Public Budgeting and Financial Management

Podcast Beta

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the purpose of submitting quarterly reviews to the Board?

To approve the annual plan

To report unforeseen expenditure

To monitor expenditure progress (correct)

To revise the budget allocation

What is the deadline for submitting the review for the period ending March?

6th August, each year (correct)

31st March, each year

15th April, each year

25th of the second following month

What is the formula to calculate the percentage of expenditure to allotment?

(Col.5/Col.3) x 100

(Col.10/Col.1) x 100

(Col.9/Col.2) x 100 (correct)

(Col.7/Col.4) x 100

What is the purpose of the 'Reasons for variations' column in the table?

To provide brief remarks on expenditure progress Signup and view all the answers

What is the primary objective of budget revisions?

To reallocate funds to different sub-heads Signup and view all the answers

What is the purpose of the 'Percentage of expenditure to allotment' column?

To calculate the percentage of expenditure to allotment Signup and view all the answers

What is the deadline for submitting quarterly reviews for periods ending June, September, and December?

25th of the second following month Signup and view all the answers

What is the primary objective of budgetary control in the context of revenue and works expenditure?

To ensure that expenditure is incurred for the purposes, and within the limits, as voted by Parliament Signup and view all the answers

What is the responsibility that accompanies the exercise of authority for incurrence of expenditure?

To control expenditure within authorized limits Signup and view all the answers

What is the first principle of financial propriety in exercising financial powers?

To ensure that expenditure is not more than the occasion demands Signup and view all the answers

What is the consequence of exercising financial powers for personal advantage?

It is a breach of financial propriety principles Signup and view all the answers

What is the purpose of Demands for Grants?

To vote on revenue and works expenditure Signup and view all the answers

What is the consequence of failing to exercise vigilance in respect of expenditure incurred from public moneys?

It may lead to unauthorized expenditure Signup and view all the answers

What is the principle that guides the exercise of financial powers?

To exercise the same vigilance as a person of ordinary prudence Signup and view all the answers

What is the purpose of observing standards of financial propriety?

To ensure that expenditure is incurred for the purposes, and within the limits, as voted by Parliament Signup and view all the answers

What is the primary objective of maintaining Revenue Allocation Registers?

To inform heads of divisions and departments of expenditure against allotments Signup and view all the answers

In what color ink should the allotments be entered in the Revenue Allocation Registers?

Red ink Signup and view all the answers

What is the purpose of the monthly financial reviews?

To show the expenditure to the end of the previous month against the allotments Signup and view all the answers

In what form should the monthly financial reviews be prepared?

Form No. 513 Signup and view all the answers

What is the purpose of the 'proportionate' column in the monthly financial review form?

To compare the actual expenditure with the budget allocation Signup and view all the answers

Who is responsible for submitting the monthly financial reviews to the controlling authorities?

The heads of divisions and departments Signup and view all the answers

What is the purpose of the 'expenditure upto' column in the monthly financial review form?

To show the actual expenditure up to a certain date Signup and view all the answers

What is the purpose of the 'as compared with column' in the monthly financial review form?

To compare the actual expenditure with the previous year's expenditure Signup and view all the answers

What should be done to a work that has been stopped and has no reasonable prospect of completion in the near future?

The account of the work should be closed and a completion report submitted Signup and view all the answers

Who should verify the completion reports of structural works costing more than Rupees one crore each?

The Financial Adviser and Chief Accounts Officer Signup and view all the answers

What should be done in case of abnormal delay in the submission of completion reports?

The delay should be brought to the notice of the Head of the Railway Administration Signup and view all the answers

What is the time frame for submitting the completion report for works costing Rupees one crore and less?

Six months of the completion of work Signup and view all the answers

What should be done if no expenditure is recorded for three consecutive months?

The Accounts Officer should call for the completion reports Signup and view all the answers

Who should submit the completion reports in respect of each completed work?

The Executive Officer Signup and view all the answers

What is the purpose of submitting the completion reports?

To inform the authority that accorded the administrative approval to the work Signup and view all the answers

In which case is a formal completion report not required?

Works in which the expenditure is within the competence of the head of the railway to sanction Signup and view all the answers

What is the primary purpose of the executive officer reviewing the works registers monthly?

To investigate and curb any tendency towards excess over sanctioned estimates Signup and view all the answers

What is the purpose of the review of expenditure prepared by the Accounts Officer?

To present the progress of expenditure to the authorities concerned Signup and view all the answers

What is the frequency of preparing the review of expenditure by the Accounts Officer?

Monthly Signup and view all the answers

What is the purpose of reviewing the expenditure chargeable to Capital, Depreciation Reserve Fund, Development Fund, Accident Compensation, Safety and Passenger Amenities Fund, and Open Line Works-Revenue?

To monitor the progress of expenditure against sanctioned estimates Signup and view all the answers

What is the form number used for preparing the review of expenditure chargeable to Capital, Depreciation Reserve Fund, Accident Compensation, Safety and Passenger Amenities Fund, and Open Line Works-Revenue?

Form No. F. 525 Signup and view all the answers

What is the purpose of the executive officer's review of the works registers?

To investigate and curb any tendency towards excess over sanctioned estimates Signup and view all the answers

What is the consequence of not reviewing the expenditure regularly?

Expenditure may exceed sanctioned estimates Signup and view all the answers

What is the purpose of the review of expenditure by sub-heads/Plan heads of the Grant?

To monitor the progress of expenditure against sanctioned estimates Signup and view all the answers

Under which main head does the sub-head 'Circuits of Signalling System' fall?

700 Rental to BSNL for Signalling Signup and view all the answers

What is the purpose of the main head '520 Electrical Block Signalling'?

To categorize expenditure on block signalling systems Signup and view all the answers

Under which main head does the sub-head 'Line Wire on Circuits' fall?

700 Rental to BSNL for Signalling Signup and view all the answers

What is the purpose of the main head '540 Other Repairs and Maintenance'?

To categorize expenditure on repairs and maintenance of signalling equipment Signup and view all the answers

Under which main head does the sub-head 'V.F.T. Channel' fall?

700 Rental to BSNL for Signalling Signup and view all the answers

What is the purpose of the main head '550 Miscellaneous Expenses'?

To categorize expenditure on miscellaneous expenses Signup and view all the answers

Under which main head does the sub-head 'Microwave Radio Relay System and Wireless System' fall?

600 Plant and Equipment (Telecommunication) Signup and view all the answers

What is the purpose of the main head '610 Microwave Radio Relay System and Wireless System'?

To categorize expenditure on microwave radio relay systems Signup and view all the answers

In which cases can the General Manager incur expenditure without the Railway Board's allotment of funds?

Only when the expenditure is within the General Manager's power of sanction Signup and view all the answers

What is the purpose of submitting a report to the Railway Board?

To inform the Railway Board of expenditure incurred in anticipation of allotment Signup and view all the answers

How should the entries in the Revenue Allocation Registers be sub-divided?

Into Cash, Transfers, and Stores Signup and view all the answers

What is the alternative to sub-dividing the Revenue Allocation Registers?

Maintaining a separate register for each sub-division Signup and view all the answers

Who can exercise the power to incur expenditure in anticipation of the Railway Board's allotment of funds?

Only the General Manager Signup and view all the answers

What is the purpose of maintaining Revenue Allocation Registers?

To record expenditure under various heads of revenue classification Signup and view all the answers

What is the primary purpose of the Revenue Budget or Estimate of Working Expenses?

To compile the revenue budget or estimate of working expenses Signup and view all the answers

What should be submitted to the Railway Board after incurring expenditure in anticipation of allotment?

A report showing the expenditure involved and the additional funds required Signup and view all the answers

What is contained in Chapter III of the Indian Railway Financial Code, Volume I?

Detailed instructions for administering the budget Signup and view all the answers

Why is it necessary to leave sufficient space after each head in the Revenue Allocation Registers?

To make entries for the entries which normally come under each head Signup and view all the answers

Where are the requirements of machinery in Signaling and Telecommunication Workshops collected and shown?

Plant and Machinery Programme Signup and view all the answers

What is contained in Chapter XV of the Indian Railway Code for the Mechanical Department (Workshops)?

Detailed instructions for preparation and submission of the Plant and Machinery Programme Signup and view all the answers

What is the primary purpose of the Works, Machinery and Rolling Stock Budget?

To estimate the requirements for machinery and plant Signup and view all the answers

Where are the detailed instructions for preparation and submission of Works, Machinery and Rolling Stock Budget contained?

Chapter III of the Indian Railway Financial Code, Volume I Signup and view all the answers

What is the Open Line Works Budget also known as?

Annual Works Programme Signup and view all the answers

Where are the heads relevant to Signal and Telecommunication Department contained?

Volume II of the Financial Code Signup and view all the answers

What is the primary objective of budgetary control in the context of revenue and works expenditure?

To ensure that expenditure is incurred for the purposes, and within the limits, as voted by Parliament. Signup and view all the answers

What is the responsibility that accompanies the exercise of authority for incurrence of expenditure?

To exercise control of expenditure within the authorised limits. Signup and view all the answers

What is the first principle of financial propriety in exercising financial powers?

The expenditure should not prima facie be more than the occasion demands. Signup and view all the answers

What is the consequence of exercising financial powers for personal advantage?

No authority should exercise its powers of sanctioning expenditure to pass an order that will benefit itself. Signup and view all the answers

What is the primary purpose of Demands for Grants?

To ensure that expenditure is incurred for the purposes, and within the limits, as voted by Parliament. Signup and view all the answers

What is the guiding principle in exercising financial powers?

Exercise financial powers with vigilance and prudence. Signup and view all the answers

What is the purpose of observing standards of financial propriety?

To exercise financial powers with vigilance and prudence. Signup and view all the answers

What is the consequence of failing to exercise vigilance in respect of expenditure incurred from public moneys?

The authority may be reprimanded. Signup and view all the answers

What information should be recorded in the register of works under the relevant accounts Completion Statements?

Amount of sanctioned estimate, actual expenditure, and brief explanation of excess or saving Signup and view all the answers

What is the time frame for closing the account of a work costing rupees one crore and less?

Three months of the date of its completion Signup and view all the answers

What should be done to the account of a work if a contractor's claim cannot be finally settled within three months?

Adjust the work account by debit to the work and credit to 'Deposit' Signup and view all the answers

What notation should be made in the Register of Works when a work is completed and its accounts closed?

A double red ink line below the last entry Signup and view all the answers

What should be done if the disposal of released materials is likely to delay the closing of the account of a work?

Credit should be afforded to the work on the basis of estimates by the Stores Department in consultation with the Engineer Signup and view all the answers

What is the purpose of expeditious closing of Accounts of Works?

To bring to account all liabilities and credits pertaining to the work by liquidating the former and realising the latter within a stipulated period Signup and view all the answers

What should be prepared and recorded under the orders of the competent executive authority?

Completion Statements showing the relevant information Signup and view all the answers

In which case is a formal completion report not required?

For works, for which detailed estimates are not required to be prepared Signup and view all the answers

What is the power of the Railway Board regarding re-appropriation of funds?

Re-appropriation is permissible between sub-heads of the same grant, but not between grants. Signup and view all the answers

What is the restriction on re-appropriation of funds under Grant No. 16?

Re-appropriation is not permissible between Capital, Railway Funds, and Revenue, and between sub-heads of the same grant. Signup and view all the answers

What is the implication of 'Charged' expenditure on the powers of the Railway Board?

The Railway Board has full power of re-appropriation. Signup and view all the answers

What is the condition for the Railway Board to exercise its power of re-appropriation?

The Railway Board must issue a formal order of re-appropriation. Signup and view all the answers

What is the primary purpose of budget control?

To monitor and review expenditure Signup and view all the answers

What is the limitation on the Railway Board's power of re-appropriation?

Re-appropriation is not permissible from one grant to another. Signup and view all the answers

What is the purpose of maintaining Works Registers?

To compare actual expenditure with estimated provision Signup and view all the answers

What is the objective of the Railway Board's power of re-appropriation?

To exercise financial control over expenditure. Signup and view all the answers

What is the implication of the Railway Board's power of re-appropriation on financial management?

It allows for flexible management of funds. Signup and view all the answers

What is the purpose of the review of expenditure?

To ensure funds are utilized efficiently Signup and view all the answers

What is the responsibility of the executive officer in reviewing expenditure?

To review the Works Registers monthly Signup and view all the answers

What is the significance of the Railway Board's power of re-appropriation in the context of financial management?

It allows for efficient allocation of funds. Signup and view all the answers

What is the consequence of not reviewing expenditure regularly?

Inefficient utilization of funds Signup and view all the answers

What is the purpose of preparing estimates for new works?

To allocate funds for new projects Signup and view all the answers

What is the frequency of reviewing expenditure?

Monthly Signup and view all the answers

What is the purpose of allotting funds through Budget Grants?

To allocate funds for new projects Signup and view all the answers

What is the source of rules for maintaining Open Line accounts?

Indian Railway Code for the Engineering Department Signup and view all the answers

Who is responsible for incurring expenditure on ordinary maintenance works and establishments?

Divisional Signal and Telecommunication Engineer Signup and view all the answers

What is the purpose of the Revenue Allocation Register?

To keep track of expenditure incurred by the Divisional Signal and Telecommunication Engineer Signup and view all the answers

What is the process for bringing expenditure to account?

Through various vouchers Signup and view all the answers

Who is responsible for scrutinizing vouchers before acceptance?

Divisional Signal and Telecommunication Engineer Signup and view all the answers

What is the purpose of correlating and checking vouchers with initial records?

To ensure propriety and reasonableness of debits Signup and view all the answers

Who is responsible for maintaining a Register of Revenue expenditure on Extra-Divisional Units?

Deputy Signal and Telecommunication Engineer Signup and view all the answers

What is the purpose of maintaining a Register of Revenue expenditure on Extra-Divisional Units?

To keep himself acquainted with the progress of expenditure in his unit Signup and view all the answers

Under what circumstances can the General Manager incur expenditure without the Railway Board's allotment of funds?

In cases where the expenditure is within his power of sanction Signup and view all the answers

What should be done in cases where the General Manager incurs expenditure without the Railway Board's allotment of funds?

A report should be submitted to the Railway Board as soon as possible Signup and view all the answers

How should the entries in the Revenue Allocation Registers be maintained?

In separate registers for Cash, Transfers, and Stores, with a summary register to arrive at the total expenditure Signup and view all the answers

What is the purpose of the Revenue Allocation Registers?

To record the expenditure under various heads of revenue classification Signup and view all the answers

Who concurs with the General Manager's decision to incur expenditure without the Railway Board's allotment of funds?

The Financial Adviser and Chief Accounts Officer Signup and view all the answers

What is the primary responsibility of the General Manager incurring expenditure without the Railway Board's allotment of funds?

To ensure the safe operation of traffic Signup and view all the answers

What is the significance of the Revenue Allocation Registers in the context of budget control?

It helps in ensuring the proper allocation of funds under various heads of revenue classification Signup and view all the answers

What is the consequence of incurring expenditure without the Railway Board's allotment of funds?

A report should be submitted to the Railway Board as soon as possible Signup and view all the answers

What is the purpose of preparing a Completion Report for a project?

To identify excess or savings of not less than 10% or Rs. 25,000, whichever is less, under each sub-work Signup and view all the answers

When is a work considered complete?

When it fulfills the purpose for which it was sanctioned and there has been no expenditure for three months Signup and view all the answers

Who can empower the Divisional Railway Manager/Deputy Chief Engineer to approve the completion reports of works within the General Manager's competence?

The General Manager Signup and view all the answers

What should be done to a work that has no reasonable prospect of completion in the near future?

It should be stopped and the expenditure should be adjusted Signup and view all the answers

What is the form used for preparing the Completion Report for a work?

Form E.1706 Signup and view all the answers

What should be done to outstanding debits and credits pertaining to a completed work?

They should be adjusted in the account of the work within three months of the date of completion Signup and view all the answers

What is the time frame for submitting the completion report for works costing Rupees one crore and less?

Within three months of the date of completion Signup and view all the answers

What should be done if there is no expenditure recorded for three consecutive months?

The work should be considered complete and the completion report should be submitted Signup and view all the answers

Study Notes

Budget Estimates, Expenditure, Budget Control, and Completion Reports

Revenue expenditure is recorded in Revenue Allocation Registers, which help keep track of expenditure against allotments.
The registers are used to compare and check the outlay, with allotments entered in red ink.
Monthly Financial Reviews are prepared in Form No. 513, showing expenditure against allotments for each sub-head of the grant.
Reviews are submitted to controlling authorities every month, with a fixed date for submission.

Revenue and Works Expenditure

All railway expenditure, except that charged on the Consolidated Fund of India, is voted in the form of Demands for Grants.
Budgetary control ensures that expenditure is incurred for purposes and within limits voted by Parliament.
The exercise of authority for incurring expenditure carries responsibility for controlling expenditure within authorized limits.

Financial Propriety

Sanctioning authorities must pay due regard to the following principles:
- Expenditure should not be more than the occasion demands.
- Every government servant should exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of their own money.
- No authority should exercise its powers to pass an order that will be directly or indirectly to its own advantage.

Completion Reports

Completion reports are submitted for unfinished works, including structural works, if there is no reasonable prospect of completing them in the near future.
The account of the work should be closed, and a completion report drawn and submitted to the authority that accorded administrative approval.
In the case of works costing more than ₹1 crore, the completion report should be submitted to the Railway Board, verified by the Financial Adviser and Chief Accounts Officer.

Review of Expenditure

The Accounts Officer prepares two reviews every month:
- One by sub-heads/Plan heads of the Grant.
- One by individual works.
Reviews are presented to the authorities concerned by a fixed date.
The review of expenditure chargeable to Capital, Depreciation Reserve Fund, Development Fund, Accident Compensation, Safety, and Passenger Amenities Fund, and Open Line Works-Revenue is prepared monthly by the Accounts Officer in Form No. F.525.

Budget Compilation

The Revenue Budget or Estimate of Working Expenses is compiled in the prescribed forms in the Headquarters Office based on proposals submitted by the Divisions/Extra Divisional Units.
Instructions for administering the budget are contained in Chapter III of the Indian Railway Financial Code.

Works, Machinery, and Rolling Stock Budget

Detailed instructions for preparation and submission of Works, Machinery, and Rolling Stock Budget are contained in Chapter III of Indian Railway Financial Code, Volume I.
The classification of expenditure by primary units of expenditure are contained in Volume II of the Financial Code.

Plant and Machinery Programme

The detailed instructions for the preparation and submission of the Plant and Machinery Programme are contained in Chapter XV of the Indian Railway Code for the Mechanical Department (Workshops).
Requirements of machinery in Signaling and Telecommunication Workshops shall be collected and shown in Plant and Machinery Programme.

Expenditure Control

Expenditure to meet a sudden increase in traffic or for ensuring the safe operation of traffic may be incurred with the personal sanction of the General Manager.
This power cannot be delegated and can be exercised by the General Manager only where the expenditure is within his power of sanction.

Revenue Allocation Registers

The entries in the Revenue Allocation Registers maintained in the Accounts Office shall be sub-divided into Cash, Transfers, and Stores.
Sufficient space should be left after each head for the entries which normally come under it.

Revenue and Works Expenditure

Revenue and Works Expenditure is voted in the form of Demands for Grants, and budgetary control is intended to ensure that expenditure is incurred for the purposes, and within the limits, as voted by Parliament.
The exercise of authority for incurrence of expenditure carries with it also the responsibility for control of expenditure within the authorised limits.

Standards of Financial Propriety

The expenditure should not prima facie be more than the occasion demands, and every Government servant should exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of the expenditure of his own money.
No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage.

Completion Reports

In the Completion Report form, the certificate of the Accounts Officer, and the sanction of the competent executive authority may be recorded in the register of works under the relevant accounts.
Completion Statements showing the reference to estimate, amount of sanctioned estimate, actual expenditure as finally booked, and brief explanation of excess or saving.

Expeditious Closing of Accounts of Works

The account of a work costing rupees one crore and less should not be kept open beyond three months of the date of its completion.
Efforts should be made to bring to account all liabilities and credits pertaining to the work by liquidating the former and realising the latter within that period.

Code Rules and Accounting

Rules for maintaining Open Line accounts are contained in Chapter XIV of the Indian Railway Code for the Engineering Department.
Expenditure is brought to account through various vouchers, and the Divisional Signal and Telecommunication Engineer/Divisional Signal and Telecommunication Engineer in charge may incur expenditure on ordinary maintenance works and establishments up to the limits of the provision in the Revenue Budget Estimates.

Maintenance of Accounts

Vouchers, such as debit notes for stores supplied and freight bills, must be carefully scrutinized before acceptance as to the reasonableness and propriety of the debits raised.
Debits must be correlated and checked with the initial records in the office, such as indents and work orders on Workshops, and necessary endorsements made thereon.

Departmental Registers on Extra-Divisional Units

A Revenue Allocation Register must be maintained by the Deputy Signal and Telecommunication Engineer/Divisional Signal and Telecommunication Engineer in charge of an Extra-Divisional Unit to keep track of revenue expenditure incurred under the relevant grants.
The register should be sub-divided into cash, transfers, and stores, and sufficient space should be left after each head for the entries that normally come under it.

Budget Estimates, Expenditure, and Budget Control

The Railway Board has full power of transferring the provision from one sub-head to another by a formal order of re-appropriation within the amount of a grant voted by the Parliament.
The General Manager can incur expenditure to meet a sudden increase in traffic or for ensuring the safe operation of traffic with the personal sanction, but this power cannot be delegated.
The preparation, allotment, and continuous review of expenditure against estimates are essential for controlling expenditure.

Expenditure Review and Completion Reports

A check on the progress of expenditure should be made at regular and frequent intervals, originating from the lowest executive unit, against estimates and against funds.
The Works Registers (Form No. E. 1474) enable a running comparison to be made between the expenditure incurred on each work and the detailed provision made in the estimate for the work.
A Completion Report should be prepared after all charges and credits relating to the project have been booked in the accounts of the project, and brief explanations should be furnished for excess or saving over the estimated provision.

Completion of Works

A work or scheme costing less than Rupees one crore should be considered as completed when it fulfills the purpose for which it was intended, and when there has been no expenditure thereon for three months thereafter.
All outstanding debits and credits pertaining to a completed work should be adjusted in the account of the work within three months of the date of completion.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers the basics of budgeting, expenditure, and financial control in public sector management. It includes topics such as revenue allocation, financial reviews, and reporting.