Public Finance Authority Expenditure Quiz
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Questions and Answers

What must happen before an authority can incur expenditure?

  • A formal request for funds must be submitted.
  • The authority must provide a detailed expenditure report.
  • Necessary funds must be allotted. (correct)
  • Approval from the Railway Board must be obtained.

    • In what circumstance can an authority incur expenditure in anticipation of funds?

  • If the authority has sufficient reserves.
  • When a formal allotment follows as soon as possible. (correct)
  • When emergency circumstances arise without prior approval.
  • With a written notice to the Railway Board.

    • What should an authority do if it needs to incur expenditure beyond its budget allotment?

  • Reallocate funds from other approved expenses.
  • Seek additional funds from the next higher authority. (correct)
  • Immediately inform all subordinate authorities.
  • Wait for the next financial year to request increased allowances.

    • What responsibility does the Railway Board have regarding grants voted by Parliament?

    <p>To ensure total expenditure does not exceed the grant amount.</p> Signup and view all the answers

    What must be explained when seeking additional funds for unforeseen expenditures?

    <p>Why the expenditure could not be anticipated for the budget.</p> Signup and view all the answers

    What are the two major heads related to Capital Outlay on Indian Railways?

    <p>5002 &amp; 5003</p> Signup and view all the answers

    How does the inventory in Zonal Railways primarily operate?

    <p>Depending on revenue operations</p> Signup and view all the answers

    Which chapter of the Indian Railway Code provides detailed instructions for budget preparation related to store transactions?

    <p>Chapter XXXI</p> Signup and view all the answers

    Which of the following statements represents a requirement for estimating income tax and interest for submission to the Railway Board?

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

    What is crucial for the budget of inventory in Production Units?

    <p>Manufacturing operations budget</p> Signup and view all the answers

    What type of communication is required between Railway Administrations and the Ministry of Finance concerning staff advances?

    <p>Statements for transmission</p> Signup and view all the answers

    Which annexure is required for revised and budget estimates of K-Deposits and Advances?

    <p>Annexure IV</p> Signup and view all the answers

    What forms part of the capital investment in the Indian Railways?

    <p>Inventory under specific heads</p> Signup and view all the answers

    What component is intertwined with the inventory budget in Production Units?

    <p>Rolling Stock Programme</p> Signup and view all the answers

    Which annexure covers the estimates for Debt Heads and K-Deposits and Advances?

    <p>Annexure IV</p> Signup and view all the answers

    How should the revenue from coaching traffic, other than passenger, parcel, and military traffic, be estimated?

    <p>Using a ratio of revenue from passenger traffic based on previous actuals</p> Signup and view all the answers

    What is a key factor for estimating goods revenue for commodities that yield the bulk of the Railway's revenue?

    <p>Anticipated net tonne kilometres (NTKM) to be carried</p> Signup and view all the answers

    Which of the following is NOT a source of sundry revenue for a railway?

    <p>Majority of passenger fares</p> Signup and view all the answers

    How is the revenue from parcels traffic assessed?

    <p>In the same manner as goods traffic revenue</p> Signup and view all the answers

    What should the revenue from military traffic typically be based on?

    <p>Previous actuals and future changing conditions</p> Signup and view all the answers

    For which type of traffic is revenue estimated based on passenger kilometres and average fare per passenger kilometre?

    <p>Coaching revenue from passenger traffic</p> Signup and view all the answers

    What approach is recommended for estimating miscellaneous revenue?

    <p>According to previous actuals and known circumstances</p> Signup and view all the answers

    What should the estimates of originating goods traffic be based on?

    <p>The actuals of the first five months and expectations for the last seven months</p> Signup and view all the answers

    Which category is NOT specifically mentioned for estimating originating goods traffic?

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

    What is required to accompany the estimates of revenue?

    <p>A statement annexed with anticipated changes in tonnage</p> Signup and view all the answers

    Which aspect should be separately explained regarding passenger and goods revenue?

    <p>Increases and adjustments in fares and freights</p> Signup and view all the answers

    What should the brief review of traffic outlook enable the Railway Board to do?

    <p>Judge the reasonableness of the estimates</p> Signup and view all the answers

    How should the brief review of traffic outlook be prepared?

    <p>With flexibility, left to the discretion of the General Manager</p> Signup and view all the answers

    What financial aspect should be separately stated due to new lines?

    <p>Approximate increase in Revenue</p> Signup and view all the answers

    Why is it important to revise estimates of Revenue?

    <p>To correlate with the latest traffic anticipations</p> Signup and view all the answers

    Which type of goods traffic data should be included in the estimates?

    <p>Traffic moved to and from steel plants by diverse categories</p> Signup and view all the answers

    What type of statistical data should accompany the revenue estimates?

    <p>Selected commercial and operating statistics</p> Signup and view all the answers

    What should be included in the receipts of main lines under several sub-heads?

    <p>Receipts of worked lines</p> Signup and view all the answers

    How should refunds of revenue be treated in the estimated receipts?

    <p>They should be deducted from the estimated receipts.</p> Signup and view all the answers

    What must accompany the estimates of revenue for a clear understanding?

    <p>A narrative explanation of actual revenue</p> Signup and view all the answers

    What detail should the estimates of revenue include regarding traffic?

    <p>Segregation of local and interchanged traffic</p> Signup and view all the answers

    What is required for the analysis of interchanged traffic?

    <p>It should account for the latest position of both inward and outward transactions.</p> Signup and view all the answers

    What factors should be specified if there are pronounced changes in revenue?

    <p>The specific reasons for changes in certain commodities</p> Signup and view all the answers

    Which statement is true regarding the periodic statement of approximate revenue?

    <p>It should guide judicious use of revenue estimations.</p> Signup and view all the answers

    What should the narrative explanation focus on?

    <p>Details of revenue fluctuations and their causes</p> Signup and view all the answers

    What should be included in the estimates for the budget estimates for the coming year?

    <p>Reasons for revenue figures adopted by the General Manager</p> Signup and view all the answers

    What elements are typically found in an annual budget as a matter of practice?

    <p>Review of preceding year's financial data</p> Signup and view all the answers

    What provision allows for the separation of the Railway Budget from the General Budget?

    <p>Rule of Procedure of Parliament</p> Signup and view all the answers

    Which statement about the presentation of the annual financial statement is true?

    <p>It can be presented in one or more parts according to parliamentary rules.</p> Signup and view all the answers

    What significant change occurred with the Railway Budget starting from the financial year 2017-18?

    <p>It became an integral part of the General Budget.</p> Signup and view all the answers

    According to Article 112(1) of the Constitution of India, who is responsible for laying before both Houses of Parliament the annual budget?

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

    What practice is commonly included in the budget, though not required by the Constitution?

    <p>Proposals for future funding requirements</p> Signup and view all the answers

    What does the term 'annual financial statement' refer to in the context of government budgeting?

    <p>A statement of estimated receipts and expenditures for the financial year</p> Signup and view all the answers

    What is one source of funding for the Railway Debt Service Fund?

    <p>Excess (Surplus) revenues</p> Signup and view all the answers

    Which fund is specifically mentioned for appropriations made from general revenues?

    <p>Rashtriya Rail Sanraksha Kosh</p> Signup and view all the answers

    From where do the funds indicated in the content derive their financing?

    <p>Internal resources of the Railways</p> Signup and view all the answers

    What is the main purpose of the Railway Safety Fund?

    <p>To finance railway safety improvements</p> Signup and view all the answers

    Which of the following describes the source of the Capital Fund for Railways?

    <p>Appropriation from Excess (Surplus) revenues</p> Signup and view all the answers

    What is the significance of the Development Fund mentioned in the content?

    <p>It is for planned infrastructure and service improvements.</p> Signup and view all the answers

    How are adjustments made for contributions by various locomotive works?

    <p>By debiting to the Capital Account for Manufacture Operations</p> Signup and view all the answers

    What does the Rashtriya Rail Sanraksha Kosh aim to address specifically?

    <p>Railway safety and security</p> Signup and view all the answers

    What type of funds does the Railway Safety Fund receive appropriations from?

    <p>Excess (Surplus) and Central Road funds</p> Signup and view all the answers

    Which fund mentioned provides financing after adjustments to the Development Fund?

    <p>Railway Debt Service Fund</p> Signup and view all the answers

    What is the role of the Public Accounts Committee in relation to the Demand for an excess grant?

    <p>To scrutinize expenditures and recommend the necessity for excess grants.</p> Signup and view all the answers

    Since the merger of the Railway Budget with the Union Budget, who is now responsible for presenting the Demand for Excess Grant for the Ministry of Railway?

    <p>Ministry of Finance</p> Signup and view all the answers

    Which authority is primarily responsible for overseeing expenditure in the Demand for the Railway Board?

    <p>Secretary, Railway Board</p> Signup and view all the answers

    What type of expenditure falls under 'Miscellaneous expenditure (General)' in the context of the Railway Budget?

    <p>Payments to subsidized companies and surveys.</p> Signup and view all the answers

    What major change occurred regarding railway funding starting in the 2017-18 fiscal year?

    <p>Merger of Railway Budget with Union Budget.</p> Signup and view all the answers

    What is the primary basis for estimating the revenue from military traffic?

    <p>Previous actuals and future conditions</p> Signup and view all the answers

    Which method is recommended for estimating revenue from parcels traffic?

    <p>Similar approach as goods traffic</p> Signup and view all the answers

    How should sundry revenue from commercial publicity be treated in estimates?

    <p>Evaluated according to previous actuals</p> Signup and view all the answers

    What is considered the bulk of the Railway's goods revenue estimation?

    <p>Anticipated net tonne kilometres (NTKM) and yield</p> Signup and view all the answers

    What should determine the revenue estimation from passenger traffic classes?

    <p>Passenger kilometres and average fare per passenger kilometre</p> Signup and view all the answers

    Which of the following is NOT included in the sources of sundry revenue?

    <p>Military transportation fees</p> Signup and view all the answers

    When estimating revenue, what is suggested for the miscellaneous sources of railway revenue?

    <p>Previous actuals and foreseeable circumstances</p> Signup and view all the answers

    What should the estimation of goods revenue for commodities not yielding bulk revenue be based on?

    <p>Historical averages and future trends</p> Signup and view all the answers

    How should the revenue from land lease and property development be generated in the estimates?

    <p>Previous actuals and known future conditions</p> Signup and view all the answers

    What is the source of financing for the Depreciation Reserve Fund (DRF)?

    <p>Working Expenses</p> Signup and view all the answers

    Which major head is associated with the expenditure from the Development Fund (Railways)?

    <p>5002 &amp; 5003</p> Signup and view all the answers

    What type of fund primarily finances the Pension Fund for Production Units?

    <p>Revenue, unless specified otherwise</p> Signup and view all the answers

    Which statement correctly describes the appropriation budgeting for the Depreciation Reserve Fund (DRF)?

    <p>DRF is charged to Railway working expenses.</p> Signup and view all the answers

    Which of the following is NOT a Production Unit mentioned in relation to the Depreciation Reserve Fund?

    <p>Central Railway Headquarters</p> Signup and view all the answers

    What is the major head under which appropriations for the Development Fund (Railways) are budgeted?

    <p>3006</p> Signup and view all the answers

    Which major head corresponds to the expenditures made from the Pension Fund?

    <p>5002 &amp; 5003</p> Signup and view all the answers

    How is the contribution to the Depreciation Reserve Fund adjusted in Production Units?

    <p>Debit to Capital Account under 'Manufacture Operations'</p> Signup and view all the answers

    What is the major head number for the Depreciation Reserve Fund appropriations?

    <p>8115</p> Signup and view all the answers

    What characterizes the source of financing for the Development Fund?

    <p>Excess Surplus</p> Signup and view all the answers

    Study Notes

    Chapter III - Budget

    • Budget - A constitutional and management document (Article 112(1))
    • The President is required to present an annual financial statement (statement of estimated receipts and expenditure of the government) to both houses of parliament

    Section I - General Budget

    • Budget - A constitutional and management document
    • Voted and charged expenditure
    • Charged expenditure
    • Budget, instrument of parliamentary financial control and expenditure control
    • Demands for grants
    • Glossary of terms used
    • Section II - Preparation of budgets by Railway Administrations
      • Responsibility for framing the estimates
      • Gross receipts
      • Coaching earnings
      • Goods earnings
      • Sundry other earnings
      • Receipts of worked lines
      • Refunds of Revenue
      • Explanation of variations in receipts
      • Review of traffic outlook
      • Ordinary working expenses
      • Estimate of cost of establishments
      • Suspense heads
      • Cost of fuel
      • Miscellaneous expenditure
    • Section III
      • Compilation and scrutiny of budget in the railway board
    • Section IV
      • Appropriation bill
      • Distribution of funds by the railway board
      • Distribution of funds by general managers
      • Responsibility of the railway board
    • Annexures
      • List of budget forms and connected statements
      • Statistical data for better link between revenue and operating expenses

    Section I - Constitutional & Management Document

    • Article 112(1) of the Constitution of India
    • The President is required to lay a financial statement before both houses of parliament
    • The annual financial statement is popularly known as an annual budget
    • It includes a review of the preceding year's actual receipts and expenditures, an estimate of the coming year's receipts and expenditures, and any proposals needed for future requirements.

    Section II - Voted and Charged Expenditure

    • Estimates to meet expenditure charged upon the Consolidated Fund of India
    • Separate estimates for other expenditure, to be made from the Consolidated Fund
    • The expenditure may be either "Voted" or "Charged"
    • Article 113(1) of the constitution specifies charged expenditure, which are not subject to parliamentary vote.

    Section III - Demands for Grants

    • Government proposals to meet expenditure from the Consolidated Fund of India
    • Presented to Lok Sabha in the form of "Demands for Grants"
    • Gross expenditure (not including credits or recoveries)
    • Glossary of Terms
      • Coaching Revenue (less refunds)
      • Goods Revenue (less refunds)
      • Traffic Revenue
      • Gross Revenue
      • Miscellaneous Receipts
      • Total Revenue Receipts
      • Ordinary Working Expenses
      • Appropriation Reserve Fund
      • Appropriation to Pension Fund

    Other sections and subsections.

    • Responsibility for framing estimates

    • Explanation of variations in receipts

    • Review of traffic outlook/estimates

    • Budget/Revised Estimates, for forthcoming years

    • Minor heads of expenditure

    • Major headings for all Railway expenditures

    • Review of expenses

    • Ordinary working expenses

    • Cost of Fuel

    • Miscellaneous expenditure

    • List of credits/recoveries

    • Glossary of terms used

    • General Management

    • Personnel Management

    • Material Management

    • Way and Works

    • Rolling Stock Management

    • Electrical Management

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    Finance Code Vol-1, Ch-3 PDF: Budget Guide

    Description

    Test your knowledge on the rules and regulations governing authority expenditures. This quiz covers essential concepts such as budget allotments, anticipated expenditures, and responsibilities of the Railway Board regarding grants voted by Parliament. Ensure you are familiar with the procedures for managing unforeseen expenditures.

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