GOVERNMENT OF ANDHRA PRADESH
ABSTRACT
Budget Management - Measures to Streamline the Financial Management System -
Distribution of Approved Budget – Issue of Comprehensive Budget Release Order
(CBRO) - Instructions and Guidelines - Issued.
FINANCE (Budget I) DEPARTMENT
G.O. Ms. No.101 Dated:12th August, 2015
Read the following:
1. G.O. Ms. No. 59, Finance and Planning (FWBG) Department dated 30.3.2001
2. U.O. Note No.29875-A/1283/A1/BG.I/2006 dated 25.11.2006
3. G.O. Ms. No. 147 Finance (BG I) Department dated 11.07,2011
4. G.O. Ms. No. 190 Finance (BG I) Department dated 02.09,2011
5. G.O. Ms. No. 241 Finance (BG I) Department dated 29.10.2011
6. G.O. Ms. No. 125 Finance (BG I) Department dated 20.05,2012
7. G.O. Ms. No. 35 Finance (BG I) Department dated 02.04.2015
8. G.O Ms No 36 Finance (BG I) Department dated 02.04.2015
9. G.O. Ms. No. 84 Finance (BG I) Department dated 02.07.2015
ORDER:
1. In the Government Order (GO) first read above, the Budget Release Order (BRO)
system was introduced to 'facilitate smooth flow of funds to the departments and cut
down unnecessary delays in movement of files'. Under this system that is currently in
vogue, the Budget Release Order is issued by the Finance Secretary releasing the
approved Budget for each quarter of the financial year, duly mentioning the Head of
Accounts (HOA) of the scheme. The BRO system had dispensed with the earlier system
that required the administrative departments to approach the Finance Department
seeking funds for every activity involving financial commitment.
2. The current system requires the Secretary of the concerned administrative
department to issue Administrative Sanction (AS) Orders based on the BRO issued by
the Finance Department. Upon receipt of the BRO and AS, the Head of Department
(HOD), who is the Chief Controlling Officer (CCO) of the department's approved
budget, is required to issue district-wise /agency-wise allocation of funds to the Subordinate
Controlling Officers (SCOs), along with instructions and guidelines for
utilisation of funds. Thereafter, the HOD communicates the budget distribution
statement to the Director of Treasuries and Accounts (DTA) / Director of Works
Accounts (DWA), to enable them to issue Treasury Authorisation permitting the
department to operate the budget and the treasuries to effect payment to the extent of
authorised amount. Thereafter, the SCO is required to distribute the budget allocated by
the HOD to the Drawing and Disbursing Officers (DDOs), which would be the basis for
the District Treasury Officer (DTO) to issue authorisation to effect payment of bills
submitted by the DDOs.
3. In respect of the new schemes being implemented for the first time, the schemes
for which funding pattern has changed during the course of the financial year, Centrally
Sponsored schemes and Finance Commission Grants, the Finance department, in
consultation with administrative department, issues demand specific concurrence,
followed by a budget release order. In such cases, the second instalment is released after
review of the schemes, physical and financial performance, actual expenditure, receipt of
funds from the Central Government and other financing institutions.
2
4. In the reference second read above, the Secretariat departments were requested to
follow the due procedure while issuing administrative sanction orders for the schemes /
programs, duly detailing the ingredients of Administrative Sanction (AS) order. In the
reference third read above, orders were issued introducing the Green Channel Schemes
on pilot basis, with the objective of increasing the predictability of fund releases to
priority government programs and schemes that benefit the poorer sections. In the
references fourth and sixth read above, orders were issued bringing additional schemes in
the ambit of Green Channel.
Rationale for a refined system
5. While the BRO system streamlined and simplified the overall public financial
management and increased the predictability of fund availability to the implementing
agencies compared to the earlier system, it still involves six steps, before the approved
budget is made available to the last operational unit. Moreover, the departments that
implement time-sensitive and season-specific activities have been constrained by the
budget being released in equal instalments over four quarters. In this background, the
Finance Department has held extensive consultations with the departments to identify
measures by which the approved budget can be made available at the time and place
where it is most needed through a streamlined and simplified pathway. The interdepartmental
consultations also included identification of measures for ensuring
predictability of funds for all quarters of the financial year within the approved Budget
Estimates, to enable the Departments to prepare and implement the Annual Work Plan
(AWP) without being constrained by the quarterly BROs.
Comprehensive Budget Release Order (CBRO)
6. In order to ensure streamlined budget management system and to facilitate timely
availability of funds to the implementing agencies, the Government hereby order for the
issuance of Comprehensive Budget Release Order (CBRO) duly releasing the approved
budget for all quarters of the year. All departments of Secretariat and Head of all
Departments are requested to follow the instructions indicated below:
a) Every administrative department is required to conduct detailed review of all
its schemes / programs and furnish proposals for revised estimates for the
current financial year and proposals for the next year's budget estimates by the
last week of September every year. The Finance Department will estimate the
overall availability of resources for the balance period of the year as well as the
next year and finalise the revised estimates for the ongoing financial year by
November and budget estimates for the following financial year by December
month of the year.
b) Upon approval of the Annual Appropriation Act for the following year
(Budget), the Secretary in charge of the administrative department shall
prepare quarterly distribution of the budget for each Department under his /
her control for each Head of Account (HOA) in accordance with the annual
work plan and the budget (AWPB) and with reference to the specific
requirement of the Department and communicate it to the Finance
Department within a fortnight of the passing of the Annual Budget. Upon
receipt and review of such a proposal, the Finance Department will issue the
Comprehensive Budget Release Order for all four quarters of the year.
3
c) The Comprehensive Budget Release Order (CBRO) encompasses the Budget
release for all quarters of the financial year. Accordingly, the existing practice
of quarterly Budget Release Order (BRO) is dispensed herewith. The existing
six-step process for each quarter is being replaced by an annual three-step
process, which include CBRO by the Finance Department, followed by a
Comprehensive Budget Distribution Order (CBDO) by the Head of the
Department distributing the budget released in the CBRO to the SCOs and
DDOs, both of which will be for all quarters of the financial year. The third
step will include the issue of Budget Authorisation Order (BAO) by the DTA /
DWA, which will be done for one quarter at a time based on the CBRO and
CBDO. In effect, this procedure will bring all budget lines of all key
development programmes in the ambit of the Green Channel system.
d) The issue of Administrative Sanction Order (AS) for each quarter by the
administrative department concerned in the Secretariat is dispensed herewith.
However, this does not preclude the administrative departments from issuing
appropriate instructions, guidelines, directions for effective implementation of
the schemes and programmes. Moreover, the process for issuance of AS by the
concerned departments for specific projects, works, activities, schemes,
programs, etc., in accordance with the Rules of Secretariat Business and the
existing delegation of financial and administrative authority shall continue to
be operational and shall not be affected in anyway by this order.
e) Upon receipt of the CBRO, the Head of the Department shall issue
Comprehensive Budget Distribution Order (CBDO) allocating the budget
authorised in the CBRO amongst the SCOs / DDOs under their control,
including the HOD office, for all quarters of the financial year, within a
fortnight from the date of issuance of CBRO. The apportionment of funds to
all the DDOs by the HODs and SCOs shall not exceed the total amount
earmarked for each quarter in the CBRO. Apportionment of budget shall be in
accordance with the approved work plan. The Head of Department may retain
a part of the budget provision not exceeding twenty per cent with them so that
these funds can be allocated as per exigencies. The action plan for the entire
year shall be grounded immediately and the implementation of all schemes and
programmes shall continue as per the approved work plan.
f) The DTA / DWA shall issue Budget Authorisation Order for only one quarter
at a time based on the CBDO issued by the HOD duly ensuring its consistency
with the CBRO and the orders issued herein. The Budget Authorisation Order
shall clearly indicate the maximum amount that can be drawn for the quarter
by the CCO /SCO / DDO. The DTA / DWA shall issue the BAO in the first
week of every quarter of the financial year.
g) In respect of capital Heads of Accounts, the existing system shall continue, i.e.
there will be no quarterly budget controls; and the Director of Works Accounts
is instructed to act accordingly.
h) New schemes introduced for the first time and schemes that have undergone
substantive change in terms of content and funding since the preceding year or
during the course of the year would require the department to obtain and issue
administrative orders in accordance with the Rules of Secretariat Business
before approaching the Finance Department for release of the approved
Budget. The Centrally Assisted State Plan Schemes and Finance Commission
Grants will continue to be guided by the existing budget release system as
outlined at paragraph three of this Order. This would entail that the Finance
4
Department would issue orders releasing the Budget after receipt of grants
from Government of India and other concerned entities. In all these cases, the
second instalment will be released after review of the physical and financial
performance, actual expenditure, receipt of funds from the Central
Government, and other financing institutions. The State-matching share will
be released after review of expenditure to avoid parking of funds with the
implementing agencies. The departments shall continue to follow the existing
system for these schemes.
i) The Head of the Department is required to closely monitor the implementation
of the schemes / programs as per the approved work plan and review the
utilisation of budget periodically. The Administrative Department will review
the physical and financial performance and in exceptional cases, propose
appropriate reallocation / redistribution / reappropriation of the unutilised
budget, if mandated for effective implementation of the schemes and
programmes in the first month of the second and third quarters of the financial
year. Upon review of such a proposal and its acceptance, the Finance
Department will issue revised CBRO, however, only for the third and fourth
quarters. Such a revision will be done on exceptional basis and upon explicit
request of the administrative department duly supported by evidence and
justification. The CBRO will not be amended, once issued, for the first and
second quarters of the year. The DTA / DWA will issue BAO based on the
revised CBRO, however only for the third and fourth quarters. Budget
Authorisation Order will also be issued as and when the HOD releases the
funds reserved at his level to the subordinate officers.
j) The process outlined above does not apply to the Budget relating to the Raj
Bhawan, High Court of Andhra Pradesh and Telangana, Legislative
Secretariat, who will continue to follow the existing budget management
procedure. Though the CBRO system will cover the Secretariat Departments,
there will be no need for Treasury Authorisation for the Secretariat
expenditure.
7. All Special Chief Secretaries / Principal Secretaries / Secretaries to the
Government, Head of all Departments, Director of Treasuries and Accounts, Pay and
Accounts Officer, Directorate of Works and Accounts, District Collectors, Subordinate
Controlling Officers (SCOs) and Drawing and Disbursing Officers (DDOs) are requested
to follow these instructions scrupulously.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
DR PV RAMESH
PRINCIPAL FINANCE SECRETARY TO THE
GOVERNMENT
ABSTRACT
Budget Management - Measures to Streamline the Financial Management System -
Distribution of Approved Budget – Issue of Comprehensive Budget Release Order
(CBRO) - Instructions and Guidelines - Issued.
FINANCE (Budget I) DEPARTMENT
G.O. Ms. No.101 Dated:12th August, 2015
Read the following:
1. G.O. Ms. No. 59, Finance and Planning (FWBG) Department dated 30.3.2001
2. U.O. Note No.29875-A/1283/A1/BG.I/2006 dated 25.11.2006
3. G.O. Ms. No. 147 Finance (BG I) Department dated 11.07,2011
4. G.O. Ms. No. 190 Finance (BG I) Department dated 02.09,2011
5. G.O. Ms. No. 241 Finance (BG I) Department dated 29.10.2011
6. G.O. Ms. No. 125 Finance (BG I) Department dated 20.05,2012
7. G.O. Ms. No. 35 Finance (BG I) Department dated 02.04.2015
8. G.O Ms No 36 Finance (BG I) Department dated 02.04.2015
9. G.O. Ms. No. 84 Finance (BG I) Department dated 02.07.2015
ORDER:
1. In the Government Order (GO) first read above, the Budget Release Order (BRO)
system was introduced to 'facilitate smooth flow of funds to the departments and cut
down unnecessary delays in movement of files'. Under this system that is currently in
vogue, the Budget Release Order is issued by the Finance Secretary releasing the
approved Budget for each quarter of the financial year, duly mentioning the Head of
Accounts (HOA) of the scheme. The BRO system had dispensed with the earlier system
that required the administrative departments to approach the Finance Department
seeking funds for every activity involving financial commitment.
2. The current system requires the Secretary of the concerned administrative
department to issue Administrative Sanction (AS) Orders based on the BRO issued by
the Finance Department. Upon receipt of the BRO and AS, the Head of Department
(HOD), who is the Chief Controlling Officer (CCO) of the department's approved
budget, is required to issue district-wise /agency-wise allocation of funds to the Subordinate
Controlling Officers (SCOs), along with instructions and guidelines for
utilisation of funds. Thereafter, the HOD communicates the budget distribution
statement to the Director of Treasuries and Accounts (DTA) / Director of Works
Accounts (DWA), to enable them to issue Treasury Authorisation permitting the
department to operate the budget and the treasuries to effect payment to the extent of
authorised amount. Thereafter, the SCO is required to distribute the budget allocated by
the HOD to the Drawing and Disbursing Officers (DDOs), which would be the basis for
the District Treasury Officer (DTO) to issue authorisation to effect payment of bills
submitted by the DDOs.
3. In respect of the new schemes being implemented for the first time, the schemes
for which funding pattern has changed during the course of the financial year, Centrally
Sponsored schemes and Finance Commission Grants, the Finance department, in
consultation with administrative department, issues demand specific concurrence,
followed by a budget release order. In such cases, the second instalment is released after
review of the schemes, physical and financial performance, actual expenditure, receipt of
funds from the Central Government and other financing institutions.
2
4. In the reference second read above, the Secretariat departments were requested to
follow the due procedure while issuing administrative sanction orders for the schemes /
programs, duly detailing the ingredients of Administrative Sanction (AS) order. In the
reference third read above, orders were issued introducing the Green Channel Schemes
on pilot basis, with the objective of increasing the predictability of fund releases to
priority government programs and schemes that benefit the poorer sections. In the
references fourth and sixth read above, orders were issued bringing additional schemes in
the ambit of Green Channel.
Rationale for a refined system
5. While the BRO system streamlined and simplified the overall public financial
management and increased the predictability of fund availability to the implementing
agencies compared to the earlier system, it still involves six steps, before the approved
budget is made available to the last operational unit. Moreover, the departments that
implement time-sensitive and season-specific activities have been constrained by the
budget being released in equal instalments over four quarters. In this background, the
Finance Department has held extensive consultations with the departments to identify
measures by which the approved budget can be made available at the time and place
where it is most needed through a streamlined and simplified pathway. The interdepartmental
consultations also included identification of measures for ensuring
predictability of funds for all quarters of the financial year within the approved Budget
Estimates, to enable the Departments to prepare and implement the Annual Work Plan
(AWP) without being constrained by the quarterly BROs.
Comprehensive Budget Release Order (CBRO)
6. In order to ensure streamlined budget management system and to facilitate timely
availability of funds to the implementing agencies, the Government hereby order for the
issuance of Comprehensive Budget Release Order (CBRO) duly releasing the approved
budget for all quarters of the year. All departments of Secretariat and Head of all
Departments are requested to follow the instructions indicated below:
a) Every administrative department is required to conduct detailed review of all
its schemes / programs and furnish proposals for revised estimates for the
current financial year and proposals for the next year's budget estimates by the
last week of September every year. The Finance Department will estimate the
overall availability of resources for the balance period of the year as well as the
next year and finalise the revised estimates for the ongoing financial year by
November and budget estimates for the following financial year by December
month of the year.
b) Upon approval of the Annual Appropriation Act for the following year
(Budget), the Secretary in charge of the administrative department shall
prepare quarterly distribution of the budget for each Department under his /
her control for each Head of Account (HOA) in accordance with the annual
work plan and the budget (AWPB) and with reference to the specific
requirement of the Department and communicate it to the Finance
Department within a fortnight of the passing of the Annual Budget. Upon
receipt and review of such a proposal, the Finance Department will issue the
Comprehensive Budget Release Order for all four quarters of the year.
3
c) The Comprehensive Budget Release Order (CBRO) encompasses the Budget
release for all quarters of the financial year. Accordingly, the existing practice
of quarterly Budget Release Order (BRO) is dispensed herewith. The existing
six-step process for each quarter is being replaced by an annual three-step
process, which include CBRO by the Finance Department, followed by a
Comprehensive Budget Distribution Order (CBDO) by the Head of the
Department distributing the budget released in the CBRO to the SCOs and
DDOs, both of which will be for all quarters of the financial year. The third
step will include the issue of Budget Authorisation Order (BAO) by the DTA /
DWA, which will be done for one quarter at a time based on the CBRO and
CBDO. In effect, this procedure will bring all budget lines of all key
development programmes in the ambit of the Green Channel system.
d) The issue of Administrative Sanction Order (AS) for each quarter by the
administrative department concerned in the Secretariat is dispensed herewith.
However, this does not preclude the administrative departments from issuing
appropriate instructions, guidelines, directions for effective implementation of
the schemes and programmes. Moreover, the process for issuance of AS by the
concerned departments for specific projects, works, activities, schemes,
programs, etc., in accordance with the Rules of Secretariat Business and the
existing delegation of financial and administrative authority shall continue to
be operational and shall not be affected in anyway by this order.
e) Upon receipt of the CBRO, the Head of the Department shall issue
Comprehensive Budget Distribution Order (CBDO) allocating the budget
authorised in the CBRO amongst the SCOs / DDOs under their control,
including the HOD office, for all quarters of the financial year, within a
fortnight from the date of issuance of CBRO. The apportionment of funds to
all the DDOs by the HODs and SCOs shall not exceed the total amount
earmarked for each quarter in the CBRO. Apportionment of budget shall be in
accordance with the approved work plan. The Head of Department may retain
a part of the budget provision not exceeding twenty per cent with them so that
these funds can be allocated as per exigencies. The action plan for the entire
year shall be grounded immediately and the implementation of all schemes and
programmes shall continue as per the approved work plan.
f) The DTA / DWA shall issue Budget Authorisation Order for only one quarter
at a time based on the CBDO issued by the HOD duly ensuring its consistency
with the CBRO and the orders issued herein. The Budget Authorisation Order
shall clearly indicate the maximum amount that can be drawn for the quarter
by the CCO /SCO / DDO. The DTA / DWA shall issue the BAO in the first
week of every quarter of the financial year.
g) In respect of capital Heads of Accounts, the existing system shall continue, i.e.
there will be no quarterly budget controls; and the Director of Works Accounts
is instructed to act accordingly.
h) New schemes introduced for the first time and schemes that have undergone
substantive change in terms of content and funding since the preceding year or
during the course of the year would require the department to obtain and issue
administrative orders in accordance with the Rules of Secretariat Business
before approaching the Finance Department for release of the approved
Budget. The Centrally Assisted State Plan Schemes and Finance Commission
Grants will continue to be guided by the existing budget release system as
outlined at paragraph three of this Order. This would entail that the Finance
4
Department would issue orders releasing the Budget after receipt of grants
from Government of India and other concerned entities. In all these cases, the
second instalment will be released after review of the physical and financial
performance, actual expenditure, receipt of funds from the Central
Government, and other financing institutions. The State-matching share will
be released after review of expenditure to avoid parking of funds with the
implementing agencies. The departments shall continue to follow the existing
system for these schemes.
i) The Head of the Department is required to closely monitor the implementation
of the schemes / programs as per the approved work plan and review the
utilisation of budget periodically. The Administrative Department will review
the physical and financial performance and in exceptional cases, propose
appropriate reallocation / redistribution / reappropriation of the unutilised
budget, if mandated for effective implementation of the schemes and
programmes in the first month of the second and third quarters of the financial
year. Upon review of such a proposal and its acceptance, the Finance
Department will issue revised CBRO, however, only for the third and fourth
quarters. Such a revision will be done on exceptional basis and upon explicit
request of the administrative department duly supported by evidence and
justification. The CBRO will not be amended, once issued, for the first and
second quarters of the year. The DTA / DWA will issue BAO based on the
revised CBRO, however only for the third and fourth quarters. Budget
Authorisation Order will also be issued as and when the HOD releases the
funds reserved at his level to the subordinate officers.
j) The process outlined above does not apply to the Budget relating to the Raj
Bhawan, High Court of Andhra Pradesh and Telangana, Legislative
Secretariat, who will continue to follow the existing budget management
procedure. Though the CBRO system will cover the Secretariat Departments,
there will be no need for Treasury Authorisation for the Secretariat
expenditure.
7. All Special Chief Secretaries / Principal Secretaries / Secretaries to the
Government, Head of all Departments, Director of Treasuries and Accounts, Pay and
Accounts Officer, Directorate of Works and Accounts, District Collectors, Subordinate
Controlling Officers (SCOs) and Drawing and Disbursing Officers (DDOs) are requested
to follow these instructions scrupulously.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)
DR PV RAMESH
PRINCIPAL FINANCE SECRETARY TO THE
GOVERNMENT
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