Saving and Excess in Appropriation Account dt 13.03.2017
OFFICE MEMORANDUM
Subject: Appropriation Account
I am directed to refer to this department’s circular letter No.FD(M-II)1- 2/82(P), dated 09.05.2012 and to state that policy of “zero tolerance” in the “savings” reported in Appropriation Accounts has been re-examined by the PAC-II in its meeting held on 23.02.2017.
2. It has now been decided by Hon’ble PAC-II that the cushion of 5% “savings” in the Appropriation Accounts would be provided on the basis of total allocation and not under detailed objects on the following conditions:
- The Departments would not take this dispensation as a routine and would not ignore on the pretext of an available 5% cushion.
- The Departments would continue to give proper justification for “savings” in the Working Papers of Appropriation Accounts even if it may fall under a 5% cushion.
- “Zero tolerance” in cases of excess expenditure would remain intact.
3. The PAC-II has further desired that while preparing working papers of Appropriation Accounts, the Departments must invariably indicate whether funds were demanded/re-appropriated in the 2nd statement of excesses & surrenders and whether their request was acceded to by the Finance Department or otherwise.
4. It is requested that the above directions of the PAC-II may kindly be communicated to all DDOs / subordinate offices under your administrative control for further compliance.
