BUDGET

sshffee@gmail.com V. Syed Shafee, Sr.Asst. CHNC- Kanekal - Anantapur Dist.

Constitution of India Art. 266 The authorities of State / Center are

responsible for the money received and spent .

Art 202 (1) of constitution of India

Every year, the governor is required to lay before the two houses of the State Legislature, the estimated receipts and expenditure

STRUCTURE OF THE BUDGET

What is Budget ? Main Divisions of Budget. Classification of Receipts & Expenditure Information of Accounting Preparation of Budget Estimates Scrutiny of APPROPRIATIONS Voted / Charged Control of Budget P.A.C.

BUDGET :
Annual financial statement of Receipts & Expenditure. consists of three Main Divisions . Consolidated Fund 2. Contingency Fund 3. Public Account (Para I I B.M.)

consolidated fund Contingency fund Public Account

Consolidated Fund:
All Revenue Received. Loans Raised All Moneys received in re-payment of loans. (Para1-3)

Consolidated Fund
Revenue Account

Capital Account
Construction of Building, original works etc.

Loan Account
All loans raised/ given.

Taxes, duties, fees (for Service rendered) fines & penalties, revenue from forests etc Maintenance expenditure of Govt.

(2)

Contingency Fund:

It is reserve fund kept with state. 50 Cr in case of A P (3) Public Accounts. : All public moneys received by or on behalf of the state Govt. which are not creditable to the consolidated fund of the state i.e (1) P.F. (2) Deposits (4)Suspense / Misc.

CLASSIFICATION OF RECEIPTS
The 7 tier classification came into existence from 1974, both for plan & non plan. The structure of classification is mainly on sector basis (Para 5-2-1 BM). It is other wise called as sections (R & E Expenditure).

(i)

Functions of the Government

corresponding to the sectors (4 sectors). 1. 2. 3. 4. General Services Economic Services Social & Community Services Grants in aid, loans & advances (separate sectors) (5-2-3)

II Major Head: Separate H/A for each function. III Sub-Major: Further Division Head. IV Minor Head: Programme wise.

V Group Sub Head: Group of Schemes.

VI Sub-Heads: Division of Schemes

VII Detailed Head: (G.O.Ms.No:6647 Dt:27.10.01 Eg: Major Head : 2210 : Medical &Public Health

Major head code number

S.No. Function

RH RA

Exp.H RA

Exp.H Cp.

L&A

1.

Medcl & 0210 Pub. Health

2210

4210

6210

2.

Road Transport

1055

3055

5055

7055

(a)

Revenue Account. : Receipts Expenditure 0020-1999 2110-3999 (b) Capital Account.: . Receipts Expenditure 4000-4010 4100-5999 (c) Loan Account: 6000-7999 Contingency fund : 8000 Public Account : 8001-8999

PERIODICALS :
1. Communication of Budget from HOD to HOO Copies to the DTA, PAO & DTO in the dist. 2. Reconciliation of Accounts 3. Statement of Numbers 4. Reappropriations a. One Unit to other unit b. One head to Other head

 c. No reappropriations between i). One grant to other grant ii). Charged to Voted vice versa iii) Plan to Non Plan iv) Detailed Head to other detailed head. v) Should not be done as a temporary measure

HODs are permitted to order reappropriations subject to the above

CENTRALLY SPONSORED SCHEMES (PLAN SCHEMES)

a).

Entirely financed by the state b) Matching aid 75% ; 25% c) 50% aid from centre d) Some funds directly from the Central Govt. U.Cs to be sent to AG for the Central Govt. Schemes

NEW SCHEME
i) By sanctioning advance from state contingency fund. ii) Token grant in supplementary budget

PART II ESTIMATES To be sent to Government by 5th of June. Abandonment of existing items of revenue. For provision of marked increases in the budgetary inputs. SPILL OVER SCHEMES From one 5 year plan to another 5 year plan COMMITTED EXPENDITURE

 REVISED BUDGET ESTIMATE OF CURRENT FINANCIAL YEAR. BUDGET ESTIMATES OF ENSUING FINANCIAL YEAR. To be Submitted to HOD by 1st sep.

1) Actual expenditure of first four months and in proportion estimating the requirement for the 8 months as revised estimates. 2) Actual Expenditure of 1st 4 months and Actual Expenditure of last 8 months of last financial year 3) Taking the average of past 3 years.

 SUPPLEMENTARY BUDGET ESTIMATES For the schemes sanctioned after commencement of financial year. For the additionalty of the existing inputs. SURRENDERS By 25th of Dec. to HOD By 25th of Jan. to Finance Department.

 PROJECTS AND PROGRAMMES APPRAISAL COMMITTEE. Secretary to Government in the administrative department Planning Secretary Finance Secretary Concerned HOD

 RECONCILATION OF ACCOUNTS BOTH REVENUE AND EXPENDITURE First Week of Each Month DDO Regional Officer HOD Reconcilation with AGs figures

PUBLIC ACCOUNTS COMMITTEE

Leader of opposition head of PAC. Examines the accounts furnished by CAG.