The Delhi government has initiated the budget preparation process for the fiscal year 2025-26. Departments have been instructed to submit their estimates by the first week of October, as per officials. The finance department has requested Revised Estimates for 2024-25 and Budget Estimates for 2025-26 by October 7, along with proposals related to schemes, projects, and programmes.

The finance department has issued a comprehensive Budget Circular to guide departments. This circular includes instructions on adhering to the prescribed proforma statement under the General Financial Rules, 2017. Budgetary expenditure will be categorised into establishment costs, government schemes, projects and programmes, and centrally sponsored schemes.

Realistic Fund Assessment Emphasised

The circular stresses that revised and budget estimates should be based on a realistic assessment of fund requirements. Departments must ensure that funds can be effectively utilised during the financial year. It has been observed that many departments fail to assess fund needs accurately under new object heads or classify them correctly, leading to unnecessary re-appropriation of funds.

Audit reports have highlighted issues with unnecessary supplementary or re-appropriation without a realistic budget assessment. The finance department aims to ensure that projected funds are realistic and fully utilised within the financial year. The circular also noted instances where departments took reappropriated funds but failed to utilise even their original budget estimates.

Addressing Budget Variations

Significant discrepancies between original budget estimates and actual expenditure indicate poor anticipation and projection of fund requirements by departments. Such unrealistic assessments are detrimental to effective budgeting and attract negative audit comments. The circular advises departments to adopt a realistic view of their fund needs to avoid these issues.

The finance department also pointed out cases where actual expenditure at the end of the financial year was either above or below budget provisions. To prevent such situations, departments must ensure accurate fund requirement assessments.

Centrally Sponsored Schemes

Proposals for centrally sponsored schemes are submitted to the nodal ministry of the Government of India by relevant departments. For introducing any new scheme, approval from the Legislative Assembly through supplementary demand for grants is necessary. Therefore, departments should ensure budget provisions are included in their estimates to avoid delays in scheme implementation.

The finance department’s observations highlight the need for departments to accurately anticipate and project fund requirements. This approach will help maintain a proper budgeting system and avoid adverse audit comments.