MCQ Test on Budget - Chapter 3 of Finance Code Volume One

 

Topic               : Budget - Chapter 3 of Finance Code Volume One

Date                 : 22nd December, 2022 (Thursday) 

Timings           :  8 PM to 10 PM 

Marks             :  1 Mark for Correct answer and Minus 1/3 Mark for Incorrect Answer    

Click here for MCQ Test online

LAP - Leave on Average Pay

 Leave on Average Pay (LAP)

1. Railway employees are eligible for advance credit of 30 days LAP in their leave account every year.

2. The credit is given in two installments i.e. 15 days  on 1 st January and 15 days on 1 st July of every year.

3. In case of appointment or retirement in any part of half year credit shall be given at the rate of 2 ½ days per month up to the end of that half year.

4. In case of unauthorized absence, suspension, Dies-non etc, 1/10 th of such period will be debited to the leave account.

5. Maximum 300 days can be accumulated.

6. Advance credit of 15 days of next half year will be kept separately. (300 + 15)

7. Maximum 180 days LAP can be sanctioned at a time.

8. On retirement, 300 days LAP can be en-cashed.

9. LAP cannot be combined with CL.

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LHAP - Leave on Half Average Pay

                    Leave on Half Average Pay (LHAP)

• Railway employees are eligible for 20 days LHAP in a year.

• It is credited to the leave account in two installments @ 10 days each. ( 10 days on 1 st January and 10 days on 1st July).

• In the case of appointment or retirement in any part of half year credit shall be given at the rate of 5/3 days per month up to the end of that half year.

• In case of unauthorized absence, suspension, dies-non etc, 1/18 th of such period to the LHAP account.

• There is no maximum limit for accumulation.

• During LHAP employees are paid half pay salary.

• On retirement LHAP can not been-cashed. However, if 300 days of LAP is not available for encashment, LHAP to the extent of the difference can be en-cashed.

• Employees can opt for conversion of sick period into LHAP, it can be accepted and double the amount of sick period will be debited to LHAP account.

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Leave Not Due - LND

          

Leave not due ( LND)

• Leave not due is sanctioned when the employee is   not having LAP or LHAP balance.

• This leave is sanctioned on a Medical Certificate.

• In the entire service maximum 360 days LND can be sanctioned.

• Only half pay is paid during LND like in LHAP.

• This is like overdraft of LHAP.( Advance sanction of LHAP)

• Sanctioning authority should believe that after LND employees will come back to work and earn an equal amount of LHAP for debiting LND to LHAP account.

• It can be in continuation to LAP and LHAP.

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CGEGIS – Central Government Employees Group Insurance Scheme, 1980

CGEGIS – Central Government Employees Group Insurance Scheme, 1980 

 

v  Authority is Railway Board letter - Click

 

v  Commencement of CGEGIS - 01.01.1982

 

v  Compulsory for staff who have joined on or after 01.11.1989

 

v  Object: Provides twin benefits to Central Govt employees, at a Low cost.  It is wholly contributory and self financing.

 

1. Insurance cover on account of death of employee

2.  Lump sum amount from Savings Fund on the date of Retirement

 

v  Recoveries towards CGEGIS credited to the Public Account of India.

 

v  All employees who enter service on or after 2nd January of any year shall be enrolled as members of Scheme on the next anniversary of the Scheme (i.e.,  from 01st January of Next year)

 

v  Calendar year i.e., January to December is the criteria for calculation of CGEGIS.

 

v  Authority for Recovery of Rs. 30 (on par with Group C staff) to erstwhile Group D staff with Grade pay 1800.  W.e.f from 01.01.2011  : Authority

 

v  Monthly Recovery amount (One unit equals – Rs. 15)  - W.e.f 01.01.1991

 

	No Of units	Normal Recovery in  subsequent years	Insurance cover	Recovery in the joining year, If joined on or after  2nd January of any year (till 31st December) – Insurance portion only	@Rs. 4.50 for every Rs. 15000 (one unit)  insurance cover
Group A	8	Rs. 120	Rs. 1,20,000	Rs. 36 per month	Rs. 4.50 x 8 = Rs.36
Group B	4	Rs. 60	Rs. 60,000	Rs. 18 per month	Rs. 4.50  x 4 = Rs. 18
Group C	2	Rs. 30	Rs. 30,000	Rs. 9 per month	Rs. 4.50 x 2 = Rs. 9

 

Example: If an employee joined on or after 2nd January of any year.

 

ü  A Group C employee joined service on 03.01.2019.  He will be enrolled for the said scheme with effect from 01.01.2020 only.

 

The recovery is Rs. 4.50 per cover of Insurance of Rs. 15,000. That means recovery from Group C employee is Rs. 9 from January 2019 to December 2019, because insurance cover of Group C is Rs. 30,000 (Rs. 4.50 x 2 )

 

ü  Rs. 4.50 per every Rs. 15000 insurance cover consists of  contribution to Insurance Fund only.( Not Savings Fund)

 

ü  However from 01.01.2020, the recovery is Rs. 30 per month from Group C employees. (contribution to Insurance Fund as well as Savings Fund )

 

Example: If an employee is promoted on or after 2nd January of any year.

 

ü  If Group C employees are promoted to Group B Post on 5th February 2019.

 

ü  Rate of recovery of CGEGIS is Rs. 30 only, till 31.12.2019.  It will enhance from Rs. 30 to Rs.60 from 1st January, 2020 only.

 

v  Ratio of Insurance Fund to Savings Fund is 30% to 70% (so for Group C post, it is Rs. 9 :Rs.21 towards Insurance Fund and Savings Fund respectively.)

 

 

v  Payments from CGEGIS

 

1.       At the time of Retirement : Contribution to the Savings Fund and Interest accrued

 

2.       At the time of Death           : Contribution to the Savings Fund and Interest accrued as well as Insurance cover i.e., Rs. 30,000 , Rs. 60,000 & Rs. 1,20,000 towards Group C, Group B and Group A respectively

 

 

 

 

 

 

Key takeaways for MCQ on CGEGIS

 

1. CGEGIS stands for Central Government Employees Group Insurance Scheme

 

2. Commenced from 1st January, 1982 

 

3. Compulsory for those who joined on or after 1st November, 1989 

 

4. Recoveries are credited to the Public Account of India (not Consolidated Fund of India).  Because it belongs to the Public (Employees), not Government of India. 

 

5. All employees who enter service on or after 2nd January of any year   - Members of this scheme from next year only, not the current year. 

 

6. Calendar year i.e., January to December  - Criteria 

 

7. One Unit equals Rs.15.  

 

Group A - Rs.120 (8 Units)  

Group B - Rs.  60 (4 Units)

Group C - Rs.  30 (2 Units)  

 

8. Insurance Fund - 30 % and Savings Fund - 70 % 

 

9. At the time of Retirement : Contribution to the Savings Fund and Interest accrued

 

10.  At the time of Death        : Contribution to the Savings Fund and Interest accrued as well as Insurance cover 

 

11. Insurance coverage is as follows:  

 

• Group A  - Rs. 120000  (100 times of monthly recovery Rs. 120)

• Group B  - Rs.   60000  (100 times of monthly recovery Rs.   60)

• Group C  - Rs.   30000  (100 times of monthly recovery Rs.   30)

 

—end—

CGA, ICAS, PFMS & GFR

CGA, ICAS, PFMS, GFR

NageswaraRao 9492432160 

What is the need of knowing about CGA, PFMS, ICAS etc, being a Railway employee ?

Answer: 

• The blogger is of the opinion, the practices and software of Indian Railways is going to be in common with the Union Government of India after merger of Railway Budget with Union Budget from 2017-18 onwards, 

• GFR General Financial Rules has become relevant to Indian Railways.  

• Also GeM, HRMS, E office, the universal applications all over the Government of India has common with Indian Railways.  

• Many common digital platforms are going to be applicable to Indian Railways in the coming days. 

CGA - Controller General of Accounts 

 

•  Present CGA (as on 12th December, 2022) -  Ms Bharati Das, ICAS 

• The Principal advisor to the Union Government (on Accounting matters) 

 

• Responsible for preparation and submission of Accounts of Union Government

 

• Responsible for Exchequer control and Internal Audits 

 

• Belongs to ICAS - Indian Civil Accounts Service   

 

 ICAS - Indian Civil Accounts Service: 

 

•  Carved out from the IA & AS - Indian Audit & Accounts Service in 1976 

 

• W.e.f 01.03.1976  

 

• Celebrating March 1st as the “Civil Accounts Day” 

 

• Relieving the responsibility of preparation of Union Government Accounts from C&AG. 

 

• Under the Department of Expenditure in the Ministry of Finance 

 

•  NIFM - National Institute of Financial Management, Faridabad and INGAF -  INstitute of Government Accounts & Finance - Training Centres for ICAS Officers

 

Key Takeaways - For MCQ

1. CGA stands for Controller General of Accounts 

2. C & AG stands for Comptroller & Auditor General 

3. CGA is the Principal Advisor to the Government of India on accounting matters   

4.  ICAS stands for Indian Civil Accounts Service

5.  IA & AS stands for Indian Audit & Accounts Service 

6. Civil Accounts Day - Celebrated every year on 1st March

7. 1976  - Relieving the responsibility of preparation of Accounts of Union Government from C&AG 

8. ICAS - under the control of Department of Expenditure in Ministry of Finance 

9. NIFM is located at Faridabad

10. NIFM stands for National Institute of Financial Management

11. INGAF stands for INdian Government Accounts & Finance

12. INGAF is located at Chennai 

13. ICAS has been carved out from the IA&AS in 1976 

PFMS - Public Finance Management System

• A web based online software application

• Developed and implemented by CGA - Controller General of Accounts, Department of Expenditure, Ministry of Finance, Government of India 

 

• Started in 2019 

 

• Object: Tracking funds released under all Plan schemes of Government of India & real time reporting of expenditure. 

 

• Covers all payments, Exchequer control, all receipts, compilation of accounts, preparation of Fiscal Reports

• Interface with the treasury system of all the 28 States and 2 UTs with legislatures.  

 

• Integrated with the core banking system of over 300 Banks in the country.  

 

• Interface with the NPCI - National Payments Corporation of India   

Key Takeaways - For MCQ  

1. PFMS stands for Public Finance Management System 

2. Launched in 2019

3. Developed and maintained by CGA, Department of Expenditure

4. CGA stands for Controller General of Accounts   

5. CGA is a Principal Accounting Officer to the Government of India. (Apex accounting authority in Government of India) 

6. Old name of PFMS is CPSMS - Central Plan Scheme Monitoring System.  

7. NPCI stands for National Payments Corporation of India

GFR - General Financial Rules, 2017  

Click for GFR 2017 with amendments up to 31.07.2022

 Railway Board vide its letter No.2017/ F(X)II/PW/R dated 09.02.2018 advised all  concerned to refer to the rules under the GFR- General Financial Rules, 2017 and  used them as broad principles while making financial decisions.  

 Indian Railways being part of Govt of India, it is incumbent on Indian  Railways to refer GFR in discharging financial powers.  

 Although, historically processes have evolved on Indian Railways considering  operational requirement of field, however, with merger of Railway Budget with  General Budget, any substantive deviation from GFR has become part of  reporting through the monthly PCDO by respective PFAs to Member  Finance /Indian Railways in order to reporting to Ministry of Finance. 

 Issued by the Ministry of Finance, Dept of Expenditure.  

 Consists of 208 pages and 12 Chapters.  

 First GFR in 1947. Then Revised in 1963 and 2005.

  

What is the Need of Revised GFR in 2017 ?  

1. Removal of distinction in non-plan and plan expenditure.  

2. Merger of Railway Budget with General Budget in 2017-18.  

3. Focusing on outcomes through an improved Outcome Budget document.  

4. Reliance on DBT - Direct Benefit Transfer scheme to ensure efficient delivery of  entitlements.  

5. Introduction of new e-sites like Central Public Procurement Portal, GeM Government e-Marketing portal, Non-Tax Revenue portal.  

6. Increased focus on the Public Finance Management System(PFMS).

Key Takeaways - For MCQ  

  

1. First GFR – 1947  

  

2. Latest GFR – 2017  

  

3. GFR stands for General Financial Rules  

4. PFMS stands for Public Finance Management System. 

  

5. Any substantive deviation - 

• At Zonal Level - Brought to the notice of Member  Finance by PFA. 

• At Board level – Brought to the notice of the Ministry of Finance  by Member Finance.  

6. DBT stands for Direct Benefit Transfer 

7. Removal of distinction in non-plan and plan expenditure

8. Total Number of Chapters in GFR  = 12  (total pages 208) 

  

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