Thursday, September 19, 2013

Finmin Orders - Expenditure Management - Economy Measures and Rationalization of Expenditure

Finmin Orders - Expenditure Management - Economy Measures and Rationalization of Expenditure

No.7(2)/E.Coord/2013
Ministry of Finance
Department of Expenditure

New Delhi, the 18th September, 2013

OFFICE MEMORANDUM

Sub: Expenditure Management - Economy Measures and Rationalization of Expenditure.

Ministry of Finance, Department of Expenditure has been issuing austerity instructions from time to time with a view to containing non-developmental expenditure and releasing additional resources for priority schemes. The last set of instructions was issued on 31st May 2012,  1st November 2012 and 14th November 2012. Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the Government. In the context of the current fiscal situation, there is a need to continue to rationalize expenditure and optimize available resources. With this objective, the following measures for fiscal prudence and economy will come into immediate effect:

2.1 Cut in Non-Plan expenditure:
For the year 2013-2014, every Ministry/Department shall effect a mandatory 10% cut in non-Plan expenditure excluding interest payment, repayment of debt, Defence capital, salaries, pension and the Finance Commission grants to the States. No re-appropriation of funds to augment the Non-Plan heads of expenditure on which cuts have been imposed, shall be allowed during the current fiscal year.

2.2 Seminars and Conferences:
(i) Utmost economy shall be observed in organizing conferences/Seminars/workshops. Only such conferences, workshops, seminars, etc. which are absolutely essential, should be held wherein also a 10% cut on budgetary allocations shall be effected.

(ii) Holding of exhibitions/seminars/conferences abroad is strongly discouraged except in the case of exhibitions for trade promotion.

(iii) There will be a ban on holding of meetings and conferences at five star hotels.

2.3 Purchase of vehicles:
Purchase of vehicles is banned until further orders, except against condemned vehicles.

2.4 Domestic and Foreign Travel:
(i) All officers are to travel in economy class only for domestic travel, except officers in the Apex Scale who may travel in executive class. Officers may travel by entitled class for international travel, however officers in Apex scale may travel only by business class. In all cases of air travel, only the lowest fare air tickets of the entitled class are to be purchased / procured. No companion free ticket on domestic/international travel is to be availed of. The existing instructions regarding travel on Leave Travel Concession (LTC) would continue.

(ii) It would be the responsibility of the Secretary of each Ministry/Department to ensure that foreign travel is restricted to most necessary and unavoidable official engagements based on functional necessity, and that extant instructions are strictly followed.

(iii) Where travel is unavoidable, it will be ensured that officers of the appropriate level dealing with the subject are sponsored instead of those at higher levels. The size of the delegation and the duration of visit will be kept to the absolute minimum.

(iv) Proposals for participation in study tours, workshops / conferences / seminars / presentation of papers abroad at Government cost will not be entertained except those that are fully funded by sponsoring agencies.

(v) Travel expenditure (including FTE) should be so regulated as to ensure that each Ministry remains within the allocated budget for the same. Re-appropriation proposals on this account would not be approved.

2.5 Creation of Posts:
(i) There will be a total ban on creation of Plan and Non-Plan posts.

(ii) Posts that have remained vacant for more than a year are not to be revived except under very rare and unavoidable circumstances and after seeking clearance of Department of Expenditure.

3. Observance of discipline in fiscal transfers to States, Public Sector Undertakings and Autonomous Bodies at Central/State/Local level:
3.1 Release of Grant-in-aid shall be strictly as per provisions contained in GFRs and in Department of Expenditure’s OM No.7(1)/E.Coord/2012, dated 14.11.2012.

3.2 Ministries/Departments shall not transfer funds under any Plan schemes in relaxation of conditions attached to such transfers (such as matching funding).

3.3 The State Governments are required to furnish monthly returns of Plan expenditure - Central, Centrally Sponsored or State Plan — to respective Ministries/Departments along with a report on amounts outstanding in their Public Account in respect of Central and Centrally Sponsored Schemes. This requirement may be scrupulously enforced.

3.4 The Chief Controller of Accounts must ensure compliance with the above as part of pre-payment scrutiny.

4. Balanced Pace of Expenditure:
4.1 As per extant instructions, not more than one-third (33%) of the Budget Estimates may be spent in the last quarter of the financial year. Besides, the stipulation that during the month of March the expenditure should be limited to 15% of the Budget Estimates is reiterated. It may be emphasized here that the restriction of 33% and 15% expenditure ceiling is to be enforced both scheme-wise as well as for the Demands for Grantas a whole, subject to RE ceilings. Ministries / Departments which arecovered by the Monthly Expenditure Plan (MEP) may ensure that the MEP is followed strictly.

4.2 It is also considered desirable that in the last month of the year payments may be made only for the goods and services actually procured and for reimbursement of expenditure already incurred. Hence, no amount should be released in advance (in the last month) with the exception of the following:

(i) Advance payments to contractors under terms of duly executed contracts so that Government would not renege on its legal or contractual obligations.

(ii) Any loans or advances to Government servants etc. or private individuals as a measure of relief and rehabilitation as per service conditions or on compassionate grounds.

(iii) Any other exceptional case with the approval of the Financial  Advisor. However, a list of such cases may be sent by the FA to the Department of Expenditure by 30th April of the following year for information.

4.3 Rush of expenditure on procurement should be avoided during the last quarter of the fiscal year and in particular the last month of the year so as to ensure that all procedures are complied with and there is no infrastructure or wasteful expenditure. FA’s are advised to specially monitor this aspect during their reviews.

5. No fresh financial commitments should be made on items which are not provided for in the budget approved by Parliament.

6. The instructions would also be applicable to autonomous bodies.

7. Compliance:
Secretaries of the Ministries/Departments being the Chief Accounting Authorities as per Rule 64 of GFR shall be fully charged with the responsibility of ensuring compliance of the measures out lined above. Financial Advisors shall assist the respective Departments in securing compliance with these measures and also submit an overall report to the Minister-in-Charge and to the Ministry of Finance on a quarterly basis regarding various actions taken on these measures/guidelines.

sd/-
(R.S.Gujral)
Finance Secretary

Source : www.finmin.nic.in
[http://finmin.nic.in/the_ministry/dept_expenditure/notification/emre/ExpMan_EcoMeasure18092013.pdf]

Union Cabinet may approve 10% DA hike from July, 2013 on Friday, 20th September

Union Cabinet may approve 10% DA hike from July, 2013 on Friday, 20th September

Centre set to hike DA of govt employess by 10%

Ahead of the festive season, the UPA government is set to hike the dearness allowance (DA) of its employees by 10%, a move that will benefit almost 8 million people by boosting their purchasing power.

The Union cabinet will consider a proposal on the raising the allowance, which is a proportion of basic pay, at its meeting on Friday.

In what can be seen as major sop for a large section of aam aadmi, this will be the second DA hike in a financial year. More importantly, also ahead of the 2014 general elections.

The Centre’s decision will not only directly benefit 5 million employees and 3 million pensioners, but also help infuse more money into the economy.

Top government sources said the new DA rates would be applicable from July 1.

The sources further said the exact amount of DA, as a proportion of basic pay, works out to over 90% after factoring in the revised All-India Consumer Price Index for Industrial Workers (CPI-IW) for June.

According to revised data released on August 30, retail inflation for factory workers for June stood at 11.63%, higher than the provisional estimate of 11.06% for the month released on July 31.

The double-digit hike in DA would come after three years. It was last in September, 2010, that the government had announced a hike of 10%.

The DA was hiked to 80% from 72% in April 2013, effective from January 1, this year.

As per practice, the government uses CPI-IW data for past 12 months or a year to arrive at a number for the purpose of any DA hike. Thus, the retail inflation for industrial workers between July 2012 and June 2013 will be used to take a final decision.

(With inputs from PTI)
Source: Hindustan Times

CVC Orders - Rotation of officials working in sensitive posts - regarding.

CVC Orders - Rotation of officials working in sensitive posts - regarding.

CENTRAL VIGILANCE COMMISSION
Satarkta Bhawan, G.P.O. Complex,
Block A, INA, New Delhi 110023

No.004/VGL/090/225553
Dated 11.9.2013
Circular No. 03/09/13

Subject : Rotation of officials working in sensitive posts - regarding.

Central Vigilance Commission and the Department of Personnel and Training have issued instructions for effecting rotational transfers of officials posted on sensitive posts. As per Commission's instructions issued vide letter Nos. 98.VGL/60 dated 15.4.1999, 02.11.2001 and 004/VGL/90 dated 01.5.2008 and 04.01.2012 (for public sector banks) on this issue, it was prescribed that Ministries/Departments/Organisations and CVOs are to identify the sensitive posts and staff working in these posts and also ensure that they are strictly rotated after every two/three years to avoid developing vested interests.

2. The Commission in the superintendence of vigilance administration over the years has observed that such rotational transfers are not effected in many organisations due to which officials continue to remain the same posts for long periods. Such overstay and continuous posting afford scope for indulging in corrupt activities, developing vested interests etc. which may not be in the interest of the organisation. The Commission would, therefore, emphasis that periodical rotation of officials holding sensitive posts/jobs needs to be ensured. As such, officials should not be retained in the same place/position for long by the Ministries/Departments/PSUs/Banks/Organisations etc.

3. Heads/CVOs of all Departments/Organisations are advised to ensure strict compliance of the Commission's guidelines and implement the same in letter and spirit. Further, the CVOs should specifically report the action taken indicating the number of officials rotated/transferred in the respective organisations in the Monthly Report of CVOs submitted to the Commission.

sd/-
(K D Tripathi)
Secretary
Source: www.cvc.nic.in
[http://cvc.nic.in/cir_13092013.pdf]

CGHS Orders : Approval for Photo selective Vaporization of Prostate (PVP) Surgery using Green Light HPS Fibre (Angled Delivery Device) to be used with HPS Laser System 120 watt (AMS) under CGHS/CS(MA) Rules

CGHS Orders : Approval for Photo selective Vaporization of Prostate (PVP) Surgery using Green Light HPS Fibre (Angled Delivery Device) to be used with HPS Laser System 120 watt (AMS) under CGHS/CS(MA) Rules

F.No.25-09/2013-14/CGHS/Hospital Cell/CGHS(P)
Government of India
Ministry of Health & Family Welfare
Department of Health & Family Welfare


Maulana Azad Road, Nirman Bhawan
New Delhi-110 108 dated 8th August, 2013

OFFICE MEMORANDUM

Sub: Approval for Photo selective Vaporization of Prostate (PVP) Surgery using Green Light HPS Fibre (Angled Delivery Device) to be used with HPS Laser System 120 watt (AMS) under CGHS/CS(MA) Rules regarding;

With reference to the above mentioned subject the undersigned is directed to state that this Ministry has been receiving requests for grant of permission for Green light HPS laser fibre for Laser Prostactomy. The matter has been examined in consultation with specialists in the field and it was now been decided to permit Photo selective 'Vaporization of Prostate (PVP) Surgery using Green Light HPS Fibre (Angled Delivery Device) to be used with HPS Laser System 120 watt (AMS) under CGHS/CS(MA) Rules on the recommendations of a Government Specialist in the following conditions:

a. Patients or anti-coagulants, which cannot be withdrawn even for a short duration

b. Patients suffering from bleeding diathesis.

c. Patients with Iarge prostate gland, weighing more tnan 60-80 gm.

d. Patients wth CCF anc renal failure, were fluid overload is to be avoided. In other BHP cases the standard line of treatment shall be TURP.

2. The ceiling rate of Green Light HPS Fibre (Angled Delivery Device to be used with HPS Laser System 120 watt (AMS) for reimbursement / approval under CGHS / CS(MA) patients shall be Rs.6.000/- (incl. of all taxes) or actual, whichever is lower. The ceiling rate shall be effective for one year or till further order whichever is earlier.

3. CGHS - Package rate for surgery shall be the same as for Holmium Laser prostatectomy and the cost of Green Light HPS Fibre (Angled Delivery Device) shall be permitted in addition, as per the above prescribed ceiling rate or actual, whichever is lower.

4. This issues with the concurrence of Integrated Finance Division, Ministry of Health & Family Welfare vide CD No. 837 dated 06/08/2013.

5. Hindi version will follow.


sd/-
(V. P. SINGH)
DEPUTY SECRETARY TO THE GOVERNMENT OF INDIA

Source: http://msotransparent.nic.in/cghsnew/index.asp
[http://msotransparent.nic.in/writereaddata/cghsdata/mainlinkfile/File639.pdf]

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