Zoom Meetings covered so far

 

   Zoom Meetings  - Topics covered so far

Meeting	Date	Topic
1	20.12.2020	Introduction
2	27.12.2020	Budget
3	03.01.2021	Auditing
4	10.01.2021	Parliamentary Control over Railway Finances
5	17.01.2021	Appropriation Accounts
6	24.01.2021	What is Demand ? What is Grant ? What is Major Head ? What is Sub Major Head ?
7	31.01.2021	Works Program & IRPSM
8	07.02.2021	Railway Budget 2021-22 - An analysis
9	14.02.2021	Traditional Budget, Outcome Budget, ZBB,  Integrated Budget,  Performance Budget

9th Zoom Meeting

 

www.appendix3.com is inviting you to a scheduled 9th Zoom meeting.

Topic: Traditional Budget, Outcome Budget, ZBB,

 Integrated Budget,  Performance Budget

Time: Feb 14 (Sunday), 2021 18:00 hrs 

Zoom Link click between 5.45 PM to 6 PM

Meeting ID: 828 4741 1170

Passcode: 486770

Productivity Test or Review (Post Appraisal)

 Productivity Test / Review

 

·         Source: Chapter 2 of Indian Railway Finance Code

 

·         Also called as Post appraisal

 

·         Object: 

1. To compare the earnings or savings in working expenses  eventually realized after the new expenditure (capital) has fructified with that anticipated when the proposal was embarked upon.  

2.  That means to ensure that the estimated return at the time of proposal has attained or not.

3. Not only to furnish information as to the results actually achieved to the authority who sanctioned the expenditure but also to serve as a lesson for the future.

 ·         Applicable for all Major works.

 ·         Conducted by Financial branch.

 ·         Separate records of expenditure & earnings related to the selected works (for Productivity Test) have to be maintained by the Accounts officers. So that the Productivity Test can be conducted as soon as it falls due.

 ·         Additional earnings and working expenses   - computation should be done at the project estimate stage.

 

·         To avoid the changes in prices due to escalation – comparison in terms of physical units or throughput i.e., class wise passenger traffic & commodity wise Goods traffic may be carried out.

 

·         New Lines – A statement showing the financial results of its working in specified Form (F 244) should reach the Railway Board not later than 31st December

• Accompanied by a covering memorandum in which brief explanations should be given of important variations between the actual realization and the estimated earnings.

• Also a Note by the GM indicating how the actual net cash flow compares with what was estimated at the project stage.

• Also bring out the probable traffic prospects of the line in the 6th and the  11th year of opening.

 

• Open Line works - Such Tests applied within five to seven years of their completion.

• Selection will be made out of these works sanctioned (and/or charged to Capital) on grounds of remunerativeness.

• All such works costing over Rs. 1 crore will invariably be subjected to this test.

• The result of the test should be reported by the General Managers to the Railway Board.

• Works costing between Rs. 20 lakhs and Rs.1 crore charged to Capital and sanctioned by the General Manager within his powers 'of sanction  - Selection will be made by GM in consultation with PFA. 

• Productivity review  will be conducted for  Works costing above Rs.10 Lakhs - chargeable to DF. Though ROR is not mandatory for execution of those works.  

• The fact that productivity tests are to be applied to a particular work should be intimated to the authorities entrusted with its execution as also to the Accounts and Audit officers.

• Maintenance of Register with the following particulars. 

1. Reference to sanction of the estimate.

2. Brief particulars of work 

3. Total estimated expenditure

4. Nature and extent of "productivity" claimed in the estimate.

5. When the test or review is to be applied

6. Brief remarks about the results of the test or review.

• Review of Register - Half yearly

• PFA should submit a report embodying the results of the test or review to the GM. 

• Works selected by the Railway Board - The GM will submit the PFA’s report to the Board with his own comments.  The object of these reports is not only to furnish information as to the results actually achieved to the authority who sanctioned the expenditure but also to serve as a lesson for the future.

&&&&&

Railway Budget 2021-22 - Revenue

 

2021-22 Railway Revenue Budget - Financials

SN	Receipts	Amount (Rs. in Crores)	Percentage		SN	Expenditure	Amount (Rs. in Crores)	Percentage
1	Coaching Earnings	67200	31 %		1	Ordinary Working Expenses	154399	74 %
2	Goods Earnings	137810	63 %		2	Appropriation to DRF	800	-
3	Sundry Earnings	12000	6 %		3	Appropriation to Pension Fund	53300	26 %
4	Gross Earnings (1+2+3)	217010	100 %		4	Gross Working Expenses (1+2+3)	208499	100 %
5	Suspense	100			5	Suspense	(-)  149
6	Gross Receipts (4+5)	217110			6	Gross Expenditure (4+5)	208300
7	Misc Receipts	350			7	Misc. Expenditure	2400
8	Total Receipts (6+7)	217460			8	Total Expenditure	210700

 

Net Revenue = Total Receipts - Total Expenditure

Net Revenue = 217460-210899

Net Revenue = 6561

Rs. 6561 Crores Net Revenue is appropriated to

1.       Development Fund - Rs. 1561 Crores

2.       RRSK - Rashtriya Rail Sanraksha Kosh - Rs. 5000 Crores

Nil appropriations to All other Funds like Capital Fund , RSF - Railway Safety Fund, Debt Service Fund.  

 

 

 

 

 

Railway Budget 2021-22 - Highlights

 Highlights of Railways Budget 2021-22

 

• Single Demand Number - 84 ( 83 for 2020-21)

 

• Capex - 2,15,058 Crores

 

• Budgetary Support from Ministry of Finance -110055 Crores

 

• 100 % Electrification  - by December, 2023

 

• BG Route KMs - 72 % Electrification by December, 2021

 

• DFC - Dedicated Freight Corridors - Commissioned by June, 2022

 

• The Sonnagar-Gomoh Section (263.7 km) of Eastern DFC  -taken up in PPP mode in 2021-22

 

• Proposed DFCs

 

1. East Coast corridor from Kharagpur to Vijayawada

2. East-West Corridor from Bhusaval to Kharagpur to Dankuni

3. North-South corridor from Itarsi to Vijayawada

 

• Vista Dome LHB coaches on Tourist routes

 

•  ATPS - Automatic Train Protection System (indigenously developed one) - introduced  in Important routes to eliminate Train Collision. 

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