GOVERNMENT OF SIKKIM
FINANCE REVENUE & EXPENDITURE DEPARTMENT
GANGTOK
No.1(2)89-90/Bud/Fin/12 Dated: 24.09.2009
BUDGET CIRCULAR
The following instructions are issued for the guidance of Departments in framing the Budget Estimates for 2010-2011 and rendition thereof to Budget Division:-
ESTIMATE OF RECEIPTS (FORM - I)
The estimates should be worked out based on trend Growth rate & also on policy decisions and other relevant orders. It must include total arrears and outstanding dues to be recovered during the year under report. The possibility of increase in the tax and non-tax revenue and the additional yield anticipated from such revisions / increase has to be projected in detail in column 8 of Form-I. In case any shortfall is anticipated in the revenue realization, appropriate explanation has to be recorded e.g. post-budget decision of the Government, deficiencies in the tax collection machinery and the measures taken thereof by the Department. During the financial year 2008-09 some Departments may not have been able to realize revenue to the extent estimated by them. These Departments have to furnish detailed explanations for shortfalls during 2008-09 and propose measures to bridge the shortfall of the previous year so as to neutralize the deficit in the budget estimates of the current year. The Departments must take urgent steps to increase their revenue commensurate with increase in expenditure.
ESTIMATE OF EXPENDITURE (FORM-II)
The estimates of expenditure may be submitted in the Form-II. In view of reduced quantum of Non-Plan revenue Deficit Grant by the 12th Finance Commission for the period 2005-10 and uncertain above the grant being recommended by the 13th Finance Commission, it has been decided that no increase in provision under “Direction and Administration” will be allowed except under “Salaries” Since the recommendation of the 4th Pay Commission has been accepted by the State Government with some modification, nominal Rolls may be prepared based on revised pay and allowances. The arrears on account of salaries may be submitted in the prescribed Appendix II for inclusion in the Demands for Grants -2010-11.
Consolidated estimates of expenditure under “Salaries” have to be framed separately for Plan and Non–Plan duly certified by Heads of Departments. While calculating Salaries, basic pay on revised scale should be as on 1.4.2010 with D.A @ 27%. In addition 15% of total of Column 10 of Appendix I may be added to the gross amount to cover expenses on account of increase in D.A., Leave encashment, Medical expenses etc. In case of big Departments like Human Resource Development, Nominal Rolls may be segregated District wise, Sub-division wise, Institution wise etc. No provision should be proposed for posts lying vacant for one year or more. Provision for vacant posts should be made with circumspection so as to avoid savings due to non filling up of the posts. A separate CONSOLIDATED Statement i.e. ONE STATEMENT FOR EACH DEPARTMENT should be prepared showing total strength in Appendix III. The figures in the Statements should be accurate since the data needs to be included in the Demands for Grants for the financial year as per Recommendations of 12th Finance Commission. All Departments must submit statement of existing strength of Muster Roll employees and Regular Work-Charged establishment separately under Plan and Non-Plan as per Appendix V and VI.
The expenditure on encashment of unutilized leave at the credit of government employees at the time of retirement/death/termination is classified under the Head “2071-Pension and other Retirement Benefits 01-Civil 115-Leave Encasement Benefits” under demand No. 10 and operated by the Pension Section of the Finance Revenue & Expenditure Department. All Departments must submit a separate detailed estimate of funds required under this sector to the Additional Director, GPF/Pension, who will submit a consolidated statement of the total amount required to be provided in the budget of the Pension Section, of Finance, Revenue & Expenditure Department.
A Statement showing Subsidies (Explicit) released by the Departments since 2006-2007 to 2008-09 (Actuals) Budget Estimates & Revised Estimate for 2009-10 and Budget Estimates for 2010-11 may be prepared separately. These may have to be included in the State Budget.
The Works Departments and the Departments operating Stock Suspense/Civil Deposits etc. should furnish a separate statement of the estimated receipt and expenditure under “8443-Civil Deposits”, Imprest Balance and Suspense Stock under the relevant Major Head showing, i) Opening Balance as on 1.4.2009 ii) the transaction during the year, iii) closing balance, to enable the Finance, Revenue & Expenditure Department to ascertain the factual positions.
Some of the Departments may find it necessary to operate new heads of accounts in the Demands for Grants. Proposals for creation of new Heads may be submitted in the proforma prescribed, as this requires approval of the Accountant General, Sikkim. The following statements should invariably accompany the Budget proposals: -
Form – I - Estimate of Revenue Receipts
Form – II - Estimate of Non –Plan Expenditure
Appendix - I - Nominal Roll (Non – Plan/Plan)
Appendix -II - Estimates of arrears due to pay revision
Appendix – III - Establishment Strength
Appendix – IV - Leave Encashment (to be submitted to the Additional Director, GPF/Pension Section)
Appendix –V - Muster Roll details
Appendix – VI - Nominal roll other than regular employees (Work-charged establishment, Ad-hoc, Co-terminus, Consolidated, etc)
Appendix – VII - Motor Vehicles
Appendix – VIII - Stock Suspense/Civil Deposits
Abstract of the details of Appendix I, II, V and VI expenditure head wise also needs to be submitted. Separate forms have been enclosed for each of these forms and appended as Appendix I (A), Appendix II (A), Appendix V (A) and Appendix VI (A) respectively.
The Budget forecast must be presented in the formats prescribed by the Finance Revenue & Expenditure Department. No proposals shall be accepted if found not in conformity with guidelines issued by the Finance, Revenue & Expenditure Department. The budget proposals must be submitted in book form in the standard A4 size paper. APPENDIX I, II, III, V and VI be submitted in a separate folder for Plan & Non-Plan.
The proforma duly completed should be submitted in duplicate to the Finance Revenue & Expenditure Department, Budget Division latest by 24.10.2009 through the concerned Head of the Department. The schedule of discussions has been proposed from the last week of October 2009 and the same will be notified in due course. Departments are requested to issue similar guidelines to the Autonomous Bodies/Organizations/Offices under their administrative control to submit the proposals through them and the same to be included in their budget proposals. Finance Revenue & Expenditure Department will not entertain budget proposals of Autonomous Bodies/Organization/Office directly.
The Budget Circular along with the forms can be downloaded from the internet in the State Govt. website http://www.sikkim.gov.in/asp/budget.php. The soft copy of all the statements can also be sent by e-mail to budgetfred@gmail.com.
(S. D. Pradhan)
Additional Director (Budget)
Copy to:-
- All the Secretaries/ Heads of Departments
- The Registrar General, High Court of Sikkim, Gangtok.
- The Member Secretary, State Legal Service Authority.
- The Secretary, Public Service Commission
- The Principal Director, Treasury, Pay & Accounts Office, Gangtok.
- The District & Session Judges East/ North & south/ West
- The Principal Director, Internal Audit
- The District Collector, East/ West/ North & South
- The Deputy Secretary, Finance Rev. & Expenditure Deptt.
- All Drawing & Disbursing Officers.