Budgeted Works

CPWD receives budget from 2 different Demands for Grants of the Ministry of UD&PA.

Demand No.82: UD: Part of this Demand contains the budget heads of 4216-UD (Plan) and 2216-Maintenance.  The budget available under this grant is for the construction and maintenance of Government residential accommodation.

Demand No. 83: Public Works: This demand includes the budget heads for the construction and maintenance of all Government non-residential buildings, budget for purchase of materials for Stock and budget for Miscellaneous Public Works Advances. The heads of account which are included in this demand for grants of Ministry of UD&PA is included are given at the end.

Deposit and CSS Account Works

Besides the works for which budget is provided for by the Central Government, CPWD also undertakes execution of works on Deposit basis and on CSS account basis. In the former are the works pertaining to autonomous bodies, educational institutions like IITs, Universities etc. where the client department deposits whole or part of the sanctioned amount with CPWD which is taken in our books and then expenditure is booked on the project of the client from the money deposited. It may, however, be clarified that the money deposited by the client is deposited by CPWD in the consolidated fund of India and LOC for the actual funds demanded is asked for from the CCA. No separate account is opened for this deposit however the actual transactions are duly noted in the deposit register and the clients are intimated of the deposits and expenditures every month.

In respect of CSS account this system is now followed only for the works pertaining to the Cabinet Secretariat and the Ministry of Defence. In this the expenditure on the project is booked by CPWD first in suspense account and then the bill is raised on the client in prescribed format against which payments are made by the client and the suspense account is cleared. LOC for this is also given by CCA against assurances given by the clients as to how much expenditure can be booked by the divisions against their works.

From the trends that the department has been observing it is seen that more and more clients of CPWD are those who are not bound to get their works executed from the department but prefer to get it done because of the expertise, reliability and transparent nature of our working.

The detailed procedure for preparation of budget, allocation, re-appropriation etc. is given in detail in Chapter 50-56 of CPWD Manual Vol.-II.

Utilization of Funds

CPWDs budget includes the budgets of various other Ministries and the success of utilizing fully the available funds depends upon the close interaction that takes place between the various Ministries, Ministry of UD and CPWD.  The detailed procedure for inclusion of New Works of other Ministries in CPWD budget is given in page 483 of CPWD Manual Vol.-II. 

The budget allocation for various heads of accounts are received by DG (W) and it is distributed to various ADGs in the regions.  ADGs in turn distribute the allocation to Chief Engineers in their region.  Chief Engineer then distributes it to the Superintending Engineers and Superintending Engineer (E) in the Zone. 

Superintending Engineers and SE (E) in turn distribute them to the Executive Engineers in their Circles.

Letter of Credit

In the PWD system of accounting, Division is the basic accounting unit and the Executive Engineer is the only Engineering Officer in CPWD to whom the cheque drawing power has been given.  The authority to issue cheques is derived by him by the Letter of Credit (LOC) issued in favour of his Division by the Chief Controller of Accounts attached to the Ministry of UD&PA.

A Division derives its funds in the following channels:

   Budget allotment under different heads of account incorporated in the Demands for Grants of Ministry of UD&PA from which relevant portion has been allotted to it by the Superintending Engineer.

   Deposits for various Deposit works received by the Division.

   Authorization to PAO, Ministry of UD&PA by various other Ministries for charging the expenditure to the Heads of Account operated by the respective Ministries.

   Cash Settlement Suspense Account operated by some of the Ministries.


The issue of LOC is centralized in the office of the Chief Controller of Accounts in Delhi wherein requests for LOC from the Divisions of CPWD spread all over the country are processed.


1. Click here to see budget utilization of Ministry of UD for previous years
2. Click here to see Maintenance budget