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(6) The expenditure on each work shall be limited to the sum allotted for it. If for exceptional
reasons, expenditure in excess of Budget allotment has to be incurred and if the
authority incurring the expenditure is either not in a position to find funds by re-
appropriation or is not empowered to sanction a re-appropriation thereof, application
for additional funds shall be made to the next higher authority slating how the
expenditure is proposed to be met. In doing so, it should invariably be explained why the
need for the expenditure was not foreseen in time for inclusion in the Budget and why
the outlay cannot be postponed to the next financial year. In each case a copy of the
order making the allotment or sanctioning a re-appropriation shall be sent to the
Accounts Officer concerned by the authority issuing the order or sanctioning the re-
appropriation. (Para 368)

(7) Responsibility of Railway Administrations in case of Excesses of Lapses: The Railway
administrations shall be responsible to ensure that no expenditure is incurred in excess
of the Budget allotments made to them. Should it become apparent at any time that the
grant for the year is likely to be exceeded from any cause whatsoever, the General
Manager should report the position to the Railway Board and apply for additional funds.
No liability may be incurred in one year against anticipated grants of a succeeding year
except that advance commitments for procurement of stores for works may be made as
provided in para 812-S to the extent authorised by the Railway Board from time-to-time.
(Para 371)

(8) It shall also be the duty of the administrations to see that the allotments made to them
are fully expended, in so far as in consistent with economy and the prevention of large
expenditure in the last months of the year for the sole purpose of avoiding lapses. They
shall be responsible for ensuring that money which is not likely to be needed during the
year is promptly surrendered so as to allow of its appropriation for other purposes. (Para
372)

(9) Powers of Railway Administrations in regard to emergent and inevitable expenditure:
Notwithstanding the provisions of paragraph 7 above, the commencement of works
urgently necessary to safeguard life or property or to repair damage to the line caused
by flood, accident, earthquake or other unforeseen contingency, so as to restore or
maintain through communication may be authorised by the Executive Engineer, but he
should at once submit a report through the usual channel to the authority competent to
give administrative approval to the work and to allot the required funds. (Para 373)

(10) Expenditure to meet a sudden increase in traffic or for ensuring the safe operation of
traffic may be incurred with the personal sanction of the General Manager in
anticipation of the allotment of necessary funds by the Railway Board provided that the
Financial Adviser and Chief Accounts Officer concurs. This power cannot be delegated
and can be exercised by the General Manager only where the expenditure is within his
power of sanction. In all cases where this requires an allotment of additional funds, a
report showing the expenditure involved and the additional funds required should be
submitted to the Railway Board, as soon as possible. (Para 374)

Chapter 4 Budget Estimates, Expenditure, Budget Control and Completion Reports Page 74 of 535