Section 59, The Public Financial Management Act, 2016

A commitment, settlement of which requires expendituresfrom the Estimates only in the present financial year (hereinafter called “annual commitment”), may be assumed by a budgetary agency, if – (a) the amount to be paid under the commitment is equal to or less than the available provision; (b) the legality of expenditures to be made from the Estimates under the commitment has been verified in accordance with any enactment; and (c) the amount to be paid under the commitment is equal to or less than the available allotment, if any.