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. 

Excess Grants

 

Excess Grant - Regularisation of Excess Expenditure

• 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 regularised 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 CA&G.  

• Presented after obtaining the recommendation of the President of India. 

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