Railway Accounts Department Examinations

Showing posts with label APPROPRIATION ACCOUNTS. Show all posts
Showing posts with label APPROPRIATION ACCOUNTS. Show all posts

Thursday, February 4, 2021



1990,1993,1994 (with Books)                                                          5 Marks  - short notes question    

       Ü  During the course of accountal in books, an expenditure or income wrongly appeared in any other Head of Account instead of Proper Head of account, the mistake is known as MIS CLASSIFICATION.

       Ü  During the course of financial and other reviews, it is checked that whether there is any booking misclassified and if found the same is regulated in the same year through Journal entry.

       Ü  Examples are:

§  Booking in HBA instead of Motor Car advance.
§  Booking in Coaching Earnings instead of Goods Earnings.
§  Booking in One Demand instead of another Demand.
§  Booking in Revenue Demand instead of Plan heads or vice –versa.

        Ü  A statement showing items of misclassification and other important mistakes either detected by Statutory Audit or by Accounts should be prepared in ANNEXURE – J (Statement of important misclassifications and Other important mistakes detected)
        Ü  Pro forma of Annexure J is as follows.

Name of Railway               Grant affected   Brief description of Mistake   Amt.(Rs.)             



Important change in Annexure J

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

  1. 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

  2. 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.



Dealt at


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)


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



As voted by Parliament



As Sanctioned by the President of India



·         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




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

(Rs. in thousands)

Minor Head

Final Grant

Actual Exp.


With ref to FG


With ref to (O +S)

200 Financial Management


‘O’  - 80

‘S”  - 30

‘R’  -  (-) 10



(-) 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


No of








Annexure G

(Final Accounts)


Grand Total



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)



Dealt at


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


5 Crores & above (irrespective of Percentages

Original Grant


2.5 Crores or 10 % whichever is higher

Original Grant


1 Crore or 10% whichever is higher

Supplementary Grant


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)


New Lines

All works


Gauge Conversion

All works



All works



All works



Track Renewals

Works of Rs. 20 Crores & above


Bridge Works

Works of Rs. 20 Crores & above



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