock

To another item under Bulk orders of Plan Head 21 - Rolling Stock


Voted

Charged

National Projects or Projects of National importance


Charged 

Voted

Works involve Material Modification of Rs. 2.5 Crores and above during the current financial year


One Source of Finance (i.e. between Capital, Railway funds, Railway Safety Funds, Rashtriya Rail Sanraksha Kosh, EBR(IF) , EBR(IRFCBonds) etc.) 

Another Source of Finance (i.e. between Capital, Railway funds, Railway Safety Funds, Rashtriya Rail Sanraksha Kosh, EBR(IF) , EBR(IRFCBonds) etc.) 

  • Under EBR Works (except EBR (IF)


One Civil Grant (SBF, HBA, PC)

Another Civil Grant (SBF, HBA, PC)

Under works executed by RVNL


One Major Head

Another Major Head 




After 31st March



One Railway Fund to another Railway Fund ( like DRF, DF, SF etc)





























Zonal Railways - Re-appropriation Powers

Allowed


Not allowed

From

To


From

To

Revenue: Within the Same Primary Unit under Same Sub Major Head (i.e., Erstwhile Demand)


Revenue 

Capital

  • From One work in Same Plan Head, Same Source finance subject to residual grant being not less than Rs. One thousand

  • To another work in Same Plan Head, Same Source of Finance subject to residual grant being not less than Rs. .  

One thousand.


Capital

Revenue

  • From One work of LAW Book item sanctioned under Pink Book costing Rs.2.5 Crores each (Lumpsum works)


  • To another work of LAW Book item sanctioned under Pink Book costing Rs.2.5 Crores each (Lumpsum works)


Voted

Charged



Charged 

Voted



One Source of Finance

Another Source of Finance



One Civil Grant (SBF, HBA, PC)

Another Civil Grant (SBF, HBA, PC)



One Plan Head

Another Plan Head




One item under Bulk orders of Plan Head 21 - Rolling Stock

To another item under Bulk orders of Plan Head 21 - Rolling Stock




National Projects or Projects of National importance




Works involve Material Modification of Rs. 2.5 Crores and above during the current financial year




  • Under EBR Works (except EBR (IF)




Under works executed by RVNL




After 31st March

Zonal Railways


  • All proposals for Re-Appropriation of funds which are beyond the GM's Powers shall be submitted to the Railway Board sufficiently early to admit of action being taken before the close of the year.

  • Revenue  - DRM & PHOD are competent

  • Works – GM only is competent.

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