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V-!=-of india 4F Government Nlinistryof Raihvayl ,^ . rt ^.|.+,iA '-n<r_nl} (RailwaYBoard) +u*t::^ r.

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Lucknow. Lucknow. R.D.s.o., R.D.S.O., Generat, Director DirectorGeneral,

Vadorlara. Railway Staff College, DirectorGeneral, Director,All CentralizedTraining Institutes/
Chairman, All Railway Recruitment Boards.

cfr-p ""'!lf,\" tJh ":\k)ffi) "'"qk)W) ",,9;T$ffi@a/t4. '*R!]ff ', '"-{i*(/% -V. ^V""'t{h , ^*ffi U*
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& MTP/Chgnnfi, 0 o fir'r rA, d,YT*;{S Works Modernization Diesel Loco C.A.O.(R), 's 0 dt|f;(6tf f*. *;"i
Sub: Expenditure Management- Economy Measuresa Expenditure. I

3l't dated in O.M.No.7(1)E.Coordl2}l2 contained instructions Ministryof Finance's mutatis are applicable instructions These are enclosed. May, 2012 on the above subject
may pleasebe ensured. mtiandis on Railways. Strict complianceof theseinstructions

DA: As above. ' (Jagmohan Gupta) rExecutive D[ector, Finance(Budget)

Copyto: All I 1. FA & CAOs,

contained in the enc 2. Additional Member Planning) - for ensuring strict compliance of the instructions under theMinistryof Railways. containedin the encl ureby all thePSUs 3. Secretary, Railway - for information and necessary action.

- for ensuring of the instructions strictcompliance an Railways

EDF(S),EDF(C), 4. AM(F), Adv. (Fin.),EDA, ED(FX)I,EDF(X)II,EDF(PPP),EDF, EDF(E). ED(PC)r, ED(PC)il

(Jagmohan Gupta) Director,Finance(Budget) Executive

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i No.7(:l)E.Coord/201

of i Government
of Financ i Ministry Dbpartment of Expend re
New , the 31"tM"y, ZOIZ

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Sub:

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pt@)

Expenditurb ManagementEco Rationalizafion of Expend iture

I

Measures and

W(rxBackground

Ko'"

I expenditure and ng the objectives of issuing guidelines e to time,

2.1 Cutin Non-Plan elpenditu,re Forthe year201zl,zol3, everyMinistry/Department shalleffect a mandatory 10% cut ,in non-planexpenditure excludinq payment, interest riepayment of debt,Defence capital, salaries, pension andthe Finance grants commission to the states. No re-appropriation o{ fundsto augment the non-plan headsof expenditure on whibh cutshave been imposed, shall beallowed during thecurrent year. fiscal .
I

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2 . 2 Seminars and Copferences i)

seminars, etc.w$ichare absolutely essential, should be held and even there cut on budgetary allocations 1a 10o/o for seminars/ conferqnces shallbe effected.
i

seminars/workshgps, 0nry such conferencei, workshops,

utmost economy beobserved,in ishall organizing conferencesl

ii)

Holding of exhibitions/seminars/conferences abroad is strongly discouraged excppt in the case of exhibitions for trade promotion i There willbe a biinon holding of meetings andconferences at fivestarhotels. l

iii)

2 . 3 Purchase of vehicles
i) Purchase of vehiflesis banneduntil furtherorders,including against condemnNd vehicles.

2.4 Foreign Travel

i)

It would be the ility of the Secretary of each Ministry/Departme ensurethat foreigntravelis restricted vrlntstry/Department to most necessary alnr unavoidable official engagements based on functional necebs andextant instructions, incfuding on the number of visits, a ictlyfollowed.
I

ii)

idable,it will be ensuredthat officersof the appropriate leve dealingwith the subjectare sponsored instead of those atlhi her levels. The sizeof the delegation and theduration ofvisi! I I be keptto the absolute minimum.

\A/here travelis url I

I i
1

iii)

fullyfundedby spoh

Proposals for pb in study tours, workshops/ conferences/seminprr presentationof papers abroad at Government costvirrill not be entertained except thosethatare
-^-t--^_t .

ing agencies.

iv) Foreign visits shourd beso regulated as to ensure that

each Ministry rdmainswithin the allocatedbudget (after 10%cut) for thejsame. Re-appropriation proposals on thi ls
Y|,vL lqtrf;

uue

I ./ 2.5 Creation of Posts i

I I

account would re! beapproved.

*I(

There will be a tpta I banon creation of ptanand Non-pgb'

posts.

I I
i
i

I 3.

Observance of liscipline in fiscal transfers to States, Public Sector UirOertat<ings and AutonomousBodiesat Central/ State/Lopal level Governments), wfiich has defaulted in furnishing utilisation certificates for jgrants-in-aidreleased by tire central \,ivitholt Government prior approval of theMinisiry of Finance. shallnottransfer fundsunder anyplan of conditionalities attachedto such
funding).

3 . 1 No amountshall jbe released to any entity(including state

3.2 Minist
schemes in rela transfers (su A S 3 . 3 The State

entsare required to furnish monthly returns - Central, of Plane Centrally Sponsored or State Plan- to Ministries/Departments alongwitha report on amounts utstEnding in theirPublic Account in respect of Central and lly Sponsored Schemes. This requirement maybe scru enforced.

3.4 Thefollowing
a)

steps maybe adopted :

The implem before

b)

the payee has no utilization certifications as 'duefor

rendition' urider the Rules under the scheme in suestion or thatthe Bayment has beenauthorized by Department
-1

The sanction for payment mustclearly specify either that

of Expenditure.
I

c)

For any detiation fromthe above, the caseshould be referred to the Department of Expenditure.
I

d)

TheChief Cintroller of Accounts mustensure compliance withthe aboVe as partof pre-payment scrutiny.

4.

Balanced Paceof Expenditure

i I

4 . 1 Rush of expenditpre year towardsthe end of the financial continues to be an,areaof concern. As per extantinstructions,

(33%) notmorethanon{-third of the Budget Estimates maybe year. Besides, spentin thE lastlQuarter of the financial the stipulation that dqlring the monthof Marchthe expenditure should be lifiitedtp 15%of the Budget Estimates, is reiterated. Min which are coveredby the Monthly
Expenditure Plan { strictly.
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P) may ensurethat the MEP is followed

I
I

4 . 2 It is also derQd desirable thatin the lastmonth. of theyear payments y be made only for the goods and services p .tred actually dnd for reimbursement of expenditure already I (in incurred. rce, np amountshouldbe released in advance
the lastmo h) witli the exception of the following : Adva ? payments undertermsof duly to contractors

d coritracts so thatGovernment wouldnotreneoe rene0e on its I oilcontractual obligations.

I I

ii)

servantsetc. or Any ans od advancesto Government prive individuals as a measure of relief and i reha itation i as per service conditions or on grounds. ssionafe
i
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iii)

case with Any other excePtional

approvalof the

be may cases a list such However, Advisor. Financial

yearfor inforn April of the fbllowing

bY30th sentbYthe [A to theDePartmentExpenditure

during sht ld be avoided on procurement 4.3 Rushof expenditulre the last particular, the last quarterof the fiscalyear and' in are I t all procedures month of the Yealr so as to ensure. or wasteful compliedwith apd there is no ln ctuous to specia monitorthis asPect FA'siare advised expenditure. theirreviews' during
I

5.

by for in tlie budgetapproved are not provided

should madeon itemswhich Nofreshfinancial iommitments

rliament.

6. O.

GomPliance
LrLtllll,rrqrrvv

being the Chief of thle Ministries/Departmeints I * '; 64 of GFR| shallbe fullycharged gs perKul( Authorities Accounting comp,lia$c", the measures with the responsibility lof ensuring ?f Advisois shal! hssist th* t"-tl,"1y: fin"nii"l I rt rqr rvrs' above. c ll,vvs' outlined O Ul,llllgU

andalso *lth complianc: in securin$ Departments ]1"P" T"asures to the Ministry

and the Minister-in-Chaige report]to an overall submit takenon actions various basisregarding on a quarte{g of Finance measures/guidelinPs' these -<

J/,MJk---( SumitBose) (ExPenditure) Secretary of India to the Goyernment All Secretaries to : Copy 1 i Secretary 1. Cabinet Minister tnePrime Secretaryito 2. Frincipal Commission Plannin$ C. Secreiary, A{visors 4. AlltheFinancial
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