Guidelines regarding Sanction of Grant-Aid

Government of West Bengal
Finance Department
Audit Branch

No. 4915-F(Y) Dated, 30th August, 2019

NOTIFICATION

The matter of laying down a comprehensive order covering all the different aspects of Grant-Aid (referred hereafter as GIA) was under active consideration of the Government for some time past.

Now in supersession of all the orders published earlier in this regard, the Governor is pleased to prescribe the following guidelines regarding sanction of GIA, drawal of GIA and submission of utilization certificate thereof.

Definition:

Grants-Aid are payment in the nature of assistance, donations or contribution made by one Government to another Government, body, institution or individual. GIA are generally given for specific purpose including creation or procurement of assets.

Classification:

Grant-Aid -shall be classified as “GIA in cash” or “GIA in kind”. GIA simply disbursed to the grantee in cash/cheque/electronic fund transfer to bank account, is termed as “GIA in cash”. Whereas, when the grantor procures the items or creates the assets and distribute/transfer those to one or more grantee individuals/ institutions the Grant is known as “GIA in kind”.

The GIA shall farther be classified on the basis of purpose for which the same is disbursed by the grantor i.e. GIA for Salaries, GIA for creation of capital assets and GIA-other grants.

Pass-Through Grants:

Pass-through grants mean GIA given by the Government to its Parastatals for onward transfer to the ultimate grantee either in the form of cash or kind. In case of pass-through grant, irrespective of the mode of payment/disbursal of grant to the ultimate beneficiaries, the grant will always be treated as “GIA in cash” for the Government.

Sanction of GIA:

All sanction order in respect of GIA in cash in favour of any institution, individual shall be made in the enclosed Proforma-A.

All sanction order in respect of GIA in kind in favour of any institution, individual shall be made in the enclosed Proforma-B.

All sanction order for GIA shall be under the Detail Head “31-02, GIA-Other Grants, Detail Head “35- Grant for creation of capital assets”, or Detail Head “36- Salary Grants”.

In case of sanction of “GIA in kind” the sanctioning authority will sanction entire amount required for procurement of items, expenses incidental to such procurement and distribution of the same to the grantee.

Procurement of items distributed as GIA in kind:

The authority responsible for distribution of GIA in kind shall procure those items by following the existing procurement rules and procedures of the Govt. of West Bengal. In any case if the procuring authority thinks that following of existing procedure of procurement is not practicable then necessary relaxation from appropriate authority shall have to be obtained beforehand.

Maintenance of stock register:

The authority responsible for procurement and distribution of GIA in kind shall maintain a register of stocks and enter every transaction in and out of such stock. At the end of every month the authority shall give a certificate regarding physical verification of stock.

Drawal of Grant-Aid.

In case of GIA in cash DDO shall draw the same in TR Form No. 31 of WBTR 2005 through e-Billing module of IFMS. At the time of preparation of bill DDO shall select the ‘Grant Type’ as ‘Grant-aid in cash’ and prepare the bill as per existing modalities.

In case of GIA in kind, the DDO shall draw the same in TR Form No. 31 of WBTR 2005. At the time of preparation of bill DDO shall select the Grant Type as ‘Grant-aid in kind’. DDO shall make all necessary entry of sub-voucher/ invoice for supply /procurement /works regarding suppliers’ in the respective fields provided in the bill form. Necessary deduction of account of GST, Income Tax, Cess etc (if any) to be made before making payment of Grant-aid in kind’. In case of drawal of GIA in Kind, it would be mandatory for the DDO to submit the relevant sub-vouchers along with the Bill to the Treasury. The concerned sub voucher should contain a certificate of store keeper/appropriate authority stating that the items procured have been entered duly in the “Register of Stock for GIA in Kind” or work has been done as per given specification.

The ‘Schedule of Sub-Voucher details’ as enclosed in Annexure-C shall be accompanied with the bill at the Treasury/Pay & Accounts Office. Payment shall be made directly to the bank account of supplier.

If issuance of Account payee cheque in favour of beneficiary or open cheque in favour of DDO is essential then prior approval of appropriate authority shall have to be taken.

Submission of utilization certificate:

Submission of utilization certificate will not be required for GIA in cash credited to bank account of non institutional beneficiaries.

Submission of utilization is mandatory for all types of “Pass-through grants”.

Submission of utilization certificate along with stock statement of items/work done certificate is mandatory for all types GIA in kind.

Necessary amendments in West Bengal Treasury Rule will be made in due courses. This order shall take immediate effect.

Sd/- H.K.Dwivedi
Additional Chief Secretary to the
Government of West Bengal

No. 4915-F dated 30.08.2019, Source

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