Financial Organization History of Indian Railways
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Questions and Answers

What was a key recommendation of the Acworth Committee regarding Railway Finances?

  • Finance Department should maintain control over railway budgets.
  • The railway budget should be overseen by the Finance Member of the Council.
  • The railways should prepare a separate budget and manage their own finances. (correct)
  • Railways should rely on the Government for financial audits.

    • What decision was made by the Government of India regarding the separation of Railway Finances?

  • A Convention resolution was laid before Legislative Assembly. (correct)
  • It was rejected entirely without consideration.
  • Separation was achieved through an Act of Parliament.
  • They decided to enhance the control of the Finance Department.

    • Which year did the Legislative Assembly vote on the Convention resolution proposed by the Government regarding Railway Finances?

  • 1920
  • 1924 (correct)
  • 1929
  • 2017

    • What significant change occurred in 2017 concerning Railway Finances?

    <p>Railway Budgets were merged with the Union Budget.</p> Signup and view all the answers

    When was the Financial Commissioner for Railways appointed?

    <p>1923</p> Signup and view all the answers

    What was the scope of the financial administration before the appointment of the Financial Commissioner for Railways?

    <p>It was integrated with the Finance Department.</p> Signup and view all the answers

    What document governs the presentation of a separate Demand for Grants for the Ministry of Railways?

    <p>Article 113 (2) of the Constitution of India.</p> Signup and view all the answers

    In which stage was the separation of accounting and auditing functions completed on the Railways?

    <p>Stage III</p> Signup and view all the answers

    Who was responsible for the accounting work of the railways prior to the appointment of the Financial Commissioner?

    <p>Accountant General, Railways</p> Signup and view all the answers

    What is the primary responsibility of the Financial Adviser & Chief Accounts Officer regarding the General Manager?

    <p>To advise the General Manager to refer financial discrepancies to the Railway Board</p> Signup and view all the answers

    Which of the following best describes the current role of the Finance Officer?

    <p>A complete participant in management decision-making</p> Signup and view all the answers

    What does the Finance Branch primarily assist the Railway Administration with?

    <p>Considering proposals with financial implications</p> Signup and view all the answers

    How has the role of the Financial Adviser & Chief Accounts Officer evolved over time?

    <p>From a strict accountant to a strategic advisor</p> Signup and view all the answers

    Which of the following aspects does the Financial Adviser & Chief Accounts Officer NOT have special responsibility for?

    <p>Political decision-making</p> Signup and view all the answers

    In what way is the work of the Finance Branch seen as comparable to that of a Management Accountant?

    <p>Both assist in making rational plans and decisions</p> Signup and view all the answers

    What significant change occurred to the post of Accountant General, Railways?

    <p>It was replaced by the Director of Railway Audit and the Controller of Railway Accounts.</p> Signup and view all the answers

    What significant emphasis is placed on the Financial Adviser & Chief Accounts Officer's role after the delegation of the Accounts Department?

    <p>Their special responsibilities will be enhanced</p> Signup and view all the answers

    Who was the Chief Accounts Officer answerable to after the separation of functions at the Railway level?

    <p>The Controller of Railway Accounts</p> Signup and view all the answers

    Which statement regarding the financial implications in railway operations is correct?

    <p>Financial considerations are integral to almost all railway services.</p> Signup and view all the answers

    What is NOT part of the Finance Branch's functions?

    <p>Making decisions on behalf of the General Manager</p> Signup and view all the answers

    Which committee recommended the organizational changes in the Railway Accounts Department?

    <p>The Wedgwood Committee</p> Signup and view all the answers

    What was the new title given to the Chief Accounts Officer after organizational changes?

    <p>Financial Adviser &amp; Chief Accounts Officer</p> Signup and view all the answers

    What allowed the Financial Adviser & Chief Accounts Officer to access the Financial Commissioner?

    <p>Disagreements with the General Manager on important matters</p> Signup and view all the answers

    When was the arrangement made permanent for all Government Railways?

    <p>1941</p> Signup and view all the answers

    What was instituted under the Financial Adviser & Chief Accounts Officer?

    <p>A distinct Finance Branch</p> Signup and view all the answers

    Which railway was the Finance Branch scheme first initiated as an experimental measure?

    <p>B.B. &amp; C.I. Railway</p> Signup and view all the answers

    What primary purpose did the organizational changes serve?

    <p>To establish clearer financial oversight</p> Signup and view all the answers

    How were the organizational changes viewed initially?

    <p>As an experimental measure</p> Signup and view all the answers

    What is one of the main responsibilities of the Financial Adviser & Chief Accounts Officer?

    <p>Compilation of budgets and budgetary control.</p> Signup and view all the answers

    Who assists the Financial Adviser & Chief Accounts Officer at the Headquarters office?

    <p>Deputy Financial Advisers and Accounts Officers.</p> Signup and view all the answers

    What is the main function of the Deputy Financial Adviser in relation to the budget?

    <p>To exercise control over budgetary allocations.</p> Signup and view all the answers

    Which of the following statements represents a scenario where a proposal may require reference to the Railway Board?

    <p>The proposal involves a significant alteration to departmental procedures.</p> Signup and view all the answers

    At which level are the financial functions combined with internal check functions?

    <p>Unit level in Divisional Accounts Office or Workshop/Stores Accounts Office.</p> Signup and view all the answers

    How many separate Railway Administrations were operating in India at the dawn of the 20th Century?

    <p>33</p> Signup and view all the answers

    What was the main role of the Railway Branch of the Public Works Department?

    <p>To regulate and control Non-Government Railways</p> Signup and view all the answers

    Who was appointed as Special Commissioner for Indian Railways in 1901?

    <p>Sir Thomas Robertson</p> Signup and view all the answers

    What did Sir Thomas Robertson recommend for the administration of Indian Railways?

    <p>Establishment of a Railway Board</p> Signup and view all the answers

    What was the total length of Railway lines operated by the Railway Administrations in India?

    <p>41,000 route kilometers</p> Signup and view all the answers

    Which entities were responsible for operating four of the thirty-three Railway Administrations?

    <p>The Government</p> Signup and view all the answers

    Who assisted the head of the Railway Branch in its administrative functions?

    <p>One Secretary and three Deputy Secretaries</p> Signup and view all the answers

    What is the primary responsibility of the Financial Adviser & Chief Accounts Officer concerning the budget?

    <p>Scrutiny and compilation of the Railway's Budget as a whole</p> Signup and view all the answers

    Under what circumstance must a proposal be referred to the Railway Board?

    <p>When it exceeds the powers of the General Manager</p> Signup and view all the answers

    Which role does the Deputy Financial Adviser primarily hold within the financial framework?

    <p>Budget Officer and head of the Budget Branch</p> Signup and view all the answers

    How are financial scrutiny functions organized at the Unit level?

    <p>They are combined with internal checks in dedicated offices.</p> Signup and view all the answers

    What aspect is essential for the success of the Finance Branch?

    <p>Utilization of its services by the Executive Departments</p> Signup and view all the answers

    What is one of the key responsibilities of the Financial Adviser & Chief Accounts Officer regarding disagreements with the General Manager?

    <p>To advise the General Manager to make a reference to the Railway Board when there is disagreement.</p> Signup and view all the answers

    Which of the following best describes the evolution of the role of the Finance Officer in the Railway Administration?

    <p>From a friendly critic to one of complete management participation.</p> Signup and view all the answers

    What broad functions does the Finance Branch serve within the Railway Administration?

    <p>Considering proposals with financial implications and ensuring accounting propriety.</p> Signup and view all the answers

    How does the Financial Adviser & Chief Accounts Officer's responsibility extend beyond accounting propriety?

    <p>It includes financial prudence in all areas, not just those delegated to the General Manager.</p> Signup and view all the answers

    What role does the Finance Branch play in relation to decision-making within the Railway Administration?

    <p>It assists management in making rational plans and decisions.</p> Signup and view all the answers

    What is a critical aspect of the Finance Branch's functions in a business model?

    <p>To integrate all financial considerations across various operations.</p> Signup and view all the answers

    Why is the stipulation regarding the Financial Adviser & Chief Accounts Officer still considered valid?

    <p>Because it ensures financial accountability within the organization.</p> Signup and view all the answers

    Which of the following does NOT fall under the responsibilities of the Finance Branch?

    <p>Implementing human resource policies.</p> Signup and view all the answers

    In the context of financial management, what does the term 'management participation' imply for the Finance Officer?

    <p>Taking an active role in management-level decision-making.</p> Signup and view all the answers

    Which statement reflects the primary function of the Financial Adviser & Chief Accounts Officer within the Railway system?

    <p>To provide financial advice and oversight across all proposals.</p> Signup and view all the answers

    What was a significant inconsistency noted by the Government of India regarding the Acworth Committee's recommendation?

    <p>It was not aligned with the Government of India Act, 1919.</p> Signup and view all the answers

    In which year did the Legislative Assembly vote on the Convention resolution concerning Railway Finances?

    <p>1924</p> Signup and view all the answers

    What was the role of the Financial Commissioner appointed in April 1923?

    <p>To oversee railway budget and revenues.</p> Signup and view all the answers

    What stage was characterized by the completion of separation of accounting and auditing functions within the Railways?

    <p>Stage III</p> Signup and view all the answers

    Which year marked the merger of the Railway Budget with the Union Budget?

    <p>2017</p> Signup and view all the answers

    What primary function was retained by the Ministry of Railways after its budgets were included in the Union Budget?

    <p>Responsibility for providing net revenue.</p> Signup and view all the answers

    What document was utilized for the presentation of a single Appropriation Bill for the Ministry of Railways?

    <p>Article 114 of the Constitution of India</p> Signup and view all the answers

    Which financial stage involved the administrative controller of the Auditor General prior to the appointment of the Financial Commissioner?

    <p>Stage I</p> Signup and view all the answers

    What was the purpose of the Acworth Committee's recommendation on Railway Finances?

    <p>To reduce governmental interference.</p> Signup and view all the answers

    What role was introduced to ensure coordination between the General Manager and the Chief Accounts Officer?

    <p>Financial Adviser &amp; Chief Accounts Officer</p> Signup and view all the answers

    Which committee recommended the administrative control change over the Railway Accounts Department?

    <p>Wedgwood Committee</p> Signup and view all the answers

    Which two State Railways were initially chosen for experimenting with the new arrangements in 1938?

    <p>North Western Railway and Great Indian Peninsular Railway</p> Signup and view all the answers

    At what organizational stage was the Finance Branch established under the Financial Adviser & Chief Accounts Officer?

    <p>Stage V</p> Signup and view all the answers

    What was the primary objective of placing the Railway Accounts Department under the General Manager?

    <p>Improve coordination and communication</p> Signup and view all the answers

    What significant change did the Financial Adviser & Chief Accounts Officer bring to the management of Railway finances?

    <p>Implemented rigorous financial control mechanisms</p> Signup and view all the answers

    What was a prerequisite for the Financial Adviser & Chief Accounts Officer to coordinate with the Financial Commissioner?

    <p>Would have access on important disagreement matters</p> Signup and view all the answers

    Which stage marked the complete separation of accounting and auditing functions on the Railways?

    <p>Stage III</p> Signup and view all the answers

    What was the initial approach to the reorganization of the Railway Accounts Department in 1938?

    <p>Temporary trial on select railways</p> Signup and view all the answers

    What was the main structure of oversight for the Non-Government Railways in India at the dawn of the 20th Century?

    <p>Varying degrees of Government supervision via the Railway Branch.</p> Signup and view all the answers

    What was the recommended composition of the Railway Board according to Sir Thomas Robertson's report?

    <p>A President, two other Commissioners, and various inspectors.</p> Signup and view all the answers

    How many separate Railway Administrations were active in India during the early 1900s?

    <p>33</p> Signup and view all the answers

    What was the primary responsibility of the Secretary of State for India in relation to the Indian Railways in 1901?

    <p>To appoint a Special Commissioner to investigate railway administration.</p> Signup and view all the answers

    What role did the Accountant General of the Public Works Department play in the Railway system?

    <p>Combining accounting and auditing functions for the entire Department.</p> Signup and view all the answers

    What was a significant aspect of the regulatory framework for the Railways during the early 20th Century?

    <p>Regulation was vested in the Railway Branch of the Public Works Department.</p> Signup and view all the answers

    Which recommendations were made by Sir Thomas Robertson regarding the qualifications of members of the Railway Board?

    <p>Members should have experience in railway operations.</p> Signup and view all the answers

    Study Notes

    Financial Organization Historical Background

    • Evolution of financial organization on railroads in India

      • Early 20th century, 33 separate railway administrations existed
      • Operated 41,000 route kilometers
      • 4 government-owned, 5 Indian state-owned, 24 private companies
      • Private companies under government supervision and control
      • Public Works Department (PWD) handled regulation
      • Railway Branch of PWD headed by an ICS officer, part of Viceroy and Governor General's council, assisted by staff
      • Staff included: secretaries, deputy secretaries, under-secretaries, assistant secretaries

    • 1901: Sir Thomas Robertson appointed as a Special Commissioner to investigate and report on Indian Railways' administration and functioning.

    • Recommendations: Railway Board consisting of a President, 2 Commissioners (with Railway experience) to be assisted by a secretary, and other personnel.

    • 1905 (early): Railway Branch of PWD abolished, Railway systems transferred to a Railway Board (Chairman & 2 members).

    • Railway Board under the Department of Commerce and Industry.

    • 1908 (later): Railway Board reorganization, distinct from Commerce & Industry, under the same member of the Viceroy and Governor General's Executive Council.

    • Chairman's position changed to President with direct access to the Viceroy/Governor-General.

    • Accounts and civil audit establishments merged under the Finance Member of the Government of India.

    • 1923: The Financial Commissioner for Railways appointed by Secretary of State.

      • Objective: economy in public expenditure, co-ordination with general financial policy.

    • 1921: Acworth Committee's recommendations on Railway Finances

    • 1924: Separation Convention, separation of railways financial details from general government finances.

    • Recommendation that specific railway finance be controlled and monitored by railway finance independent of general government finances.

    • Railway Budget merged into Union Budget (2017)

    • Financial Organization Stages on Railways (5 stages)

      • Stage 1: Prior to financial commissioner, finance under PWD/finance.
      • Stage 2: Appointment of the Financial Commissioner(1923)
      • Stage 3: Separation of accounting/auditing functions (1929)
      • Stage 4: Place of Railway accounts department under General Manager (1937)
      • Stage 5: Finance Branch under Financial Advisor (1947)

    • Financial Organization structure

      • Accountant General
      • Financial Commissioner
      • Chief Accounts Officer

    • Financial functions & responsibilities

      • Assist the Railway Administration in financial implications -Financial Prudence and financial propriety -Scrutinizing proposals

    • Financial oversight delegated

      • Railway Board/President
      • General Manager
      • Officers

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    Description

    Explore the historical evolution of financial organization in the Indian railroads during the early 20th century. This quiz covers the transition from multiple railway administrations to the establishment of a centralized Railway Board and the regulatory role of the Public Works Department. Test your knowledge on key events and figures that shaped the financial governance of Indian Railways.

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