YouTube Video - Demands for Grants

Stores Budget - Derived one स्टोर बजट - व्युत्पन्न

 

Stores Budget - Derived one

• Derive means obtain something from

• The term "Derived Budget" underscores the fact that this is not created in isolation but is a synthesis of the projected demands of multiple stakeholders within the railway system.

• In Indian Railways, the Stores Budget is often referred to as a "Derived Budget" because it is formulated based on the projected requirements and consumption patterns of various departments and projects. 

• Unlike other budgets that may be prepared independently, the Stores Budget is inherently dependent on the anticipated needs of different operational and maintenance activities across the railway network. 

MCQ on Derived Budget in CBT

Stores budget is a 'derived' budget because ________________  (AFA LDCE 2023 & AFA 70% 2023) 

1. Stores department does not have its own budget

2. Stores department budgets for all other departments

3. All revenue and workshop stock items requirements are compiled in Stores budget 

4. All of the above 

D. All of the above is the correct answer. 

स्टोर बजट - व्युत्पन्न

व्युत्पन्न का अर्थ है किसी चीज़ से प्राप्त करना

"व्युत्पन्न बजट" शब्द इस तथ्य को रेखांकित करता है कि इसे अलग से नहीं बनाया जाता है, बल्कि यह रेलवे प्रणाली के भीतर कई हितधारकों की अनुमानित मांगों का संश्लेषण है।

भारतीय रेलवे में, स्टोर बजट को अक्सर "व्युत्पन्न बजट" के रूप में संदर्भित किया जाता है क्योंकि इसे विभिन्न विभागों और परियोजनाओं की अनुमानित आवश्यकताओं और खपत पैटर्न के आधार पर तैयार किया जाता है।

अन्य बजटों के विपरीत जिन्हें स्वतंत्र रूप से तैयार किया जा सकता है, स्टोर बजट स्वाभाविक रूप से रेलवे नेटवर्क में विभिन्न परिचालन और रखरखाव गतिविधियों की प्रत्याशित आवश्यकताओं पर निर्भर करता है।

CBT में व्युत्पन्न बजट पर MCQ

स्टोर बजट एक 'व्युत्पन्न' बजट है क्योंकि ________________ (AFA LDCE 2023 और AFA 70% 2023)

स्टोर विभाग का अपना बजट नहीं होता है

अन्य सभी विभागों के लिए स्टोर विभाग बजट

सभी राजस्व और कार्यशाला स्टॉक आइटम आवश्यकताओं को स्टोर बजट में संकलित किया जाता है

उपर्युक्त सभी

D. उपरोक्त सभी सही उत्तर है।

FRBM Act 2003 - Bilingual

 

FRBM Act - Fiscal Responsibility & Budget Management Act

Key Points

• Enacted in the year: 2003

• Objectives: 

1. Reduction of Fiscal deficit 

2. Helps in Financial discipline, stable inflation & interest rates

3. Improve Macroeconomic management

4. Achieve Long-economic stability 

5. Public Accountability: It promotes transparency in government finances, ensuring public accountability for fiscal policies.

• Fiscal Deficit Target: Limit fiscal deficit to 3% of the GDP by 31.03.2021

• Revenue Deficit Elimination: Ensure that the revenue deficit is reduced to zero.

• Fiscal Deficit: The difference between a government's total expenditure and its total revenue, excluding money from borrowing.

• Revenue Deficit: The shortfall in the government’s revenue receipts compared to its revenue expenditure.

• The Difference between Fiscal and Revenue is the Fiscal relates Total transactions, whereas Revenue relates Revenue transactions only

• Debt Targets: Reduce total government debt as a proportion of GDP. (40% of GDP by 2024-25)

• Expenditure Control: Focuses on rationalizing government expenditure to ensure sustainability.

• Fiscal Transparency: Government must provide clear data on fiscal policies and their outcomes. 

•  Escape Clauses: Allows temporary deviation from fiscal deficit targets in cases like natural disasters, national security, or severe economic downturns.

• Target Misses: The set targets have often been revised or missed, especially due to economic slowdowns or other emergencies like the COVID-19 pandemic.

• State-Level FRBM Acts: Several Indian states have their own versions of the FRBM Act, aligning with the central goals but allowing for state-specific fiscal policies.

-end-

एफआरबीएम अधिनियम - राजकोषीय उत्तरदायित्व एवं बजट प्रबंधन अधिनियम

मुख्य बिंदु

• वर्ष 2003 में अधिनियमित

• उद्देश्य:

• राजकोषीय घाटे में कमी

• वित्तीय अनुशासन, स्थिर मुद्रास्फीति और ब्याज दरों में मदद करता है

• मैक्रोइकॉनॉमिक प्रबंधन में सुधार

• दीर्घ-आर्थिक स्थिरता प्राप्त करना

• सार्वजनिक जवाबदेही: यह सरकारी वित्त में पारदर्शिता को बढ़ावा देता है, राजकोषीय नीतियों के लिए सार्वजनिक जवाबदेही सुनिश्चित करता है।

• राजकोषीय घाटा लक्ष्य: 31.03.2021 तक राजकोषीय घाटे को सकल घरेलू उत्पाद के 3% तक सीमित करना

• राजस्व घाटा उन्मूलन: सुनिश्चित करें कि राजस्व घाटा शून्य हो जाए।

• राजकोषीय घाटा: सरकार के कुल व्यय और उसके कुल राजस्व के बीच का अंतर, उधार से प्राप्त धन को छोड़कर।

• राजकोषीय घाटा: सरकार के राजस्व व्यय की तुलना में सरकार की राजस्व प्राप्तियों में कमी।

• राजकोषीय और राजस्व के बीच अंतर यह है कि राजकोषीय कुल लेनदेन से संबंधित है, जबकि राजस्व केवल राजस्व लेनदेन से संबंधित है

• ऋण लक्ष्य: सकल घरेलू उत्पाद के अनुपात के रूप में कुल सरकारी ऋण को कम करें। (2024-25 तक सकल घरेलू उत्पाद का 40%)

• व्यय नियंत्रण: स्थिरता सुनिश्चित करने के लिए सरकारी व्यय को तर्कसंगत बनाने पर ध्यान केंद्रित करता है।

• राजकोषीय पारदर्शिता: सरकार को राजकोषीय नीतियों और उनके परिणामों पर स्पष्ट डेटा प्रदान करना चाहिए।

• एस्केप क्लॉज़: प्राकृतिक आपदाओं, राष्ट्रीय सुरक्षा या गंभीर आर्थिक मंदी जैसे मामलों में राजकोषीय घाटे के लक्ष्यों से अस्थायी विचलन की अनुमति देता है।

• लक्ष्य चूक: निर्धारित लक्ष्यों को अक्सर संशोधित किया गया है या चूक गए हैं, खासकर आर्थिक मंदी या COVID-19 महामारी जैसी अन्य आपात स्थितियों के कारण।

• राज्य-स्तरीय FRBM अधिनियम: कई भारतीय राज्यों के पास FRBM अधिनियम के अपने संस्करण हैं, जो केंद्रीय लक्ष्यों के साथ संरेखित हैं लेकिन राज्य-विशिष्ट राजकोषीय नीतियों की अनुमति देते हैं।

-अंत-

Budget - MCQ 50 with explanations

 

Budget - MCQ 50 with explanations 

Budgetary Terms - Terminology

 

Budget - Terms 

  

1. Budget Allotments:

Distribution of Funds by the Railway Board-The Grants as voted by the Parliament and the appropriation for the charged expenditure as sanctioned by the President are distributed by the Railway Board among the railway administrations and other authorities subordinate to them, as soon as possible, after the Budget is sanctioned.  The sums so distributed are called "Allotments". The allotments made out of funds voted by the Parliament are shown as "Voted" and those fixed by the President are shown as "Charged". 

2. Budget Orders: 

The orders by means of which the allotments are made are called "Budget Orders".  

3. Expenditure Order:

When orders are issued by the Railway Board authorising the Railway administrations to incur expenditure to a certain extent over and above the allotment sanctioned for them, they should be taken as Expenditure Order as distinct from “Budget Order”  

4. Finance Bill:

When the Central Government proposes to introduce or amend taxes or the current tax structure (or continue with the same), the proposal is forwarded to the Parliament for approval in the form of Finance Bill. It can only be presented in Lok Sabha. 

5. Excess Grants:

Actual expenditure incurred (out of the Consolidated Fund of India) in excess of a Grant voted by the Parliament will be regularized by the Parliament on the recommendation of PAC (Reasons to be fully explained by the spending authorities.) as a result of scrutiny of Appropriation Accounts of Railways and Audit Report of C&AG.  Presented after obtaining the recommendation of the President of India.Authority: Article 115 of the Constitution of India.  

6. Residual Modifications: 

Residual Modification sanctioned by Competent authority (i.e., Railway Board, GM etc other than Parliament) i.e., Reappropriations, withdrawals, surrenders etc, It may be a plus or minus amount.  

7. Annual Financial Statement:

As per Article 112(1) of the Constitution of India prescribes that 'the President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year’ referred to as the "annual financial statement" and popularly called the "Annual Budget". 

 

 

8. Appropriation Bill:

Pursuant to Article 114 (1) of the Constitution, after the Demands for Grants have  been voted by the Lok Sabha, there shall be introduced a Bill to provide for the Appropriation out of the Consolidated Fund of India of all moneys required to meet the grants so made by the Lok Sabha and the expenditure, If any, charged on the Consolidated Fund of India. 

The Appropriation Bill as passed by the Parliament and assented to by the President forms the basis for budgetary allocation to the Railways. 

This Bill gives power to the Railways (as part of the Government) to withdraw funds to meet the expenditure during the financial year. The funds are withdrawn from the Consolidated Fund of India. 

  

9. Charged Expenditure:  

Article 113(1) of the Constitution provides that 'the estimates of expenditure charged upon the Consolidated Fund of India shall not be submitted to the vote of Parliament'.  There is, however, no restriction on either House of Parliament discussing any of these estimates, where after funds are sanctioned by the President.  

In respect of Railways, the following expenditure is "charged" on the Consolidated Fund of  India-  

1. The salary, allowances and pension payable to or in respect of the Comptroller and Auditor General of India;

2. Any sums required to satisfy any judgement, decree or award of any Court or awards by     Arbitrators were made into rule of court ;

3. Any other expenditure declared by the Constitution or by Parliament by law to be so charged.  

 

10. Voted Expenditure: 

Article 113(2)  requires that estimates of voted expenditure "shall be submitted in the form of demands for grants to the House of the People (Lok Sabha) and the House of the People shall have power to assent, or to refuse to assent, to any demand, or to assent to any demand subject to a reduction of the amount specified therein".  

 

11. Gross Working Expenses: 

Consists of Ordinary Working Expenses plus Appropriation to DRF plus Appropriation to Pension Fund. True expenses in an accounting period whether or not actually disbursed. 

 

12. Gross Expenditure: 

Consists of Gross Working Expenses plus Suspense (DP - Demands Payable & MAR - Miscellaneous Advance Revenue).  Working Expenses actually disbursed during an accounting period. 

13. Ordinary Working Expenses: 

Expenses booked under final heads (erstwhile Demands 03 to 12)

 

14. Gross Earnings/Revenue: 

Consists of Coaching Revenue (less Refunds) plus Goods Revenue (less Refunds) plus Sundry Other Revenue. True or accrued earnings in an accounting period  whether or not actually realized.  

Complies Commercial Accounting.  

 

15. Gross Receipts: 

Gross Revenue plus Suspense (Traffic & DR-Demands Recoverable).  Revenue/Earnings actually realised during an accounting  period.  

Complies Government Accounting. 

16. Net Receipts/Surplus/Shortfall: 

Difference between Total Revenue Receipts minus Total Revenue Expenditure

17. Demands for Grants: 

The proposals of the Government in respect of sums required to meet expenditure from the Consolidated Fund of India are to be submitted in the form of "Demands for Grants" to the Lok Sabha.

The Demands shall be for gross expenditure ; the credits or recoveries being shown in the form of footnotes to Demands.  

18.  Budget Cycle: 

The cycle is the life of a budget right from its preparation to its reviews. Broadly A. Preparation of Budget B. Execution of Budget C. Budgetary Reviews (1.RE/BE 2.FME). D. Appropriation Accounts.  However the detailed cycle is as follows: 

1. Budget Estimates Preparation (by the Executives at the Grassroot level).

2. Presentation to the Parliament (by the Finance Ministry)

3. Passing of the Appropriation Bill by the Parliament.

4. 1st Review: Revised Estimates stage - September (by taking first five months actuals)

5. Presentation of Supplementary Demands for Grants to the Parliament.

6. Passing of Supplementary Demands by the Parliament.

7. Supplementary Grants / Revised Grants 

8. 2nd & the Last Review: FME - Final Modification Estimates - January

9. Final Grant by the Railway Administration 

10. Appropriation Accounts at the end of the Financial Year (31st March)  & its scrutinisation by the PAC - Public Accounts Committee.

11. Excess Grants (if any) after the expiry of Financial Year to regularize the excess expenditure. 

19.  Civil Demands/Civil Grants: 

To enable the Ministry of Finance to incorporate the requirement of and /or information relating to the Ministry of Railways regarding staff advances(HBA, PC Advance etc) and other transactions such as Income Tax, Interest on Advances, Deposits etc  which form part of the General Budget.

 

20.  New Service:   

Article 115 of Constitution of India and Para 370 of Indian Railways Finance Code   -  "The expenditure arising out of a new policy decision, not brought to the notice of Parliament earlier (i.e., through Railway Budget), including a new activity or a new form of investment."

21. New Instrument of Service:  

It is a slight variation of New Service.  It refers to relatively large expenditure arising out of important expansion of an existing activity.

To be continued…………