YouTube Video - Demands for Grants

Comparison of Railway Budget Grants

 Comparison of Railway Budget Grants

Aspect	Railways Internal Circulation	Parliamentary Oversight (C&AG Scrutiny)
Types of Grants	1. Budget Grant (BG) 2. Spending Limit (SL) 3. Revised Grant (RG) 4. Final Grant (FG)	1. Original Grant (O) 2. Supplementary Grant (S) 3. Excess Grant
Purpose	Internal monitoring and control of Railway expenditure	Parliamentary sanction and post-facto legislative accountability
Authority Concerned	Ministry of Railways, Zonal Railways	Parliament of India
Budgeting Stage	Throughout the financial year	During and after Budget session of Parliament
Documentation	Internal budget circulars, Demand Forecasts, Expenditure Registers	Appropriation Bill, Budget Documents presented to Parliament
Audit/Reconciliation Role	Reviewed internally by Railways	C&AG scrutinizes via Appropriation Accounts
Approval Needed From	Railway Board	Parliament of India

Explanation of Each Term

Railways Internal Circulation

BG - Budget Grant: Initial estimate of funds allocated at the start of the financial year.

SL - Spending Limit: The maximum limit up to which the spending can be made under a grant.

RG - Revised Grant: Modified estimate based on mid-year trends and actual expenditure.

FG - Final Grant: Consolidated and actualized allocation after adjustment of estimates and savings.

Parliamentary Classification

O - Original Grant: Sanctioned during the Annual Budget approved by Parliament.

S - Supplementary Grant: Additional funds sought during the year for unanticipated needs.

Excess Grant: Sought after the financial year ends if expenditure exceeds total sanctioned grant.

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What is Grant ?

 

                                                        Example: 

Grants	Amount Rs.	Vote of Parliament in
Original Grant	100	Budget Session
Supplementary Grant	20	Winter Session
Residual Modifications	(-) 5	See below Note
Final Grant	115

Note: 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. 

Excess Grant:  

• Regularization of Excess Expenditure  (Actual Expenditure in excess of Final Grant)  

• Authority: Article 115 of the Constitution of India 

• Excess grants are made when the expenditure has been incurred after a Financial Year has expired.  

• Actual expenditure incurred (out of Consolidated Fund) in excess of Grant voted by the Parliament will be regularized by: 

• Reasons to be fully explained by the spending authorities. 

• On the recommendation of PAC 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. 

Classification of Expenditure - Recent changes - PPT prepared on 07.01.2021

 PPT on Classification of Expenditure - Recent Changes 

Classification of expenditure recent changes 07.01.2021 from Nageswara Rao M

Single Demand Number for Ministry of Railways - 83

Single Demand Number for Ministry of Railways is 83  (as per Budget documents 2020-21)

Note:

The reason why the Government changes the number of Demand pertaining to Railways is not clear. Initially i.e., when Railway Budget was merged with General Budget in 2017-18, Single Demand No. 80 was allotted for Railways.  Subsequently, 80 was changed to 81,  again changed to 82.  Finally as per latest budget documents of 2020-21 year, it is again changed to 83. 

May be due to intervening of some new ministries/ depts and alphabetical order are the reasons for such change. 

Union Government of India - Demands for Grants

Total number of Demands for Grants for all Ministries - Government of India  - 101

·         54 Ministries  -101 Demands for Grants

·         Demand Numbers assigned to the Ministries as per alphabetical order.  For example, Agriculture ministry Demand Numbers are 1 & 2.  Atomic Energy Demand number is 3.   Last Demand Number 101 is assigned to Youth affairs & sports.

·         For complete list of Demands for Grants as per 2020-21 Budget, clickhere

·         Summary of Demands for Grants of Union of India

Ministry	Number of Demands
Finance	12
Home Affairs	11
Defence	4
Railways	1
Other Ministries (50)	73
Total	101