Railway Accounts Department Examinations

Sunday, January 17, 2021

Appropriation Accounts

Appropriation Accounts

         Source: 4th Chapter of Finance Code

·         The statements which are presented to the Parliament (through PAC) ,

·         comparing the amount of actual expenditure with the amount of grants voted by the Parliament and Appropriations sanctioned by the President of India are called Appropriation Accounts

Grants

Voted

As voted by Parliament

Appropriations

Charged

As Sanctioned by the President of India

 

Object:

·         Budget is an instrument of Parliamentary financial control and an important management tool.

·         Parliamentary control not only secured by the fact that all the voted expenditure must receive Parliament’s prior approval, but also by system of reporting back to it (Parliament) through PAC

Prepared & Signed by:

Railway Board level

CRB and Member/Finance

Zonal Railway level

GM and PFA

 

Note: This cannot be delegated to any other authority.

·         Due Date: June/July

·         Submitted to Dy.C&AG/Railways, who has been entrusted by the C&AG with the duty of reporting on these Appropriation Accounts of Railways.

·         2 weeks time for Audit for vetting the Appropriation Accounts.

·         Presented to Parliament during Winter session of the Same Calendar year to which the accounts pertain.  (Example: 2019-20 Appropriation A/cs due 2020 Jan to December)

·         Reconciliation certificate: Certificate should be invariably be given under each SMH that actual have been reconciled with the figures in March Final Account Current.

 

·         Grant 83  - Ministry of Railways  (for 2020-21)  - Two parts i.e., Revenue & Capital

 

 

Form

                            Grant No. 83 (for the year 2020-21)-SMH – 01 – General Superintedence & Servces

(Rs. in thousands)

Minor Head

Final Grant

Actual Exp.

Excess/Saving

With ref to FG

Excess/Saving

With ref to (O +S)

200 Financial Management

 

‘O’  - 80

‘S”  - 30

‘R’  -  (-) 10

100

85

(-) 15

(-) 25

 

‘O’ stands for Original Grant

‘S’ stands for Supplementary Grant

‘R’ stands for Residual Modification sanctioned by Competent authority (i.e., Railway Board, GM etc other than Parliament )  i.e., Reappropriations, withdrawals, surrenders etc,

·         Due to merger of Railway Budget with General Budget, Single Grant Account (82 for 2019-20, 83 for 2020-21) shall prepare.

·         Appropriation Accounts – Rs. In thousands

·         Annexures  - Rs in units

Total enclosures in Appropriation Accounts are 44

Description

No of

enclosures

Grants/SMH

16

Annexures

10

Statements

15

Annexure G

(Final Accounts)

3

Grand Total

44

 

Grants – Total 16 . They are as follows

 

1. MH 3001 (erstwhile Demand No. 1)

2. MH 3001 (erstwhile Demand No. 2)

3 to 14. Erstwhile Demands 3 to  14 (SMH 1 to 12 of MH 3002)

15. MH 5002 (erstwhile Demand No. 16)

16. Civil Grants (Loans & Advances, Pre partition payments, Interest on Debt, Income Tax, Deposits)

 

Annexures (Total 10)

Statements of

A.      Unsanctioned Expenditure

B.      Under charges detected by Audit and Railways

C.      Remission & abandonment of claims

D.      Expenditure on Important Open line Works & New Construction

E.       Expenditure on Strategic Lines

F.       Credits & Recoveries ( Estimated & Actual)

H.      Losses & Ex gratia payments (Rs. 5 Lakhs and above)

I.        Irregular Reappropriations

J.        Important Misclassifications

K.      Defects in Budgeting  (In fact, there is no alphabet K for this annexure. )

 

Statements: (Total 15)

1.       Statement showing Distributable Expenditure and Receipts

2.       Statement showing changes in Forms & Classifications

3.       Operating Ratio

4.       Statement showing credits to Capital for Retired Assets

5.       Statement of annual Voted and Charged expenditure

6.       DRF

7.       DF

8.       Capital Fund

9.       RSF & Debt Service Fund

10.   Pension Fund

11.   Statement of O/s balances under Suspense

12.   Stores A/c

13.   SA A/c

14.   P&L A/c of Catering Dept

15.   Statement of PH wise, Source wise, Works Expenditure (Gross, Credit & Net) and Voted & Charged. (New one - added in 2019-20)

Annexure G - Final Accounts - (complying the Commercial Accounts like Companies)

I - Capital Statement (Block A/c)  -  Part I - Commercial ,  Part II - Strategic

II - P&L A/c or Manufacturing A/c (Commercial & Strategic)

III - Balance Sheet (Commercial & Strategic)

 

 

Important change in Annexure J

(after merger of Railway Budget with General Budget from 2017-18 onwards)

Type

Examples

Dealt at

Misclassifications

Voted to Charged or vice versa

Capital to Revenue or vice versa

Railway Board. 

Unresolved will become part of Audit Report

Other Mistakes

One SMH to another SMH

Zonal Railway only

(Need not send to Railway Board)

 

Explanations for Variations  - Revenue (from 2019-20 onwards – as per 17th Loksabha recommendations)

Explanations for variations - Revenue

Excesses/Savings

5 Crores & above (irrespective of Percentages

Original Grant

Excesses/Savings

2.5 Crores or 10 % whichever is higher

Original Grant

Savings

1 Crore or 10% whichever is higher

Supplementary Grant

Excesses

Rs. 25 Lakhs and above

Sub Heads

 

·         Minor variations – should be explained. Because at IR level, these may be cumulative and required as such

·         Explanations should not be vague such as due to over estimates or covered by re appropriation etc.  It should be clear, precise and complete description.

Explanations for variations - Capital (for the following Plan Heads only)

1100

New Lines

All works

1400

Gauge Conversion

All works

1500

Doubling

All works

3500

RE

All works

 

3100

Track Renewals

Works of Rs. 20 Crores & above

3200

Bridge Works

Works of Rs. 20 Crores & above

3300

S&T

Works of Rs. 20 Crores & above

 

 

1.       Entire Supplementary Grant – if unutilised

2.       Entire Original  and Supplementary Grant – if unutilised

3.       10 % of Supplementary Grant or Rs. 1 Crore whichever is higher

 

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