|3||PCU||Beyond 25 lakhs|
1. The key objectives of proposed budgeting system are -
a) to ensure budgetary control
b) to provide an estimate of the funds needed for the project and the time when such fundsare required.
c) to set target, analyse variance and fix accountability.
d) to provide a basis for periodical monitoring.
Budget Period .
2. Budget shall be prepared for the financial year i.e. April to March of every year. The budget shall be further divided in to quarterly budgets. This would enable comparison of the quarterly budgets with the quarterly IUFRs which will help in monitoring actual progress against planned estimates and conducting variance analysis as well as in preparation of future budgets
Preparation of budgetary estimates
3. The Budgetary Estimate (B.E.) for the project is prepared for each financial year on the basis of guidelines of Steering Committee and the annual work plan.
4. Preparation of budget is a bottom-up exercise. All the participating agencies will prepare annual budget based on the activities planned to be implemented under MACP during each financial year. Preparation of the Annual Budget will be guided by the Work plan and Procurement Plan of each participating agency under MACP. The spending units will submit their budget proposals to the respective PIUs. The PIUs will submit their budget proposals to the respective departments in Mantralaya. Each PIU will submit consolidated budget to PCU. After the budget from all PIUs reaches the PCU a State level workshop of all concerned line departments/autonomous agencies including district level officers of line departments would be organised and after discussions, it would be consolidated by the PCU and it will send to DOCM for approval. Thereafter the Consolidated Project Annual Work Plan should be submitted to the World Bank by November 30 every year for review