GOVERNMENT OF ANDHRA PRADESH

FINANCE& PLANNING (FW.BG) DEPARTMENT

CIRCULAR MEMONo.15036-B/485/BG/A1/2000, Dated:22-4-2000.

Sub:- Zero-based Budgeting ¿ Financial Allocations under Non Plan

¿ Issued.

1. As part of wide ranging fiscal reforms, Government have decidedto

adopt Zero-based Budgeting as an important policy to bring fiscal
disciplinein all the departments. A CabinetSub-Committee comprising of
fourMinisters is also constituted in G.O.Ms. No. 135, GA(Cabinet) Dept.
dt.12.4.2000. The Committee met anddiscussed various issues on
availability of resources and the need to bringabout greater economy and
efficiency in the deployment of available manpowerand financial allocations
under Plan and Non-plan. The Committee also recommended to constitute
DepartmentalCommittees for Zero based budgeting comprising of Minister
incharge of theDepartment as Chairman, concerned Secretaries and Heads of
Departments,Secretary Planning and Secretary in the Finance Dept. as
Members. Therefore, all the Departments are requestedthat while undertaking
Zero based budgeting exercise, care should be taken toensure that salaries and
other such related Heads under salaries shall be keptas indicated herewith for
2000-01..

5. Government has also decided that review should be made by

theDepartmental committes on zero based budgeting of all the schemes and
workssanctiond before 31-3-2000. All schemes/workswhich were
sanctioned upto 31-3-2000 but not acted upon or grounded shall betreated as
lapsed or cancelled. Freshsanctions should be given after due justification
before the CabinetSub-Committee. Hence, due care shouldbe taken to
ensure that all such schemes/works which were sanctioned but notgrounded,
should not find place in the pending commitments of the department.

7. Subject to the aforesaid conditions, the Departments arewelcome to

make savings, ifpossible, under the Non-planallocations indicated
herewith. Anysuch savings shall be permitted to be retained by the
Department forutilisation for any other priority scheme under Plan or Non-
Plan. S.K.ARORA
 Principal Secretary to Government
To
All Departments of Secretariat
and all Heads of Departments(with enclosure on
Non Plan allocation for2000-01).

Copy to
PS to All Ministers
Secretary to Chief Minister
PS to Chief Secretary toGovernment
DTA Hyderabad,
PAO Hyderabad
All Secretaries in Finance &Planning (F.W) Department
Peshi of Prl.Secretary Finance
SF/SC

//FORWARDED BY ORDER\\

SECTION OFFICER

C:\April_Zerobased\Zerobased budget-Circular 2004