Exchequer control

Exchequer control

Ø   Meaning : A mechanism for concurrent regularisation of cash out go by each disbursing officer against the cash content of the Budget allotment.

Ø  Object: Enables the Government to regulate the flow of Cash in terms of Ways and Means Position

Ø  Railway's expenditure divided into two parts. 

1) Cash - 70 % (approximately)

2) Adjustments -  30 % (approximately)

Ø  The exchequer control mechanism – covers Cash out go only.

Ø  Exchequer control has thus the merit of providing an effective means of monitoring a substantial part of expenditure on a day to day basis.

Ø  All Accounting units will submit their cash requirements for the following month under the following segments by 15^th/18^th of every month to Central Books Section in FA&CAO’s Office.

Ø  The cash requirements are under the following segments.

Segments	Amount in Rs.
I. Revenue Demands
A) Staff Payments
B) Other Payments
II. Works Demands
A) Capital
B) Railway Funds
III. Non – Budget Items

Ø  The requirements of all units are consolidated and total requirement for the whole Railway is forwarded to Railway Board before 20^th of every Month.

Ø  Railway Board would communicate the authorization, by 1^st or 2^nd working day.  The same is distributed and communicated to all Units(Divisions,Wkshops).

Ø  Mid Review:  The current month requirements will be reviewed and if any additional allotment is required, the same will be communicated to the Board by 20^th of current month along with requirements of the Next month.

Ø  Surrender: Cash allotted and likely to remain unspent by the end of the month, may be surrendered to Hqrs (by Units) by 27^th to 29^th which would be consolidated and allotted to any of the needy units.  Else the same will be surrendered to Railway Board by last working day of each month.

Ø  NET WITHDRAWALS:  Under the extant rules, all Cash receipts of Central Govt should be promptly deposited to the credit of Central Govt’s Account in RBI (CAS/Nagpur) and all payments should be made through withdrawals from RBI only.  The difference between the Deposits and Withdrawals during a given period is known as “NET WITHDRAWALS”.

Ø  NEGATIVE  NETWITHDRAWALS: The Negative difference resulting from excess of withdrawals over deposits add to the deficit of the Government.

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Credits - Why they are excluded from the scope of Demands for Grants

CREDITS   -

(1) Why they are excluded from the scope of Demands ?   

(2) Why GROSS expenditure (instead of NET expenditure) under various    Demands for Grants presented to the Parliament for Vote ?

(3) What is the underlying principle justifying the same?

v   Earlier, the NET expenditure (i.e., deducting CREDITS from GROSS expenditure) under various Demands for Grants is presented to Parliament for Vote.

v  Example:  Gross: Rs.100,  Credits: Rs.20, and Net: Rs.80.  So Rs.80 only Voted by Parliament as Grant.

v   Due to above practice,  the following consequences will arise.

v  When full credits did not materialize, the expenditure used to exceed the Budget Grant/limit. Taking the above example, if Credits realized were Rs. 10 only (against budgeted Rs.20 ) resulting the NET expenditure Rs.90 (Rs.100 minus Rs.10) exceeding the Grant by Rs.10.

	Budget Grant	Actual	Variation
Gross	Rs.100	Rs.100	Nil
Credits	Rs.20	Rs.10	Rs.10 (Savings)
Net	Rs.80	Rs.90	Rs.10 (excess)

v  In above example, the Gross expenditure is not exceeded.  Because of less realization of credits, the Grant is exceeded. The Spending authority have to be answerable for excess Net Grant in spite of his adherence to the Gross expenditure.

v  When more Credits realized than budgeted, there is scope/possibility for spending authorities to incur unsanctioned expenditure to the extent of more credits.  Taking the above example, if Credits realized were Rs.30 (against Budgeted Rs.20), the likely unsanctioned expenditure to the extent of Rs.10 (Gross Rs.110, Credits Rs.30 and Net Rs.80). Budget Grant Rs.80 is not exceeded, but spending authorities have undue scope for spending authorities to spend more to the extent of more credits, which is not prudent.  

	Budget Grant	Actual	Variation
Gross	Rs.100	Rs.110	Rs.10 (excess)
Credits	Rs.20	Rs.30	Rs.10 (excess)
Net	Rs.80	Rs.80	Nil

v  To avoid the above eventualities,

1.       Now, the Credits and Recoveries have been excluded from the scope of Demands for Grants.

2.       Such Credits & Recoveries were shown as at footnote in the Demands for Grants.

3.       GROSS Expenditure (instead of NET expenditure) under various Demands is presented to Parliament for Vote.

v   List of Credits and Recoveries

A.      Hire and haulage charges of Rolling stock from the Port trust railways/Non budget lines.

B.      Commission on Audit of Military notes and Credit Notes.

C.      CRRM - Credit for Railway Released Materials.

D.      Service contributions from other Depts on account of Deputation.

E.       sale proceeds in Canteens.

F.       State Govt. grants to Schools and Fees recd. from students.

G.     Credits for freight charges on Railway materials.

H.     Credits on account of Inspection charges for Coal.

I.        Misc. receipts under Works Expenditure (Demand No.16)

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COST PLUS TENDER or COST PLUS CONTRACT

COST PLUS TENDER

or

COST PLUS CONTRACT

5 marks question - 2015 General expenditure (without books)

Ø    Meaning: A contract in which the price payable for work done under the contract is decided on the basis of actual cost of work plus profit.

Ø  In simple, it is Actual cost plus Contractors profit.

Ø  A cost-plus contract, also termed a cost reimbursement contract, is a contract where a contractor is paid for all of its allowed expenses to a set limit plus additional payment to allow for a profit

Ø  As per GFR - General Financial Rules, 2017, Cost plus contracts should ordinarily be avoided. Where such contracts become unavoidable, full justification should be recorded before entering into the contract.

Explanation: A cost plus contract means a contract in which the price payable for supplies or services under the contract is determined on the basis of actual cost of production of the supplies or services concerned plus profit either at a fixed rate per unit or at a fixed percentage on the actual cost of production.

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Closing Entries

Closing Entries

 (Para Nos.230AI to 232AI

At the end of financial year the following transactions in the Indian Railways have been closed to the respective heads.

SN	Transaction	Closed to
1	Revenue transactions (except suspense heads i.e., MAR  & DP)	Net Revenue
2	Capital transactions (except suspense heads i.e., WMS & Stores Suspense)	Capital outlay
3	Debt (Example: Provident Fund)	Balance
4	Remittances (Example: Cheques& Bills)
5	Balance in Transfer Railways (if any) in the Books of Railway Board
6	Revenue suspense head MAR, Capital suspense heads WMS, Stores & MAC and Link Heads a) Demands Payable b) Traffic c) Demands Recoverable d) Labour
7	Balance in Transfer Railways in the books of Zonal Railways	Miscellaneous Government Account
8	All heads (other than Debt & Remittances) Example: Deposit with Reserve Bank of India

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Books & Authors (for LDCE exam)

S.N.	Book	Author
1	Adventures of Sherlock homes	Sir Arthur Conan Doyle
2	Affluent society	J.K. Galbraith
3	Agni Pariksha	Acharya Tulsi
4	Agni Veena	Kazi Nazrul Islam
5	Ain-i-akbari	Abul Fazal
6	Air port	Arthur Hailey
7	Akbarnama	Abul Fazal
8	Alice in the Wonderland	Lewis carol
9	All the Prime Ministers Men	Janardhan Takur
10	Ambassador’s  Journal	J.K. Galbraith
11	An idealistic view of life	Dr. Sarvepalli  Radhakrishnan
12	An unknown Indian	Nirad C Chowdhury
13	Anandmath	Bakim Chandra chatterjee
14	Andorcles and the Lion	George Bernard Shah
15	The Animal farm	George Orwell
16	Anna Karenina	Leo Tolstoy
17	Antony and Cleopatra	William Shakespeare
18	Apple Cart	George Bernard Shah
19	Arabian nights	Sir Richard Burton
20	Area of darkness	V.S. Naipaul
21	Artha sastra	Kautilya / Chanakya
22	Arms  and the Man	George Bernard Shah
23	Around the world in 80 days	Jules Verne
24	As you like it	William Shakespeare
25	Ascent of Everest	Sir John Hunt
26	Ashtadhyayi	Panini
27	Asian drama	Gunnar Myrdal
28	Ben Hur	Lewis Wallace
29	Bermuda triangle	Charles Berlitz
30	Between the lines	Kuldip Nayyar
31	Bhagwad Gita	Maharshi Ved Vyas
32	Bharat Bharathi	Maithili saran Gupta
33	Blind Beauty	Boris Pasternak
34	Bread, Beauty & Revolution	Kwaja Mohammed Abbas
35	Broken wings	Sarojini Naidu
36	Brothers Karamazov	Fyodor Dostoevsky
37	Buddha charitham	Ashwaghosh
38	Bunch of old letters	Jawaharlal Nehru
39	Caesar & Cleopatra	George Bernard Shah
40	Candida	George Bernard Shah
41	Canterbury tales	Geoffrey Chaucer
42	Chikaveera Rajendra	Masti Venkatesh Iyengar
43	A China passage	J.K.Galbraith
44	Comedy of Errors	William Shakespeare
45	Communist Manifesto	Karl Marx
46	Confessions	J.J. Rousseau
47	Coolie	Mulkraj Anand
48	Crime and Punishment	Fyodor Dostoevsky
49	The crisis in India	Ronald Segal
50	Culture in the vanity bag	Nirad C Chowdhury
51	Dark Room	R.K.Narayanan
52	Das Capital	Karl Marx
53	David Copperfield	Charles Dickens
54	Decline and fall of Roman empire	Edward Gibbon
55	Descent of Man	Charles Darwin
56	Devadas	Sarat Chandra chatterjee
57	Discovery of India	Jawaharlal Nehru
58	Dr.Zhivago	Boris Pasternak
59	Don Quixote	Cervantes
60	Durgesh Nandini	Bankim Chandra chatterjee
61	Earth	Emily Zola
62	Emma	Jane Austen
63	Ends and Means	Aldus Huxley
64	Eternal Himalayas	Major H P S Ahluwalia
65	Fall of sparrow	Dr.salim Ali (Ornithologist)
66	Far from the madding crowd	Thomas Hardy
67	Farewell to Arms	Earnest Hemingway
68	Freedom at midnight	Larry Collins & Dominique Lapierre
69	Ganadevata	Tarashankar Bandopadhyaya
70	Gardener	Rabindranadh Tagore
71	Gathering storm	Winston Churchill
72	Geet Govinda	Jayadev
73	Gitanjali	Rabindranadh Tagore
74	Gita Rahasya	Bal Gangadhar Tilak
75	Glimpses of World History	Jawaharlal Nehru
76	Godan	Munshi Premchand
77	The God Father	Mario Puzo
78	Golden threshold	Sarojini Nadu
79	Gone with the wind	Margaret Mitchel
80	Good earth	Pearl S Buck
81	Gora	Rabindranadh Tagore
82	Grammar of politics	Harold Joseph Laski
83	Great expectations	Charles Dickens
84	The Guide	R.K.Narayanan
85	Gulliver’s Travels	Jonathan Swift
86	Hamlet	William Shakespeare
87	Harsha Charita	Bana Bhatta
88	Himalayan blunders	Brigadier J.P.Dalvi
89	Hindu view of life	Dr. Sarvepalli Radhakrishnan
90	Hunch back of Notre dam	Victor Hugo
91	Hungry stones	Rabindranadh Tagore
92	Idols	Sunil Gavaskar
93	If I am assassinated	Zulfikar Ali Bhutto
94	Iliad	Homer
95	In memorium	Lord Tennyson
96	India – wounded civilization	V.S.Naipaul
97	India divided	Babu Rajendra Prasad
98	India wins freedom	Maulana Abul kalam Azad
99	Indian Home rule	Mahatma Gandhi
100	Indian philosophy	V.D.Savarkar
101	Inside Asia	John Günter
102	Inside Europe	John Günter
103	Inside Africa	John Günter
104	Intimacy	Jean paul satre
105	Invisible  man	H.G. Wells
106	Isabelle	John Keats
107	Is Paris burning	Larry Collins & Dominique Lapierre
108	The Judgment	Kuldip Nayyar
109	Jungle book	Rudyard Kipling
110	Julies Ceaser	William Shakespeare
111	Kadambari	Bana Bhatta
112	Kagaj ke kanwas	Amrita Pritam
113	Kamayani	Jai Shankar Prasad
114	King Lear	William Shakespeare
115	Kora kagaz	Amrita pritam
116	Kumara sambhava	Kalidas
117	Divine comedy	Dante
118	Lady Chatterley’s lover	D.H. Lawrence
119	The Social contract	J.J. Rousseau
120	Les Miserable’s	Victor Hugo
121	Lipika	Rabindranadh Tagore
122	Love story	Eric segal
123	Mahabharata	Ved Vyas
124	Malavikagnimitra	Kalidas
125	Man and superman	George Bernard Shah
126	Man eaters Kumaon	Jim Corbett
127	Marriage and morale	Bertrand Russell
128	Meghdhoota	Kalidas
129	Mein Kamph	Adolph Hitler
130	Midnight children	Salman Rushdie
131	Mother	Maxim Gorky
132	Mother India	Katherine Mayo
133	Mountbatten and independent India	Larry Collins and Dominique Lapierre
134	My early life	Mahatma Gandhi
135	My experiments with truth	Mahatma Gandhi
136	My music and my love	Pandit Ravi shanker
137	The naked face	Sydney Sheldon
138	Natya sastra	Bharata Muni
139	1984	George Orwell
140	Niti sataka	Bhartrihari
141	Odyssey	Homer
142	Old Man and sea	Earnest Hemingway
143	Oliver Twist	Charles Dickens
144	Origin of species	Charles Darwin
145	Othello	William Shakespeare
146	The other side of midnight	Sydney Sheldon
147	Painted veil	William Somerset Maugham
148	Panchatantra	Vishnu sarma
149	Paradise lost	John Milton
150	Paradise regained	John Milton
151	A passage to England	Nirad C Chowdhury
152	A Passage to India	E.M. Foster
153	Pickwick papers	Charles Dickens
154	Pilgrims’ progress	John Bunyan
155	Post Office	Rabindranadh Tagore
156	Pride and Prejudice	Jane Austen
157	Prince	Machiavelli
158	Principia	Isaac Newton
159	Prison Dairy	Jayaprakash Narayanan
160	Pygmalion	George Bernard Shah
161	Raja tarangini	Kalhana
162	Rama charita manas	Tulasi das
163	Ramayana	Maharshi Valmiki
164	Rangabhumi	Munshi Premchand
165	Ratnavali	Harshavardhana
166	Razor’s Edge	William Somerset Maugham
167	Reprieve	Jean Paul Sartre
168	Republic	Plato
169	Resurrection	Leo Tolstoy
170	The Revenue stamp	Amrita Pritam
171	Ritu samhara	Kalidas
172	Robinson Crusoe	Daniel Dafoe
173	Romeo and Juliet	William Shakespeare
174	Rubbaiyat	Omar Khayyam
175	Sadar i riyasat	Karan Singh
176	Satyardh Prakash	Swami Dayananda Saraswati
177	Seven summers	Mulk raj Anand
178	Shahnama	Firadausi
179	Abhignana Shakuntalam	Kalidas
180	Shame	Salman Rushdie
181	Social contract	J.J. Rousseau
182	The song of India	Sarojini Naidu
183	Sunny days	Sunil Gavaskar
184	Study of history	Arnold Toynbee
185	Tale of two cities	Charles Dickens
186	Talisman	Sir Walter Scott
187	Three musketeers	Alexander Dumas
188	Time Machine	H.G. Wells
189	Treasure Island	Robert Louise Stevenson
190	Twelfth night	William Shakespeare
191	Ulysses	James Joyce
192	Unhappy India	Lala Lajapati Roy
193	Unto this last	John Ruskin
194	Utopia	Thomas Moore
195	Uttara Ramacharita	Bhavabhooti
196	The Vendor of Sweets	R.K.Narayana
197	View from UNO	U.Thant
198	The Village	Mulkraj Anand
199	Vinay Patrika	Tulsi Das
200	Wakeup India	Annie Besant
201	War and Peace	Leo Tolstoy
202	War of Indian Independence	Vinayak Damodar savarkar
203	Waste land	T.S. Elliot
204	Wealth of Nations	Adam Smith
205	The wonder that was India	A.L. Bhasham
206	We Indians	Kushwant singh
207	The wreck	Rabindranadh Tagore
208	Yama	Mahadevi Verma
209	Dr. Zhivago	Boris Pasternak
210	Zulfi, My friend	Piloo Modi
211	Area of Darkness	written by shri V.S.Naipaul, West Indian (Trinidad), who has lived in England since 1950. Awarded Noble Prize for the year 2001.
212	India, a wounded civilization
213	A house for Mr. Biswas
214	Middle passage
215	Flag on the Island
216	A bend in the river
217	A way in the world
218	Miguel street