Financial Procedures

1. The scheme of `DRDA Administration` shall be a centrally sponsored scheme. The funds required under this progreamme shall be shared between the Centre and the States in the ratio of 75:25 Funds will be released directly to the DRDAs, in accordance with the guidelines under this programme.

2. The Centre will release funds in two installments.

a) Release of First Installment

i) The release of first installment can be made without any formal request if the second installment in the previous year had been released without any condition. If latter installment was not released at all or was released with some conditions, formal requests for release of first installment are required from the DRDAs after the conditions have been fulfilled / reasons for non-release of the second installment have been met. For the first year i.e., 1999-2000 all the DRDAs will be released first installment on an ad-hoc basis.

ii) The release of the first installment should ordinarily be completed by the end of the second month of the financial year.

b) Release of Second Installment

i) The quantum of the second installment shall be subject to actual requirement within the overall ceiling. The second installment of Central funds shall be released on the request of the DRDAs in the prescribed performa on fulfillment of the following conditions.

1) Budget provision for the current year may be indicated by the State Governments. The Central release will not exceed it proportionately.

2) The State Government should have released its contribution during the previous year. Deficiency in release of its share will be deducted from the second installment. Also the contribution of the State Government for the first current year should have been released.

3) Available funds including carry forward funds should have been utilized at least to 60%.

4) The opening balance of the DRDAs should not exceed 15% of the allocation of the year in which funds are being released. In case, the opening balance exceeds this limit, the Central share of the amount by which it exceeds this limit will be deducted at the time of release of second installment.

5) Audit reports, utilization certificates for the previous year should be furnished. This will not be required in the first year i.e., 1999-2000.

6) Any other terms and conditions imposed at the time of the last release should have been met.

ii) The DRDA shall maintain the fund under the head `DRDA Administration`, in a separate bank account in any o the nationalized bank. Interest earned on the funds will necessarily be used only for admissible items of expenditure under DRDA administration. They shall not be used for any programme funding or non-admissible items of expenditure, such as construction of building and purchase of vehicles.