Railway Accounts Department Examinations

Showing posts with label VPN. Show all posts
Showing posts with label VPN. Show all posts

Saturday, May 22, 2021

Re-Appropriation

 RE-APPROPRIATION RULES


Most Important Question. Asked many times in Appendix3 Exam - Books & Budget :1988(W)-20 marks, 1993 (W)-5 marks,1994 (WO)-10marks, 1996 (WO)-5 marks


Defi           Definition: 


·         The transfer of funds,


·         Originally assigned for expenditure on a specific object


·         To supplement the funds sanctioned for other object.


In Simple:


Father gave money Rs. 1000 to son to to go for a Picnic.  Bifurcation of Rs. 1000:

Rs. 300 for transport, Rs. 300 for Food, Rs. 300 for accommodation and Rs. 100 for miscellaneous.


However the son is permitted to may re-appropriate amount as per his needs (within the bifurcated figures)  i.e., From Food to Miscellaneous.  But he can’t  re appropriatebeyond the permissible amount and requirements.


Object: 


·         The whole object is to ensure that, as far as possible,


·      funds which are not required are withdrawn from disbursing officers as soon as it is definitely known that they are not required,


·      and incidentally to provide that any really unavoidable expenditure is met from such savings as far as  possible.


Salient Features:


·         Codal Provisions:  375F to 381F

·         Important administrative tool in the hands of executive in budget execution, without going to Parliament on trivial issues.


·         Prior Finance Concurrence is required.


·         Annexure I of Appropriation Accounts – deals with the irregular Re-appropriations


·         Should not be randomly / unsystematically


·         Administration should review the position as a whole at intervals and carry out necessary re-appropriations.


·         The whole object is to ensure that, as far as possible,


Ø  funds which are not required are withdrawn from disbursing officers as soon as it is definitely known that they are not required,


Ø  and incidentally to provide that any really unavoidable expenditure is met from such savings as far as possible.

·         Save for Budgetary review periods, re-appropriations are open throughout the year. 


·         Sanction Order of re-appropriations should be generated from Budget VPN (Virtual Private Network) or VeRBS – VPN enabled Rail Budget System through reappropriation Module only, so that changed funds position gets reflected in the system.


·         PAC and C&AG are critical of large scale re-appropriations and frequent re-appropriations as they tend to undermine Parliamentary Authority over Railway finances. Hence it needs to be justified with reasons.


·         Funds cannot not be reappropriated to a work not having administrative approval and technical sanction •of competent authority.


·         Amount reappropriated to any work shall not exceed the sanctioned cost of that work.


·          Re-appropriations cannot be done against the outlay and during the currency of 'Vote on Account' allotment.


·         No reappropriations may be done after issue of RE/RG. Urgent requirements, if any, may be projected at the supplementary stage in February and/or Final Estimates in March.


·         Any number of Re-apprpriations are permitted, but no re-appropriation can be done to restore funds withdrawn during the year. 


·         Railway Board's latest instructions:  “Zonal Railways are authorized to re appropriate funds between PUs 27,28& 32 only  (Revenue) and within the erstwhile Demand/SMH.  No other re appropriations between PUs is permissible.” Authority:  Board’s letter No.2013-B-200/WBG dated 17.05.2013    


·         These relaxations vary from year to year and are communicated through Spending Limit orders.   


·         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 orders" as distinct from "Budget orders".


·         No cognizance of these orders should be taken while sanctioning re-appropriations or in distributing the sanctioned allotment over the various sub-heads.



Railway Board - Re-appropriation Powers

Allowed

 

Not allowed

From

To

 

From

To

One Sub Head within Same Demand/Grant i.e., 84 for 2021-22

Another Sub Head within Same Demand/ Grant i.e., 84 for 2021-22

 

Revenue

Capital

One Minor Head

within Same Demand/Grant i.e., 84 for 2021-22

Another Minor Head

within Same Demand/Grant i.e., 84 for 2021-22

 

Capital

Revenue

One Sub Major Head within Same Demand i.e., 84 for 2021-22

Another Sub Major Head within Same Demand i.e., 84 for 2021-22

 

Voted

Charged

From the provision of Suspense in Sub Major Head A10 (Abstract N in erstwhile Demand No.12).

 

Charged

Voted

From the provision for payment to other Railways in Sub  Major Head 7 /erstwhile Demand No.9 (Operating Expenses – Traffic)

·          

 

One Source of Finance

Another Source of Finance

·         Among the following Plan Heads i.e., New Lines, GC, Electrification projects, Track renewals, Staff Welfare & Passenger amenities

 

 

One Civil Grant (SBF, HBA, PC)

Another Civil Grant (SBF, HBA, PC)

One Sub Head in Charged Expediture

To another Sub Head in charged expenditure

 

One Demand / Grant

Another Demand / Grant

From Priority Works

Non Priority Works

 

After 31st March

Under EBR Works

 

 

Under works executed by RVNL

 

 

 

 

 

 

Zonal Railways - Re-appropriation Powers

Allowed

 

Not allowed

From

To

 

From

To

One Sub Head within the Sub Major Head (example is Sub Major Head 03 /erstwhile Demand No 05 – Repairs and Maintenance of Locomotives)

Another Sub Head within Sub Major Head (example is Sub Major Head 03 /erstwhile Demand No 05 – Repairs and Maintenance of Locomotives)

 

Revenue

Capital

One Sub Head in Charged Expediture in Same Sub Major Head

To another Sub Head in charged expenditure in same Sub Major Head

 

Capital

Revenue

·         From One work in Same Plan Head, Same Source finance subject to residual grant being not less than Rs. One Lakh. 

 

·         To another work in Same Plan Head, Same Source of Finance subject to residual grant being not less than Rs. One Lakh. 

 

 

Voted

Charged

 

 

Charged

Voted

 

 

Priority Works

Non Priority Works

 

 

One Source of Finance

Another Source of Finance

·          

 

One Civil Grant (SBF, HBA, PC)

Another Civil Grant (SBF, HBA, PC)

 

 

 

One Demand / Grant

Another Demand / Grant

 

 

 

One Sub Major Head within Same Demand i.e., 84 for 2021-22

Another Sub Major Head within Same Demand i.e., 84 for 2021-22

 

 

 

After 31st March

 

 

 

From the provision of Suspense in Sub Major Head A10 (Abstract N in erstwhile Demand No.12).

 

 

 

From the provision for payment to other Railways in Sub  Major Head 7 /erstwhile Demand No.9 (Operating Expenses – Traffic)

 

 

 

 

·         Among the following Plan Heads i.e., New Lines, GC, Electrification projects, Track renewals, Staff Welfare & Passenger amenities

 

 

 

 

·         Under EBR Works

 

 

 

Under works executed by RVNL

Zonal Railways


·         All proposals for Re-Appropriation of funds which are beyond the GM's Powers shall be submitted to the Railway Board sufficiently early to admit of action being taken before the close of the year.

·         Revenue  - DRM & PHOD are competent


·         Works – GM only is the competent.


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