No. 1/45/2007-MC
Room No. 29, Second Floor, B-Wing,
Loknayak Bhavan, Khan Market,
New Delhi-110003
23rd May 2007
Subject: Action taken on the recommendations contained in 45th Report of the
Public Accounts Committee (14th Lok Sabha) relating to Excesses
Over Voted Grants and Charged Appropriations (2003-04)- delay in
furnishing Explanatory Notes.
The PAC in its 45th
Report (14th
Lok Sabha) has observed that
Ministries/Departments are not adhering to timely submission of detailed Explanatory
Notes. The PAC has expressed its displeasure on inordinate delay in the
submission of the Explanatory Notes and has made following observations:
“…there is further scope for cutting down the time at various stages in regard to
finalisation and submission of the Explanatory notes by them. The Commit tee expect
that in future, the Ministry of Finance would show the requisite urgency in the matter and
take all possible steps for timely submission of ATN”.
“Ministry appears to have not discharged their role as the nodal coordinating agency in
ensuring timely submission of Explanatory Notes by different Ministries/Departments.”
“The Committee would now expect the Ministry of Finance to take proactive steps to
ensure timely submission of Explanatory Notes by various Ministries/Departments.”
“Ministry of Finance in consultation with Comptroller and Auditor General of India should
put in a place a centralized computerized monitoring system to check the status of the
preparation of Explanatory Notes at every stag e by various Ministries/Departments so
that the delay in finalisation of ATRs by the PAC for regularization of excess expenditure
could be avoided.”
In view of the above it has been decided that from now onwards the Explanatory Notes
would be required to be finalised by 30th September of the corresponding year so that
the same could be laid in the Parliament with the Appropriation Accounts. In this regard
attention is also drawn to O.M. No. G-25018/CGA-AA/Time Schedule/2006-07/1 dated
4th April 2007, where by revised time schedule for preparation of Union Government
Appropriation Accounts (Civil) has been circulated. As per above circular the Union
Government Appropriation Accounts Civil for the year 2006-07 are to be finalised by
30.9.2007 for their presentation to Parliament.

As per recommendation of PAC, office of CGA is also putting in place a centralized
computerized monitoring system to check the status of preparation of Explanatory Notes
at every stage. Ministries/Departments would be informed of its modalities in due course
of time and they would be required to up load the current status of the Explanatory Notes
at regular intervals.
All Ministries/Departments are, therefore, requested to take note of revised schedule for
preparation of Explanatory Notes and strictly adhere to the time schedule in submitting
the vetted Explanatory Notes to the PAC. Further Ministries/Departments/Audit are also
requested to inform the Monitoring Cell in the Department of Expenditure about the
progress made in preparation/finalisation of Explanatory Notes. Further they are
requested to make all out effort to clear outstanding Explanatory Notes.
Tele No. 24626829
1.Secretaries of all Ministries/Departments
2. FAs of all Ministries/Departments
3. Pr.CCAs/CCAs/CAs/Dy.CAs of Ministries/Departments
4. JS (Budget), Budget Division, Ministry of Finance, (DEA), New Delhi
5. Office of the C&AG of India, New Delhi
6. Office of the DGA, CR, New Delh