Facility in AAFS for Re-Phasing of Projects Exceeding the Budget Provision
Inadequate project planning may lead to increased project life cycle, cost overrun, sub optimal resource utilisation, Project failure and consequently may adversely affect the fiscal management and achievement of the overall goals of state.Government of West Bengal
Finance Department
Audit Branch
Memo. No. 308-F(Y) Date: 17th January, 2020
Sub: Facility in AAFS for re-phasing of projects which have exceeded the budget provision in this FY
1. The Administrative Approval and Financial sanction (AAFS) module has been rolled out in IFMS from the Financial Year 2019-20 vide memo no 2131-F(Y) dated 05.04.2019.
2. However, due to presence of huge legacy projects of earlier years, it has been observed that the project phasing under certain heads of accounts of some departments are exceeding the current year’s net budget provision. This has resulted in non-availability of requisite budget for implementation of important projects of the State.
3. Inadequate project planning may lead to increased project life cycle, cost overrun, sub optimal resource utilisation, Project failure and consequently may adversely affect the fiscal management and achievement of the overall goals of state.
4. In the earlier years the departments were unable to plan Projects rationally according to the Budget provisions due to non-availability of efficient tool or system at their disposal. Considering the above, Finance Department has decided to provide a facility in the AAFS module by which departments will be able to do project planning and fiscal management in the following manner:-
i. Departments may kindly reduce the current year’s total phasing (current years committed liability of legacy projects and new projects) under each particular HoA within the limits of current year’s budget provisions. This exercise should be completed by 31.01.2020. No new Project should be allowed under over committed HoA by the Finance Department and the Financial Advisors in this FY until such exercise is completed.
ii. Departments would also bring down all future years’ phasing of already created Projects within one and a half times of Net budget of 2019-20 (considering current year budget as provisional budgets of all coming years). As a result of such exercise if any budget provision remains unutilised in coming years, the same may be utilised for undertaking new projects in that year.
iii. Projects which were created in AAFS but presently seems to be non-feasible or untenable may be closed from AAFS module to unblock funds which can be utilised in Projects with higher priorities.
5. There shall be an upper limit in AAFS for total Administrative Approval of current year and advance Administrative Approval for next year. It would help Departments to initiate advance projects at fag end of each year. The upper limit of Administrative Approval and detailed guidelines would be notified by separate Government order subsequently.
6. All Departments may be requested to complete their Ongoing/ Legacy Project entry within 31.01.2020. It would help departments to freeze their legacy project budget requirements. For the sake of prudent project management, thereafter the provision for entry of legacy projects by the Departments in AAFS module will be deactivated.
7. All Departments are requested to mobilise the cells dealing with budget matters, Financial Advisor of the Department concerned and other suitable officers as decided by the Department to start the project re-phasing process immediately.
8. The Administrative Departments are requested to provide a feedback to the Finance Department about Project type and cost wise maximum allowable tenure for different Projects, so as to frame a uniform Project Life Cycle policy applicable throughout the state within 31.03.2020.
Sd/- H.K. Dwivedi
Additional Chief Secretary to
Government of West Bengal