The Delhi government has started the process for budget preparation for 2025-26 and asked its departments to submit estimates by the first week of October, according to officials.
The finance department has asked other departments to submit the Revised Estimates 2024-25 and Budget Estimates 2025-26 on or before October 7, along with budget proposals related to schemes, projects and programmes.
The finance department has issued a detailed 'Budget Circular' to other departments with instructions to follow the prescribed proforma statement under the provisions of the General Financial Rules, 2017.
The budgetary expenditure will be classified into establishment expenditure, government schemes, projects and programmes, and centrally sponsored schemes, the department directed.
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The revised and budget estimates should be based on a realistic assessment of fund requirements that can be utilised by a department during the financial year, it added.
"It has been noticed that in a large number of cases, the departments have not assessed the requirement of funds under new object heads realistically or classification not done under specified object class, resulting in avoidable re-appropriation of funds," it said.
The Audit has also pointed out "unnecessary supplementary or re-appropriation" without a realistic assessment of the Budget.
The department will ensure that the entire projected funds are realistic and will be utilised during the financial year.
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The circular also pointed out that several departments took reappropriated funds but were not able to utilise even their original budget estimates.
"There were also cases where the actual expenditure at the close of the financial year was found either in excess or short of budget provision. To avoid such situations, it is for the departments to have a realistic view of its requirement of funds," the circular added.
In another observation, the finance department stated that 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 and project a realistic requirement of funds.
Unrealistic assessment of funds is not conducive to a proper budgeting system, and it invites adverse comments from Audit, it warned.
The circular said the proposals for implementation of centrally sponsored schemes are submitted to the nodal ministry of the Government of India by the departments concerned.
For the introduction of any new scheme, approval of the Legislative Assembly by way of supplementary demand for grants is required. Therefore, the department should ensure that budget provisions are made in their estimates to avoid delay in the implementation of the scheme, it added.
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