If release of budget is delayed in FC project, can we spend from other FC sources? The online forms are not accepting negative balances when uploaded at the end of financial year.
While FCRA mandates spending funds received for a specific project, operational situations may pose challenges. Ideally, begin spending when the funds are in because FC funds are to be utilized for a specific project only. It is not advisable to use other project funds since in clause 3(a) of FC4, negative balance cannot be reported. Exceptionally, if there are unrestricted FC funds, these could be utilized and regularized once the funds come in. Hope it clarifies.
CS Sharad Bhargava
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