Beruflich Dokumente
Kultur Dokumente
1502
1505
Mixed-works
1506
1508
1509
Budgetary Reviews
1510
Exchequer Control
1511
1512
1513
1514
1515
Expenditure control
1516
1517
1518
1519.
1501. General Rules on Budget.-The general rules on budget are contained, in Chapter Ill, IV and V of
the Indian Railway Financial Code to which reference may be made.
1502. Responsibility with regard to expenditure.-No expenditure shall be incurred by any authority
without the allotment of funds. The expenditure on each work shall be limited to sum allotted for it. If for
exceptional reasons expenditure in excess of Budget allotments has to be incurred and if the authority
incurring expenditure is either not empowered to sanction a reappropriation therefor application for
additional funds shall be made to the next higher authority stating how the expenditure is proposed to be
met. In doing so it should invariably be explained why the need for the expenditure was not foreseen in time
for inclusion in the Budget and why the outlay could not be postponed to the next financial year. (c f. 367 F,
368 F).
1503. The authorities to whom the funds are allotted are responsible to report at once to the next higher
authority, the probability of any lapses of excesses over the sums placed dt their disposal. No liability may
be incurred in one year against anticipated grants of a succeeding year, except that advance commitments
for procurement of stores for works may be made as provided in para 812-S to the extent authorised by the
Railway Board from time to time. (c f. 371 -F).
1504. It should be the duty of the administration to see that the allotments made to them are fully
expanded, in so far as is consistent with economy and the prevention of large expenditure in the last
months of year for the sole purpose of avoiding lapses. They shall be responsible for ensuring that money
which is not likely to be needed during the year is promptly surrendered as to allow its appropriation for
(i) Correct assessment of the `cash' and `adjustment' portions of the sanctioned annual budget
under each demand by cash disbursing officer;
on a net basis taking into account the credit or recoveries reflecting the effect of the resources generated by
the realisation of credits for released materials. The resource allocation made for framing the Works
Programme take into account the additional resources that would accrue by the realisation of credits
indicated by the Railway Administrations and hence it is necessary that a watch on the actual credit realised
is maintained. If credits as indicated at the planning stage do not materialize, it will have an adverse effect
on the resource position.
Expenditure Control
1515. Expenditure Control.-The sanction to an estimate constitutes authority for spending a specific
amount on a particular work. Executive Officers should not, therefore, incur expenditure or liability on a
work in excess of the sanctioned estimate without the prior sanction of the competent authority. From the
moment expenditure or liability is incurred on works, a check at regular. and frequent intervals should be
made on its progress both against estimates and funds. The check should originate at the lowest executive
level viz. a Division.
1516. Method of exercising control over expenditure.-The control over expenditure on railways is
exercised through
(ii) The allotment of funds through budget grants for the year on the basis of these estimates; and
(iii) The continuous and concurrent review of the expenditure as incurred against the details of the
estimates and against the sanctioned grants, so that revisions of estimates or reappro- priation of
funds are arranged for at the earliest possible point of time.
1517. Use of Works Register.-The Works Register (refer to para 1472) maintained in each division serve
as an important management tool in providing information which enables a comparison of the expenditure
incurred against a work with the provisions made in the estimate. The Executive Officer should examine the
information recorded in the Works Registers monthly or at more frequent intervals and watch the progress
of expenditure on each work so that any tendency towards excess over sanctioned estimate may be
investigated and curbed or fresh administrative and technical sanction obtained in time to cover the
anticipated excess.
1518. Progress Report-Cum-Financial Review.-For effective financial control of works a system which
will monitor the relation between achievement and expenditure is essential. Financial Reviews assist in such
a monitoring process and also serves as a management reporting system linking the progress of work with
the expenditure incurred. Financial Review provides a means of assessing probable variations from*
sanctioned estimate at the earliest possible date.
1519. Preparation of Progress Report-Cum-Financial Review.-Financial Reviews are to be prepared
half yearly in the proforma given below (From E-1519) and should include (a) new construction conversions,
doubling, (b) open line works costing Rs.50 lakhs (gross) and over, and (c) track renewal - works costing
Rs.50 lakhs (gross) and over.
Form E-1519 (continued to...............list of forms)
1520. Progress Report-cum- Financial Reviews are to be prepared by the Divisional Executive Officer and
countersigned by the Divisional Accounts Officer and sent to Chief Engineer and the Financial Adviser and
Chief Accounts Officers. These Financial Reviews should be submitted before the end of the 3rd week of the
2nd month following i. e. before 21st May and 21st November for the period ending 31st March and 30th
September respectively.
1521. These reviews are to be prepared from the time the expenditure is incurred on the work even though
the work might not have been physically commenced. The review should show both the progress of works
based on physical progress as well as progress of expenditure, actual and anticipated for each of the works.
They should also give the overall financial and the physical progress as also the dates of commencement of
the work and the probable date of completion.
1522. In the remarks column of the Financial Review (E-1519) any anticipated excess of not less than
Rs.20,000 or 10 per cent over the provision under sub heads of account should be explained briefly When a
financial review shows the probability of a variation which is beyond the power of the Railway Administration
to sanction, an explanation should be given of the measures taken or proposed to be taken to regularize the
position. Explanations for savings of 20 per cent or one lakh. whichever is less occurring under any main
head of account such as "Formation` "Bridge Work etc. should also be given in the remarks column.
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