Be realistic, more accurate in preparing budget estimates and fund requirements, govt tells depts

In budget circulars issued to departments between August 12 and September 12, the government sought revised estimates for 2021-22 and budget estimates for 2022-23.

New Delhi: Pointing to discrepancies between estimates and actual expenses in previous years, the Delhi government has asked its departments to be more accurate and “realistic” in drawing up their estimates for the annual budget and said inaccurate assessments are often flagged with “adverse comments” during financial audits.

The government identified a few areas which recorded discrepancies between estimates and actual expenses. These included salaries, supplementary demand for grants, and centrally sponsored schemes. (Picture for representation only)

In budget circulars issued to departments between August 12 and September 12, the government sought revised estimates for 2021-22 and budget estimates for 2022-23.

In the same circular, copies of which HT has seen, the government has sought details on budget estimates, revised estimates and actual expenses for all financial years since 2017-18. They have been asked to specifically classify expenses under “establishment and other committed expenditure”, “government scheme and projects”, and “centrally sponsored schemes”.

“Revised estimates and budget estimates should be formulated taking a realistic assessment of the requirement of funds which are to be utilised by the department during the financial year. Some of the discrepancies which have continued to occur in framing budget estimates by the department are given below and it is requested that departments should take utmost care to avoid such recurring discrepancies,” said the official document.

The government identified a few areas which recorded discrepancies between estimates and actual expenses. These included salaries, supplementary demand for grants, and centrally sponsored schemes.

“There are also cases where the actual expenditure was found either in excess or short of budget provisions. To avoid such situations, it is for the department to have a realistic view of its requirement. The wide variations between the original budget estimates and actual expenditure incurred lead to an obvious conclusion that the departments have not been able to properly anticipate, assess and project a realistic requirement of funds,” said the document.

It further said, “Revised estimates and budget estimates of a department means that projections are inclusive of all subordinate offices under their administrative control including the autonomous bodies and grantee institutions... Budget proposals issued directly by any such subordinate offices or grantee institutions will not be entertained.”

The Delhi government has around 200 departments in total which include finance, revenue, general administration, services, education, health, excise, water, power, urban department, agriculture, labour, local bodies, transport, environment, art and culture, food and civil supplies, technical institutes, agriculture, irrigation and flood, fire services and home.

The Delhi government proposed a budget outlay of ₹ ₹69,000 crore for 2021-22, the highest so far. Of this, around ₹32,000 crore was allocated on revenue expenditure and nearly ₹37, 000 crore on schemes and projects. The highest allocation, of ₹16,377 crore, was on education, followed by ₹9,934 crore on health.