Delhi budget: Govt begins preparing revised estimates for 2023-24

The Delhi government has begun preparing the budget estimate for the 2024-25 fiscal and the revised estimate for 2023-24 and directed all departments to furnish realistic targets.

In a circular to all the departments on September 25, the Finance Department said that the departments should send the estimates by October 13 in prescribed format.

"The Finance Department has initiated the process of preparation of the Revised Estimates (RE) for 2023-24 and Budget Estimates (BE) for 2024-25," read the circular. It also said meetings regarding budget estimates and revised estimates will start from the last week of October.

"Revised Estimates/Budget Estimates should be formulated taking a realistic assessment of the requirement of funds which can be utilized by the department during the financial year," it said while highlighting some of the discrepancies which have continued to occur in framing of Budget Estimates by the departments.

According to the circular, it has been noticed earlier that in large number of cases, the departments have not assessed the requirement of funds under new object heads realistically or classification was not done under specified object class, resulting in avoidable re-appropriation of funds.

"All the departments are requested to ensure that the classification of expenditure as per the revised /amended primary units of appropriation or standard object heads to avoid excessive re-appropriation and supplementary grants," it said.

It also said re-appropriation of funds were taken by the departments but they were not able to utilise even their original budget estimates.

"There were also cases where the actual expenditure at the close of 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," it stressed.

The circular observed that the wide variations between the Original Budget Estimates and the 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.

"Unrealistic assessment of funds is not conducive to a proper budgeting system and it invites adverse comments from Audit, " it said.

The Finance Department also advised departments to get the budget proposals examined by Integrated Financial Advisor (IFA) who is posted/attached with all the departments.

"All budget proposals should be got examined from IFA for correctness of accounting classification before submission to Finance Department. Doubts, if any, may be clarified beforehand in consultation with Finance Budget Division," it said.

The Delhi government had presented a budget of Rs 78,800 crore for 2023-24 fiscal.