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Bhubaneswar, Oct 3: On the wake up likely shortfall in revenue receipts during the current financial year, the supplementary statement of expenditure will be an adjustment budget without any substantial increase in expenditure provisions, a Finance department communication said. Supplementary state of expenditure or supplementary budget enables the government to incur additional expenditure over and above the budgetary provisions.
“There may be overall shortfall in realisation of revenue receipts. Accordingly, it would not be possible to make substantive provision under any unit in absence of adequate resource back up,” the department said.
“Hence, this Supplementary Statement of Expenditure, 2015-16 is proposed to be purely an adjustment budget in which the administrative departments would be allowed to augment the provision in one unit only by locating equivalent savings in some other unit of expenditure,” it added. Supplementary budget is likely to be presented before the state assembly for its approval in November.
On revenue realisation, the department said unevenness in resource realization, delinking eight Centrally Sponsored Schemes (CSS) from central assistance and discontinuance of the state specific and sector specific grants pose uncertainty over meeting the set revenue receipts targets.
The department also said that as under the cash management system, departments are required to spend 60 per cent of budget provisions by December, 2015; no substantive increase in expenditure will be allowed if actual expenditure is less than 30 per cent. “Proposal for substantive supplementary provision shall not be provided to any department in which actual expenditure (not release) by the end of September, 2015 is less than 30 per cent of the budget provision,” the department said.
Finance department also observed that the total amount surrendered was substantial in previous years, some time even more than the supplementary provision. “During 2012-13, 2013-14 and 2014-15, amount surrendered under state plan were Rs 2,854.04 crore, Rs 1,701.53 crore and Rs 10,469.65 crore compared to supplementary provision of Rs 2,677.21 crore, Rs 2,809.85 crore and Rs 1,494.82 crore respectively. Such large scale surrender of supplementary provision is adversely commented upon by the C&AG year after year,” it noted.
Therefore it has been directed that proposals should be based on actual need. “Therefore supplementary proposal should not be prepared in a routine manner; but should receive personal attention of the concerned estimating and controlling officer so that the proposals are based on actual need and should commensurate with their actual spending capacity,” it added.
