CHAPTER VII
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Revised Estimates
51. General observations. - As already explained in para. 15(31) of Chapter II, the revised estimate is an estimate of the probable receipts or expenditure for a financial year, framed in the course of that year, with reference to the transactions already recorded and anticipation for the remainder of the year in the light of the orders already issued or contemplated to be issued or any other relevant facts. It does not authorise any expenditure, nor does it supersede the budget estimate as the basis for regulation of the expenditure. If an excess is anticipated in the revised estimate under any particular head, it is necessary for controlling authority to apply separately in proper time for additional funds required, unless the excess can be met by re-appropriation of savings from other heads or has already been sanctioned by the competent authority. On the other hand, if the figure taken for the revised estimate is less, it is the duty of the controlling officer to see that as far as possible the expenditure during the remaining part of the year is so restricted that the total expenditure for the year does not exceed that figure. The savings may be due to one or more of the following causes:
(i) actual postponement of expenditure ;
(ii) real savings due to economy measures ;
(iii) normal savings due either to over-estimating or administrative causes, e.g. casualties, etc. and
(iv) compulsory saving notified by the Government
Saving due to cause (i) and (iv) are in no circumstances to be used for re-appropriation to meet new items of expenditure without the prior sanction of Government. Unless savings due to cause (ii) have been made deliberately to provide for a foreseen emergency, they should not ordinarily be utilised in the course of the year for new items of the expenditure, as it is desirable that all such new items should be considered together at the time of the preparation of the budget for the next year. It is essential that the revised estimates should be prepared with great care, so that they may approximate as closely as possible to the actual which will not be available for some months after the close of the financial year. These estimates, besides enabling the Government to arrive at the approximate closing balance of the current year (which will be the opening balance of the next year) are prima facie the best guide to the next year's estimates.
52. A revised estimate is based on :
(i) ascertained actual of the past months of a financial year, and
(ii) an estimate of the probable figure for the remaining months of that year.
The figure for (i) above being definitely known, it is only that for (ii) which has to be estimated and in doing so the actual for the same period during previous years, chiefly those of the preceding year, should be the main guide, due allowance being made for any exceptional factors or unusual characteristics which may have affected the actual of the last preceding year or which may affect those of the current year. If the revised figure differs appreciably from the previous year's figure, the reason or reasons for the variation should be clearly explained. Also, if any special factors have affected the figure for (i) above, this should be mentioned and it should be explained whether or not they are likely to continue throughout the year. The usual adjustments with other Governments and departments, etc. which take place during and after the close of the year should be duly taken into account when framing the revised estimates.
53. Methods for framing the revised estimates. - The revised estimates are generally based on the actual of the first six months of the year. Assuming that at the time of the preparation of the revised estimate the actual for the first six months of the current year are available, the estimate will generally be framed in one of the following ways :
(i) by adding to the actual of the first six months of the current year those of the last six months of the previous year, or
(ii) by taking a proportionate figure so that the revised estimate will be twice the actual for the first six months, or
(iii) by assuming that the revised estimate for the current year will bear the same proportion to the actual of the first six months as the actual in the previous year bore to those of the first six months of that year.
The Heads of Departments and other estimating officers should use their discretion and adopt one or other of the above methods or any other suitable method for each particular case in the light of the actual trend of revenue or expenditure during the previous years, due allowance being made for any abnormal features in those years and for factors which may modify the realisation of original expectations. It would always be of advantage to base the forecast on a careful study of the figures of three years immediately preceding rather than those of a single year.
54. Preliminary statements of excesses and savings. - A statement of anticipated excesses and savings in expenditure in Form B.M. 4 shall be submitted by each controlling officer to administrative department, so as to reach Government in the Finance Department not later than 25th November every year. Only those items should be shown in the statement in which any excess or saving is anticipated. The reasons for the variations should be explained fully and clearly against each such item. If no excesses or savings are anticipated a blank statement should be submitted. It is essential that the statement is prepared with the utmost care, as inaccurate statements may at times have serious repercussions. The disbursing officer or district level officer is expected to send first excess saving to controlling officer latest by 15th of October. The controlling officer should compile the excess saving and submit to administrative department up to October 31.
55. Revised estimates to be framed by the Finance Department. – The revised estimates to be included in the annual budget will be prepared by the Finance Department by primary units with the help of –
(a) registers of actual of revenue and expenditure maintained by it for the purpose :
(b) rough preliminary estimates furnished by the Accountant General with appropriate column of the budget form showing estimates of various departmental budget for the next year;
(c) the preliminary statements of anticipated excesses and saving in expenditure submitted by officers (vide para. 54) ; and
(d) the revised estimates in respect of different heads furnished by the administrative departments concerned .
56. Revised estimates for particular receipt heads. - Revised estimates of revenue receipts should also be submitted so as to reach the Finance Department not later than 25th November every year by the Controlling Officers and Departments .No particular form is prescribed, but the forwarding memorandum should explain fully and clearly how the revised figures have been arrived at.
The administrative departments of Government and controlling officers may obtain such information from subordinate authorities as they may consider necessary. The list of receipt heads may be revised in accordance with the latest list of major and minor heads of accounts being approved by Comptroller and Auditor General of India.
57. Corrections to revised estimates to be intimated by 5th December - Any appreciable variations discovered in the revised figures of expenditure and receipts subsequent to their communication to the Finance Department should be communicated through administrative department latest by November 30 and in any case not later than December 5.
