Budget is a best tool in the hands of management to overview: Funds Management, Projects undertaken in the business, its expenditure and its further requirement, Exercising expenditure control, Assessing financial capability of the organisation, To modify / Augment the business planning
The capital works programme containing proposals for budgeting of the capital works to be submitted to Corporate Office, during February in the forms 'A','B' and 'C'
The capital works programme should be thoroughly scrutinized before submission to the corporate Office by the planning branch and the IFA of the circle office
1. The necessity for individual projects, newly proposed as well as works –in-progress should be fully examined from the point of view of the relevance of the project to the expansion or improvement of the network, the essentiality of the specific project and its profitability
2. Works-in-progress may turn out to be not relevant and therefore not justifying further expenditure due to prolonged gestation of the projects or recent developments like policy decisions regarding changing technology, such as digitalization, change in Product-mix from factories, like phasing out of electro-mechanical system
3. Decision should be taken in such cases regarding abandoning of the project, taking care to find ways and means of salvaging the investment already made
4. In case of projects which have been included in the Demand-for-grants after the above scrutiny, the listing may be done on the basis of priority, so that the directorate could decide about any possible deletion in the context of inadequacy of allotment of funds
5. In the case of works costing less than Rs.5 Cr each, where a lump sum allotment is asked for, a similar exercise, as mentioned above should be under taken so that only essential and remunerative projects are included in the programme
Proposals in respect of projects costing 5 Crores & above
Component-wise consolidated demand - major works costing below 5 Cr
Works costing below Rs 5 Cr. But expenditure exceeded Rs 5 Cr.
Consolidated proposals of sanctioned works (A to D)
Material input-wise requirement for capital works
Consolidated component wise demand of ongoing projects
Profitability of capital works projects to assess expenditure on non-remunerative projects for the purpose of "USO" (Universal Social Obligation) Funding
Provision of targeted VPTs - technology wise break up with cost /line
1. Funds for major works, costing Rs.5 crores & above are allotted by the Corporate Office to Heads of Circles according to the components of each project
2. In respect of all other works, allotments are made account head-wise in lump
3. Allotments of funds are made subject to conditions that no appropriation of funds is to be made against any unsanctioned detailed estimate, no appropriation of funds is made beyond 10% of the sanctioned cost of a detailed estimate, and no appropriation of funds is made which has the effect of exceeding the sanctioned cost of the project beyond 10%
1. Corporate office is ultimately responsible for controlling the whole expenditure against the sanctioned grant and Heads of Circles are required to cooperate
2. Expenditure should not be incurred under any head in excess of the funds allotted
3. If any time it becomes apparent that there is likely to be a surplus under any head, then the amount of the probable excess must be promptly surrendered
4. Every administrative officer should insist on the submission by each of his subordinate officers amongst whom he subdivides his allotment of a regular monthly basis
Works not provided for in the sanctioned budget are termed as "Non-Budgeted works. No expenditure can be incurred on Non Budgeted works with out the prior approval of the competent authority
Demands for funds for execution of projects beyond sanctioned cost
1. As soon as the expenditure on a project reaches the level of 75% of the sanctioned cost, a review should be under taken to examine if the project can be completed within the sanctioned cost
2. If it is anticipated that the cost is likely to go beyond 10% of the sanctioned estimate, immediate action should be taken to prepare a revised project estimate and have it sanctioned well in advance
1. The Cash requirement of each SSA and Circle HQ are forecasted once in 15 days against Capital and Working Expenditure with reference to proportionate Budget Allotment
2. Funds are released by Corporate Office after scrutiny of requirement through banking channel
3. Monthly cash flow statement of Collection Accounts is prepared & sent by SSA to Circle Office, Circle Cash flow statement of Collection Accounts is prepared by Circle & sent to Corporate Office
As approved by BSNL Management Committee in its 105th meeting held on 11-11-2008, the budget processing and related works have been modified in order to streamline the Budget processes and to yield more realistic budgetary estimates in the circles and corporate office
Details to be submitted to BBF Division of Corporate office by the respective circles every year in the prescribed format to enable corporate office to monitor the progress of ongoing and New projects costing more than Rs.20 crores
1. BBF Division will furnish details of expenditure to the concerned Circles and respective Planning branches of Corporate office, on quarterly basis for monitoring physical targets viz-a-viz capital expenditure recommended by planning branches
2. Circles need not send variation statements at the close of the financial year to corporate office
3. Variation statements will have to be reviewed by the respective circle
The existing procedure and related works on budget processing under capital outlay/working expenses stand modified to the extent noted above with immediate effect
Consolidated statement showing account code-wise distribution of funds made at circle level to be forwarded to BBF Division of Corporate Office after receipt of RE –BE
Circle-wise details financial assessment/recommendation under various parameters along with physical target assigned for achievement to be furnished to BBF division for allotment of funds to circles in lump sum for all works under various services and components under RE-BE
Circles were requested to forward a consolidated statement showing account code-wise distribution of funds made by them to the SSAs etc. latest by 30-6-2009, the details for the same are still awaited
Entire allotment as per approved Plan Outlay under BE 2009-10 has already been distributed to the Circles, no further allotment can be considered by B&FC Division at this stage
Any request for additional requirement of fund/surrender of allotment made under BE 09-10 or Diversion of fund from one service/component to another
May be taken up well in time with the concerned Planning wings of Corporate office for their specific approval/recommendation and inclusion in RE 2009-10
Formats for budget allotment to circles and fund requisition from circles under Opex are being revised to incorporate the accounts heads and description of expenditure items
1. On the basis of prorata budget for each circle for all budgeted items including Salary, Wages, Water & Electricity and Commission/Revenue shares etc.
2. On the basis of annual budget for special budget items i.e. Stores & Business promotion & Marketing
2. Review the budget provisions with cash funds from time to time and should send requisition in prescribed performa with cogent reasons if additional budget provision is required against any items
3. Only for the fortnight (1st or 2nd) in which the actual payment is to be made