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R.1 Short title and commencement

(1) These rules may be called the Delegation of Financial Powers Rules, 1960.

(2) They shall come into force at once*

R.2 Definitions

In these rules, unless the context otherwise requires,—

(a) “Administrative approval” means the formal acceptance by the Department concerned of the proposal for an original work (other than a petty work costing Rs. 3,000 or under ) to be undertaken for the Department either by the Public Works Department or the Department to which the work may have been assigned by the Governor. Taken with the provision of funds in the budget, it operates as a financial sanction to the work ;

(b) “Administrative Departments” means the Administrative Departments of the Government of Assam as notified from time to time ;

(c) “Appropriation” means the allotment of a particular sum! of money by a competent authority from funds placed at his disposal, to meet specific expenditure;

(d) “Class of Government servants” means—

(i) All Government servants, other than

R.3 General limitations on power to sanction expenditure

(1) It is a primary condition of the exercise of all financial powers that public revenues may be spent only on legitimate object of public expenditure. In spite of the sanctions accorded under those delegations no expenditure can be incurred unless funds to cover the charge during the year have been provided. So, when applying for sanction of a competent authority to any expenditure, it should invariably be specified how it is proposed to be met. The sanctioning authority should also indicate how the fund is to be provided on the body of the sanction.

(2) A subordinate authority may sanction expenditure or advances of public money in those cases only in which it authorised to do so by—

(i) the provisions of any legislative enactment for the time being in force or of rules made under such an enactment; or

(ii) the codes, manuals and regulations issued by the Governor or the Government of Ass

R.4 Effect of sanction

(1) Sanction to any given expenditure becomes operative as soon as funds have appropriated to meet the expenditure and does not become operative until funds have been so appropriated.

(2) Sanction to recurring expenditure covering a specified term of years becomes operative when funds are appropriated to meet the expenditure for the first year and remains effective for each year or specified term subject to appropriation in such year and subject to the terms of the sanction.

(3) Disbursing Officers must be careful to observe that no sanction, whether recurring or non-recurring, and whether given in an authorised code or otherwise, is acted upon if appropriation has ceased to be so made in any year.

(4) Strictly speaking no expenditure should be incurred until the budget has been communicated. Regular and authorised expenditure, however, which cannot in the interest of Government be avoided, such as

R.5 Provision of funds by Legislature

Demands for grants and appropriations for charged expenditure are presented to the Legislature on behalf of the Appropriate Department or authority concerned. After the demands have been voted and the necessary Appropriation Act passed by the Legislature, the amount so authorised become available to the Department or authority concerned for appropriation to meet sanctioned expenditure.

R.6 Primary units of appropriation

(1) A grant or appropriation for charged expenditure is distributed by sub-heads under which i: shall be accounted for. Each such sub-head constitutes a primary unit of appropriation. The primary unit may include provision for both voted and charged expenditure and in that case the amount of each is shown separately.

(2) Primary units of appropriation shall become one or all of the following:

Pay of Officers.

Pay of establishments.

Allowances and honoraria.

Other charges.

Grants-in-aid.

Contributions and donations.

Original works—Major works.

Extensions and improvements.

Repairs and maintenance.

Tools and plants.

Assignments and compensations.

Establishment cha

R.7 Allotment of funds

The Department or authority on whose behalf a grant or appropriation for charged expenditure is authorised by the Legislature shall distribute the sanctioned funds, where necessary among the controlling and disbursing officers subordinate to it. Subject to any special rules or orders issued by the Legislature the whole or part of the provision under a primary unit may be placed at the disposal of a Controlling of Disbursing Officer, or the primary unit may be broken into a number of secondary units and the provision under any of these, wholly or in part, may be placed at his disposal.

R.8 Appropriation and re-appropriation

General restrictions.—Powers of Administrative Department subject to the fulfillment of the conditions enumerated in (1) to (16) below on Administrative Department is competent to sanction re- appropriation within a grant from one major, minor or subordinate head to other copies of orders sanctioning re-appropriation being communicated to the Accountant General and Finance Department as soon as such orders are passed and in all cases of re- appropriation a re-appropriation statement in Form K being invariably used.

(1) The provision under any sub-head shall not be increased by more than 25 .per cent of the original provision by re- appropriation and subject to an overall ceiling of 25 per cent under any minor head.

(2) No re-appropriation shall be made from the savings under “salaries” to any head.

(3) No new service will be introduced by the re-appropriation whatsoever. No expenditure shall be incu

R.8-A Appropriation and re-appropriation - General restrictions - Powers of Commissioners of Divisions, Heads of Department and other authorities

The following noted officers have been authorised to sanction re-appropriation within the heads subordinate to a minor head subject to fulfilment of the conditions laid down below :

1. Commissioner of Divisions ;

2. Heads of Departments ;

3. District Judges;

4. District Officers;

5. Director, Veterinary and Animal Husbandry Department;

6. Superintendent, Assam Secretariat Press ;

7. Examiner, Local Accounts ;

8. Chief Inspector of Factories ;

9. Chief Inspector of Boiler ;

10. Public Works Divisional Officers ;

11. Military Secretary to the Governor ;

12. High Commissioner for India—

(a) that funds must not be re-appropriated to meet an item of expenditure

R.9 Creation of Temporary Posts

(1) Notwithstanding anything contained in these rules not post shall be created—

(a) in any office or Department unless there exists in that office or Department a post of a similar character on a rate or scale of pay approved by the Governor;

(b) in contravention of the instructions regulating staff composition and work standard.

(c) unless funds to meet the cost of the post can be found from within the provision placed at the disposal of the authority concerned.

(2) For the purpose of Clause (a) of sub-rule (1) “department” means all or any of the offices under the administrative control of the Head of a Department.

(3) The power conferred on a subordinate authority to create temporary post shall not, unless otherwise directed by the Governor, be exercised in respect of any service unless that service is under the control of that authority.

R.10 Powers of the subordinate authorities

(1) Subject to the provisions of these rules, the Departments of the State Government, Heads of Departments and authorities subordinate to them shall in relation to creation of temporary post, renewal of sanction for staff, scheme, sanction of work expenditure, incurring of contingent expenditure, incurring of miscellaneous expenditure, and write off of losses, etc., have the powers respectively specified in Schedules I, II and III; provided that the power delegated to subordinate authority can also be exercised by the higher authority in relation to such subordinate authority.

(2) A Subordinate authority shall, in regard to matters not covered by Schedules I to III, exercise such powers as may be specified from time to time by general or special order of the Governor.

(3) An authority empowered by or under these rules to incur contingent expenditure or miscellaneous expenditure shall exercise such power subject to the fo

R.11 Grants and loans

Department of Government have full power to sanction loans and renew grants-in-aid including stipends and scholarships tenable in India :

Provided that—

(a) such grants-in-aid, loans, stipends and scholarships are in accordance with the rules or principles prescribed with the previous consent of the Finance Department; and

(b) in sanctioning, loans, grants-in-aid, stipends and scholarships the sanctioning authorities should indicate that the provisions of sub-rule (a) above has been complied with ;

(c) the rate of interest on loan and the period of repayment thereof are fixed with the previous consent of the Finance Department unless the rate of interest on such loan and the period of repayment thereof are prescribed in any general, or special order of that department.

R.12 Sanction or consent of the Finance Department

Wherever the consent or sanctions of the Finance Department is required by these rules, such consent or sanction shall be expressed in writing and communicated to the Audit Officer by that Department.

R.13 Communication of financial sanctions

(1) Orders conveying the sanction of expenditure or advance of public money shall be communicated as follows :

(a) If the order is issued by an Administrative Department in exercise of the powers delegated under these rules, by the Secretary^ Additional Secretary, Joint Secretary, Deputy Secretary, Under-Secretary of the Department or by any other officer as may be specially empowered under Rule 12 of the Assam Rules of Executive Business I;

(b) If the order is issued by a Head of a Department or an authority subordinate to them to whom the power to sanction has been delegated by that authority ; or by any gazetted officer authorised with the approval of the Finance Department to sign for him :

Provided that the copies of the sanctioning memorandum for the Accountant General, Assam, shall be forwarded by the Financial Adviser in the case of the Administrative Department and Finance and Accounts Off

ANNEXURE.I .

INSTRUCTIONS FOR THE GUIDANCE OF FINANCIAL ADVISERS

Financial Advisers appointed under the scheme of financial decentralisation will have to face initially a difficult situation. It will be easier to face that situation if they keep in mind the background for the change. One of the important developments of our time is rapid expansion of public expenditure. So far as the plan expenditure is concerned, the expansion is related to the launching of the development schemes. But expenditure has also increased in departments which are not really development departments. As officers representing the Finance Department the Financial Advisers will be expected to see that the large public expenditure brings commensurate results so that public may not have to sacrifice by way of taxation more than what they got in return in the form of services. In other words, economy should be the guiding principle. But there is the risk of economy being insisted at the

ANNEXURE.II .

DUTIES AND FUNCTIONS OF THE FINANCE AND ACCOUNTS OFFICERS

1. To assist the Head of a Department in the discharges of his responsibilities —

(i) for the financial regularity of the transactions under a Budget grant in respect of which the Head of the Department functions as the Controlling Officer ;

(ii) for the maintenance of the accounts of the transactions correctly and

in the form prescribed under the rules and orders in force ; and (Hi) for formulating proposals for expenditure in the Department consistent with the programme of Economic Planning adopted by the Government ;

the Finance Department will post Finance and Accounts Officers to the Head of Departments as the Finance Department consider necessary.

2. (a) The function of the Finance and Accounts Officers are two-fold :

(i) as Finance Off

ANNEXURE.III .

Rule ANNEXURE III

AUTHORITY TO EXECUTE INSTRUMENTS

A. General

Nature of instrument

#7;By whom to be executed

#7;

#7;1. All deeds and instruments relating other than those specified elsewhere in this resolution.

2. Contracts and other instruments in matters connected with the lease of land—

(a) If the be permanent.

(b) If otherwise.

3. (i) Contracts and other instruments in matters connected with the hire or purchase of land or building or with the sale of Government land or with the lease or sale of Government building or with prospecting and exploring licences and mining leases.

(b) Contracts, instruments and engagements specified above when the value or amount of such contract, instrument or engagemen

ANNEXURE.IV .

3. MISCELLANEOUS BRANCH

No. CPM 39/55/378, dated Shillong the 23rd, May, 1960.

From : Shri P.H. Trivedi, I.A.S.

Deputy Development Commissioner and Ex-officio Joint Secretary to the Government of Assam, Development (Community Projects) Department, Shillong.

To

All Deputy Commissioners.

Subject : Sanction to expenditure on “Contingencies” under Project/Block Headquarters.

Sir,

I am directed to invite a reference to the Government letter No. CPPS 104/58/11, dated 8th September, 1958 and to issue the following clarifications in partial modification of the instructions in para 3 of the circulars.

In the Paragraph referred to above, it has been mentioned inter alia that schemes under the minor-head project/block headquarters will be sanctioned by Deputy Development Com

ANNEXURE.A .

ANNEXURE ‘A’

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