Budget Instruction For BE 2023-24

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GOVERNMENT OF TAMIL NADU MANUSCRIPT SERIES

2022
FINANCE (BUDGET GENERAL-I) DEPARTMENT

G.O.No.280, dated 5th September 2022
(Subakiruthu, Aavani- 20, Thiruvalluvar Aandu 2053)
Preparation of Budget for the year 2023-2024 – Medium Term Expenditure
Framework - Consolidated instructions for the preparation thereof – Issued.
Read the following:-

1. G.O.(Ms).No.404, Finance (BG-I) Department, dated 16.06.1992.
3. G.O.(Ms).No.148, Finance (BG-II) Department, dated 31.03.2000.
4. Tamil Nadu Fiscal Responsibility Act (No.16 of 2003) as amended lastly
in Act No.13 of 2021.
5. G.O.(Ms).No.248, Finance (CMPC) Department, dated 20.05.2020.
6. G.O.(Ms).No.382, Finance (CMPC) Department, dated 24.10.2020.
8. G.O.(Ms).No.36, Human Resources Management (FR-III) Department,
dated 11.04.2022.
9. G.O.(Ms).No.112, Finance (B.Coord) Department, dated 22.04.2022.
11. Government Letter No.35640/ Finance (BG-I) Department/2022-1, dated
18.08.2022.
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ORDER:-
The Annual Budget is a key fiscal policy document of the Government
outlining the policies and programmes of the Government and shows the allocation
of funds for various schemes in accordance with the said policies and priorities.
The Annual Budget is prepared keeping in line with the provisions of the Tamil Nadu
Fiscal Responsibility Act-2003 as amended from time to time which prescribes the
annual fiscal targets and also provides for a medium term fiscal policy perspective.
The Budget enables the Government to obtain the approval of the Legislature for the
budgeted receipts and expenditure upon the Consolidated Fund of the Government
under Article 202 of the Constitution of India, based on the fiscal parameters defined
in the Tamil Nadu Fiscal Responsibility Act-2003.
2) Optimum utilization of the limited available resources with better delivery of

services and programmes to the public is one of the fundamental principles of
budgeting. Improved fiscal marksmanship through greater accuracy of budget
estimates is an important fiscal norm in enabling greater fiscal discipline and
avoiding unnecessary mid-year sanctions. Under the Tamil Nadu Fiscal
Responsibility Act-2003, the Government is required to prepare a Medium Term
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Fiscal Framework to monitor and maintain the fiscal health of the State.
For the Budget 2023-2024, a detailed Medium Term Fiscal Framework embedded
with macrofiscal projections will be prepared. It envisages a three year rolling fiscal
target, projecting the anticipated receipts and the likely expenditure based on the
current policies and programmes. The estimates for the next year, (i.e.) 2023-2024
will become the Budget Estimates for that year and the Estimates for 2024-2025
and 2025-2026 will be referred to as Advance Estimates. Hence, due importance
shall be given to fixation of Advance Estimates like the Budget Estimates, since the
advance estimates are the base for preparing the fiscal forecast which is critical in
determining the fiscal limits for the future.
3) The preparation and successful execution of the Medium Term Fiscal

Framework requires active involvement of all the Heads of Departments in the
budgeting process. The decentralized budgeting exercise is designed to provide
ample opportunity to the Heads of Departments to justify their budgetary
requirements and secure the allocation for schemes. Therefore, the Heads of
Departments should acquaint with the budgeting process thoroughly, in particular the
detailed guidelines prescribed in this order and get involved fully in the preparation of
Budget Estimates of their departments.
4) The consolidated schedule for the preparation of Budget for 2023-2024

is furnished in the Appendix (Section-I) to this order. The Section - IV of this order
specifically highlights the procedure to be followed in the preparation of Revised
Estimates (RE) and Budget Estimates (BE).
5) During the last two years, the budget proposals had been processed in the
IFHRMS portal. Hence, the same procedure shall be continued and the
proposals for RE 2022-2023, BE 2023-2024 and Advanced Estimates for
2024-2025 and 2025-2026 shall be processed and sent through IFHRMS.
However, hard copies of the proposals in Form I, II and III generated from the
system, along with the supporting documents (i.e. Forms in Annexure I,
Annexure III & IV) shall be handed over to the Finance Department.
The scanned copies of the documents shall be uploaded in the system for
reference. A guidance note on the budgeting process is given in Section-XI
which should be carefully read and adhered to.
6) All the receipt proposals for the Revised Estimates for 2022-2023 and the
Budget Estimates for 2023-2024 should be sent in accordance with the rates of
Tax/Non–Tax Revenue approved by the Government along with copies of relevant
Government Orders. The expenditure proposals will be examined only after a
thorough review of the receipt proposals. Further, separate proposals
should be submitted for the items of receipt and expenditure of
Rs.20.00 crore and above with accompanying detailed notes and
working sheets. The soft copies of the Rs.20.00 crore proposals shall be
uploaded in the IFHRMS also.
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7) The Government will continue to specially focus on the following

aspects during the current budgeting exercise and hence the Heads of
Departments are advised to pay due attention and be ready with all relevant
documents and data for a detailed discussion on each of the items:-
a) The issues/variations in the total number of posts sanctioned, if any,
from the system fetched number of posts under IFHRMS as on
31.07.2022 will be discussed and finalized, for which suitable
instructions will be issued separately.
b) Arrears of Tax Revenue including pending recoveries due to
arbitration in Tax Appellate Tribunals/ Courts, etc., as per the
format prescribed by the Finance (Res-I) Department.
c) Non-Tax Revenues under the Major Heads ‘0046’ to ‘1475’, especially
where the annual receipts realized/ estimated as Rs.20.00 crore or
more, as per the Format III of Annexure IV to this order.
d) Grants-in-Aid from the Centre under the Major Head ‘1601’ and
in particular the Central grants pending for the expenditure already
incurred by the State Government, expenditure awaiting Central
assistance for which provision is made in the State budget, cut in
the Central funds during the current financial year compared to the
projections made in the budget both under the receipts and
expenditure sides, as mentioned at Format II at Annexure IV to this
order.
e) Compliance of Government of India’s guidelines on Single Nodal
Agency (SNA) procedure for implementation of the Centrally
Sponsored Schemes will be thoroughly reviewed, especially the
following aspects:
Separate heads of accounts for transfer of Central and State share
of funds.
Separate head of account for State additional share, in addition to
the prescribed ratio of the State share, wherever required.
Provision for Salary related expenditure under the State’s
Expenditure’ group head of account.
Provision of Salary and Operation & Maintenance expenditure
under the existing CSS heads of accounts under a new Object
head.
Transfer of Central and State share of funds to the SNA bank
account for the Central grants received till 15.09.2022. Detailed
instructions are given in Section - III.
f) Recovery of Loans & Advances/ Ways & Means Advances sanctioned to
various Boards/ Corporations/ Public Sector Undertakings / Cooperative
Institutions, together with interest dues, more specifically, the
repayment of the outstanding loans consolidated vide
G.O.(Ms) No.68 & 72, Finance (L&A Cell) Department, dated
25.02.2019. (Converted into fresh loans during 2018-2019, with a
new repayment period and at a lower rate of interest).
g) Guarantee Fees outstanding and recoverable from various
Boards / Corporations / Public Sector Undertakings / Co-operative
Institutions.
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h) The requirement of pay and allowances in the RE 2022-2023 and

BE 2023-2024 will be based on the IFHRMS projected figures in
Annexure II & III of the Number Statement and the Appendix I (F) to be
prepared manually and submitted along with the Number Statement
Proposals. Hence, the system generated Number Statement should be
thoroughly verified.
i) Seeking mid-year/ adhoc additional funds requests on various existing
items shall be avoided. The rise in the additional fund requests shows
lack of due diligence at the time of budgeting and non–utilization of funds
properly during the previous years. This growing trend is not desirable as
it hinders achieving the fiscal goals. Hence, the Government
has decided to curb this practice and restrict the additional fund
sanctions only to new schemes, where there is an urgent/ critical need.
j) The requirements for the existing schemes should be analyzed and
requisite funds sought in Budget Estimates 2023-2024 with proper
justification. Additional funds in Revised Estimates 2022-2023 will be
based on ASL already issued.
k) Any backlog/ spill over in expenditure should be specifically
proposed in the estimates through special noting and brought to
attention during the DCB meetings. However, once the budget is fixed
after discussion, the expenditure must be controlled within the
appropriation provided by the Legislative Assembly and this should not
be cited as the reason for additional funds requests.
l) Simultaneously, strict financial discipline must be enforced in spending
and all possible ways should be explored for reduction of expenditure in
the Revised Estimates 2022-2023 and Budget Estimates 2023-2024.
m) The economic austerity measures on certain items of expenditure
ordered in the G.O.(Ms) No.249, Finance (BG-I) Department, dated
21.05.2020 were modified in the G.O.10th read above. This should also
be considered while proposing budget estimates.
n) All the above instructions from (a) to (I) should be followed for the
Advanced Estimates for 2024-2025 and 2025-2026 also.
8) Other important aspects of budgeting
(a) TANII SCHEMES

Proposals for TANII (Part-II) Schemes will be invited for
BE 2023-2024 as per the procedure envisaged under Section - IV.
(b) Top Down Budgeting
In the G.O. 9th read above, Government have introduced the
Top Down Budgeting concept in five Demands for Grants for the
“State’s Expenditure” group heads in the BE 2022-2023 and the detailed
instructions are given in Section - V. This concept will be continued in
the above Demands for the year 2023-2024 also.
(c) Provision for book adjustment under Externally Aided Projects
Book adjustments are made by the Accountant General for the
disbursements under the ‘Direct Payment Procedure’ or assistance
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received as in ‘kind grants’, based on advice from the Controller of

Aid Accounts and Audit, Department of Economic Affairs.
Detailed instructions have been incorporated in the Section - VIII for
making necessary budgetary provisions under the relevant service
heads for such transactions.
9) The instructions for preparation and submission of Number Statement in

the IFHRMS vide in the Government Letter 11th read above should be scrupulously
followed and the Heads of Departments should adhere to the timelines and
accordingly submit the completed Number Statements by 31.08.2022.
10) The Heads of Departments are requested to propose the
Revised Estimates for the current financial year 2022-2023 and the
Budget Estimates for next financial year 2023-2024 along with the Advance
Estimates for the years 2024-2025 and 2025-2026 in the IFHRMS portal and
send the hard copies of the proposals to the Finance Department
on or before 23.09.2022 without fail. Compliance of these timelines is absolutely
essential as the Decentralized Budget Meetings will be convened on the scheduled
dates.
11) All the administrative departments in the Secretariat and all the
Heads of Departments are therefore requested to bestow their personal
attention in this matter, get the officials concerned in the process fully
acquainted with these guidelines and ensure that the proposed estimates
relating to their department are prepared in accordance with the instructions
therein and sent to the Finance Department within the time frame as indicated in
paragraph 10 above.
(BY ORDER OF THE GOVERNOR)

N. MURUGANANDAM
ADDITIONAL CHIEF SECRETARY TO GOVERNMENT
To
All Additional Chief Secretaries / Principal Secretaries and
Secretaries to Government, Secretariat, Chennai-9.
All Departments in Secretariat, Chennai-9.
All Heads of Department.
The Secretary, Legislative Assembly Secretariat, Chennai-9.
The Principal Secretary to Governor, Raj Bhavan, Chennai-22.
The Secretary, Tamil Nadu Public Service Commission, Chennai-3.
The Registrar, High Court, Chennai-104.
All State Public Sector Undertakings/ Boards.
The Accountant General (A&E), Chennai-18.
The Principal Accountant General (Audit-I), Chennai-18.
The Principal Accountant General (Audit-II), Chennai-18.
Copy to:
All Officers / Programme-cum-Budget units / Core Budget Sections in Finance
Department, Chennai-9.
Stock File / Spare Copy.
// FORWARDED : BY ORDER //
SECTION OFFICER
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APPENDIX
SECTION – I
THE BUDGET SCHEDULE
ACTIVITY PERIOD
1. Submission of Number Statement On or before 31stAugust, 2022

related proposals.
2. Submission of Budget proposals in

complete shape, as per the checklist,
On or before 23rd September,
in one consolidated form by each
2022
HOD including online Budget
proposals through IFHRMS
3. Meeting of DS (B) with the Chief

Accounts Officers of the departments th
7 September, 2022 at 11.00 A.M.
for explaining the procedures and the
budget data entry software
4 Discussion with State Planning

October, 2022
Commission for TANII Schemes
5. Decentralized Budget Meetings From 1st week of October 2022
6. Submission of finalized estimates by Within five days from the

the Estimating Officers based on the decentralized budget meeting.
decisions taken in the decentralized
budget meetings.
7. Communication of Revised Estimates

by Finance Department (including End of December 2022
data transmission through IFHRMS)
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SECTION – II
RECAP OF RECENT CHANGES IN THE ACCOUNTING PROCEDURE
1) Re-Classification/ Introduction of New Minor Heads of Accounts:
New minor heads of accounts had been introduced in the Budget 2018-2019
for showing the expenditure related to Scheduled Castes (Minor Head 793) and
Scheduled Tribes (Minor Head 794) under the Centrally assisted schemes
(irrespective of sharing pattern), through reclassification from the minor heads
789 and 796 respectively. This shall be continued as per Government
Letter No.4116/ Finance (BG-II) Department/2018, dated 05.02.2018.
The 100% expenditure borne by the State Government, shall, however be booked
under the related minor heads 789 and 796.
2) Restructured Heads of Accounts:

In the G.O.(Ms) No.85, Finance (BG-II) Department, dated 04.03.2019, the
following new concepts and minor modifications had been introduced in the Heads of
Accounts structure at various levels, as part of standardization and bringing in
structural uniformity in the accounting codes under the IFHRMS.
i. Adoption of separate set of Detailed and Sub-Detailed Heads for each
type of Receipt and Expenditure and creation of Group Codes at Detailed
Head level prefixed to the detailed head to identify the nature / type of
Receipt and Expenditure, as mentioned below.
1 - Central Receipts (SCT & GIA)
2 - State Resources (Tax, Non-Tax
and Capital Receipts)
3 - Revenue Expenditure
4 - Capital Expenditure
5 - Loans and Advances
6 - Public Debt
7 - Contingency Fund
8 - Public Account
ii. Conversion of the 15 digit DP Code to 16 digit Code.
iii. Removal of the check-digit and provision for two digit slot for
Sub-Detailed Heads.
iv. Distinguishing ‘Voted’ and ‘Charged’ expenditure at Sub-Detailed head
level for all the Detailed Heads other than ‘Salaries’, i.e., sub-detailed for
‘Voted’ would have a sequence of ‘01 to 49’ and corresponding
sub-detailed heads for ‘Charged’ would be sequelly and correspondingly
represented from ‘51 to 99’ under each detailed head.
3) Creation of New Detailed / Sub-Detailed Heads:

A few new Detailed / Sub-Detailed Heads had been introduced in the Budget
2020-2021 for segregation of specific expenditure relating to Networking and
Connectivity, Interest paid on Land Compensation, Pro-rata charges under
Inter-Account Transfers and Service or Commitment Charges on Externally Aided
Projects. These object head level classification shall be effectively used in the
Budget proposals for segregation and analysis of specific expenditure items.
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In addition to the above, the following new sub-detailed heads of accounts are
opened for use in RE 2022-2023 and BE 2023-2024 in order to transfer the Salary
and O&M related expenditure to the Single Nodal Agency (SNA) bank accounts
under the Centrally Sponsored Schemes (CSS) and track such transactions for the
purpose of reconciliation with Public Financial Management System (PFMS) and
ensuring the reimbursement of the expenditure to the Government:
309 05 Grants for transfer of Salary related expenditure to SNA.
(to be used under the CSS heads in RE 2022-2023 & BE 2023-2024)
309 06 Grants for transfer of Operation and Maintenance related
expenditure to SNA. (to be used under the CSS heads in RE 2022-2023 &
BE 2023-2024)
377 04 Recovery of Salary related expenditure from SNA (to be used
under the CSS heads in RE 2022-2023 and the regular head in
BE 2023-2024)
377 05 Recovery of Operation and Maintenance related expenditure from
SNA (to be used under the CSS heads in RE 2022-2023 only).
Detailed instructions are given in Section - III.
In order to validate the entry of new assets to be purchased by the
departments from the Government funds in the Cloud Based Asset Management
System (CBAMS) to be launched shortly, the following new sub-detailed heads
have been opened in addition to the existing sub-detailed heads under the various
detailed heads:
S.No. Existing Detailed Head New Sub-Detailed Head

1 305 Office Expenses 07 Other Office Equipment-Purchase
2 381 Networking and Connectivity 03 Purchase
The above new sub-detailed heads will be operational from BE 2023-2024.
SECTION – III
Reclassification of expenditure for transfer of funds to the Single Nodal

Agency under the Centrally Sponsored Schemes
Government of India had introduced the Single Nodal Agency (SNA) concept
for all the Centrally Sponsored Schemes (CSS) during 2021-2022 and have issued
guidelines in this regard. Accordingly, the State Government should designate the
Single Nodal Agency and open a Single Nodal Account (Savings Bank account) in a
scheduled Commercial Bank for each Centrally Sponsored Scheme. Further,
the State Government should transfer the Central and State’s share of funds to the
SNA’s bank account within a period of 21 days and 40 days respectively, from the
date of credit of the Central grant to the State Government. Therefore, it is essential
that adequate budget provisions should be made under the connected heads
of account for Central and State share separately for each CSS.
Based on Government of India’s guidelines, the following detailed instructions
have been issued for complying with the Single Nodal Agency (SNA) procedure in
the implementation of the Centrally Sponsored Schemes and a check list on SNA
Bank account integration with PFMS shall be filled for each SNA implementing the
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Centrally Sponsored Schemes under your control as Annexed at Form II (a) at

Annexure IV and be sent to the Government.
i. Government Instruction No.527/FS/T/GBC/BGM/2021, dated 29.04.2022.
ii. Government D.O. Letter No. 527/FS/T/GBC/BGM/2021-2, dated
30.05.2022.
The specific budgetary and accounting procedure to be followed are:
I. Separate heads of accounts for Central and State share
a. The existing heads of accounts under which budget has been provided
should be reviewed.
b. It must be ensured that separate heads of accounts are available for the
Central and State share of funds and adequate budget has been provided
under each head of account.
c. If there is no separate head of account for either the Central or State share,
suitable new head of account should be opened immediately for the missing
share of the Centre or the State and necessary provision should be solicited
in RE 2022-2023 and BE 2023-2024.
II. Provisioning for Salary related heads of accounts
In RE 2022-2023
• Retain the provision for Salary object heads under the CSS heads of
accounts for Central and State share and claim salary for the employees in
the usual manner
• In addition, propose an amount equal to the Salary object heads under the
new sub-detailed head 309 05 below the detailed head 309 Grants-in-Aid,
under the CSS heads of accounts for Central and State share in a
proportionate manner for transfer of the gross salary expenditure to the SNA
bank account.
• Simultaneously, propose the same amount under the new sub-detailed head
377 04 below the detailed head 377 Deduct Recoveries, under the CSS
heads of accounts for Central and State share in a proportionate manner,
towards remittance of the reimbursement of the gross salary expenditure
from the SNA bank account back to the Government.
In BE 2023-2024
• The provision for the Salary Object heads under the CSS heads of accounts
should be made ‘Nil’.
• Instead the provisions for the Salary Object heads should be made under the
regular head of account below the State’s Expenditure group head of account
or if there is no existing head of account open a new head of account and
make the provisions there under, to claim salary for the employees engaged
in the CSS posts.
• Simultaneously, propose an equal amount under the new sub-detailed head
309 05 below the detailed head 309 Grants-in-Aid, under the CSS heads of
accounts for Central and State share in a proportionate manner for transfer of
the gross salary expenditure to the SNA bank account.
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• In addition, propose the same amount under the sub-detailed head 377 04
below the detailed head 377 Deduct Recoveries under the regular head of
account towards remittance of the reimbursement of the gross salary
expenditure from the SNA bank account back to the Government.
• The change in the head of account for the CSS posts should be promptly
re-mapped in the Post Master under the Bills/ HR segment of the IFHRMS,
by the end of March 2023, for claiming the salary for the month of
March 2023, payable in April 2023.
III. Provisioning for Operation & Maintenance (O&M) related heads of accounts
In RE 2022-2023
• Check if any Operation & Maintenance (O&M) expenditure object head level
expenditure is met from the Central grants and provision has been made
under the CSS heads of accounts for Central & State share in BE 2022-2023.
• If so, retain the provision for O&M object heads under the CSS heads of
accounts for Central and State share for the payments till the end of the
current financial year 2022-23.
• In addition, propose an amount equivalent to the O&M object heads under
the new sub-detailed head 309 06 below the detailed head
309 Grants-in-Aid, both under the heads of accounts for Central and State
share in a proportionate manner for transfer of the O&M expenditure to the
SNA bank account.
• Simultaneously, propose the same amount under the new sub-detailed head
377 05 below the detailed head 377 Deduct Recoveries, under the CSS
heads of accounts for Central and State share proportionately, towards
remittance of the reimbursement of the O&M expenditure from the SNA bank
account back to the Government.
In BE 2023-24
• The provision for the O&M Object heads under the CSS heads of accounts
should be made ‘Nil’.
• Instead, the provisions for the O&M Object heads should be made under the
new sub-detailed head 309 06 below the detailed head 309 Grants-in-Aid,
under the heads of accounts for Central and State share in a proportionate
manner for transfer of the O&M expenditure to the SNA bank account.
• As per the guidelines of Government of India, the expenditure on the O&M
object heads is not reimbursable and should be spent from the SNA bank
account only.
• Therefore, in BE 2023-2024, there should not be any expenditure directly
from the Treasury mode under the O&M object heads and the funds provided
under the new sub-detailed head should be transferred to the SNA bank
account and the O&M expenditure should be made from the SNA bank
account only.
• As such, provision under the detailed head ‘377 Deduct Recoveries’ will not
be required to be made in BE 2023-2024.
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IV. Creation of separate head of account for State additional share of

expenditure
• As per the latest Government of India’s (GoI) guidelines, if the State
Government wants to contribute an amount in excess of its proportionate
State share of funds under a CSS as 'top-up', any one of the following
options should be adopted:
i. A separate bank account of SNA should be opened and the State
should transfer the 'top-up' amount to this separate account and not to
the SNA account;
or
ii. A separate budget line should be opened for the 'top-up' part in the
State budget and transfer the 'top-up' amount also to the SNA account
and tag the 'top-up' share as ‘T’ along with flagging the Central and
proportionate State share as 'C' and 'S' respectively in the PFMS.
• The Government has adopted Option (ii) above and accordingly separate
head of account should be opened wherever necessary to make provision for
the State’s additional share, in excess of the prescribed State share under
the CSS in BE 2023-2024.
• Therefore, all the existing CSS should be thoroughly reviewed for additional
share provided by the State Government in excess of the prescribed State
share and the expenditure provision should made under a separate new
head of account, to be opened under the CSS / State’s Expenditure group
head in BE 2023-2024.
• If separate heads of accounts are already available for the State additional
share, it must be informed to Finance (GBC/BGM) Department for mapping in
the PFMS.
• The State additional share should not be mis-construed for the additional
funds provided for backlog in expenditure.
• At the same time, the State additional share can be in terms of amount or the
beneficiaries, both beyond the ceilings fixed by the GoI for the CSS.
• If component-wise head of account is opened for the Central and State
share, then the separate set of new heads of accounts for the State
additional share should be opened, subject to ensuring that additional share
is provided for all the components.
• Procedure for provisioning of Salary and O&M related expenditure should be
as per items (II) and (III) above.
• The above changes are not envisaged for RE 2022-2023 and the existing
head of account should be continued till the end of 2022-2023.
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SECTION – IV
INSTRUCTIONS FOR PREPARING THE REVISED ESTIMATES
2022-2023 AND BUDGET ESTIMATES 2023-2024 AND
ADVANCE ESTIMATES 2024-2025 AND 2025-2026
The budgeting exercise broadly consists of the following steps:-

PART - I ESTIMATES (based on current Policies and Priorities for ongoing
schemes):
• The Revenue Receipts are estimated at the first instance based on existing
rates of taxes, user charges, rates and fees. Estimates for revenue receipts
are called for from all the Estimating Officers and will be discussed in the
decentralized budget meetings as indicated in Section I. These estimates
enable the Finance Department to assess the total revenue receipts for the
respective financial years.
• The Expenditure on existing schemes is estimated by calling for estimates
from the Heads of Departments who are designated as Estimating Officers for
their department. These expenditures are called Part I expenditure. Estimates
for expenditure under Part I include expenditure which are expected to be
incurred during the current financial year and in the ensuing financial year in
accordance with the existing sanctions.
• The Estimating Officers have to furnish Part I Estimates of Receipts and
Expenditure to PCB unit concerned in the Finance Department directly.
The estimates of most of the departments are examined and finalized through
decentralized budget meetings. The estimates of departments which operate
very few sub-heads are examined in ‘on-file’ by the Finance Department
based on the proposals sent by the Estimating Officer concerned. In respect
of such departments not covered under decentralized budget meetings,
the Estimating Officers concerned have to furnish the subhead-wise estimates
in Form III of Annexure II along with sufficient supporting data.
Part II ESTIMATES (for New Schemes: Tamil Nadu Innovation Initiatives -
TANII Schemes):
• TANII proposals will be called for BE 2023-2024 as per the guidelines for
identification and implementation of Innovative schemes issued vide
G.O.(Ms).No.124, PD&SI Dept., dated 24.10.2014 and the Operational
guidelines issued in the G.O.(Ms) No.153, PD&SI Department dated
23.12.2014
• The detailed procedure for preparation of TANII [Part II] Schemes along with
ceilings for the year 2023-2024 and time schedule for completion of the
TANII [Part II] Schemes process by the State Planning Commission will be
issued separately by Planning, Development and Special Initiatives
Department in Secretariat.
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THE REVISED ESTIMATES (for Receipts and Expenditure):

While proposing the Revised Estimates for the current financial year,
the Estimating Officers have to take note of the following instructions accordingly:
• Seeking increase in the Revised Estimates for any item of expenditure shall
be avoided and more so in the continuance of the austerity measures in the
Budget 2022-2023. If any additional funding is required under unavoidable
circumstances, suitable savings heads shall be identified for re-appropriating
the budget provision, that too on the duly taking into consideration the revised
economy measures ordered in G.O.(Ms) No.178, Finance (BG-I) Department,
dated 20.06.2022. The departments shall restrict their expenditure within the
provisions made in the Budget Estimates. The cases where additional
expenditure has been sanctioned by the Government pending inclusion in the
Revised Estimates/ Final Modified Appropriation shall alone be included in
the Revised Estimates. In all such cases, the proposals have to be
accompanied with copies of relevant Government Orders.
• Revised Estimates should be as close as possible to the actual requirement
for the year as the Final Modified Appropriation will be based on the
Revised Estimates. Because, after the RE 2022-23 is finalized, cases of
specific sanctions of the Government authorizing the expenditure
through pending provision of funds in FMA will alone be permitted to be
added in the FMA proposal.
• The Estimating Officers are cautioned that requests for

additional funds over and above the Revised Estimates at the time of
the Final Modified Appropriation will not be entertained and any excess
or surrenders thereafter will make the Estimating Officers answerable to
the Public Accounts Committee.
• Hence, the Estimating Officers should take special precaution to ensure that
the Revised Estimates are accurate and that they do not propose changes
later at the FMA stage.
• The Revenue Receipts shall also be re-assessed based on the trends in

inflows in the previous financial years and any other extraneous factors.
Pending arrears of tax, non-tax and grants in aid from Union Government and
the litigations in the tax collection efforts shall also be mentioned specifically
in the Receipts proposals.
• THE BUDGET AND THE ADVANCE ESTIMATES (for Receipts and

Expenditure)
It is mandatory for the Administrative Departments/ Heads of Departments to

draw a medium term expenditure framework which includes preparing
Budget Estimates for the year 2023-2024 and Advance Estimates for the years
2024-2025 and 2025-2026. Proposals without this estimation will be deemed to be
incomplete and returned.
The Estimating Officers also need to ensure that the proposed estimates
based on the current rates in existing norms shall also take into account the normal
anticipated increases within the existing definitions of the schemes, if any, due to
price escalations, increase in tax rates/ duties levied by competent authorities, etc.
14
Further, any other increase authorized through a Government Order shall also be
considered.
It has been noticed for a while that proposals soliciting additional fund
over and above the Budget Estimates are received immediately after the
presentation of the Budget and continue to increase during the whole year.
Such requests for ASLs are received even for the ongoing major schemes
which could have been very well anticipated and included in the Budget.
The sanction of additional fund over and above the Budget Estimates
defeats the very purpose of Medium Term Fiscal Framework norms.
Therefore, the Estimating Officers should thoroughly scrutinize their budget
proposal taking into account all the immediate and committed expenditure.
THE ESTIMATES OF REVENUE RECEIPTS
State’s Own Tax Revenue and State’s Own Non Tax Revenue
The Revenue Receipts must be estimated meticulously keeping in mind the
present situation and future growth, assumed changes in the targeted group/
volume and value of trade and business, plugging leakages, status of arrears
collections and expected recovery, buoyancy / growth anticipated, etc.
Different scenarios of projections shall be made ideally to assess the impact
and the recovery of the economy in order to assume tax growth/ buoyancies
for BE 2023-2024 and the Advance Estimates for the next two years.
Apart from ‘Share of Central Taxes’, for which the estimates will be fixed at
Government level, the concerned Estimating Officers have to furnish the Detailed
Estimates for State’s Own Tax Revenue and Non-Tax Revenue and the
Grants-in-Aid from the Union Government.
• The Estimating Officers have to furnish the estimates for each receipt head
of account relating to their department upto Detailed / Sub-Detailed levels,
in the 16 digit code.
• The estimates shall be based on existing structure of taxes and fees,
user charges, etc. For each of the item, the basis for the proposed
estimates, the assumptions made thereon, the structure of the taxes and
fees, etc., shall be clearly indicated in the remarks column. The details of
statements regarding the demand, collection and balance shall be furnished
wherever the estimates assume collection of arrears.
• Items of Rs.20.00 crore and above receipt estimation shall be proposed
separately and accompanied by detailed notes and working sheets.
Each of these proposals will be discussed in detail in the Decentralized
Budget Meetings.
• If any change is made in the rate of tax or introduction of any new cess,
surcharge, user charges, fees, fine, etc., during the current financial
year, it must be specifically mentioned along with supporting
Government Orders.
The major Non-Tax Receipts will be taken up for a complete analysis
during the ensuing Decentralized budget meetings. The scrutiny will be
based on the format introduced to analyze the major items of Non-Tax
Revenues from the year 2020-21 to regulate and improve the revenue
collections due to the Government.
15
The Estimating Officers in respect of Public Works Department/ Highways

Department have to furnish details of receipts to be collected from the
Contractors under concerned Receipts head of account by way of Penal
charges (like additional cost to be borne by the Contractor on account of
failure in completion of work; for not having executed Tender conditions due
to various reasons; etc.).
Grants from Union Government for Centrally Sponsored / Central Sector
Schemes
The Estimating Officers should ensure the inclusion of likely receipts from
Union Government towards Central Sector/ Centrally Sponsored Schemes for
which expenditure estimates are proposed for implementation.
To properly estimate the Union Government funding for the Central Sector /
Centrally Sponsored Schemes, the latest sharing pattern of the schemes shall
be adopted and specifically mentioned in the proposal.
The receipt proposal on any Centrally assisted schemes shall be consistent
with the expenditure proposed and vice versa.
Assistance likely to be received from the Union Government during the course
of the financial year shall be proposed with supporting documents.
If there is any uncertainty in receipt of the same, a token provision shall be
proposed.
There is already a separate format for providing particulars on
Grants-in-Aid from the Union Government which is slightly modified to take
into account the pending grant from the Centre for the expenditure already
incurred by the Government in anticipation, funds provided in the budget
waiting for central assistance to incur the expenditure, reduction in central
allocation than provided in the budget, etc.
All relevant details shall be furnished in Form - II under Annexure IV
(in duplicate) without fail and copy of the same shall be handed over to
Finance (G.B.C / B.G.M) Department. This will be specifically looked into
during the DCB meetings.
ESTIMATES OF REVENUE EXPENDITURE

The Estimating Officers are already aware that the examination of the Budget
Estimates for Revenue Expenditure made through decentralized budget meeting is
done on the basis of object-wise requirements only and not at sub-head level.
Objects of revenue expenditure had been standardized in G.O.Ms.No.148,
Finance (BG-II) Department, dated 31.03.2000 and further strengthened in the
G.O.Ms.No.85, Finance (BG-II) Department, dated 04.03.2019.
The revenue estimates for use during the meetings are called for in all
standardized printed Forms I, II and III of Annexure II and Form T of Annexure III.
The Forms I, II & III should be generated from the IFHRMS by the respective
budget group, except the Form T of Annexure III which will have to be prepared
in the conventional mode and handed over to the Finance Department.
In addition to the estimates for the Revised Estimates for 2022-2023 and the
Budget Estimates for 2023-2024, the Estimating Officers have to furnish
Advance Estimates for two more years, i.e. for 2024-2025 and 2025-2026, for
16
the preparation of the Medium Term Fiscal Plan, as already explained in this
section.
For each item of substantial variation from the Budget Estimates
2022-2023 in the Form - I, the Estimating Officers have to furnish detailed
explanatory notes on how the Revised Estimates suggested have been
arrived at. This is necessary for useful discussion and taking quick decisions during
the Decentralized Budget Meetings. The soft copies of the write-ups should be
uploaded in the IFHRMS.
The Estimating Officers have to take utmost care and ensure TANII [Part II]
provisions of previous years (Non-recurring) and provision made in the current
year BE 2022-2023 for payment of any arrears and one-time sanctions
pertaining to the previous years should be part of the PART - I ESTIMATES and
are not included in the Budget proposal for the year 2023-2024.
THE ESTIMATES FOR RUPEES TWENTY CRORE AND ABOVE:
Proposals for items of expenditure for Rs.20.00 crore and above will
have to be accompanied by detailed notes with working sheets containing the
following information very clearly:
The existing guidelines / norms of the scheme
The assumptions made in forecasting the estimates
The anticipated changes in the parameters such as number of
beneficiaries, revisions in the eligibility criteria, revised guidelines of
Union Government, etc.
OBJECT-WISE FIXATION NORMS FOR REVENUE EXPENDITURE

The following norms should be followed by the Estimating Officers while
preparing the estimates under various objects / items of revenue expenditure.
SALARY RELATED OBJECTS OF REVENUE EXPENDITURE
a) For the RE 2022-2023 and the BE 2023-2024, the Number Statement

is facilitated in the IFHRMS to the DDOs and HoDs.
b) The system generated Number Statement figures for Pay/ HRA/ CCA/
MA should be fully verified and sent to the Finance Department by
31.08.2022. The Number Statement is based on the employees
in-position on 31.07.2022. Hence, the additional fund requirement or
reductions to the Number Statement figures should be worked out by
the DDOs/ Departments in Appendix I (F) to the Government letter
11th cited.
C) In addition to the above, the following further points shall also be taken
into consideration for the object heads Pay / HRA/ CCA/ MA.
R.E. 2022-2023:
01 Pay As per the pay structure “Pay in the Level” means pay
drawn in the appropriate Cell of the Level as specified
in the Pay Matrix;
The actuals for March (paid in April), April, May and June
of the current year should be worked out.
17
There should not be major variation between the pay

proposed and the sum of {(3months actual of Pay/4)x 12}
Vacant posts in the Number Statement should be
excluded while estimating pay. Though there is a ban
on creation of new posts as part of the austerity
measures, if there is any proposal to fill-up the existing
vacancies or some essential new posts created have to
be filled up in the following months of this year,
minimum pay of the corresponding level in the pay
matrix may be added for the subsequent months. In
this regard, the working sheet should be furnished.
B.E. 2023-2024, A.E. 2024-2025 and A.E. 2025-2026:
The Budget Estimates for the year 2023-2024 shall be
based on the Number Statement.
All the existing sanctioned posts which are filled-up
shall be taken into account.
Pay corresponding to the posts which are likely to
remain vacant during the year 2023-2024 must be
excluded from the pay arrived as per Number
Statement. The pay for the posts likely to be filled-up
during the course of the current financial year may be
included and the minimum pay of the corresponding
level in the pay matrix from the expected month of
filling-up of the post.
While proposing the estimates for Budget Estimates
2023-2024, based on the IFHRMS generated Number
Statement, the actual expenditure for the first four
months and trend in the expenditure for the past three
years or other factors if any, shall be compared and
fixed accordingly.
02 Medical This should be based on the number of persons drawing
Allowance medical allowance as furnished in Annexure – III (e) of the
Number Statement.
03 Medical This should be based on the trend of expenditure during the

Charges last three years and revised rates
04 Other This object contains washing allowance, cash
Allowances allowance, etc.
This estimate may be prepared based on
Annexure - III (d) of the Number Statement.
Bonus which forms part of the Other Allowances should
be based on the number of persons drawing Adhoc
Bonus and Special Adhoc Bonus as specified in
Annexure – III (f) of the Number Statement.
The Estimates for the above should tally with the
figures furnished in the Number Statement.
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06 H.R.A& This should be taken based on Annexure III (a), (b) and (c)
08 C.C.A. of the Number Statement. The headquarters of staff should
be taken into account for this estimate.
07 Travel This should be based on number of persons who are likely

Concession to avail Leave Travel Concession, since it was restored by
orders issued in the G.O. (Ms) No.178/Finance (BG-I)
Department, dated 20.06.2022.
302 Wages It is mandatory for Administrative Departments seeking

provisions under wages to produce details of the persons
getting wages along with the relevant order wherein the
hiring of such workers was authorized.
As per the norms in force, basic level employees except
Office Assistant, have to be appointed through outsourcing
agency only.
Hence, it is re-iterated that provision should not be made
under 302 01 Wages and that necessary provision
has been re-allotted under “333 Payments for professional
and Special Service – 04 Contract Payment” from
BE 2021-2022. The same procedure shall be continued.
303 Dearness R.E. 2022-2023: (Pay in the Level) x 36%

Allowance B.E. 2023-2024: ( Pay in the Level) x 40%
349 Festival This should be based on the numbers of persons availing
Advances Festival Advance
379 Salary This should be estimated as per the above on salary

Grants related items.
Advance Estimates of Salary related object heads for 2024-2025 and

2025-2026 will be auto-populated in the IFHRMS based on the
BE 2023-2024 proposed amount which can be corrected for the reasons
stated above. The rate of growth is 4% for all the above items, except DA
which is projected to grow at 6%.
OBJECTS RELATING TO OTHER ADMINISTRATIVE EXPENDITURE
304 Travel Government have continued certain austerity measures on
Expenses and travel expenses as ordered in the G.O. 10thread above and
Daily this shall be adhered to. Details shall be furnished in
Allowances Form - T given in Annexure III.
Departments have to submit a working sheet explaining the
proposed provisions along with justifications, if any.
305 Office This shall be made against the sub-detailed head.
Expenses Telephone charges shall be estimated as per norms and
01 Telephone details should be furnished in Form - T of Annexure III.
Charges A detailed working sheet for the proposed provisions should
be furnished along with the proposal, separately.
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30502 Other This should be based on the actual requirements and

Contingencies sanctions. If any excess provision is proposed for
Budget Estimates for the year 2023-2024, it should be
justified in detail.
30505 This expenditure should be restricted to very exceptional

Furniture cases like creation of new offices and used only for
purchase of furniture. The expenditure if any on upkeep of
the existing furniture should be incurred under the
sub-detailed head 30502 Other Contingencies.
30507 Other This new sub-detailed head shall be used in BE 2023-2024

Office for purchase of office equipment other than furniture.
Equipment-
Purchase
306 Rent, This shall be made against the sub-detailed heads.

Rates and Rent shall be estimated as per P.W.D norms. Estimation
Taxes for this item shall be projected as per the actual
requirement.
317 Minor Details of works proposed to be undertaken shall be

Works furnished along with the supporting documents.
319 As per the G.O.10th read above, ban on purchase of

Machinery Machinery and Equipments, imposed in the
and G.O.(Ms) No.249, Finance (BG-I) Department, dated
Equipments 21.05.2022, is continued for the year 2022-2023.
01 Purchase
320 Tools and Items to be purchased under Tools and Plant shall be
Plant clearly indicated.
321 Motor As per the G.O.10th read above, total ban on purchase
Vehicles of new vehicles, imposed in the G.O.(Ms) No.249,
Finance (BG-I) Department, dated 21.05.2020 is
continued for the year 2022-2023, except for
replacement of condemned vehicles. Provision for
purchase of vehicle will be allowed only on the basis of
sanction order.
It shall be the responsibility of Heads of Department
to furnish the details pertaining to their existing
vehicle strength.
Estimates on Maintenance shall be made as per the
norms prescribed for road worthy vehicles.
Details should be furnished in Form-T of Annexure III.
Incomplete details will lead to disallow of request for
provisions.
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324 Materials Items to be purchased under Materials and Supplies

and Supplies shall be clearly indicated.
334 Other The residuary sub-detailed head “01. Other Items” under
Charges the detailed head “334. Other Charges” shall be
sparingly used, only where the cost of expenditure does
not exceed Rs.25,000/- and the appropriate detailed
head is not identifiable correctly. Cost exceeding
Rs.25,000/- should be shown under the appropriate
specific detailed / sub-detailed head.
345 Form T of Annexure – III is basis for fixation of
Petroleum, Oil estimates. Revised Estimates should be based on the
and Lubricant norms prescribed for each class of road worthy vehicles
operated during this financial year and should be
commensurate with present rates. The details of vehicle
strength will alone form the basis for estimation under
this head.
347 Stores Estimates shall be furnished separately under the

and sub-detailed heads 347-01 Stores, 347- 02 Equipments
Equipments and 347-03 X-rays. The Estimating Officers have to
furnish the estimates along with list of items being
purchased under 347- 01 Stores, 347- 02 Equipments
and 347- 03 X-rays, separately.
367 Feeding / The Estimating Officers have to furnish the details of

Dietary expenditure under the sub-detailed head 367. 09 Others
charges separately. Supporting Government orders for revision
of rate or enhancement of quantity shall be furnished,
if enhanced provision is proposed.
376 Computer The estimates shall be fixed based on the following:

and
Provision for purchase of computers under 376 01
Accessories
will be made only on the basis of sanction order.
No funds shall be provided for maintenance under
376.02 in case of Computers for which warranty
period has not expired. The Computers for which the
warranty period has expired shall only be covered
under this head by way of provision towards AMC /
Renewal of AMC. The details shall be furnished
along with relevant AMC copies. Particulars shall be
furnished in Form–T of Annexure III.
It is expected that all the peripherals of Computers
except cartridge and printer should be covered
under the AMC. If any of the items is not covered by
AMC, those alone shall be included under 376. 02.
Any expenditure required towards printer cartridge
shall be covered under 376. 03 along with stationery
required for Computers.
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38103 The purchase of hardware related to networking and

Purchase connectivity shall be separately shown under this new
sub-detailed head, wherever required.
The detailed heads 324 Materials and Supplies, 347 Stores and
Equipments, 368 Cost of Books/ Note Books/ Slates, etc.,
369 Procurement of Agricultural Inputs and 374 Purchase and
Upkeep Animals are meant for procurement of consumables only and
should not be used for purchase of assets (i.e. finished product put to
direct use). The Treasuries and Accounts department will be directed to
audit the bills presented under these detailed heads for strict
adherence.
Advance Estimates of the above non-salary related object heads

for 2024-2025 and 2025-2026 will be auto-populated in the IFHRMS
based on the BE 2023-2024 proposed amount which can be corrected
for the reasons stated above. A 2% growth rate is assumed uniformly
except for the sub-detailed head with the nomenclature of “Purchase” across
the detailed heads. The Advance Estimates for the sub-detailed head
‘Purchase’ will be ‘Nil’.
THE ESTIMATES OF CAPITAL EXPENDITURE – Part I Estimates

The Capital Expenditure of the Government is generally on Major Works
interalia linked to Lands and the Investments in State owned entities.
Though Object-wise Form I statement is required for the Capital

Expenditure items also, the scrutiny will be on sub-head level only and more
specifically scheme-wise under the respective sub-heads. Hence, the
Estimating Officers have to furnish the sub head-wise / work-wise estimates
for heads of account under the capital account along with details of works.
Estimates on works shall be supported by work-wise / scheme-wise details of

administrative sanction/ revised administrative sanction, expenditure incurred so far,
balance of provisions available and estimated level of completion of work in each of
the years. Further, since the Advance Estimates are required to reflect the
expenditure under the existing set of policies and schemes only, the Estimating
Officers have to furnish the projections in the estimates only for on-going works
and those works for which administrative sanction has been given by the
Government.
Further, in case of any delay in the Land Acquisition Programme which will
affect the commencement of the works also, the implications / impact of such delay
on financial requirements for the year shall be clearly spelt out under the relevant
schemes/ sub-heads. In addition, the penal interest on Land Acquisitions
Programmes shall also worked out based on the court orders to be implemented and
proposed under the sub-detailed head of account ‘464 25 Interest (voted)’ (if interest
is paid by the departments based on existing rules, without the intervention of
Courts) / ‘464 75 Interest (charged)’ (if interest is paid on the basis of Court orders).
22
THE ESTIMATES OF LOANS AND ADVANCES
Estimation of loans and advances sanctioned from the Government to the

Statutory Boards, Public Sector Undertakings, Corporations, Cooperative
Institutions, Individuals etc., is an important part of Budget preparation. It is
mandatory on the part of Estimating Officers to provide full details of loans
sanctioned, repayments and outstanding etc.
It is also pertinent to reiterate that the long pending adverse balances and the
reconciliation issues that had adversely affected the Loans & Advances segment for
decades have been settled through a one-time major exercise of restructuring of all
the outstanding loans (except EAP based and a few policy decision based loans)
sanctioned till 2017-2018 including the Ways & Means Advances given
upto 2016-2017.
This restructuring process had been done based on agency balance,

reconciliation through write-off of the differential amount to the Ledger Balancing
Account, revenue account write-off of select irrecoverable loans, pruning of heads of
accounts and standardizing it to institution and loan-type based heads of accounts
and finally consolidation of the outstanding reconciled loans into fresh term loans
with a new repayment period and at a lower interest rate. The orders in this regard
were issued in G.Os. (Ms.) No. 68 to 72, Finance (L&A Cell) Department,
dated 25.02.2019. The repayment period for the consolidated loans has started from
June 2019. Therefore, the number of effective loans outstanding and the heads of
accounts-wise balances have become significantly less and easy to monitor for
preparation the accurate estimates of repayment and interest payment dues to the
Government, including the previously unpaid instalments of loans and interest
thereon.
It is clarified that the Administrative Department in Secretariat / Heads of

Department have the administrative control over the Boards and Corporations,
Public Sector Undertakings and Co-operative Institutions and therefore they are the
Estimating Officers. The functional Registrars concerned are the Estimating Officers
for the Co-operative Societies. It is therefore necessary that the debt servicing
(recovery of loan and interest) proposals of such institutions are furnished
to the Finance Department by the Administrative Department in Secretariat/
Heads of Department concerned and not by the institutions directly.
The following shall also be borne in mind while furnishing the estimates:
• The Estimating Officers have to furnish the head of account-wise

estimates of loan recovery and loans expected to be released during
each year, including the anticipated opening and closing balances of the
loan account. This shall be done separately for Loans and Ways and
Means Advances.
• It is also necessary to watch whether the interest on such loans is paid

promptly and correctly besides ensuring timely repayment of the
principal amount.
• The Estimating Officers often give estimates for the outgoing amounts
(i.e. loan sanction by the Government) only. Care shall be exercised
in preparing the estimates properly for the recoveries and interest
23
payments also. For this purpose, the recoveries and interest payments
due shall also be indicated as per the terms and conditions of loans.
• It shall be ensured that the Revised Estimates for the year 2022-2023 and the
Budget Estimates for the year 2023-2024 under loan receipts are worked out
correctly with reference to the terms and conditions of the loans and then fix
the anticipated receipts in RE 2022-2023 and BE 2023-2024. The reasons
for difference between the amount due as per the terms and conditions
and the amount actually expected to be collected shall be furnished.
• Each sub-head of account for loan shall be supported by loan-wise breakup

details, viz., amount of sanction and relevant sanction order in Form I of
Annexure I.
• The Estimating Officers have to furnish the estimates for loan repayments and
sanctions in Form II of Annexure I.
• As already mentioned, these estimates will also be discussed in the

Decentralized Budget Meetings.
THE DATA ON GUARANTEE SANCTIONED BY THE GOVERNMENT
The sanction of guarantee by the Government to the lenders from whom
Statutory Boards, Public Sector Undertakings and Co-operative Institutions, etc.,
mobilize funds in the form of loans, etc., has a significant impact on the finances of
the Government as a Contingent liability and the ceilings on Government issued
Guarantees is also defined in the Tamil Nadu Fiscal Responsibility Act–2003.
Besides, the Government has to maintain a reserve to tackle unforeseen
events and hence collection of Guarantee Fees from the Government owned entities
is also an important aspect of the budgeting. To monitor the remittance of Guarantee
fee etc., the data on the guarantees sanctioned by the Government is required.
These data shall be furnished in Form III of Annexure I which will also be
reviewed critically during the ensuing DCB meetings.
ADVANCE ESTIMATES FOR 2024-2025 AND 2025-2026

The preparation of the Advance Estimates is not only a statutory requirement
under the TNFRA-2003, but it also serves as a guiding tool in assessing the future
fiscal requirements. Hence, equal importance shall be given in proposing the
numbers for the Advance Estimates also.
2) The arrear receivable in the case of Revenue Receipts and the pending
payments including the committed liabilities beyond BE 2023-24 shall be duly taken
into consideration in the Advance Estimates. For example, the arrears payable in
respect of expenditure like grants and subsidies due to the State owned entities and
the aggregate value of unfinished capital works (i.e., major works/ land acquisition),
beyond BE 2023-2024 shall be worked out and accordingly, the requirements
shall be included in the Advance Estimates.
3) The assessment of the pending liabilities enables the Government to plan
for the new schemes and augmenting adequate resources for the future.
24
THE DATABASE ON MAJOR SCHEMES

In order to establish a comprehensive database for all major schemes/
expenditure items and strengthen the cash flow mechanism further, certain essential
information like delegation of powers for sanction of expenditure, mode of drawal,
connected PAO / Treasury, drawal pattern, etc. are essentially required and this
information is called for every year. But till date, the database could not be created in
full shape due to incomplete particulars furnished by the Heads of Departments.
A one-time effort in this regard will reduce the unnecessary workload in the
subsequent years and only the addition/ deletion of new schemes can be sent.
Therefore, this aspect shall also be looked into and the required details must
be furnished in full in the Form I of Annexure IV. The guidelines for furnishing
the information are also provided.
SECTION - V
TOP DOWN BUDGETING
Based on the announcement made by the Hon’ble Minister for Finance and
Human Resources Management in the Revised Budget Speech 2021-2022, the
“Top Down Budgeting” had been introduced for the “State’s Expenditure” group
heads in the following Demands for Grants in the Budget for 2022-2023.
The guidelines/ procedure to be followed under the “Top-Down Budgeting” concept
had also been issued in the G.O.(Ms) No.112, Finance (B.Coord) Department, dated
22.04.2022.
Sl.No. Demand Name of Demands for Grants

No.
1 7 FISHERIES AND FISHERMEN WELFARE (Animal

Husbandry, Dairying, Fisheries and Fishermen Welfare
Department)
2 8 DAIRY DEVELOPMENT (Animal Husbandry, Dairying,

Fisheries and Fishermen Welfare Department)
3 15 ENVIRONMENT AND CLIMATE CHANGE (Environment,

Climate Change and Forests Department)
4 44 MICRO, SMALL AND MEDIUM ENTERPRISES

DEPARTMENT
5 52 DEPARTMENT FOR THE WELFARE OF DIFFERENTLY

ABLED PERSONS
Normally, the budget proposals are called for and meetings are held with the
concerned departments, where the requirements for each object of expenditure are
examined and then fixed by the Finance Department. These amounts are added to
arrive at the total size for a Demand for Grant.
25
In the “Top-Down Budgeting” system, the overall annual Revenue, Capital

and Loan outlays will be determined and communicated to the Head of Department,
who can further distribute the outlay among different items of expenditure under the
sub-heads, detailed heads and sub-detailed heads. Further, the Head of Department
will be able to re-appropriate the funds allotted, if necessary, during the course of
the financial year subject to conditions prescribed in the G.O.(Ms) No.112,
Finance (B.Coord) Department, dated 22.04.2022.
The “Top Down” budgeting concept is continued in above said Demands for
Grants in the Budget for 2023-2024 also.
SECTION – VI
DECENTRALISED BUDGET MEETINGS
Decentralized Budget Meetings with the Estimating Officers/ Heads of

Department are to be conducted by the Deputy Secretary to Government (Budget)
and concerned officers of the Finance Department, to finalize the estimates for
various objects of expenditure under the sub-heads operated by the concerned
Heads of Department. The Decentralized Budget Meetings for this year will be
conducted during October 2022, for which the schedule will be communicated
separately. In the outset of the Decentralized Budget Meeting, the differences
in the number of posts arrived in the IFHRMS, if any, shall be discussed.
The Decentralized Budget Meetings will cover discussion on revenue receipts,
revenue expenditure, capital expenditure, loan receipts and expenditure.
Review of Grants-in-Aid due from the Union Government, arrear of tax
revenues, collection of major non-tax revenues, recovery of loans & advances/
WMA based on the loan consolidation and Guarantee Fees due will also be
taken up for discussion during the meetings.
SECTION – VII
STATEMENT OF WELFARE EXPENDITURE
The schemes under State’s Expenditure finding place in the budget could be
either Part I schemes, i.e. ongoing schemes introduced in the earlier years or
TANII [Part II] schemes which are proposed to be introduced in the budget year.
As already mentioned in Section IV, the estimates for State’s Expenditure

schemes are part and parcel of the Part I proposals, wherein the estimates are
obtained separately for State’s Expenditure schemes, Central Sector / Centrally
Sponsored Schemes and other schemes, if any. New schemes are to be introduced
through the TANII [Part II] procedure.
The Statement of Welfare Expenditure is being published to monitor budget

allocations to the Scheduled Caste and Scheduled Tribes, wherein, individual
beneficiary linked schemes are listed with budgetary allocations to SC, ST and
General Categories.
26
The Welfare scheme of the Scheduled Castes shall be budgeted under SCSP
minor head based on their population ratio. The SCSP components of the allocations
for most of the ongoing schemes have already been identified and separate
sub-heads of account have been assigned. Similarly, there is a separate minor head
for Sub-Plan for Tribal Communities. The Estimating officers may review these
aspects and send separate proposals for these wherever necessary.
SECTION – VIII
PROVISION FOR BOOK ADJUSTMENT UNDER EXTERNALLY AIDED
PROJECTS
In respect of Externally Aided Projects, certain funding agencies are making
disbursements through ‘Direct Payment Procedure’ or certain assistance is received
as “Kind Grants”. The Union Government, instead of releasing these sanctions as
cash loan / grant to the State Government, makes sanctions as loan or grant,
mentioning the same as ‘Loan or Grant released under Direct Payment
Procedure’ / Kind grant and makes necessary book adjustments at their end.
2. The amounts disbursed under ‘Direct payment Procedure’ are neither spent
out of Budget initially, nor received as cash reimbursement from Union Government
as Additional Central Assistance for Externally Aided Projects. However, these
disbursements and receipts are still forming part of the State’s Consolidated Fund.
3. The Accountant General of the State records such adjustments by booking

the receipts under the loan/Grant segments and disbursals against the relevant
expenditure heads of account identified and operated by the Project Implementing
Authorities concerned.
4. The PCB Units shall discuss either in the DCB meeting with the Project
authorities concerned or in the ‘on-file’ and make necessary expenditure provisions
in Budget Estimates for making book adjustment against the direct payment
procedure receipts (Loan/Grant) received from Union Government or grants received
in kind for the Externally Aided Projects. The provisions shall be made in anticipation
of direct disbursement, under the relevant Revenue / Capital / Loan service head of
account under relevant demand based on the Administrative sanction or based on
the nature of the direct payment disbursement. Supporting documents if any, such
as, letter of awards issued to the contractors, payment terms, board proceedings or
confirmation/certification issued by the Project Implementing Authority to the funding
agency for making the disbursement shall be obtained by the PCB Units concerned
from the Project Implementing Authority for examination, reference and record
purpose.
5. The Finance (EAP) Department shall do the estimation for the receipts
under the EAP Loan / Grant head of accounts and provide the details to the PCB
units concerned, of Loan/Grants received during the current financial year as and
when such sanctions are released to the State, for making necessary expenditure
provisions in Revised Estimates for the Current Financial Year.
27
SECTION- IX
MISCELLANEOUS
REMARKS OF PUBLIC ACCOUNTS COMMITTEE TO BE BORNE IN MIND
The Public Accounts Committee had pointed out certain persistent problems in
the past that have been observed in budgeting and has given certain
recommendations to avoid such lapses, which should be borne in mind while
proposing estimates. These have been summarized in the following paragraphs.
The Committee has emphasized that the Departments should be scrupulous

in not only confining themselves to the objects for which funds have been
voted by the Legislature, but also in observing the limits set out by the
Legislature for expenditure on these objects.
Substantial savings are consistently found to occur under certain grants.

To avoid this, the estimates should be fixed taking into account:
i) the probability of the schemes being implemented during the
year;
ii) the difficulties that are likely to be encountered in execution; and
iii) all essential prerequisite activities such as acquisition of land,
etc., and the extent to which the scheme could reasonably be
expected to be executed.
In cases where expenditure is dependent on the fulfillment of certain conditions,

full provision should be made only if it could be ensured beyond reasonable
doubt that the prerequisite conditions would be fulfilled. In doubtful cases, only
a token provision should be made initially. However, in such cases, the reason
for proposing token provision should be substantiated.
To avoid bulk surrender during FMA, in case of purchase of materials,

estimates should be arrived at taking into account various stages of
procurement such as calling for tenders, placing of orders, issue of sanction
orders, etc., after proper planning.
When several departments are responsible for the execution of a scheme, they
should work in close co-ordination in budgeting their requirements in respect of
that scheme. The Controlling Officer responsible for the scheme should get full
particulars from the departments concerned before sending the budget
proposals to the Government.
It is noticed that certain departments fail to get full particulars in time from the
subordinate offices and they finalize the estimates on the basis of past actuals.
The Controlling Officers should issue instructions to the subordinate officers to
avoid such delay so as to arrive estimates accurately.
To estimate the requirements correctly, the Departments should watch the

progress of expenditure and reconcile the departmental actuals with those of
the Accountant-General's office.
28
All the expenditure incurred and receipts are booked under the head of account
furnished in bills/ challans by the Treasury Office/ Pay and Accounts Office/ Office of
Accountant General. Reconciliation of departmental figures with figures of Treasury
Office/ Pay and Accounts Office/ Office of Accountant General is vital to confirm the
correctness of such bookings under the head of account intended by the
Department. Budget Estimates are fixed based on the accounts from the Accountant
General, (i.e) trends in expenditure and receipts. Non-reconciliation of accounts
mislead the expenditure and receipts projections which result in gross variation in
budgetary estimates. Hence, reconciliation is essential for accuracy in the fixation of
Budget Estimates. Therefore, acknowledgment for having completed the
reconciliation for the months of April, May, June and July 2022 shall be obtained
from the Accountant General and furnished along with the budget proposal. In case
of misclassification found and brought to the notice of Accountant General for
rectification, if any, they shall also be furnished.
It is noticed that excess over voted grants are attributed to the failure to provide
required funds to meet expenditure, which is obviously avoidable. Hence, the
HoDs should emphasis the need for provision of funds for such items during the
DCB meeting with justification. It should be ensured that inevitable or emergent
expenditure is fully provided for and that excess under grants is avoided.
The provision in the Budget Estimates should not be made for grants or
subsidies for which Government’s in-principle approval for continuance is not
available. If the Administrative Department wants to have a second look at the
policy of the Government in any such case, it should propose only a token
provision. Making unnecessary provision in the Budget Estimates without
immediate need for the work and later surrendering the provision should be
avoided.
Incurring expenditure in excess of Grants voted by the

Legislative Assembly is unconstitutional and such excesses occur mainly
due to lack of correct assessment and maintenance of Accounts.
29
SECTION – X
CHECKLIST
Estimating Officers have to download and submit proposals for Part I in one
consolidated report, consisting of the following items:-
Estimates for receipts and outgo and additional details of Loans and
Advances in Form I and II of Annexure I.
Details of Government Guarantee in Form III of Annexure I.
Estimates for Revenue Receipts, Revenue Expenditure and Capital

Expenditure in Forms I, II and III of Annexure II, as generated from the
IFHRMS after approval in the system.
Details on Vehicle strength in Form T of Annexure III.
Details on Telephones in Form T of Annexure III.
Details of employees drawing Wages in Form T of Annexure III.
Details of Machineries and Equipment with Warranty / AMC in Form T of

Annexure III
Details of Computers with Warranty/ AMC in Form T of Annexure III.
Detailed separate proposals for items of Revenue Receipts/ Revenue

Expenditure exceeding Rs.20.00 crore.
Data for the purpose of strengthening the Cash Flow mechanism in Form I of
Annexure IV.
Data on Central Sector / Centrally Sponsored Schemes in Form II and II (a) of

Annexure IV.
Data on Major Non-Tax Receipts in Form III of Annexure IV.
Acknowledgement for having completed reconciliation of departmental figures

with the Accountant General’s figures for the months of April, May, June and
July 2022.
For Departments covered by Decentralized Budget Meetings, examination

sheets in all the Forms of Annexures I, II, III and IV generated from the
IFHRMS.
In addition to the above, supporting documents including relevant Government

Orders, working sheets, details of pending bills with reasons for pending.
30
SECTION – XI
FUNCTIONS WITH IFHRMS
The IFHRMS budget preparation activities are designed to commence on

‘Bottom-up Approach’ basis based on the HoD-BCO-DDO hierarchy mapping,
i.e., from the base/ bottom level Drawing & Disbursing Officers (DDOs) in Taluk /
Block level offices, compiled at the intermediary level(s) of Budget Controlling
Officers (BCOs) in the District/ Regions and further final compilation at Head of
Department level for each head of account for submission to the Finance
Department in the Government.
2) The system also facilitates correcting the budget proposal of the

subordinate office DDOs/ BCOs by the higher level BCOs and HOD respectively, as
defined in the hierarchy mapping. There is also an option in the system to take
control at the next level if the online proposals are not sent within the time limit
prescribed by the subordinate office DDOs. Thus, the higher level offices, in addition
to modifying, can also propose for the below level DDOs, after exercising the option
in the IFHRMS.
3) It may be recalled that the Budget preparation, fixation & allocation and
Budget operations like Additional Sanction of funds (ASL), relaxation to Quarterly
Control of Appropriation system and Contingency Fund Advance sanction have been
implemented in the IFHRMS from 2019-2020 in phases and are fully operational
now, till the online sanctions issued by the Finance Department. The Heads of
Departments are also aware that budget cycle for the year 2021-2022 and
2022-2023 had been done in the IFHRMS only and the allotment of funds
(BE/ RE/ FMA) were also made through the system. The same process shall be
continued for the budget process in the Budget 2023-2024 also.
4) The Budget Cycle for the year 2023-2024 will commence with the calling
for RE 2022-2023 / BE 2023-2024 proposals in the IFHRMS. The RE / BE proposal
menu will be enabled in the system on 07.09.2022 and all the DDOs can start
entering the proposals in the system from this date.
5) The following important points shall be taken into consideration while

proposing the RE/ BE in the system:-
a. For the Drawing and Disbursing Officers (DDOs), the budget allotted heads
of accounts (including ASL allotments), Year-Till-Date (YTD) actual booked
heads of accounts and the heads of account tagged to the posts of the
DDOs Office (Number Statement) will be made available for proposing the
RE/BE.
b. For the Head of Department, all the heads of account shown under the
Head of Department in BE 2022-2023, ASL related heads of account, YTD
actual booked heads of account, AG booked heads of account and the
heads of account tagged to the posts (Number Statement) will be made
available for proposing the RE/BE.
c. In addition, if the Head of Department wishes to propose the expenditure/
receipts under any other heads of account, they should approach the
Programme cum Budget Unit concerned in the Finance Department for
inclusion of such head of account for sending the RE/BE proposal.
31
d. The DDO-wise actuals for 2021-2022, based on the expenditure incurred

through the Treasuries/ PAOs will be shown in the budget proposal.
e. The Year-Till-Date (YTD) actual expenditure incurred by the DDOs under
the respective heads of accounts through the Treasuries/ PAOs will also be
shown in the system.
f. YTD means the expenditure booked under the relevant head of account till
the previous day and the bills in pipeline will not be considered.
g. Based on the above, the RE/ BE proposals shall be entered by the DDOs
for each head of account at the sub-detailed head level with 16 digit head
of account code.
h. The heads of accounts used by the non-hierarchical DDOs (i.e., the DDOs
of other HoDs not mapped in the own department budget hierarchy) will not
be able to propose the RE/BE in the IFHRMS.
i. Hence, the non-hierarchical DDOs utilizing the budget of other HoDs shall
send the physical copy of the RE/ BE requirements to the concerned
BCOs/ HoDs who had allotted funds through budget transfer. The same will
apply to the Number Statement related heads of accounts also for the
salary items of expenditure.
j. The HoDs shall bear in mind that the non-IFHRMS treasury
transactions (ATBPS) and out-of-Treasury transactions carried out in
the AG’s office have not been included in the DDO-wise YTD.
k. Hence, there exists a difference between the summary of DDO-wise
expenditure and the total expenditure booked at the head of account
level, which includes all the above transactions.
l. The overall head of account level expenditure will be based on the
accounts booked and published by the AG (A&E), which should have been
duly reconciled by the HoDs.
m. In view of the above, in addition to the IFHRMS YTD for 2021-2022 at
the DDO level, the Supplementary Actuals for 2021-2022 received from
the AGA (A&E) will also be made available to the HoD-DDO in the
Consolidated Forms I, II & III of Annexure IV.
n. The system will calculate the ‘Dues’ in respect of Salaries (as per
Number Statement), Loans & Advances to State Owned entities (based on
LSL No.) and Public Debt-Repayment and the Interest Payments as on
31.08.2022 and auto-populate the calculated figures against the respective
heads of accounts in the ‘Due’ column of RE 2022-2023 and
BE 2023-2024.
o. The system calculates the dues based on the data entered and available in
the system on the respective cut-off dates for the transactions that had
happened and as such, non-updation / erroneous data entries will
adversely affect the system calculated dues. Thus the system calculated
‘Due’ is only a reference value.
p. Therefore, adequate caution shall be exercised in verifying the ‘Due’ values
and the RE/ BE proposal fields must be entered by the DDOs, taking into
account the corrected values as well as the further anticipated transactions
during the year.
32
q. The system will also show the ‘Calculated RE’, which means BE plus
the additional funds received through ASL number. For this purpose,
the ASLs issued from 01.04.2022 to 31.08.2022 have been taken into
consideration, except the NS/NIS/ DI types of ASLs.
r. The ‘Calculated RE’ will be available to the DDOs based on the ASLs
distributed by the HoDs and if it is not distributed, the entire ASL amount
will be shown at the HoD DDO code itself.
s. While the system ‘Calculated Due’ is a projection of the dues for the whole
year (RE/ BE) based on the data entered on the cut-off dates, the
‘Calculated RE’ is the sum of BE plus the additional funds sanctioned for a
specific period in the past.
t. Both the ‘Calculated Dues’ and the ‘Calculated RE’ are only base reference
values and the budget user can always change this value, either increase
or decrease based on the requirements.
u. After completion of the head of account-wise data entry for the RE/ BE in
the system, the DDOs should upload the excel file in the system.
v. Upon uploading the RE/ BE proposal values, the system will automatically
calculate the proposed values for the Revenue Expenditure segment for
the Advance Estimates 2024-2025 and 2025-2026 (as per the projection
values indicated in Section IV under the “and show it the relevant columns
in the system.
w. If required, the DDOs / HoD can edit the Advance Estimate figures,
based on the instructions contained in Section IV and save it in the system.
x. Further, the DDOs have to enter the Advance Estimate values for the
Capital and Loan expenditure segments in the system only.
y. After successful update and approval in the system, the DDOs can
download the RE/ BE proposal report from the system.
z. If, in case, the next higher level BCOs/ HOD decide to take control and
propose for the non-proposed DDOs also, due care must be taken not
duplicate the requirements for the already proposed DDOs.
aa. The HoDs will be in a position to prepare the consolidated RE/ BE
requirements for their department as a whole in Forms I, II & III of
Annexure IV to this G.O.
bb. The system generated hard copy of the Forms – I/ II/ III shall be duly
verified, signed and submitted to the PCB units in the Finance Department.
cc. Due to the pendency in the creation of the ‘Assets Register’ in the IFHRMS
by the DDOS, the Form-T data could not be generated in the system for the
Budget cycle 2022-23.
dd. Hence, the Form-T details shall be prepared manually and entered in the
system. The hard copies can be sent to the next higher levels for
compilation or the signed soft of the same can be uploaded in the system
by the respective DDOs.
ee. The other Budget formats prescribed in the Budget Instructions shall be
prepared manually and sent as part of the RE/ BE proposals.
33
6) Based on the proposals received, the Finance Department will conduct the
DCB meetings in the usual manner and after the meetings, the finalized and
object-wise fixation data will be communicated to the Heads of Departments through
the IFHRMS only. The fixation data will have to be distributed at the sub-head level
by the Heads of Departments and sent back to the Finance Department on the
respective due dates as indicated in the Budget Schedule in the Appendix / Section-I
to this G.O.
7) The RE 2022-2023 U.O. Notes will also be transmitted to the Heads of
Departments through the IFHRMS only, again for allotment to the below level DDOs
through the system, as was done in the previous 2 years. Further, after presentation
of the Budget 2023-2024 to the Tamil Nadu Legislative Assembly, the budget data
will also be shared through the IFHRMS to the Heads of Departments along with
Vote on Account ceilings. As like the last year, the entire budget cycle for 2023-2024
including the preparation of Supplementary Estimates and Final Modified
Appropriation for 2022-2023 is scheduled to be implemented in the IFHRMS only.
8) Proper submission of the budget proposals from the base/ bottom level will
be of great help at the time of allotment of the RE UO Notes and the Budget
allotment later on, because the system, by default will calculate the allotments on
proportionate basis and prepopulate the amount to be allotted to the BCOs/ DDOs
based on their initial requirement.
9) Functional issues, if any, arise during the above process shall be reported
to the IFHRMS Help Desk and data errors, if noticed, shall be brought to the notice
of the concerned PCB unit, for a quick resolution.
10) Therefore, the Heads of Departments are advised to take note of these
guidelines, give suitable instructions to their sub-ordinate officers to follow the
procedure envisaged for the budgeting in IFHRMS and ensure that the budget
proposals are submitted to the Finance Department in time.
N. MURUGANANDAM
SECTION OFFICER
34
ANNEXURE- I
FORM-I
Details of LOANS / WMA
DEMAND NO./NAME :
HOD CODE / NAME :
(Rupees In thousands)
(A) Outstanding Loan as on 31.03.2022 :

(B) Details of Outstanding Loans
(1) Borrower/Loanee :
Repayment and Interest Payment made against the Loan availed Outstandings / Dues as on
Terms of Loan Loan Amount
under column (4-ii), till 31.3.2022 31.3.2022
(3) (4)
(5) (6)
G.O.No.
(2) Rate of Head of Account Head of Account
Tenure Moratorium Sanctioned Availed Head of Account Principal Interest Principal Interest
Interest (for Principal) (for Interest)
(ii) (iii) (i) (ii) (iii) (i) (iii) (i) (ii)
(i) (ii) (iv)
(C) Outstanding Ways and Means Advances as on 31.03.2022 :
(D) Details of Outstanding Ways and Means Advances

(1) Borrower/Loanee :
Repayment and Interest Payment made against the Ways and Outstandings / Dues as on
WMA Amount
Means Advances availed under column (4-ii), till 31.3.2022 31.3.2022
Rate of (4)
G.O.No. (5) (6)
Interest
(2) Head of Account Head of Account
(3) Sanctioned Availed Head of Account Principal Interest Principal Interest
(for Principal) (for Interest)
(i) (ii) (iii) (i) (iii) (i) (ii)
(ii) (iv)
// TRUE COPY //
SECTION OFFICER
35
Instructions for filling Form I of Annexure I
SECTION A. The Heads of the Department are requested to furnish the overall outstanding loan
as on 31.03.2022 pertaining to all the Boards / Corporations and
Co-operative Institutions under their control. The grand total of field 6(i) of
Section B of all Loanees / Borrowers under the control of Head of the Department
should tally with this amount. In case of variation from the books of accounts of
Board / Corporation with the books of accounts of the Government, reason for
variation needs to be mentioned.
SECTION B. The detailed break-up of the outstanding loan mentioned in Section A is to be

furnished in this Section. The details to be furnished are as mentioned below. The
break-up shall be on the basis of Government Orders in which the loans were
sanctioned.
Field 1. The name of loanee institution, under the control of Head of the Department,
to which the loan was sanctioned shall be selected from the drop down list
which is available in the soft copy of the Form.
Field 2. The Government Order Number along with the date in which the said loan
was sanctioned and further amendments issued to the Government Order, if
any.
Field 3. Terms of loan as per Government Order.

(i) Rate of Interest
(ii) Tenure of loan should be mentioned in terms of Financial Year
(iii) Moratorium Period, if any
Field 4. (i) The loan amount sanctioned as per the Government Order.
(ii) The loan amount availed or drawn by the borrower out of the
sanctioned amount. In case the amount was not paid in cash but
credited to the Public Deposit A/c / Personal Deposit A/c, the amount
so credited should be mentioned rather than the amount drawn by
the borrower from the PD account.
(iii) The head of account under which the loan was drawn.
Field 5. (i) The repayment of Principal amount made up to 31.03.2022 out of the
loan availed (4(ii)).
(ii) The head of account under which the repayment of Principal is being
made.
(iii) The payment of interest made so far on the loan availed and due
from time to time.
(iv) The head of account under which the interest is being paid.
Field 6. (i) The outstanding amount of Principal as on 31.03.2022 out of the loan
availed [4(ii) – 5(i)].
(ii) Interest due as on 31.03.2022.
36
SECTION C. The Heads of the Department are requested to furnish the overall outstanding
Ways & Means Advance as on 31.03.2022 pertaining to all the
Boards/Corporations and Co-operative Institutions under their control . The grand
total of field 6(i) of Section D of all Loanees / Borrowers under the control of
Head of the Department should tally with this amount. In case of variation from
the books of accounts of Board / Corporation with the books of accounts of the
Government, reason for variation needs to be mentioned.
SECTION D. The detailed break-up of the outstanding Ways & Means Advance mentioned in
Section C is to be furnished in this Section. The details to be furnished are as
mentioned below.
Field 1. The name of loanee / borrower, under the control of the Head of
Department, to whom the Ways & Means Advance was sanctioned shall be
selected from the drop down list, which is available in the soft copy of the
Form.
Field 2. The Government Order Number along with the date in which the said
Ways & Means Advance was sanctioned and further amendments issued to
the Government Order, if any.
Field 3. Rate of Interest per annum to be paid on the Ways and Means Advance.
Field 4. (i) The amount of Ways & Means Advance sanctioned in the
Government Order.
(ii) The amount of Ways & Means Advance availed or drawn out of the
sanctioned amount.
(iii) The head of account under which the Ways & Means Advance was
drawn.
Field 5. (i) The repayment of Principal amount made up to 31.03.2022 out of the
Ways & Means Advance availed.
(ii) The head of account under which the repayment is being made for
that particular Ways and Means Advance availed.
(iii) The payment of interest made so far on the Ways & Means Advance
availed.
(iv) The head of account under which the interest is being paid.
Field 6. (i) The outstanding amount of Principal as on 31.03.2022 out of the

Ways and Means Advance availed [4(ii) – 5(i)].
(ii) The interest due for the Ways & Means Advance as on 31.03.2022.
N. MURUGANANDAM
SECTION OFFICER
37
ANNEXURE-I
FORM-II
ESTIMATES FOR LOANS AND ADVANCES
DEMAND NO./NAME :
HOD CODE / NAME :
[Rupees in Thousands]
RECEIPTS OUTGOINGS
Cumulative (Recovery of Loans/ WMA) (Sanction of Loans/ WMA)
Repayment Closing
Opening Repayments
Head of Account balance as on
Moratorium Period as per Due during Due during
Balance as on
due but not
[up to Sub-Detailed Head Level] Period if any the terms and 2022-23 as per B.E. R.E. 2023-24 as per B.E. B.E. R.E. B.E. 31st March
1st April 2022 paid till
conditions terms & 2022-2023 2022-2023* terms & 2023-2024* 2022-2023 2022-2023^ 2023-2024^ 2024
2021-22
conditions conditions
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
Major Head :
Sub-Major Head :
Minor Head :
Sub-Head :
Detailed Head :
Sub-Detailed Head :
1 Column (5) should tally with Column 6 (i) of (B) Details of Outstanding Loans and (D) Details of Outstanding Ways and Means Advances appearing in Form-I / Annexure-I
2 Reason for variations in Column (8) with reference to dues shown in columns (5)+(6) for RE 2022-23 and Column (10) with reference to dues as per Columns (5)+(6) - (8)+(9) for BE 2023-24 should be explained clearly.
This should also include estimated disbursements / receipts of loans under the head during the year.
3 Specific reasons with supporting G.Os./ sanctions should be explained
// TRUE COPY //
SECTION OFFICER
38
ANNEXURE - I
FORM-III
Details of Guarantee
Demand No. and Name :
Head of Department Code / Name :
( Rupees In Thousands)
(A) Outstanding Guarantee as on 31.03.2022
(B) Details of outstanding Guarantee
(1) Name of the Board / Public Sector Undertaking / Co-operative Institution on behalf of whom Guarantee was sanctioned
Repayment due
Repayment made till Outstanding Loan as Outstanding Loan as
Guaranteed Loan Amount during
31.3.2022 on 31.3.2022 on 30.9.2022
G.O.No. & Date (3) April-Sep. 2022
(4) (5) (7)
(2) (6)
Sanctioned Availed
Principal Principal Principal Principal
(i) (ii)
// TRUE COPY //
SECTION OFFICER
39
Instructions for filling Form III of Annexure I
SECTION A. The Heads of Department are requested to furnish the overall outstanding
Guarantee as on 31.03.2022 pertaining to all the Boards / Corporations and
Co-operative Institutions under their control. The grand total of field 5 of
Section B of all parties under the control of Head of the Department should
tally with this amount. In case of variation, if any, from these data with data
already furnished to the office of the Accountant General / Government for
finalising the Finance Accounts 2021-2022, reason for the same needs to be
mentioned.
SECTION B. The detailed break-up of the outstanding Guarantee mentioned in Section A

is to be furnished in this Section. The details to be furnished are as mentioned
below.
Field 1. The Name of the institutions under the control of the Head of the
Department to which the Guarantee was sanctioned.
Field 2. The Government Order Number and date in which the said Guarantee
was sanctioned and further amendments issued to the Government
Order, if any, shall be furnished.
Field 3. (i) The amount of Guarantee sanctioned in the Government Order.

(ii) The amount availed out of the guaranteed amount.
Field 4. The repayment of Principal made as on 31.03.2022 out of the funds

raised using Guarantee.
Field 5. The outstanding amount of Principal as on 31.03.2022 out of the availed

Guarantee amount [3(ii) – 4].
Field 6. The repayment of Principal during April-September 2022 out of the funds
raised using Guarantee.
Field 7. The outstanding amount of Principal as on 30.09.2022 out of the availed

Guarantee amount [5 – 6].
N. MURUGANANDAM
SECTION OFFICER
40
ANNEXURE-II
FORM-I
(To be generated in IFHRMS)
Pay as per Number Statement :
DECENTRALISED BUDGET ESTIMATES - GROUP-WISE / OBJECT WISE STATEMENT
DEMAND NO./NAME :
HOD CODE / NAME :
GROUP HEAD :
Actuals Actuals R.E. Actuals B.E. Actuals upto R.E. 2022-2023 B.E.2023-2024 A.E. 2024-2025 A.E. 2025-2026 Remarks of
Objects June 2022
2019-2020 2020-2021 2021-2022 2021-2022 2022-2023 Proposed Fixed Proposed Fixed Proposed Fixed Proposed Fixed Head of Dept. Finance Dept.
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) (17)
TOTAL
// TRUE COPY //
SECTION OFFICER
41
ANNEXURE-II
FORM-II
OBJECT-WISE TALLY SHEET
[One Sheet for each Object]
DEMAND NO./NAME :
HOD CODE / NAME :
GROUP HEAD :
OBJECT HEAD :
Actuals Actuals R.E. Actuals B.E. Actuals upto R.E. 2022-2023 B.E. 2023-2024 A.E.2024-2025 A.E. 2025-2026
Sub-Head of Account June 2022
2019-2020 2020-2021 2021-2022 2021-2022 2022-2023 Proposed Fixed Proposed Fixed Proposed Fixed Proposed Fixed
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
TOTAL
// TRUE COPY //
SECTION OFFICER
42
ANNEXURE-II
FORM-III
SUBHEAD-WISE TALLY SHEET
DEMAND NO./NAME :
HOD CODE / NAME :
GROUP HEAD :
Actuals Actuals R.E. Actuals B.E. R.E. 2022-2023 B.E. 2023-2024 A.E.2024-2025 A.E. 2025-2026
Actuals upto
Sub-Head of Account June 2022
2019-2020 2020-2021 2021-2022 2021-2022 2022-2023 Proposed Fixed Proposed Fixed Proposed Fixed Proposed Fixed
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
TOTAL
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SECTION OFFICER
43
ANNEXURE-III
Form - T
ADDITIONAL PARTICULARS FOR EACH SUB-HEAD TO BE SENT BY THE
ESTIMATING OFFICERS ALONG WITH THE DETAILED ESTIMATES
DEMAND NO./NAME :
HOD CODE / NAME :
HEAD OF ACCOUNT :
State's Expenditure
1. WAGES
(a) Number of workers on Daily Wages
[Details of sanction orders to confirm the number of
workers under Wage Employment should be
attached]
(b) Rate of Wages
2. TELEPHONES State's Expenditure

with STD without STD
(a) Number of Telephones and Ceilings fixed
thereon for which estimates have been
proposed (working sheet to be enclosed)
(b) Details of sanction order for new installations,
if any
(c) Number of officers provided with cell phones
and ceiling per month (working sheet to be
enclosed)
3. TRAVEL EXPENSES
(a) Number of Touring Officers
(b) Working Sheet for the estimates proposed
Coverd by Coverd by Uncoverd by

4. Machineries and Equipments Warranty AMC Warranty/AMC
Total
Coverd by Coverd by Uncoverd by

5 COMPUTERS Warranty AMC Warranty/AMC
Total
NOTE: Wherever Government Orders are quoted in support of the Estimates proposed, copies of the orders should invariably be
enclosed.
Signature and Designation

// TRUE COPY //
SECTION OFFICER
44
ANNEXURE-III
Form - T
MOTOR VEHICLES
ADDITIONAL PARTICULARS FOR EACH SUB-HEAD TO BE SENT BY THE
ESTIMATING OFFICERS ALONG WITH THE DETAILED ESTIMATES
DEMAND NO./NAME :
HOD CODE / NAME :
HEAD OF ACCOUNT :
STATE'S EXPENDITURE
Petrol Diesel
1. Total Number of Vehicles
including condemned
2. Number of condemned Vehicles
A. Off-Road
B. On-Road
TOTAL
3. Functional Vehicle Details
[Existing Vehicles + Condemned Vehicles
but on road]
PETROL DIESEL TOTAL
Type No. of No. of No. of
Ceiling Ceiling Ceiling
Vehicles Vehicles Vehicles
(a) Heavy Vehicles
(b) Cars
(c) Jeeps
(d) Three Wheelers
(e) Two Wheelers
(f)
(g)
TOTAL
4. Ceiling per vehicle per month
according to type
5. Working sheet for estimation of Fuel

requirements$
NOTE: Government Orders to validate the sanction of vehicles should be attached.
Certificates from MVMO stating condemned vehicles are road worthy should be attached.
$ Separate working sheet for State's Expenditure, Central Sector /
Centrally Sponsored, Shared between State and Centre and
Autonomous Bodies should be given.
Signature and Designation
// TRUE COPY //
SECTION OFFICER
45
ANNEXURE – IV
FORM – I
FORM FOR FURNISHING DETAILS OF SCHEMES HAVING ALLOCATION OF

Rs.20.00 CRORE AND ABOVE UNDER REVENUE, CAPITAL AND LOANS & ADVANCES
Section A:
1. Demand No.
2. Demand Name
3. Secretariat Department
4. Head of Department Code
5. Head of Department Name
6. Name of the Scheme
7. Head of Account
8. Budgetary Appropriation Rs. ………………… Thousands
Section B:
9. Authority sanctioning Govt./ HOD/ Dist. Officer/ Others
the expenditure
10. Amount drawn by Admin. Dept./ HOD/ Dist. Officers/ Taluk
Officers/ Others
11. Mode of Drawal through PAO / Treasury / Book adjustment/
Others
12. PAO / Treasury Mofussil / PAO South/ PAO North/ PAO
Secretariat / PAO East/ PAO High Court/
Pension & Pay Officer / Not Applicable
13. PD Account Details Not Applicable / Applicable
a) Name of the
Board / PSU
b) PD A/C No.
c) Credit Head of
Account
14. Drawal Pattern Monthly
Quarterly
Half Yearly
Annual - One time
Based on requirement
// True Copy //
SECTION OFFICER
46
GUIDELINES FOR FILLING FORM – I OF ANNEXURE IV
I) GENERAL INSTRUCTIONS:
Data for the fields in Section A of the Form – I Annexure – IV is supplied by

the Finance (BC) Department based on budgetary appropriation for the current
financial year. Data for the fields in Section B of the form shall be furnished by the
Head of Department / Secretariat Department. Fields with serial number 9, 10, 11,
12 & 14 shall be filled by selecting from the drop-down box options. For field with
serial number 13, relevant data as applicable to the respective departments shall be
mentioned.
II) ITEM BY ITEM INSTRUCTIONS:
Field 9 Authority sanctioning the expenditure: Select the relevant option from
the drop down box based on the delegation of powers for sanction of
expenditure.
Field 10 Amount drawn by: Select the relevant option from the drop down box
based on the drawal of bills by the office concerned. It shall not be
mistaken with the Drawing and Disbursing Officer of the office.
Field 11 Mode of Drawal through: Select the relevant option from the drop down
box based on drawal of money from the Consolidated Fund. The option
‘Book Adjustments’ shall be applicable generally to object head
‘30. Inter Account Transfers’. This shall be chosen for transfer of
budgetary appropriation to Fund Accounts under (J) Reserve Funds of
Public Account and the expenditure met from such Funds by exhibiting
minus debit under the Revenue / Capital heads of account and for
pro-rata charges that are being carried out by the Accountant General
(A&E) at the year end.
If drawal is through PAO / Treasury: This sub-field is provided to

ascertain the finality of the expenditure drawn from the PAO / Treasury.
The expenditure, if directly settled / paid to concerned, then it becomes a
direct expenditure. Instead, if it is credited to either the departmental
PD account or the PD account of the Boards / Corporations from where
the payments are made, then the appropriate option shall be selected.
In cases, where there is no drawal of money involved and the
expenditure is off-set against receipts and vice versa by presentation of
adjustment bills, then last option shall be selected. The option ‘Others’ is
meant for transactions other than through PAO / Treasury mode.
Field 12 PAO / Treasury: This field shall be filled by choosing from the options
provided in the drop down box in the case of drawals through PAO /
Treasury only and the related Pay and Accounts Office where the bills
are presented must be selected. For drawals at places other than PAOs/
PPO, the option ‘Mofussil’ is sufficient.
47
Field 13 PD Account Details: This field shall be filled for expenditure drawn at
PAOs / Treasuries and credited to the PD account of Boards /
Corporations mentioned under field 11. Type in the relevant sub-fields
the name of the Board / Corporation along with the PD account number
of the institution and the Deposit Head of Account (namely Major Heads
starting with ‘8342’ or ‘8443’) of the Public Account under which the
amount is remitted through Challan.
Field 14 Drawal Pattern: This field shall be filled for drawals through PAO/
Treasury mode and the drawal pattern shall be in accordance with the
Government orders / instructions, loan agreements in the case of
repayment / interest, etc. Selection of the month shall be based on the
first due during the year.
N. MURUGANANDAM
SECTION OFFICER
49
48
ANNEXURE – IV
FORM-II
“GRANTS-IN-AID” - FORM FOR FURNISHING DETAILS OF CENTRAL SECTOR /

CENTRALLY SPONSORED / SHARED SCHEMES
(Rs in Thousand)
1 Name of the Central Scheme/ Programme
2 Name of the Sponsoring Central Ministry
3 Name of the Controlling Authority in the State
4 Name of the Implementing Agency in the State
5 Sharing Pattern (%) Centre

(Component-wise details
to be given in separate State
sheet)
Others, if any
6 Receipt Head of Account for credit of GoI Grant
(To be obtained from O/o AG or Fin.(BG.M) Dept. in case of
existing scheme)
7 Grants-in-Aid projected in BE 2022-23

8 Amount of the Central Grant approved by the GoI
for the current year (2022-2023) as per AWP
9 Unspent balances/ Excess release of GoI Grant

of previous year (if any)
10 (a) Arrears receivable Related to years preceding (Specify year wise amount)
from GoI (if any) the previous year 2021 – 22
For previous year 2021 - 22
10 (b) Reason for non-release of arrear by the GoI
10 (c) Whether expenditure already incurred in

anticipation of receipt of arrear from the GoI?
If yes, indicate the amount due from GoI.
10 (d) Action taken by HoD to receive dues from the GoI

(copies of communication to be enclosed)
11 Amount released by the a. Against previous

GoI in the year 2022-2023, years’ arrear
till 31.07.2022 b. For current year
12 Further GoI Grant Against Arrear for previous
expected during years (Sl. No. 10a – 11a)
Against the originally approved
2022-23 amount (Sl. No.8 – 11b)
49
13 Name of the Scheme / Programme under which

provision is proposed to be included in the Budget
14 Expenditure provision (a) B.E. 2022-2023 Of which for

made/ proposed in a. Unspent balance of previous year
b. Against Current year Grant
(b) R.E. 2022-2023 Of which for
a. Unspent balance of previous year
(c) B.E. 2023-2024
15 Expenditure Head of Account (must be indicated in
case of existing scheme)
16 Central Share of (a) B.E. 2022-2023 Of which for

Sl. No. (14) a. Unspent balance of previous year
(b) R.E. 2022-2023 Of which for
a. Unspent balance of previous year
(c) B.E. 2023-2024
N. MURUGANANDAM
SECTION OFFICER
50
FORM - II (a)
List for Single Nodal Agency (SNA) Bank Account integration with PFMS
S.
Description Response
No.
1 Name of Admin. Dept. in Secretariat
2 Name of Head of Department
3 State Linked Scheme in PFMS
4 State Linked Scheme Code in PFMS
5 Name of Single Nodal Agency (SNA)
6 SNA’s Unique Code in PFMS
7 SNA’s Bank Account Details
a. Nam of Bank
b. Bank Branch
8 No. of Child Agencies (Implementing Agencies in
the hierarchy)
9 No. of Child Agencies (IAs) mapped in PFMS
10 If payment model is linked with PFMS for
disbursals from SNA Bank Account
11 Payment model used for disbursals from SNA Model-1/Model-2/Model-3
Bank Account (Tick the relevant model)
a. Name of external software used under Model -1 Bank/NIC-Dept./Central Ministry’s
or Model -2 software/ Others – Specify
b. If all child Agencies (IAs) have been mapped in
the SNA Bank Account
c. Bank Account operation chosen
i. Single Bank Account used by SNA
and Child Agencies (IAs)
Ii. Zero Balance Subsidiary Accounts
(ZBSA) opened for Child Agencies (IAs)
12 If the external software is integrated with REAT
module of PFMS
13 If MIS reports can be generated from PFMS with
updated data on daily basis
Note Model 1 - External software for both running the scheme and making disbursals
Model 2 - External software for running the scheme and PFMS for making disbursals
Model 3 – PFMS REAT module used for both running of the scheme and making disbursals
//True Copy//
SECTION OFFICER
51
ANNEXURE - IV
FORM - III
STATE'S OWN NON-TAX REVENUES
- FORM FOR FURNISHING DETAILS OF MAJOR RECEIPT ITEMS
S.N. Information solicited Department's Reply

1 Head of Department Name
2 HoD Code/ Demand No.
3 Name of the Non-Tax Item
4 Brief Description & Scope of the Non-Tax

Item
5 Nature of Non-Tax Item (Like Fees/ Fine/
User Charge/ Hire Charges/ Rent/ Sale
Proceeds/ etc.)
6 Targeted Group (like Individuals, Society,
Trade, Business, Industry, Contractors,
Lesseses, etc.)
7 Receipts/ Reimbursements from GoI; if yes,
periodicity of settlement by GoI
8 Head of Account (Complete 16 digit Code,

with Nomenclature for Sub-Head and
Detailed Head) for the credit of the Non-Tax
item
9 Receipts realized in the last 3 years 2019-20 2020-21 2021-22
Amount in Rs. Thousands
10 Amount proposed in BE/ RE/ BE 2022-23 BE 2022-23 RE 2023-24 BE
Amount in Rs. Thousands

11 Date/ Period from which the current rate is
levied on the Non-Tax item (i.e. last revision
made)
12 Backlog/ Arrear if any to be collected and if
so specify the amount (in Rs. Thds.)
13 If arrear can be realized, whether included in

RE 2022-23 / BE 2023-24
// TRUE COPY //
SECTION OFFICER

Budget Instruction For BE 2023-24

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GOVERNMENT OF TAMIL NADU MANUSCRIPT SERIES

FINANCE (BUDGET GENERAL-I) DEPARTMENT

Read the following:-

2) Optimum utilization of the limited available resources with better delivery of

3) The preparation and successful execution of the Medium Term Fiscal

4) The consolidated schedule for the preparation of Budget for 2023-2024

7) The Government will continue to specially focus on the following

h) The requirement of pay and allowances in the RE 2022-2023 and

(a) TANII SCHEMES

received as in ‘kind grants’, based on advice from the Controller of

9) The instructions for preparation and submission of Number Statement in

(BY ORDER OF THE GOVERNOR)

1. Submission of Number Statement On or before 31stAugust, 2022

2. Submission of Budget proposals in

3. Meeting of DS (B) with the Chief

4 Discussion with State Planning

5. Decentralized Budget Meetings From 1st week of October 2022

6. Submission of finalized estimates by Within five days from the

7. Communication of Revised Estimates

2) Restructured Heads of Accounts:

3) Creation of New Detailed / Sub-Detailed Heads:

S.No. Existing Detailed Head New Sub-Detailed Head

The above new sub-detailed heads will be operational from BE 2023-2024.

Reclassification of expenditure for transfer of funds to the Single Nodal

Centrally Sponsored Schemes under your control as Annexed at Form II (a) at

IV. Creation of separate head of account for State additional share of

The budgeting exercise broadly consists of the following steps:-

THE REVISED ESTIMATES (for Receipts and Expenditure):

• The Estimating Officers are cautioned that requests for

• The Revenue Receipts shall also be re-assessed based on the trends in

• THE BUDGET AND THE ADVANCE ESTIMATES (for Receipts and

It is mandatory for the Administrative Departments/ Heads of Departments to

The Estimating Officers in respect of Public Works Department/ Highways

ESTIMATES OF REVENUE EXPENDITURE

OBJECT-WISE FIXATION NORMS FOR REVENUE EXPENDITURE

SALARY RELATED OBJECTS OF REVENUE EXPENDITURE

a) For the RE 2022-2023 and the BE 2023-2024, the Number Statement

There should not be major variation between the pay

03 Medical This should be based on the trend of expenditure during the

07 Travel This should be based on number of persons who are likely

302 Wages It is mandatory for Administrative Departments seeking

303 Dearness R.E. 2022-2023: (Pay in the Level) x 36%

379 Salary This should be estimated as per the above on salary

Advance Estimates of Salary related object heads for 2024-2025 and

30502 Other This should be based on the actual requirements and

30505 This expenditure should be restricted to very exceptional

30507 Other This new sub-detailed head shall be used in BE 2023-2024

306 Rent, This shall be made against the sub-detailed heads.

317 Minor Details of works proposed to be undertaken shall be

319 As per the G.O.10th read above, ban on purchase of

324 Materials Items to be purchased under Materials and Supplies

347 Stores Estimates shall be furnished separately under the

367 Feeding / The Estimating Officers have to furnish the details of

376 Computer The estimates shall be fixed based on the following:

38103 The purchase of hardware related to networking and

Advance Estimates of the above non-salary related object heads

THE ESTIMATES OF CAPITAL EXPENDITURE – Part I Estimates

Though Object-wise Form I statement is required for the Capital