Railway Accounts Department Examinations

Monday, December 28, 2020

McQ on Budget

MCQ on Budget (During Zoom presentation on 27.12.2020)

1. Total number of erstwhile Demands in OWE - Ordinary Working Expenses of Zonal Railways ? 

Answer 1: 13

Answer 2: 11

Answer 3: 15

Answer 4: 16

2. Total number of erstwhile Demands in Indian Railways (prior to merger - including both Revenue and Capital) 

Answer 1: 16

Answer 2: 15

Answer 3: 13

Answer 4: 1

3. Which fund is described as "Reservoir of Government Money" ? 

Answer 1: Public Account of India

Answer 2: Deposit with RBI

Answer 3: Consolidated Fund of India

Answer 4: Central Government Treasury

4. Recovery of Provident Fund is accounted in ? 

Answer 1: Contingency Fund of India

Answer 2: Consolidated Fund of India

Answer 3: Public Account of India

Answer 4: Staff Benefit Fund

5. Commercial Accounts of Indian Railways are known as Capital & Revenue Accounts. Answer True or False 

Answer 1: True

Answer 2: False

6. Government Accounts of Indian Railways are known as Capital & Revenue Accounts. Answer True or False 

Answer 1: True

Answer 2: False

7. One of the options is not example of Charged expenditure 

Answer 1: Salary of Cabinet Secretary

Answer 2: Judgement/award of Court

Answer 3: Pay & allowance of C&AG

Answer 4: Pay & allowance of Chief Election Commissioner

8. Pick out the odd man out 

Answer 1: Staff Benefit Fund

Answer 2: Contingency Fund of India

Answer 3: Public Account of India

Answer 4: Consolidated Fund of India

9. Budget is a ________________ and _______________ document as per Indian Railway Finance Code Volume One (Chapter 3)

Answer 1: Constitutional , Management

Answer 2: Financial, Audit

Answer 3: Financial, Constitutional

Answer 4: Financial, Audit

10. As per Article 112(1) of Constitution of India, A statement of the estimated receipts and expenditure of the Government of India for that year’ referred to as the "__________________________" and popularly called the "__________________". 

Answer 1: annual financial statement, Annual Budget

Answer 2: Annual Budget, Annual Financial Statement

Answer 3: Annual Fiscal document, Management document

Answer 4: None of these

11. Which one is not example of Charged Expenditure in case of Indian Railways 

Answer 1: Salary and allowances of Chairman, RRB - Railway Recruitment Board

Answer 2: The salary, allowances and pension payable to or in respect of the CAG -Comptroller and Auditor General of India;

Answer 3: Any sums required to satisfy any judgement, decree or award of any Court or awards by Arbitrators where made into rule of court

Answer 4: Any other expenditure declared by the Constitution or by Parliament by law to be so charged

12. The Demands shall be for _____expenditure ; the credits or recoveries being shown in the form of _________ Demands. 

Answer 1: Net, footnotes to

Answer 2: Gross, deducted from 

Answer 3: Gross, footnotes to

Answer 4: Net, deducted from

13. The erstwhile Demands No. 1, 2 & 3 are in the nature of _______________ 

Answer 1: covering all Zonal Railways

Answer 2: Covering Railway Board only

Answer 3: Ordinary Working Expenses

Answer 4: General on cost

14. There is a single works erstwhile Demand No. 16 for all works Expenditure irrespective of source of financing. Say True or False 

Answer 1: True

Answer 2: False

15. First two digits in classification/allocation of erstwhile Demand No. 16 is ____________ 

Answer 1: Demand Number

Answer 2: Source of Finance

Answer 3: Plan Head

Answer 4: Activity

16. First two digits in Revenue classification shows ______ 

Answer 1: Source of Finance

Answer 2: Erstwhile Demand Number

Answer 3: Single Demand Number 83 (for 2020-21 FY)

Answer 4: Activity

17. Last two digits in Revenue/Capital classification shows_______ 

Answer 1: Main activity

Answer 2: erstwhile Demand Number

Answer 3: Sub activity

Answer 4: None of these

18. Total digits in Revenue classification/allocation are ____ 

Answer 1: 8

Answer 2: 7

Answer 3: 6

Answer 4: 9

19. Total digits in Capital classification/allocation are ____ 

Answer 1: 6

Answer 2: 7

Answer 3: 8

Answer 4: 9

20. Each erstwhile Demand has two-way classification by activity and by Primary units of expenditure. The activity classification identifies _______an expense item is incurred and Primary unit identifies ______ the expense item denotes 

Answer 1: Why, What

Answer 2: What, Why

Answer 3: Object, Why

Answer 4: What, Object

 

21. Ordinary Working Expenses (OWE) consists of ________ 

Answer 1: Erstwhile Demands 1 to 16

Answer 2: Erstwhile Demands 1 to 15

Answer 3: Erstwhile Demands 3 to 13

Answer 4: Erstwhile Demands 1 & 2

22. GWE - Gross Working Expenses consists of _______ 

Answer 1: Erstwhile Demands 1 to 15

Answer 2: Erstwhile Demands 1 to 16

Answer 3: Erstwhile Demands 3 to 13

Answer 4: Erstwhile Demands 1 to 14

23. Preparation of the Revised and Budget Estimates should commence at the '__________ level ’ 

Answer 1: Railway Board

Answer 2: Zonal Railway Headquarters

Answer 3: Grass Root, i.e., Division, Stores Depot, Workshop etc

Answer 4: Divisional Railway Headquarters

24. Accounts Dept (PFA) responsibility towards Budget is _______ 

Answer 1: Preparation

Answer 2: Compilation and scrutiny

Answer 3: Guidance to Executives

Answer 4: Approving

25. Credits or recoveries shall be __________from the scope of the demands presented for vote of Parliament :- 

Answer 1: Excluded

Answer 2: Included

26. The Grants are distributed by the Railway Board among the railway administrations are called as ______________and the orders by means of which the allotments are made are called as ______________ 

Answer 1: Allotments, Budget Orders

Answer 2: Budget Orders, Allotments

Answer 3: Spending Limit, Allotments

Answer 4: Allotments, Spending Limit

Answers:


  1. 2

  2. 1

  3. 3

  4.  3

  5.  True

  6.  False

  7.  1 

  8.  1

  9.  1

  10.  1

  11.  1

  12.  3

  13.  4

  14.  True

  15.  2

  16.  2

  17.  4 (Primary Unit - Object of expenditure)

  18.  1

  19.  3

  20.  1

  21.  3

  22.  1

  23.   3

  24.  2

  25.  1

  26.  1


*****

Wednesday, December 23, 2020

Second Zoom meeting on MCQ (Budgeting in Indian Railways)

 


Nageswara Rao www.appendix3.com is inviting you to a Zoom meeting.


Topic: MCQ - Multiple Choice Questions on Budgeting in Indian Railways


Time: 27th December, 2020 18:00 hrs   





Tuesday, December 22, 2020

National Rail Plan (Draft) - Announced in December, 2020







  • Partners in preparing the NRP Draft Report are RITES and AECOM


  • AECOM is the world's premier infrastructure firm, partnering with clients to solve the world's most complex challenges and build legacies for generations to come. 


  • AECOM is an American multinational engineering firm has approx 87000 employees. Ranked 157 on the Fortune  500 List. 



 



   



 

    

 

  • One discrepancy in the Report is, Konkan Railway is shown as 17th Zonal Railway instead of Kolkata Metro. 



Monday, December 7, 2020

Merger of Railway Budget with General Budget




 Merger of Railway Budget with General Budget 



Salient Points



  • With effect from 2017-18 year

 

  • Single Demand for Indian Railways  -  83- Ministry of Indian Railways  (Subsumed all existing 16 Demands Numbering 01 to 16)

 

  • Initially Demand No 80 is allotted to Indian Railways. Subsequently it is changed to 81 and again to 82.  Finally for 2020-21 year, the Demand No is 83 (Due to additions and deletions of Ministries/Dept in Union Government)

 

  • Erstwhile Demands 03 to 14 (Total 12) are renamed as SMH - Sub Major Head 01 to 12 respectively under Major Head 3002 - Indian Railways Working Expenses - Commercial Lines. 

 

  • But Classification /Allocation of Expenditure still align with the erstwhile Demands Nos 01 to 06 as per Indian Railways Finance Code Volume II

 

  • Demand No. 83 is subdivided into Revenue Section and Capital section.

 

  • Revenue Section  - Major Heads 3001, 3002

 

  • Capital Section - Major Head 5002

 

  • Capital At Charge since inception stands extinguished.  Hence No Dividend needs be paid on Capital at Charge.

 

  • At the same time, no subsidies are available to Indian Railways from Union Government

 

  • Interest on Capital is however worked out just like Dividends, but no amount need be paid.

 

  • August Review Estimates Budget Review is dispensed.  Two Budget Reviews only existed as of now. 1.  RE/BE - Revised Estimates of Current Year/Budget Estimates of Next Year and 2. FME - Final Modification Estimates 

 

  • RE/BE is now due in September in lieu of November.

 

  • Works Budget  - Proposals to be sent for Works in Progress only

 

  • Benefits and Pitfalls of Joint Family over Nuclear Family will apply. 


Pros


  1. Only One Appropriation Bill (instead of Two Appropriation Bills) 

  2. Both Time and Money for preparation of Railway Budget is saved

  3. Less Political Pressure on Ministry of Railways

  4. No Populism Budget

  5. Revenue deficit (of Indian Railways) will be passed on to Finance Ministry

  6. More flexible for Railway Board to re appropriate between Sub Major Heads (erstwhile Demands)

  7. Annexure J  - Big Relief to Indian Railways - Statement of Misclassification is now limited to Misclassification from Revenue to Capital or vice versa and Voted to charged or vice versa)  - Included in Appropriation Accounts and goes to Parliament through PAC

  8. Misclassification from One SMH to another SMH on Revenue segment only figured under Statement of Other Mistakes (Not Statement of Misclassification)  - Not appeared in Appropriation Accounts.  To be settled at Zonal Railway level only. 

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Saturday, November 28, 2020

Order of Precedence of Documents

Order of Precedence of Documents – GCC for Works, 2020 July

 

·         Applicable for: Works Tenders/Contracts as per GCC for Works, 2020 July

 

·        Why: Any difference/ contradiction/  discrepancy  -  with regard to conditions of tender/contract, specifications, drawings, bill of quantities etc., forming part of the tender/contract -  the following documents shall be the order of precedence/Priority/Weightage

Order of Precedence of Documents - easy to remember – L S S T  D G C I I I B

 

SN

Order of Precedence of Documents

1

Letter of Award / Acceptance

2

Schedule of Items, Rates & Quantities

3

Special Conditions of Contract

4

Technical specifications (as given in Tender documents)

5

Drawings

6

GCC – IR Standard General Conditions of Contracts updated with correction slips issued up to date of inviting Tender or as otherwise specified in the Tender documents

7

CPWD Specifications 2019 Vol I & II updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents, if applicable in the contract

8

Indian Railways Unified Standard Specification (IRUSS-2019) updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents, if applicable in the contract.

9

Indian Railways Unified Standard Specifications (Works and Material) 2010 updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents, if applicable in the contract.

10

 IR Specifications/Guidelines updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents

11

B.I.S. Codes  (Relevant)updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents

 

 

Study material for MCQ

·        First document in the order of precedence:  LOA - Letter of Award

 

·        Last document in the Order of Precedence: BIS Codes

 

·        BIS stands for Bureau of Indian Standards

 

·        LOA stands for Letter Of Award

 

·        CPWD stands for Central Public Works Department (Headed by Director General, who is also the Principal Technical Advisor to the Government of India)

 

·        IRUSS stands for Indian Railways Unified Standard Specifications

 

·        GCC stands for General Conditions of Contract

 

·        Total number of Documents (in Order of Precedence)  - 11

 

 

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