Dimapur, February 12 (MExN): The Finance department has issued a government memorandum to all heads of administrative departments and departments as well as subordinate officers of the government to strictly comply with the provisions of Nagaland Fiscal Responsibility & Budget Management Act 2005.
The Finance department requests all in concern to carefully read and understand it for strict compliance, the memorandum stated, with the reminder that violation of the NFRBM Act or failure to comply with it would attract punishment under law. The department draws attention especially to sections 11 and 12, and Rule 8 and 9 of the Act.
The memorandum mentioned the extracts. In section 11, for measures to enforce compliance, the minister-in charge of finance shall review every quarter, the trends, receipts and expenditure in relation to budget estimates and place them before the Nagaland Legislative Assembly. The outcome of such review is to be place in the next session.
It shall also contain statement on deviation in targets, if any.
In Section 12, for penalties, whosoever willfully or with “malafide” intention violates any provision or rule or found to be contributing, directly or indirectly to non-compliance, by way of “malafide” action, inaction or negligence shall be punishable.
In Rule 8, for measures to enforce compliance, the memorandum also highlighted measures to address the outcome of a quarterly review at the end of second quarter if it shows (a) total non-receipts lesser than 35% of Budget Estimates for that year or (b) the fiscal deficits is higher than 50 % of the budget estimates of that year or (c) revenue surplus is less that 35% of the budget estimates of that year. Then, as required under sub-section (2) of Section 11, the state government shall take appropriate measures and as required under sub-section 3 of section 11, the minister in-charge of the finance ministry shall make a statement in the Legislature during the session, immediately following the end of the second quarter. It shall detail corrective measures taken and the prospects for the fiscal deficit of the financial year.
The memorandum also highlighted Rule 9, for penalties set under Section 12. In case of failure to furnish the reports, returns etc required to be furnished under the Act/Rules, within the prescribed date, the head of office, department, administrative department etc shall be liable for punishment. The punishment shall be a letter of caution served by controlling officers, in case of failure for the first time. In the second instance of failure, an increment shall be withheld without cumulative effect. In the third instance of failure, one increment shall be withheld with cumulative effect. Failure in the fourth and any subsequent instance would invite disciplinary proceedings instituted to treat such failures as offenses attracting major penalties under the Discipline & Appeal Rule applicable to the government servant in concern.
In case of any other offense under the provision of Section 12, proceedings shall be instituted against the official or non-official in concern under the appropriate existing law.
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