Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com DELHI DEVELOPMENT AUTHORITY (PREPARATION OF BUDGET) RULES, 1960 CONTENTS 1. Short title and commencement 2. Definition 3. Form of Budget estimates 4. . 5 . Submission of sectional estimates for the orders of the Vice- Chairman 6. Proposal for new items of expenditure 7. Consolidation of sectional estimates 8. Submission of budget estimates of the Authority 9. Estimates of Income 10. Estimate of contingent expenditure 1 1 . Estimate of establishment expenditure and expenditure on fixed recurring charges 12. Estimate of expenditure on works and schemes 1 3 . Confining of provision in budget estimates to actual requirement 14. Amended original estimates 1 5 . N e w or additional expenditure which cannot be met by reappropriation 16. Re-appropriation of emergent expenditure 17. Power of the Authority to sanction re-appropriations 18. Form of statement of re-approoriation 19. Effect of re-appropriation sanctioned by Government 20. Inevitable payments 21. . DELHI DEVELOPMENT AUTHORITY (PREPARATION OF BUDGET) RULES, 1960 In exercise of the powers conferred by sub-section (1) of section 56 of the Delhi Development Act, 1957 (61 of 1957), read with clauses (n) and (r) of sub-section (2) of that section, the Central Government hereby makes the following rules, namely 1. Short title and commencement :- (i) These rules may be called the Delhi Development Authority (Preparation of Budget) Rules, 1960. (ii) These shall come into force at once. 2. Definition :- In these rules, unless the context otherwise requires: (a) 'Act' means the Delhi Development Act, 1957 (61 of 1957). (b) 'Authority' means the Delhi Development Authority constituted under section 3 of the Act (c) 'Form' means the form appended to these rules. (d) 'Government' means the Central Government (e) 'Vice-Chairman' means the Vice-Chairman of the Delhi Development Authority. (f) 'Year' means the financial year beginning on the 1st of April and ending on the 31 st of March following. 3. Form of Budget estimates :- The Budget in respect of the year next ensuing showing the estimated receipts and expenditure of the Authority shall be prepared in form A-I, and submitted to Government by the 15th of October each year. Such estimates shall be accompanied by the revised budget estimates for the current year. The budget shall be based on the accounts head given in Appendix to these rules. 4. . :- Within sufficient time before the date fixed for submission of the annual budget to the Government under rule 3, the Accounts Section of the Authority shall fill up columns 2 to 7, on both the receipt and expenditure sides, of Part II of Form A-I and send copies of relevant portions to the sections concerned including the Central Public Works Department accompanied, where necessary, by a schedule of establishment in Form No. A-2, columns 8 to 11 of Part II of A-I shall then be filled up by the Sections concerned separate notes giving full explanation of any variations shown in columns 10 and 11 being attached. Provided tha (a) Provision proposed for new items of expenditure shall be dealt with in accordance with rule 6; and (b) The Central Public Works Department and the Works Department Section or other Section concerned of the Authority shall append to Form A-I. Two Schedules, one in Form A-4 showing t h e work and schemes in progress and another in Form A-5 showing the new works and scheme proposed to be taken in hand during the next year wherein minor works and schemes shall be shown in one lump sum supported by details as far as possible, the budget estimate of minor works and schemes is based on past experience; but details shall be given wherever they are available. 5. Submission of sectional estimates for the orders of the Vice-Chairman :- The Sections concerned shall return the Forms duly completed to the Accounts Section within such period as may be fixed by the Vice-Chairman. The Accounts Section shall submit for the orders of the Vice-Chairman, with such comment as may be necessary. 6. Proposal for new items of expenditure :- Proposal for new items of expenditure, other than works and schemes, shall be submitted by the Sections concerned in Form A- 3. On receipt from the Sections they shall be submitted for the orders of the Vice-Chairman in the same way as the estimates in Form-1, Part II. 7. Consolidation of sectional estimates :- The Accounts Section shall thereafter consolidate the sectional estimates into one budget estimates in Form A-1, all new items being shown separately in red ink in Part II. Similarly, the sectional schedules in Form A-3, A-4 and A-5 shall be consolidated and attached to these estimates together with the schedules in Form A- 2 with the notes giving brief explanation of the variation between (i) the sanctioned and the revised estimates of the current year and (ii) the revised estimates of the current year and the budget estimates of the next year. 8. Submission of budget estimates of the Authority :- The budget estimates as compiled in accordance with rule 7 shall be placed before the Authority by the 5th of October each year for approval. On receipt of the orders of the Authority, the Accounts section shall prepare a final edition of the budget incorporating therein such modifications as were decided upon by the Authority. Four copies of the final edition, with copies of the schedules, shall be submitted to the Government by the 15th of October. 9. Estimates of Income :- The estimate of Income shall be based upon. (1) The actuals of the past three years in respect of recurring income from land or other sources with such modifications as may be necessary in the light of probable increases due to factors which can be foreseen. (2) The programme of sales of land as far as such a programme can be drawn up. 10. Estimate of contingent expenditure :- (1) For contingent expenditure, the estimate shall be based upon the average actual expenditure of the last three years exclusive of any special item of expenditure that might have been incurred during those years. Variations should, however, be made where justified and should be adequately explained. (2) The three years average mentioned in rules 9 and 10 shall be treated merely as a guide. 11. Estimate of establishment expenditure and expenditure on fixed recurring charges :- The estimates of expenditure on fixed establishment as weli as fixed monthly recurring charges on account of rent, allowance, etc., shall he made according to the actual sanctioned scale and shall provide for the gross sanctioned pay without deductions of any kind. To this shall be added a suitable provision for leave salary based on past experience. With due regard to the intention of the members of the staff in regard to leave as far as they can be ascertained if experience indicated that the total provision for fixed charges made on these lines is likely to prove excessive, a suitable lump sum deduction should be made from the total. 12. Estimate of expenditure on works and schemes :- Expenditure on works and schemes is by far the most important item in the budget estimates of the Authority. The amount of interest payable on loan will depend largely on the standard of estimating this expenditure and extreme care should, therefore be exercised in framing the revised as well as the budget estimates of expenditure to be incurred on works and schemes. Any tendency towards optimism on the part of technical officers should, as far as possible, be neutralized by applying lump cuts. It shall be the duty of the Accounts Section to suggest modifications on the basis of past experience. 13. Confining of provision in budget estimates to actual requirement :- All grants and appropriation lapses at the close of the year and unspent balances shall not be available for expenditure after the close of the years for the purpose for which the grant was sanctioned. In the case of works and scheme in progress in will usually be possible, if necessary, to increase the grants of a year to cover the grants which have lapsed at the end of the previous year, by such means as are open under these or others rules but special care should be taken to keep the budget estimates within the limits of actual requirements in order to save unnecessary indirect charges. Any tendency, however, towards the end of a year to utilize the grants shall be open to grave objection. 14. Amended original estimates :- If during the course of a year it is found necessary to modify the budget estimates materially, a modified budget shall be prepared by the Authority, and submitted to Government. Any such budget shall be prepared by the Authority, and submitted to Government. Any such budget shall be treated as an original sanctioned estimate. If no modified budget is submitted, any necessary charges in, the original estimates shall be made by reappropriations, fresh allotments, etc., as usual. 15. New or additional expenditure which cannot be met by reappropriation :- If the necessity for some new or additional expenditure is fully established during the course of the years and the funds cannot be provided by reappropriation, it will be open to the Authority to make fresh allotments or to increase the existing allotments, provided funds can be made available from opening balances, additional allotments by Government or from increases anticipated or realised in income for which a supplementary estimate should be submitted. Such proposals shall be accompanied by a statement in Form A-6. In respect of new schemes involving fresh borrowings from Government, the expenditure should not be incurred unless the scheme has been accepted broadly in principle by Government and provision of token amount made in the original budget. 16. Re-appropriation of emergent expenditure :- No expenditure which is not covered by provision in the sanctioned budget estimates, or which is likely to cause excess over the amount provided under any head, shall be incurred without provision being made by re-appropriation from the same or other head under which savings are ascertained or anticipated. Inevitable expenditure which cannot be met by re-appropriation or which can be met only by additional allotment, may be incurred with the previous approval of the Authority and in emergencies under the orders of the vice-chairman, a report of which shall be made to the Authority at its next meeting. The application for re-appropriation or additional allotment of funds should, however, be made to the Authority as soon as possible explaining the circumstances in which the expenditure had to be incurred in anticipation of its sanction. 17. Power of the Authority to sanction re-appropriations :- T h e Authority may sanction re-appropriation of funds from one major head of account to another or within any major head; Provided that without the prior approval of Government, no reappropriation shall be made from Nazul to non-Nazul or vice versa and from Slum or Rehousing Accounts to General Development Account and vice versa. 18. Form of statement of re-approoriation :- Proposals for reappropriation shall be accompanied by a statement in Form A-7. The explanation of proposed increases and decreases should be amplified, if necessary while seeking sanction. 19. Effect of re-appropriation sanctioned by Government :- W h e n re-appropriation is sanctioned by the Government, the amount so transferred shall be treated as a loan which shall carry interest from the date of sanction to reappropriation or the date of expenditure, whichever is earlier (unless some other date is specifically prescribed in the sanction) or at the same rate as is charged on Government loans to the Authority and which shall be liquidated from the next year's receipts of the debtor account from loan or otherwise. 20. Inevitable payments :- The want of provision in the budget estimates or the temporary exhaustion of the budget allotment under any head shall not operate to prevent payment or refund of any amount due by the Authority or to prevent a record or any payment under its proper head of Account. All liabilities incurred shall be liquidated without delay and in no circumstances shall liability be allowed to stand over and above and be paid from the budget grant of the following year, nor shall payments of refunds be postponed to the last day of a month or the last month of financial year. 21. . :- The Ministry's Notification No. 6-12/60-LSG, dated the 27th December, 1960 (G.S.R No. 19) appeared at pp. 13 to 15 of the Gazette of India, dated the 7th January, 1961, shall be treated as cancelled from the date of issue of this notification.