CONTENTS - Central Public Works Department

276 SECTION 49
49.3 Control of expenditure
(1) A constant watch is required to be kept on variations so that as soon as it becomes clear that the
funds are likely to be in excess or in short, action can be taken to surrender the savings or to
obtain sanction for re-appropriation or a Supplementary Grant. In order to maintain proper control
over the expenditure, a record of liabilities and commitments that have been or will be made or
incurred against the budget allotments in his jurisdiction, should be maintained by the Divisional
Officers in Liability Registers Form no. GFR (6), wherein progressive accounts of all outstanding
liabilities should be indicated. The Liability Register facilitates preparation of correct estimates of
expenditure.
(2) During the closing of a financial year, there is generally a tendency to utilize the unspent budget
provision, which may be considerable, if a proper watch has not been kept over the monthly
progress of expenditure. As a result of this, there is a rush of expenditure, popularly known as the
“March Rush”. It is against the interest of the State that money is spent hastily or in an ill considered
manner just to avoid lapse of budget grant. A rush of expenditure is therefore regarded as a
breach of financial regularity and should be avoided. It is far more in the public interest to surrender
funds, which cannot be profitably utilized, so that the same are diverted to other objects, which
could otherwise have to be held in abeyance for want of money.
(3) Whenever grants have not been utilized to the full extent for valid reasons, e.g. non-drawl of
arrears of pay for want of sanction or non-completion of the transactions relating to purchase of
stores in spite of all efforts made to conclude them, the Government will consider proposals to
provide funds for the items in question by means of supplementary grants in the ensuing year.
There is, thus, no reason for the authorities concerned to try to spend all the surplus funds at their
disposal, merely to avoid their lapses.