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funds which are not required are withdrawn from disbursing officers as soon as it is definitely known that they are not required,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funds which are not required are withdrawn from disbursing officers as soon as it is definitely known that they are not required,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