Merger of Railway Budget with General Budget

 Merger of Railway Budget with General Budget 

Salient Points

• With effect from 2017-18 year

 

• Single Demand for Indian Railways  -  83- Ministry of Indian Railways  (Subsumed all existing 16 Demands Numbering 01 to 16)

 

• Initially Demand No 80 is allotted to Indian Railways. Subsequently it is changed to 81 and again to 82.  Finally for 2020-21 year, the Demand No is 83 (Due to additions and deletions of Ministries/Dept in Union Government)

 

• Erstwhile Demands 03 to 14 (Total 12) are renamed as SMH - Sub Major Head 01 to 12 respectively under Major Head 3002 - Indian Railways Working Expenses - Commercial Lines. 

 

• But Classification /Allocation of Expenditure still align with the erstwhile Demands Nos 01 to 06 as per Indian Railways Finance Code Volume II

 

• Demand No. 83 is subdivided into Revenue Section and Capital section.

 

• Revenue Section  - Major Heads 3001, 3002

 

• Capital Section - Major Head 5002

 

• Capital At Charge since inception stands extinguished.  Hence No Dividend needs be paid on Capital at Charge.

 

• At the same time, no subsidies are available to Indian Railways from Union Government

 

• Interest on Capital is however worked out just like Dividends, but no amount need be paid.

 

• August Review Estimates Budget Review is dispensed.  Two Budget Reviews only existed as of now. 1.  RE/BE - Revised Estimates of Current Year/Budget Estimates of Next Year and 2. FME - Final Modification Estimates 

 

• RE/BE is now due in September in lieu of November.

 

• Works Budget  - Proposals to be sent for Works in Progress only

 

• Benefits and Pitfalls of Joint Family over Nuclear Family will apply. 

Pros

1. Only One Appropriation Bill (instead of Two Appropriation Bills) 

2. Both Time and Money for preparation of Railway Budget is saved

3. Less Political Pressure on Ministry of Railways

4. No Populism Budget

5. Revenue deficit (of Indian Railways) will be passed on to Finance Ministry

6. More flexible for Railway Board to re appropriate between Sub Major Heads (erstwhile Demands)

7. Annexure J  - Big Relief to Indian Railways - Statement of Misclassification is now limited to Misclassification from Revenue to Capital or vice versa and Voted to charged or vice versa)  - Included in Appropriation Accounts and goes to Parliament through PAC

8. Misclassification from One SMH to another SMH on Revenue segment only figured under Statement of Other Mistakes (Not Statement of Misclassification)  - Not appeared in Appropriation Accounts.  To be settled at Zonal Railway level only. 

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Order of Precedence of Documents - GCC for Works 2022 April

Order of Precedence of Documents – GCC for Works, 2022 April 

∙ Applicable for: Works Tenders/Contracts as per GCC for Works, 2022 April 

 Why: Any difference/ contradiction/ discrepancy - with regard to conditions  of tender/contract, specifications, drawings, bill of quantities etc., forming part  of the tender/contract - the following documents shall be the order of  precedence / priority. 

Order of Precedence of Documents - easy to remember – L B S T D G U C U I B

 

SN	Order of Precedence of Documents
1	Letter of Award / Acceptance
2	Bill(s) of Quantities
3	Special Conditions of Contract
4	Technical specifications (as given in Tender documents)
5	Drawings
6	GCC – IR Standard GCC updated with correction slips issued up to date of  inviting Tender or as otherwise specified in Tender documents
7	Unified Standard Specifications (IRUSS -2019 updated with correction slips  issued up to date of inviting Tender or as otherwise specified in Tender  documents, if applicable in the Contract.
8	CPWD specifications 2019 Vol. I & II updated with correction slips issued up  to date of inviting Tender or as otherwise specified in Tender documents, if  applicable in the Contract.
9	Unified Standard Specifications (IRUSS -Works and Material) 2010 updated  with correction slips issued up to date of inviting tender or as otherwise  specified in the tender documents, if applicable in the contract.
10	IR Specifications/Guidelines updated with correction slips issued up to date  of inviting tender or as otherwise specified in the tender documents.
11	B.I.S. Codes (Relevant) updated with correction slips issued up to date of  inviting tender or as otherwise specified in the tender documents

Sl.Nos 6 to 11 – Updated with Correction slips issued up to date of inviting tender or as  otherwise specified in the tender documents. 

• Sl.No. 7 to 9 – If applicable in the Contract

Key Takeaways (for MCQ): 

      1. Latest GCC – 2020 July  

2. First one is LOA  

3. Last one is BIS  

4. LOA stands for Letter of Award / Acceptance  

5. BIS stands for Bureau of Indian Standards  

6. IRUSS stands for Indian Railways Unified Standards Specifications  7. CPWD stands for Central Public Works Department 

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PS Gazetted post Question paper 2020- SCR

 PS Gazetted post Question paper 2020- SCR

70% question paper of SWR AFA 2020 year

 

Click for 70% question paper of SWR AFA 2020

International Accounting Day - 10th November (1494 year)

 

INTERNATIONAL ACCOUNTING DAY TIMELINE

1494

Luca’s Literature

'The Father of Accounting,' - Luca Pacioli, introduces the double-entry bookkeeping system with his publications.

1851

Adding machine invented

Charles Xavier Thomas de Colmar invents the arithmometer, triggering the shift toward computations completed by machines.

1854

First professional accountants' organization

The Institution of Accountants in Glasgow become the first official organization representing and regulating the accounting profession. ​

1973

Let’s Make This (More) Official

The Financial Accounting Standards Board (FASB) is established in the United States.

2001

The Enron scandal

Enron's bankruptcy proved to be an audit failure in American history, bringing new regulations to the accounting profession. ​

On cost charges in Workshops

 On cost charges in Workshops

• Source: Click for 6th chapter of I.R. Rolling Stock Code

• Meaning: 

1. The expenditure which cannot be directly allocated to the product or service and

2.  can only be apportioned on some logical basis

• Another name is Overheads

• On Cost charges - 3 types

1. Shop On Cost (SOC)  - comprising Labor and Materials

2. General On Cost (GOC - comprising Labor and Materials

3. Administrative On Costs (AOC) .  Also called as Proforma On Cost (POC)

• On costs are always expressed and levied as a percentage of Direct labour including incentive Bonus and overtime paid in that work order.

•  Annual Budgeting is required. 

• Shop On cost and General On cost need to be charged to all types of works executed at the workshop irrespective of their nature.

• Quarterly Review: 

1. A review of efficiency of overhead percentages should be made quarterly with reference to total actual expenditure incurred vis-à-vis that recovered at the overhead percentages.

2. A comparison of these actual overheads with recoveries made through estimated percentages will reflect over/under charges for the month under different overheads

3. If these are found unduly large, the percentages are revised without waiting for the Annual On cost Budget so as to minimize the difference between the actual and the predetermined percentage.

4. The Under / Over charges at the end of the year should be less than 5% so as to make On cost budget realistic and the same must be cleared through the final Heads before the end of the Financial Year.

5. Senior scale/JA grade executive officer in charge of Production Control Organization should review the trend of on-cost budget every quarter, jointly with workshop Accounts Officer

6. The outcome of this review in the form of management summary shall bring to the knowledge of Chief Workshop Manager for the management review and ‘on-cost’ control exercise

Shop On Cost (SOC)

• All on cost incurred within a Shop or Section.  Examples are 

1. Wages, overtime etc. of Shop apprentices, JEs, unskilled labour. 

2. Leave pay, idle time, sick hurt and holiday pay, travelling allowances and arrear pay, and pay allowed to men on volunteer duty or part-taking in sports.

3. Shop scrap (credit)

4. Stationery and forms

5. Defective and spoilt work, in the case of experimental work

6. Power chargers, whether electric pneumatic, gas or hydraulic which can be directly allocated to shops.

7. Wages of operators of automatic machines, not otherwise allocated

8. Wages, overtime etc. of men employed on mechanical transport in the shop

9. Wages, overtime etc. of all general labour in shops including those employed on transport.

10. Hammer driving in shops

11. Small differences between muster rolls and time sheets

12. Consumable stores (Lubrication oil, waste, sponges, etc.)

13. Charges for coal and coke in the smithies

14. Lighting charges in shops

15. Fine creditable to works

16. Suspension allowances

17. Wages etc. of shop messengers

18. Working expenses of crane and shunting engines, lorries, autotrucks, traversers etc.

19. Small tools for shop use

General On Cost (GOC)

•  Denotes all On cost charges common with more than one Shop. Examples are:

1. Wages and allowances of staff of Yard shop

2. Wages & allowances of Workshop apprentices not attached to shops. 

3. Freight charges .

4. Electrical power.

5. Hydraulic and pneumatic power and gas

6. Replacement of articles stolen or lost

7. Expenditure on apprentices’ school and hostel

8. Working expenses of crane and shunting engines, lorries, auto trucks, traversers etc.,

9. Working expenses of central works pumping plant.

10. Experimental work

11. Water charges

12. Sanitary arrangements

13. Messengers’ wages, uniforms etc.

14. Consumable stores for general use

15. Maintenance of mess rooms

16. Yard lighting.

Administrative On Cost  or Proforma On Cost

•  Charged  -   percentage of direct labour  - to RSP works and all works done for outsiders. 

• Profit will also be charged for work done for outsiders.

• To  make competitive, GM can waive whole charges or reduce with concurrence of PFA. 

 

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