Advance Planning for Making Expenditure in Next FY
Government of West Bengal
Finance Department
Audit Branch
Nabanna, Howrah-711102
No. 222-F(Y) Dated, the 10th January, 2018
MEMORANDUM
Sub: Advance planning for making expenditure in the next Financial Year
It has been observed that more than 50% of the total expenditure is incurred during the last quarter of the FY even though 33% and 75% of the Plan Budget are being released on 1st April and 1st September of the FY. The reason for lopsided expenditure is that the main working season of the FY viz. April-June (1st Quarter) is utilized for planning, identification of schemes, according administrative sanctions, preparation of Detailed Project Reports and completing tender formalities. By the time these formalities are completed the monsoon sets in making it difficult to start the work till September/ October leading to actual expenditure only in the last 2 quarters even though funds were available earlier.
To ensure timely execution of different works an advance planning by the Departments is essential. The Departments more or less have a fair idea of their possible allocation in next FY. Therefore, the last quarter of a FY can be utilized for preparatory works including floating of tenders so that work orders can be issued in the first week of April of the next FY.
Therefore, the Departments should complete advance planning of works to be executed in next FY including administrative approval and financial sanctions (except release of funds), DPR, tender formalities, etc. However, issuance of work order and release of fund can only be done after getting release of next year Budget by the Finance Department i.e. after 1st April.
The Department should further ensure that the cost involved in the projects/schemes put to tender is within their expected budgetary allocation of the next FY (keeping the current Year’s BE as the point of reference) and factoring in the committed liabilities on account of continuing Schemes which will be carried over to the next FY.
The Departments may likewise empower Parastatals/ Local Bodies/ Corporations under them to take up a similar exercise.
Additional Chief Secretary
to the Govt. of West Bengal
Finance Department