Railway Accounts Department Examinations

Sunday, January 17, 2021

Parliamentary control over Railway finances

 

Parliamentary control over Railway finances

 

Key to Remember  -  PQR   DANCER   CCC

 

P - PAC

Q - Questions asked in Parliament

R - RCC

 

D - Discussions on urgent matters in Parliament

A - Annual Budget

N - NRUCC

C - Cut Motions

E - Estimates Committee

R - References from MPs

 

C - Committee on Subordinate Legislation

C - Committee on Govt Assurances

C - Committee System - Referring a particular matter to the Committees

1.    Annual Budget

2.    Estimates committee

3.    Committee on subordinate legislation

4.    NRUCC

5.    Committee on Government assurances

6.    PAC

7.    RCC

8.    References from Members of Parliament

9.    Committee system - Referring a matter (of Railways) to the committee of Parliament Members

10.  Cut Motions

11.  Questions in the Lok Sabha & the Rajya Sabha A) Starred B) Unstarred C) Short Notice

12.  Discussion on urgent matters through Adjournment Motion or Calling Attention notice

 

1.    Annual Budgetary exercise

 

 

     Under Article   112   of the  Constitution, A statement of the estimated annual receipts and expenditure whether on the Capital segment or on Revenue segment of the Railways,   commonly known as the ' Budget',  is laid before   both  the   Houses   of Parliament   by Finance Minister.

     The proposed expenditure included in the Budget may be—(i) Voted, or (ii) Charged.

      Parliament has the power to assent, or to refuse to assent, to any demand or to assent to any demand subject to a reduction of the amount.  (Cut Motions)

      If the amount of a grant/appropriation in the budget is found to be insufficient for the purpose of the current year, an estimate for supplementary grant /appropriation,  is submitted by the Railway Board to the vote of the Parliament/ sanction of the President.

     Excess Grants relate to expenditure already incurred, for  reasons to be fully explained, in excess of the grant voted by Parliament.  The demand for an excess grant is based on the recommendations of the Public Accounts Committee as a result of their scrutiny of the Appropriation Accounts of the Railways and the Audit Report of the Comptroller and Auditor General.  Excess grants have to be presented after obtaining the recommendation of the President.

     Budget allotment: The  grants  as  voted  by  the  Parliament  and the  appropriation  for  the  charged  expenditure  as sanctioned  by  the  President,  are  distributed  by the Railway  Board  among  the  railway administrations and other authorities subordinate  to  them,  as  soon  as  possible  after the Budget  is sanctioned.

      The  allotments  made  out  of  funds voted  by  the  Parliament  are  shown  as  ‘Voted’ and  those  fixed  by  the  President  are  shown  as ‘Charged’.

     Budget Orders: The orders by means of which the allotments are communicated are called "Budget Orders".

     In the event of the Budget Orders of the Railway Board not being received before the commencement of the financial year, the railway administrations are empowered to incur expenditure on works which were in progress at the end of the previous financial year.  All expenditure incurred under this rule must be treated as a charge against the allotments eventually made for such works.

      When the Budget Orders issued by the Railway Board show any reduction in the estimates originally submitted to them, prompt measures should be taken by the railway administrations to limit the expenditure to the amounts allotted by the Railway Board.

      Budget is operative  until  the  close  of  the financial  year.  Under  the  ‘doctrine  of  lapse’,  any unspent  balance  shall  lapse  and   not  be available for utilization  in the  following  year.

 

2.    Estimates Committee:

 

      Consists of 30 Members - all elected from Lok Sabha only

     Term - One year

      The members are elected every year from amongst its members of the Lok Sabha, according to the principle of proportional representation by means of single transferable vote. The chairperson is appointed by the Lok Sabha speaker

      A minister is not eligible to become a member of the committee. In case a member after his election to the committee becomes a minister, he or she ceases to be a member from the date of such appointment.

     Scrutinizing the functioning of Government ministries/departments including Indian Railways in terms of the expenditure and utilization of funds.

     Suggests alternative policies in order to bring about efficiency and economy in administration.

     It also examines whether the finances are laid out within the limits of the policy implied in the estimates and also to suggest the form in which the estimates shall be presented to Parliament

      It is a financial standing committee (PAC too)

      The committee from time to time selects the estimates pertaining to a ministry or department of the central government or such of the statutory and other bodies of the central government as may seem fit to the committee.

 

 

3.    Committee on Subordinate Legislation:

 

      scrutinizes and reports to the House to know whether the powers are making regulations, rules, sub -rules, by-laws etc. conferred by the constitution or delegated by the parliament are being properly exercised by the executive within the scope of such delegation.

       Consists of 15 Members from both the Houses. (Separate committees)

      Term: One year

 

4.    NRUCC

 

     National Level -  NRUCC - National Railway Users Consultative Council

 

     Zonal  Level - ZRUCC - Zonal Railway Users Consultative Committee

 

     Divisional level - DRUCC - Divisional Railway Users Consultative Committee

 

     All the Committees and Council established under these rules are consultative in character.

 

     Questions relating to staff, discipline and appointment should not be brought before the Committees or the Council.

 

     Afforded reasonable facilities like Free passes for  travel and Travelling allowance to all Non official members for attending committee meetings or any other work of the committee.

 

Objects:

 

A.    Securing better representation of Railway users.

 

B.     Affording more frequent opportunities for consultation between Railways and Users on matters relating to service.

C.     Improving the passenger services.

 

Functions:

 

1.    Provision of amenities

 

2.    Opening of New stations

 

3.    Improvement of Passenger services and facilities

 

     Members - From Chamber of Commerce, Trade Associations,  Industries Association, Agriculture Association, Handicapped  Association, Registered Passengers association, Consumer  Protection Organisation, MLAs, MPs , Railway Officials etc

 

 

 

NRUCC

ZRUCC

DRUCC

Full form

National Railway Users Consultative Council

Zonal Railway Users Consultative Committee

Divisional Railway Users Consultative Committee

Chairman

Minister for Railways

GM

DRM

Secretary

Director, Traffic Commercial (General) II

Secretary to GM or any other officer nominated by GM

Sr.Traffic Officer (Sr.DOM /Sr.DCM)

Tenure

2 years

2 years

2 years

Tenure commenced from

July

April

January

No of times - Meet

2 times

3 times

Not less than 3 times

 

 

5.    Committee on Government Assurances

 

     scrutinizes the assurances, promises, undertakings etc. given by ministers from time to time;

     and to report to the respective house and to see whether such implementation has taken place within the minimum time necessary for the purpose.

     Consists of 15 members in Lok Sabha.

     Term - 1 Year

     Chairman is appointed by the Speaker of the Lok Sabha. However, if the Deputy Speaker is a Member of the Committee, he shall be appointed Chairman of the Committee.

 

6.      PAC

 

      Shortly or popularly called as PAC.

     It is one of the Standing Parliamentary committees in India. Hence it is under the control of Speaker of Lok Sabha.

       The term of office of PAC members is one year only.

      Total Members should not be more than 22.  (15 Members were from Lok Sabha and 7 Members were from Rajya Sabha) 

       None of the above members shall be a Minister of Government.  If a Member after his election to the PAC is appointed a Minister, he ceases to be a member of the Committee. 

       The Chairman of PAC is appointed by the Speaker amongst its members of Lok Sabha. Since 1967, the Chairman of the PAC has been a member of Opposition.  This practice has been continued since then, though it is not mandatory.

 

Functions of PAC

 

     Examination of the Appropriation Accounts relating to Railways, Defense Services, P & T Dept and other civil ministries of Central Government.

 

     Examination of Reports of CAG on the above Appropriation Accounts.

 

     Examination of CAG Report on Revenue Receipts of Government of India.

 

     That the money shown in the Appropriation accounts as having been disbursed were legally available for and, applicable to the service or purpose to which they have been applied or charged.

 

     That the expenditure conforms to the authority which governs it.

 

     That every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority.

 

       Normally all the recommendations of the PAC are implemented by the Government.

 

Working of the PAC:

 

       The representatives of the Ministries like Railways, Defense etc appear before the PAC when examining the Accounts and Audit (CAG) reports relating to their ministries.

 

        The committee proceeds by way of INTERROGATION of witnesses.  The CAG is the "friend, philosopher and guide of the PAC" while attends the sittings of the Committee and assists it in its deliberations.

 

       The Committee may appoint one or more Sub-Committees/groups to examine any particular matter.

 

 

Govt's Action on PAC recommendations:

 

       Stages  are  1. Action taken Notes 2.  Action taken Report 3. Action taken Statement.

 

  1. Action taken Notes:  Govt take action on the recommendations of the PAC and submit ACTION TAKEN NOTES to the Committee.

  2.Action taken Report:  The PAC then presents ACTION TAKEN REPORT after considering the views of Government.

3. Action taken statement:  The Government further submit an Action TAKEN STATEMENT on the action taken by the Government on the Action Taken Report of the committee.  Action taken Statement is generally laid before the House without any further examination by the PAC.

 

       Normally, almost all the recommendations of the Committee are implemented by the Government.

 

7.      RCC

       is an ad hoc Parliamentary committee constituted from time to time on Resolution adopted by Lok Sabha and concurred in by Rajya Sabha.

 

       Þ       The appointment and functions of Railway Convention Committee is a part of Parliamentary control over Indian Railway Finances.

 

       Þ       Composition of RCC - 12 members from Lok Sabha nominated by Speaker and 6 Members from Rajya Sabha nominated by Chairman.

 

       Þ       The Chairman of the Committee is appointed by the Speaker from amongst the members of the Committee.

 

     

       Þ       After Independence, first RCC constituted in the year 1949. Since then, each Lok Sabha has been having a Railway Convention Committee.

 

       Þ        The Committee becomes functus officio after presenting its final Report regarding rate of dividend payable to General Revenues.

 

       Þ       The Report of the Committee on the Rate of Dividend is considered by the House on a Resolution moved by the Minister of Railways.

 

       Þ       After a Report has been presented to the House, the Ministry of Railways and other concerned Ministries are required to take action on various observations and recommendations contained in the Report. The replies of the Government are examined and an ATR- Action Taken Report is then presented to the House.

 

       Þ       is formed once in five years (normally with the formation of New Loksabha)

 

       Þ       Its rules generally applicable for a period of five years.

 

 

R C C recommends on the following aspects:

 

ü Rate of Dividend payable to the General Revenues. (This may not require now, due to merger of Railway Budget with General Budget)

 

ü Appropriation to the D.R.F.

 

ü Modification of rules of expenditure allocation between Capital and Revenue.

 

ü How Rly Surplus (after the payment of Dividend) should be distributed among various Railway Funds.

 

ü To introduce flexibility in the administration of the Railway finances.

 

ü Accounting matters and aspects of Management practices on Railways.

 

ü Express views on Rolling Stock Production and any short earnings and how the same should be overcome.

 

 

ü And any other subject matter brought to its notice by the Minister of Railways.

 

 

 

 

8.    References from Members of Parliament

 

 

 

9.    Committee system - Referring a matter (of Railways) to the committee of Parliament Members

 

 

10.   Cut Motions

     Part of Parliamentary control over Railway Finances.

 

     A special power vested in Members of Lok Sabha to reduce any Demand for Grant

 

    Exercised while discussing the Demands for Grants

 

     Consequence:  If the Cut Motion is adopted, it amounts to no-confidence Vote. If the Govt fails to jot up the numbers in Lok Sabha, it is obliged to resign according to the norms of House.

 

     The decision to accept a Cut Motion relies solely on the Speaker of the Lok Sabha as per Rules in force.

 

     Members can also table notices in electronic form through e-portal specially developed for the purpose.

 

Types:

 

1.    Disapproval of Policy Cut: Demand is reduced to Rupee One.

 

2.    Economic Cut: Reduction of Demand for Grant to a specific amount.

 

3.    Token Cut: The amount of the Demand is reduced by just Rs. 100. This is to ventilate the specific grievance /displeasure.

 

   Examples:

 

Type of Cut

Demand for Grant proposed

Amount of

 Cut

Demand for

Grant passed

Remarks

Disapproval

Policy Cut

Rs. 1,00,000

Rs. 99,999

Re 1

Here agreeing the

amount always Re 1 only.

Economic Cut

Rs. 1,00,000

Rs. 30,000

Rs. 70,000

Any amount of cut.

 That is either Rs. 30,000

 or any specific amount

within Rs. 1,00,000

Token Cut

Rs. 1,00,000

Rs. 100

Rs. 99,900

Here, the amount of cut

 always Rs. 100 being Token.

 

11.  Questions in the Lok Sabha & the Rajya Sabha

 

     Any Member of Parliament may ask a question  for the purpose of obtaining information on a matter of public importance.

 

      Starred Questions -A Starred Question is one to which a member desires an oral answer from the Minister in the House and is required to be distinguished by him/her with an asterisk. Answers to such a question may be followed by supplementary questions by members.

 

     Unstarred Questions- An Unstarred Question is one to which a written answer is desired by the member and is deemed to be laid on the Table of the House by the Minister. Thus it is not called for oral answer in the House and no supplementary question can be asked thereon.

 

     Short Notice Questions- A member may give a notice of question on a matter of public importance and of urgent character for oral answer at a notice less than 10 days prescribed as the minimum period of notice for asking a question in ordinary course. Such a question is known as ‘Short Notice Question’.

 

12.   Discussion on a definite   matter of urgent public  importance may be sought by a Member through an Adjournment Motion or a Calling Attention Notice.

 

 

 

Table

 

Committee

Tenure

(years)

Total Members

Lok Sabha

Rajya Sabha

Type of

 Committee

Estimates

1

30

30

Nil

Standing

PAC

1

22

15

7

Standing

RCC

5

18

12

6

Ad hoc

Subordinate Legislations

1

15

15

15

Standing -

Separate committees

Govt Assurances

1

15

15

15

Separate committees

 

 

&&&&&&&&

Friday, January 15, 2021

Freight Business Development Portal

 

Freight Business Development portal

 

https://indianrailways.gov.in/#

Or

https://www.fois.indianrail.gov.in/RailSAHAY

 

      Launched on 5th January, 2021

     One stop - Single Window” Solution for all the freight customers.

 

      Game changer

 

 Salient features:

 

1.    Dedicated Freight portal

2.   Online tracking facility for suppliers

3.   Ensure all operations stay customer centric

4.   Simplify the process of Goods transportation

5.   Embraced a “Freight on Priority”

6.    Attracting new customers with the help of BDUs – Business Development Units ( established at Zonal and Division level)

****

Thursday, January 14, 2021

Festival greetings

 




Greetings from the Blogger

 www.mcqrailways.com
www.appendix3exam.com
Whatsapp/SMS -93-4644-0669




Wednesday, January 6, 2021

Fourth Zoom Meeting


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


Topic: McQ on Parliamentary control over Railway finances

Time: Jan 10, 2021 18:00 India


Join Zoom Meeting

LINK

Meeting ID: 870 7776 5818

Passcode: 566736


Sunday, January 3, 2021

Third Zoom Meeting on McQ - Multiple Choice Questions

 


Nageswara Rao www.appendix3.com is inviting you to a Zoom meeting.


Topic: MCQ - Multiple Choice Questions on Auditing in Indian Railways


Time: 03rd January, 2021 18:00 hrs   


Click the below link between 17.45 hrs to 18 hrs on 03.01.2021



Meeting ID: 822 1601 4958 Passcode: 998285






Friday, January 1, 2021

Happy New Year 2021



 
Launching Mobile App / Desktop App on McQ - Multiple Choice Questions in January First week








Monday, December 28, 2020

McQ on Budget

MCQ on Budget (During Zoom presentation on 27.12.2020)

1. Total number of erstwhile Demands in OWE - Ordinary Working Expenses of Zonal Railways ? 

Answer 1: 13

Answer 2: 11

Answer 3: 15

Answer 4: 16

2. Total number of erstwhile Demands in Indian Railways (prior to merger - including both Revenue and Capital) 

Answer 1: 16

Answer 2: 15

Answer 3: 13

Answer 4: 1

3. Which fund is described as "Reservoir of Government Money" ? 

Answer 1: Public Account of India

Answer 2: Deposit with RBI

Answer 3: Consolidated Fund of India

Answer 4: Central Government Treasury

4. Recovery of Provident Fund is accounted in ? 

Answer 1: Contingency Fund of India

Answer 2: Consolidated Fund of India

Answer 3: Public Account of India

Answer 4: Staff Benefit Fund

5. Commercial Accounts of Indian Railways are known as Capital & Revenue Accounts. Answer True or False 

Answer 1: True

Answer 2: False

6. Government Accounts of Indian Railways are known as Capital & Revenue Accounts. Answer True or False 

Answer 1: True

Answer 2: False

7. One of the options is not example of Charged expenditure 

Answer 1: Salary of Cabinet Secretary

Answer 2: Judgement/award of Court

Answer 3: Pay & allowance of C&AG

Answer 4: Pay & allowance of Chief Election Commissioner

8. Pick out the odd man out 

Answer 1: Staff Benefit Fund

Answer 2: Contingency Fund of India

Answer 3: Public Account of India

Answer 4: Consolidated Fund of India

9. Budget is a ________________ and _______________ document as per Indian Railway Finance Code Volume One (Chapter 3)

Answer 1: Constitutional , Management

Answer 2: Financial, Audit

Answer 3: Financial, Constitutional

Answer 4: Financial, Audit

10. As per Article 112(1) of Constitution of India, A statement of the estimated receipts and expenditure of the Government of India for that year’ referred to as the "__________________________" and popularly called the "__________________". 

Answer 1: annual financial statement, Annual Budget

Answer 2: Annual Budget, Annual Financial Statement

Answer 3: Annual Fiscal document, Management document

Answer 4: None of these

11. Which one is not example of Charged Expenditure in case of Indian Railways 

Answer 1: Salary and allowances of Chairman, RRB - Railway Recruitment Board

Answer 2: The salary, allowances and pension payable to or in respect of the CAG -Comptroller and Auditor General of India;

Answer 3: Any sums required to satisfy any judgement, decree or award of any Court or awards by Arbitrators where made into rule of court

Answer 4: Any other expenditure declared by the Constitution or by Parliament by law to be so charged

12. The Demands shall be for _____expenditure ; the credits or recoveries being shown in the form of _________ Demands. 

Answer 1: Net, footnotes to

Answer 2: Gross, deducted from 

Answer 3: Gross, footnotes to

Answer 4: Net, deducted from

13. The erstwhile Demands No. 1, 2 & 3 are in the nature of _______________ 

Answer 1: covering all Zonal Railways

Answer 2: Covering Railway Board only

Answer 3: Ordinary Working Expenses

Answer 4: General on cost

14. There is a single works erstwhile Demand No. 16 for all works Expenditure irrespective of source of financing. Say True or False 

Answer 1: True

Answer 2: False

15. First two digits in classification/allocation of erstwhile Demand No. 16 is ____________ 

Answer 1: Demand Number

Answer 2: Source of Finance

Answer 3: Plan Head

Answer 4: Activity

16. First two digits in Revenue classification shows ______ 

Answer 1: Source of Finance

Answer 2: Erstwhile Demand Number

Answer 3: Single Demand Number 83 (for 2020-21 FY)

Answer 4: Activity

17. Last two digits in Revenue/Capital classification shows_______ 

Answer 1: Main activity

Answer 2: erstwhile Demand Number

Answer 3: Sub activity

Answer 4: None of these

18. Total digits in Revenue classification/allocation are ____ 

Answer 1: 8

Answer 2: 7

Answer 3: 6

Answer 4: 9

19. Total digits in Capital classification/allocation are ____ 

Answer 1: 6

Answer 2: 7

Answer 3: 8

Answer 4: 9

20. Each erstwhile Demand has two-way classification by activity and by Primary units of expenditure. The activity classification identifies _______an expense item is incurred and Primary unit identifies ______ the expense item denotes 

Answer 1: Why, What

Answer 2: What, Why

Answer 3: Object, Why

Answer 4: What, Object

 

21. Ordinary Working Expenses (OWE) consists of ________ 

Answer 1: Erstwhile Demands 1 to 16

Answer 2: Erstwhile Demands 1 to 15

Answer 3: Erstwhile Demands 3 to 13

Answer 4: Erstwhile Demands 1 & 2

22. GWE - Gross Working Expenses consists of _______ 

Answer 1: Erstwhile Demands 1 to 15

Answer 2: Erstwhile Demands 1 to 16

Answer 3: Erstwhile Demands 3 to 13

Answer 4: Erstwhile Demands 1 to 14

23. Preparation of the Revised and Budget Estimates should commence at the '__________ level ’ 

Answer 1: Railway Board

Answer 2: Zonal Railway Headquarters

Answer 3: Grass Root, i.e., Division, Stores Depot, Workshop etc

Answer 4: Divisional Railway Headquarters

24. Accounts Dept (PFA) responsibility towards Budget is _______ 

Answer 1: Preparation

Answer 2: Compilation and scrutiny

Answer 3: Guidance to Executives

Answer 4: Approving

25. Credits or recoveries shall be __________from the scope of the demands presented for vote of Parliament :- 

Answer 1: Excluded

Answer 2: Included

26. The Grants are distributed by the Railway Board among the railway administrations are called as ______________and the orders by means of which the allotments are made are called as ______________ 

Answer 1: Allotments, Budget Orders

Answer 2: Budget Orders, Allotments

Answer 3: Spending Limit, Allotments

Answer 4: Allotments, Spending Limit

Answers:


  1. 2

  2. 1

  3. 3

  4.  3

  5.  True

  6.  False

  7.  1 

  8.  1

  9.  1

  10.  1

  11.  1

  12.  3

  13.  4

  14.  True

  15.  2

  16.  2

  17.  4 (Primary Unit - Object of expenditure)

  18.  1

  19.  3

  20.  1

  21.  3

  22.  1

  23.   3

  24.  2

  25.  1

  26.  1


*****

Wednesday, December 23, 2020

Second Zoom meeting on MCQ (Budgeting in Indian Railways)

 


Nageswara Rao www.appendix3.com is inviting you to a Zoom meeting.


Topic: MCQ - Multiple Choice Questions on Budgeting in Indian Railways


Time: 27th December, 2020 18:00 hrs