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Acronyms

GovernmentofRajasthan


BudgetManual

VOLUMEI

VIIEdition,2012

FinanceDepartment

BudgetDivision

Preface


PurposeoftheBudgetManual

ThisManual contains guiding principles and detailed steps involved in differentphasesofthebudgetcyclefortheguidanceofofficersanddepartmentswithrespectto the budget procedure in general and in particular to the preparation andexamination of the annual budget estimates and the subsequent control overexpendituretoensurethatitiskeptwithintheauthorizedgrantsorappropriations.

StructureoftheBudgetManual

Sections in thisManualhavebeenorganized toreflect thesequential flowofstepsadoptedinthebudgetcycle.

Section 1 provides a brief introduction to the state budgeting system andclassificationofgovernmentaccountsadoptedinthebudget.Italsoincludesadescription of Contingency fund, Public Accounts and roles andresponsibilities of themain stakeholders in the budget process, namely, theFinance Department, Financial Advisors, Budget Controlling Officers,EstimatingandDrawingandDisbursingOfficersandtheAccountantGeneral.

Section2coversthebudgetpreparationprocesswhichhasfurtherbeendividedintofoursubsections.AbriefdescriptionofthecontentsoftheannualBudgetCircularisfollowedby:

Section2Awhichcoversestimationofrevenueandreceiptsandassessmentofthestatesfinancialresources

Section2Bwhichdiscussestheprocessofpreparationofexpenditureestimates

Section2CwhichdealswithFiscalResponsibilityandBudgetManagementActcompliancerequirementsandperformanceorientationinthebudget

Section2Dwhichcovers the finalizationofbudgetand itspresentation to theLegislativeAssembly

Section3dealswithreleaseandexecutionofthebudgetandnecessaryinterimrevisions. It covers the steps required to be undertaken by differentstakeholders for control, reporting andmonitoring of expenditurewithin afinancialyear.

AppendicesAandBhavebeendesignedasquickguidesfor:

1. EstimatingandDrawingandDisbursingOfficers

2. BudgetControllingOfficers

GovernmentofRajasthan i

TABLEOFCONTENTS

Section1:Introduction.......................................................................................................... 1Chapter1 Overview....................................................................................................................................1

Chapter2 DefinitionsandGeneralExplanations ...................................................................................6

Chapter3 ClassificationofGovernmentAccounts ..............................................................................15

Chapter4 PublicAccount ........................................................................................................................22

Chapter5 ContingencyFund ..................................................................................................................25

Chapter6 RoleofFinanceDepartment ..................................................................................................28

Chapter7 RoleofFinancialAdvisors.....................................................................................................30

Chapter8 RoleofBudgetControllingOfficersandDrawingandDisbursingOfficers..................33

Chapter9 RoleofAccountantGeneralintheBudgetProcess............................................................37

Section2:BudgetPreparation ........................................................................................... 38Chapter10 BudgetCircular .......................................................................................................................38

Section2A:PreparationofRevenueEstimates............................................................... 39Chapter11 EstimatesofRevenueandReceipts ......................................................................................39

Chapter12 AssessmentofStatesFinancialResources..........................................................................41

Section2B:PreparationofExpenditureEstimates ........................................................ 47Chapter13 EstimatesofExpenditure .......................................................................................................47

Chapter14 TribalSubPlanandScheduledCasteSubPlan..................................................................57

Section2C:FiscalDisciplineandOutcomeOrientation .............................................. 59Chapter15 FRBMActComplianceRequirements .................................................................................59

Chapter16 PerformanceBudget ...............................................................................................................63

Section2D:FinalizationandPresentationofBudget ................................................... 64Chapter17 Scrutiny,FinalizationandCompilationofBudgetEstimates...........................................64

Chapter18 PresentationofBudgettotheLegislativeAssembly..........................................................73

Chapter19 VotesonAccount ....................................................................................................................76

Section3:BudgetExecution,Control,ReportingAndMonitoring.............................. 77Chapter20 CommunicationandDistributionofGrants .......................................................................77

Contents

GovernmentofRajasthan ii

Chapter21 ControlofExpenditure ..........................................................................................................83

Chapter22 RevisedEstimates ...................................................................................................................92

Chapter23 Reappropriations,SurrenderofSavingsandExcessGrants ...........................................95

Chapter24 SupplementaryEstimates ....................................................................................................101

Chapter25 StatesWaysandMeansPosition .......................................................................................104

Chapter26 ReviewofRevenueandReceipts........................................................................................107

Chapter27 OffBudgetFunds..................................................................................................................109

Chapter28 FinalizationofAppropriationAccountbyAccountantGeneral....................................111

Appendices:QuickGuides................................................................................................ 113AppendixA:QuickGuideforEstimatingandDrawingandDisbursingOfficers ..............................113

AppendixB:QuickGuideforBudgetControllingOfficers.....................................................................121

ANNEXESTOBUDGETMANUALVOLUMEI ........................................................................ 129Annexure1. RelevantProvisionsunderRBIAct1934,TheStateBankofIndia(SusidiaryBank)

Act,1959 .................................................................................................................................129

Annexure2. ListofMajorHeads&Grants .............................................................................................130

Annexure3. ListofObjectHeadsofExpenditure ..................................................................................158

Annexure4. ListofReserveFunds ...........................................................................................................164

Annexure5. ContingencyFund ................................................................................................................165

Annexure6. BudgetCircular .....................................................................................................................173

Annexure7. ProformaforRecoveriesAgainstWorkDone ..................................................................203

Annexure8. ExtractsfromGovernmentAccountingRules,1990 ........................................................204

Annexure9. FormsforStatementsunderRajasthanFRBMRules,2006 .............................................208

Annexure10. Instructions&FormatsforPerformanceBudget..............................................................217

Annexure11.ExtractofRulesofProcedureandConductofBusiness .................................................225

Annexure12.VotesonAccount ..................................................................................................................234

Annexure13.FormatsforReAppropriations...........................................................................................236

Annexure14.FormatsforSupplementaryGrants....................................................................................237

Annexure15.FormatforWaysandMeans.............................................................................................238

Annexure16. IncentiveSchemes.................................................................................................................250

Annexure17.FormatforOffBudgetFunds..............................................................................................252

Annexure18.ReferencesfromConstitutionofIndia...............................................................................253

Annexure19.GuidelinesforbreakupofplanceilingforTSPandSCSP ..............................................267

Contents

GovernmentofRajasthan iii

Annexure20.NotificationforConstitutionoftheStateFinanceCommission.....................................271

Annexure21.FormatsforRevisedEstimates............................................................................................274

Annexure22.FormatforControlofExpenditure.....................................................................................275

Annexure23.ExtractsfromGF&AR,Rajasthan .....................................................................................276

Annexure24.ListofBudgetControllingOfficers ....................................................................................277

Annexure25. CircularRegardingClassificattionofDepositionofUnspentAmountandRecovery..........284

Annexure26.CircularRegardingDrawalofDecretalAmount .............................................................286

Annexure27.CircularForProhibitionofDepositionofAmountUnderBudgetHead8443 ............288

Annexure28.MeasurestoAvoidBudgetaryIrregularities ....................................................................290

LISTOFFIGURES

Figure1:StructureofBudgetandAccounts ..................................................................................................2

Figure2:BudgetCycle ......................................................................................................................................2

Figure3:ActivityFlowchartofBudgetCycle................................................................................................3

Figure4:ClassificationofGovernmentAccounts.......................................................................................15

Figure5:CodingPatternforexpenditureandreceipts ..............................................................................18

Figure6:ExpenditureincurredforconstructionofbuildingsforSecondaryEducation ......................20

Figure7:ComponentsofStatesFinancialResources.................................................................................41

Figure8:ConstituentsofStateGovernmentsOwnFunds........................................................................42

Figure9:Estimationofplanceilingsfordepartmentsanddistricts .........................................................51

Figure10:StagesforpassingofbudgetbyLegislativeAssembly ............................................................75

Figure11:RecordingofallocationsunderIntegratedFinancialManagementSystem..........................79

Figure12:FlowofInformationintheStatesinternalexpenditurecontrolsystem ...............................83

Figure13:ActivitiescarriedoutbyEstimatingandDrawingandDisbursingOfficersduringbudgetcycle .................................................................................................................................113

Figure14:ComponentsofExpenditureEstimates ....................................................................................114

Figure15:IllustrativeExampleforpreparingRevisedEstimates...........................................................119

Figure16:ActivitiescarriedoutbyBudgetControllingOfficersduringbudgetcycle .......................121

Figure17:ActivitiesofBudgetControllingOfficersduringbudgetexecutionstageofbudgetcycle...............................................................................................................................................123

Contents

GovernmentofRajasthan iv

LISTOFTABLES

Table1:ActivitiestobeundertakenbyFinanceDepartment......................................................................4

Table2:SectorsandSubSectors ....................................................................................................................16

Table3:CodingPatternforMajorHeads.....................................................................................................19

Table4:Statements/FormstobepreparedundertheRajasthanFRBMAct,2005..................................61

Table5:ListofApprovedMajorHeads......................................................................................................130

Table6:ListofGrants....................................................................................................................................146

Table7:ObjectHeadsofExpenditure.........................................................................................................158

Table8:ListofReserveFunds......................................................................................................................164

Table9:InterestratescheduleonvariousRBIwaysandmeansadvancesschemes ...........................238

Table10:TableofAcronyms .........................................................................................................................295

BudgetManual Chapter1:Overview


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SECTION1:INTRODUCTION

Chapter1 Overview

1.1 AnnualFinancialStatement:Ineachfinancialyear,theFinanceDepartmentisrequiredto

preparea statementofall receiptsandexpenditureexpected tobe realizedor incurredduring the year. This statement is referred to as the Annual Financial Statement(popularlyknownastheBudget)asspecifiedinArticle202oftheConstitution.Aspertherequirements ofArticle 202, expenditure estimates embodied in this statement shouldshowseparately:

ExpenditureonCapitalandRevenueAccountchargedontheconsolidatedfundnotrequiredtobevotedbytheLegislativeAssembly

Expenditure voted on by the Legislative Assembly further delineated intoexpenditureonCapitalandRevenueAccount

Structure of Accounts and Estimates: Under Article 150 of the Constitution, theaccountsofStatesare tobekept in such formsas thePresidentmayprescribeon theadviceoftheComptrollerandAuditorGeneralofIndia.

1.2 InaccordancewiththeprovisionsofArticles266and267oftheConstitution,accountsoftheStatearerequiredtobemaintainedasunder:

(a) PartI ConsolidatedFundoftheState:Thispartwillcontainthetransactionsofall revenues received by the Government of Rajasthan, all loans raised by theGovernmentbytheissueoftreasurybills,loansorwaysandmeansadvancesandallmoneysreceivedby theGovernment inrepaymentof loans.NomoneycanbeappropriatedfromthisfundwithoutpriorapprovaloftheLegislativeAssembly.

(b) PartII ContingencyFundof theState:Thispartwillaccommodatetheamountappropriated to the Contingency Fund established in accordance with theprovisionsofArticle267(2)oftheConstitution(refertoChapter5).

(c) Part III Public Account: This will include all debt, deposit and remittancetransactionsotherthanthoseincludedinPartI(refertoChapter4).

TheabovedescribedstructureofbudgetandaccountsisillustratedinFigure1.



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Figure1:StructureofBudgetandAccounts

1.3 Cash Basis of Accounting: With the exception of such book adjustment as may beauthorized, the transactions inGovernmentAccounts represent theactual cash receiptsand disbursements during a financial year as distinguished from amounts due to orpayablebyGovernmentduringthesameperiod.

1.4 BudgetCycle:Theoverallbudget cycle of the StateGovernmenthasbeen shown inFigure2.

BudgetPreparation

Review,planning,preparation&authorizationbyLegislative

Assembly

BudgetExecution

Distribution&utilizationofbudgetaryallocations

BudgetMonitoring

Ensuringbudgetmanagement&control

Feedbackfornextbudgetcycle

BudgetCycle

CAGAudit:ExternalMonitoring

Figure2:BudgetCycle



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1.5 Thebudgetcyclecanbedividedintothreebroadphases: Budget Preparation: This phase involves approximation of affordable level of

expenditureanddetermineshowfundsaretobeexpendedandoutputsdeliveredinanefforttoachievetheoutcomessought.AppropriationBillshallbepassedbytheLegislativeAssemblytobringthebudgetprovisionsintoeffect

BudgetExecution:Thisphase involves purchase of goods and services required toproduceoutputs,andreportingandreviewofachievementsintermsofdeliveryofgoods,servicesandbenefitstothecommunity

BudgetMonitoring:Thisphaseinvolvesensuringbudgetmanagementandcontrolofactualbudgettransactionswithplannedtransactions

1.6 The budget process/documents are subjected to an external audit conducted byComptrollerandAuditorGeneral.Theauditprocessensuresthat(i)everyeffortismadefor revenue realisation and propriety of expenditure (ii) delivery of services by thegovernmenthasbeencarriedoutwithhonestyandintegrityand(iii)thedueprocessisfollowedduringtheentirebudgetcycle.

1.7 Major activities to be undertaken in different phases of the budget cycle have beenmappedinFigure3.Figure3:ActivityFlowchartofBudgetCycle



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1.8 As can be observed from the above flow chart, themain stakeholders in the budgetprocessare:

FinanceDepartment:FinanceDepartmentisthenodaldepartmentforpreparationofState budget and is involved in all the phases of the budget cycle. Though theFinanceDepartment is responsible for obtaining estimates of expenditure and theinformation/factsonwhichtheestimatesarebasedon, it isnotresponsibleforthecorrectnessoftheseestimates.Theresponsibilityfortheaccuracyandcorrectnessofthe estimates/ information submitted to the Finance Department lies with theconcernedBudgetControllingOfficer(s).

Table 1 shows the various activities that are to be undertaken by FinanceDepartment.

Table1:ActivitiestobeundertakenbyFinanceDepartment

BudgetCycle

BudgetPreparationandAuthorisation

BudgetExecution BudgetMonitoring

Issue of Budget Circular to alldepartments invitingestimatesofannualreceiptsandexpenditure

Approval and grant ofrequests for reappropriationssubmittedbyStatedepartments

Intrayearreviewof revenue andreceipts

Detailed estimation of statesfinancial resources based onestimates of receipts andexpenditure received fromdepartments

Consolidation and issue ofSupplementaryBudget

Intrayearreviewof expenditureincurred

Determination of annual planexpenditure ceilings incoordination with PlanningDepartment

Scrutiny, fine tuning andconsolidation of departmentalestimates by Budget FinalizationCommittee (BFC) to ensure thatthey fitwithin available resourceenvelopeandFRBMframework

Preparationofbudgetdocumentsforpresentation to theLegislativeAssemblybytheFinanceMinister

Authorisation after passing ofbudget



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Planning Department: State government departments are required to submit theirannualproposalsforplanexpendituretothePlanningDepartment.Basedontheseproposalsaswellas financial resources intimatedby theFinanceDepartmentandtaking other social/ economy related factors into consideration, the PlanningDepartment is responsible for setting sector/ schemewise ceilings. These ceilingshave to be adhered to by all departments during finalization of their planexpenditureestimatesfortheensuingfinancialyear.

BudgetControllingOfficers:BudgetControllingOfficersareHeadsofDepartmentsorother departmental officers entrusted with the responsibility of controllingexpenditure against the budget allocation granted to the concerned departmentand/or the collection of revenue by authorities subordinate to the department.Budget Controlling Officers work in coordination with the Finance Departmentthroughout all stages of budget cycle right from preparation of estimates toreconciliationofannualaccountswithAccountantGeneral.

Heads of Offices/ Drawing and Disbursing Officers are officials authorized to drawmoneyfromtheConsolidatedFundandmakepaymentsonbehalfofGovernmentofRajasthan.HeadsofOfficesarealsoresponsibleforpreparingdetailedestimatesofrevenueandexpenditurefortheheadsofaccountassignedtothem.

AccountantGeneral,Rajasthan: TheAccountantGeneral isresponsible forrenderingsuchassistancetotheGovernmentforthepreparationofBudget,astheGovernmentmay reasonably require from him. Besides this, he has been entrusted with thekeepingoftheaccountsandotherworksinviewofprovisionsoftheConstitution.

BudgetManual Chapter2:DefinitionsandGeneralExplanations


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Chapter2 DefinitionsandGeneralExplanations2.1 In this Manual, unless the context otherwise requires, the following words and

expressionshavethemeaningsherebyassignedtothem.WordsandexpressionsusedintheManual are defined in the Constitution, or bear themeanings assigned to theirdefinitionsintherulesorordersframedorissuedundertheConstitution.

2.2 AccountsorActualsofayear:aretheamountsofreceiptsordisbursementsfortheyearbeginning from April 1 and ending on March 31 of the following year, as finallyrecordedinthebooksoftheAccountantGeneral.

2.3 AccountantGeneral:refers to theAccountantGeneral,Rajasthanandalso includes thePrincipalAccountantGeneral,Rajasthan.

2.4 Administrative approval: denotes the formal acceptance by the administrativedepartment concerned of theproposalsbasedonpreliminaryplans for incurring anyexpenditureofawork initiatedby,or connectedwith, the functional requirementsofsuchadministrativedepartment.Itis,infact,anordertoexecutecertainspecifiedworksatastatedsumtomeetthefunctionalneedsofthedepartmentrequiringtheworkbutissubjecttobudgetprovision.

2.5 Administrative Control: implies interalia assumption of the responsibility forconstruction,upkeepandmaintenanceofbuildingsandotherworksandtheprovisionoffundsfortheirexecution.

2.6 AdministrativeDepartment: is theDepartment, asnotified by theCabinet Secretariatunder the Rajasthan Rules of Business, to which business under consideration isassignedfordisposal.

2.7 AgencyFunctions:refertothetransactionsarisinginconnectionwithworksentrustedtothe State Government under Article 258 of the Constitution e.g., construction andmaintenanceofNationalHighways,Defenceworks,Aviationworks,AdministrationofCensusAct,etc.

2.8 AnnualFinancialStatementorBudget: is the statementof the estimated receiptsandexpenditureof theState foreach financialyearpresented to theLegislativeAssemblyunderArticle202oftheConstitution.

General structure of the Annual Financial Statement closely follows the structure ofGovernmentAccountsasprescribedbyControllerGeneralofAccountsintheListofMajorandMinorHeadsofAccounts

BudgetshallbeinsuchformastheFinanceMinistermaysettle,afterconsideringthesuggestions,ifany,oftheEstimatesCommitteeoftheLegislativeAssembly

Period of Budget: The budget relates to a Financial/Budget year which beginsonApril1andendsonMarch31nextyear



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2.9 Appropriation:means theamountauthorized forexpenditureundera specificunitofappropriationorpartofthatamountplacedatthedisposalofDrawingandDisbursingOfficerbyacompetentauthorityfromfundsplacedatitsdisposal.

2.10 AppropriationAct: provides for the appropriations out ofConsolidated Fund of theStateofallmoneysrequiredtomeet

(a) GrantssomadebyAssemblyforvariousservicesunderthedifferentheads[Article204(1)(a)oftheConstitution];and

(b) ExpenditurechargedontheConsolidatedFundoftheState[Article204(1)(b)oftheConstitution]

2.11 The act of appropriation starts with the passing of the Appropriation Bill by theLegislativeAssemblyandbecomeseffectivefromApril1ofeachyear.ItfollowsthattheprovisionforanyexpenditureisoperativeonlyuptoMarch31ofthefollowingyear.

2.12 AppropriationAccounts:mean theaccountspreparedby theComptrollerandAuditorGeneral of India for each grant and charged appropriation inwhich is indicated theamountofeachgrantandchargedprovisionincludedintheAppropriationActsrelatingto that financialyearand theamountspentundereachsubheadandon thegrantasawhole.Importantvariations intheexpenditureandsanctionedgrant/appropriationareexplainedhereinundereachunitofappropriation.

2.13 Bank:meansanybranchoftheStateBankofIndiaactingastheagentoftheReserveBankof India inaccordancewith theprovisionsof theReserveBankof IndiaAct,1934,anybranchofasubsidiarybankasdefinedinsection2oftheStateBankofIndia(SubsidiaryBanks)Act, 1959which is authorized to transactGovernment business as agent of theStateBankof India,oranybankoranybranchofabankasmaybeappointedby theReserveBankofIndiaasitsagentundertheprovisionsofsubsection(I)ofsection45oftheReserveBankofIndiaAct,1934.RelevantprovisionsofStateBankofIndia(SubsidiaryBanks)Act,1959andReserveBankofIndiaAct,1934aregiveninAnnexure1.

2.14 BudgetControllingOfficer:meansaHeadofaDepartmentorotherdepartmentalofficerwho is entrustedwith the responsibility of controlling the incurring of expenditureand/or the collectionof revenuesby theauthorities subordinate tohim, in relation tospecificBudgetHead(s).

2.15 BudgetEstimates:arethedetailedestimatesofreceiptsandexpenditurefortheensuingfinancialyearpreparedinthecurrentfinancialyear.

2.16 Capital Expenditure or Expenditure on Capital Account: is broadly defined asexpenditure incurredwith theobjectiveofcreatingnewor increasingvalueofexistingassetsofamaterialandpermanentcharacter.Allworks,whereinexpendituremeetsthecriteria set out in the annualBudgetCircular issued by the FinanceDepartment, areshownundercapitalexpenditure.Capitalaccountalsobearsthefollowingcharges:

1. Costofinitialconstructionofaproject2. Chargesforintermediatemaintenanceofaworkthathasnotyetopenedforservice



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3. Chargesforfurtheradditionsandimprovementsasmaybesanctioned4. Investmentswherethebenefitsfrominvestmentsareavailablebeyondtheyear

2.17 Central Assistance for State Plan: refers to plan grants received from the UnionGovernmentwhichcanbebroadlyclassifiedinto:

1. Normal Central Assistance: consists of grants allocated to the State by PlanningCommission of India, quantum of which is decided as per the existing GadgilMukherjeeformulaoranyotherformulanotifiedbyCentralGovernment

2. AdditionalCentralAssistance forExternallyAidedProjects:consistsofgrants receivedthroughGovernmentofIndiafromtheforeignbodies,suchas,WorldBank,etc.fortheprojectssanctionedbythemandexecutedbyState

3. Additional CentralAssistance (ACA) forOthers: consists of central assistance to thestatesfortheStateplanschemes.ThisassistanceismeantforspecialprogrammesaspertheneedsoftheState,sectoralprioritiesandcoversubjectsnotontheUnionList.TheACAlinkedschemesarefundedbytheMinistryofFinanceandadministeredbythesectoralMinistryconcerned

4. Special Central Assistance: consists of grants earmarked forwelfare of theweakersectionsofthesociety,suchas,ScheduledTribesandScheduledCastes

2.18 Central Finance Commission or Finance Commission of India: is constituted by thePresidentof Indiaevery fifthyearasperprovisionsofArticle280of theConstitution.Qualifications,powersandproceduresof theCommissionareregulatedby theFinanceCommission(MiscellaneousProvisions)Act,1951(refertoArticle280atAnnexure18).

2.19 CentrallySponsoredSchemes (CSS):refer toschemes jointly fundedby theUnionandState Government as per funding patterns mutually agreed. Centrally SponsoredSchemesareusuallydesignedandmonitoredbyministriesof theUnionGovernmentwithcorrespondingStatedepartmentsresponsibleforimplementation.

ThesharecontributedbyGovernmentofIndiaincertainCentrallySponsoredSchemesmay be offbudget; however, funds contributed by the State Government forexpenditureundersuchschemeshavetobeincludedintheStateannualbudget.

2.20 CentralSectorSchemes: refer to schemeson subjectswithin theUnionListwhicharecompletelyfundedbyGovernmentofIndia.Fundsreceivedundersuchschemesmaybeofforonbudgetdependingonschemedesignanddesignatedimplementingagencyinthestate.

2.21 Chargedexpenditure:referstoexpenditurethatischargedontheConsolidatedFundoftheStateandisnotsubjecttothevoteoftheLegislativeAssembly.Article202(3)oftheConstitutionspecifiescategoriesofexpenditurethatcanbechargedontheConsolidatedFundofthestate.Theseareasfollows:

(a) EmolumentsandallowancesoftheGovernorandotherexpenditurerelatingtohisoffice



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(b) Salaries and allowances of the Speaker and Deputy Speaker of the LegislativeAssembly

(c) Debtcharges forwhich theState is liable, including interest,sinking fundchargesandredemptioncharges,andotherexpenditurerelatingtotheraisingofloansandtheserviceandredemptionofdebt

(d) Expenditure in respect of the salaries and allowances of the Judges of theHighCourt

(e) Anysumsrequiredtosatisfyanyjudgment,decreeorawardofanycourtorarbitraltribunal

(f) AnyexpendituredeclaredbytheConstitutionorbytheLegislativeAssemblyoftheStatebylawtobesocharged

(g) All expenses of the High Court including all Salaries, allowances and pensionspayabletoorinrespectoftheofficersandservantsoftheHighCourt

(h) Adjustments inrespectofexpensesofCourtsorCommissionsandpensionsunderArticle290oftheConstitution

(i) AllexpensesofStatePublicServiceCommissionincludinganysalaries,allowancesand pensions payable to or in respect of the members and the staff of theCommission

2.22 Competent Authority: means the Government or any other authority to which therelevantpowersaredelegatedbytheGovernment.

2.23 Consolidated Fund of the State / Consolidated Fund: Under Article 266 (1) of theConstitution, all revenues received by the StateGovernment, all loans raised by theGovernment by issue of treasury bills, loans or ways andmeans advances and allmoneysreceivedbythatGovernmentinrepaymentofloansshallformoneconsolidatedfundcalledtheConsolidatedFundoftheState.

NomoneycanbeappropriatedfromthisfundwithoutpriorapprovaloftheLegislativeAssembly(videparagraph3.1).

2.24 ContingencyFund:means theContingencyFundof theStateofRajasthan establishedundertheRajasthanContingencyFundAct,1956, inaccordancewiththeprovisionsofArticle267(2)oftheConstitution.ContingencyFundisinthenatureofanimprestandthe corpus of which is specified by the Act. The Contingency Fund is intended toprovide advances to theGovernment tomeet unforeseen expenditure arising in thecourseof ayearpending its authorizationby theLegislativeAssembly.The amountsdrawn from the Contingency Fund are recouped after the Legislative AssemblyapprovesitthroughSupplementaryGrants(videChapter5).

2.25 Constitution:meanstheConstitutionofIndia.



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2.26 DemandforGrant: isaproposalmadeon therecommendationof theGovernor to theLegislativeAssemblybytheFinanceMinisterorotherMinisterfortheappropriationofState revenues to expenditure (other than charged) proposed to be met from theConsolidatedFundoftheState(videparagraph18.3.4).

Thereisusuallyonedemandinrespectofeachdepartment,buttheFinanceDepartmentmaycombinethegrantsrequiredfortwoormoredepartmentsinonedemandormakeademandinrespectofexpenditurewhichcannotreadilybeclassifiedunderparticulardepartments.

2.27 Departmental Estimates: are the estimates of receipts and expenditure submitted toGovernmentbytheBudgetControllingOfficer.

2.28 DrawingandDisbursingOfficer:meansaHeadofOfficeandalsoanyothergazettedofficer servingunderHeadofOfficeauthorizedbyhim,underGeneralFinancialandAccountsRules,tosign,drawbillsincludingpayandallowances,incurexpendituretothe extent specified andmakepayments on his behalf.The term shall also include aHeadofDepartmentwherehehimselfdischargessuchfunctions.

2.29 EstimatingOfficer: refers to a departmental officerwho is primarily responsible forpreparing the estimatesof receipts and expenditure.Everyofficerwho isdeclared asDrawingandDisbursingOfficerunderRule3ofGeneralFinancialandAccountRulesby the Head of Department or by the Finance Department shall be the EstimatingOfficer.

2.30 Excessappropriation/Grant :The termsreferrespectively toappropriationauthorized,andgrantsvoted tomeetexpenditurewhichat thecloseof theyear is found, throughthe Appropriation Accounts, to have been incurred in excess of the authorizedappropriation/grant.

2.31 FinanceDepartment:referstotheFinanceDepartment,GovernmentofRajasthan.

2.32 FinancialSanction: refers to the specific order issuedby the competent authority forincurringofexpenditure.

2.33 FiscalDeficit: is the excess of totaldisbursement from theConsolidated Fund of theState(excludingrepaymentofdebt)overthesumofrevenuereceipts,recoveryofloansandnondebtcapitalreceiptsintothefundduringafinancialyear.

2.34 Grant:meanstheamountvotedbytheLegislativeAssemblyforagivendemandplacedbeforeitforexpenditureduringthefinancialyearconcernedontheservicesincludedinthegrant.

2.35 HeadofOffice:meansagazettedofficerdeclaredassuchby theHeadofDepartmentunderGeneralFinancialandAccountsRules.



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2.36 Investment: includes investment of surplus balances of the State Government withReserveBankofIndiaoverandabovemandatoryrequirements,suchas:

Shortterminvestmentinstruments,suchas,TreasuryBills Long term investment instruments, such as, shares/debentures/securities.

Investmentsinshares/debenturesareusuallymadewithCorporations,GovernmentCompanies and cooperative institutions/banks as per terms and conditions ofreciprocalagreementsmadebetweenthetwoparties

2.37 LegislativeAssembly:referstotheRajasthanLegislativeAssembly.

2.38 Letter of Credit: is amechanism introduced to ensure better financial discipline inutilization of budgetary provisions by departments that have been awarded theflexibilitytoincurexpendituredirectlythroughissueofcheques.Letterofcreditenablesrestrictions on the periodicity and quantum of withdrawal of funds as per ceilingsspecifiedbyacompetentauthority.Unutilizedfundsattheendoftheyeararelapsable.Provisions to govern thismode of payment are contained in General Financial andAccountsRules.

2.39 MajorHead: is themain unit of classification in government accounts and generallycorrespondstothefunctionsofGovernment,asprescribedbytheControllerGeneralofAccounts,suchas,differentserviceslikeCropHusbandry,GeneralEducation.

2.40 Minor heads: In the accounting classification of government accounts,MinorHeadsidentifyprogrammesundertaken toachieveobjectivesof the functions representedbythemajorheadasprescribedbytheControllerGeneralofAccounts.

2.41 ModifiedAppropriation/Grant:meansthesumallottedtoanyunitofappropriationasitstandsonanyparticulardateafterithasbeenmodifiedbyreappropriation,surrenderor by supplementary or additional appropriation/grant sanctioned by the competentauthority.

2.42 NewItemsofExpenditure:refertosignificantlyincreasedprovisionsundertheexistingheadsofexpenditurearisingfromimportant/necessaryexpansionsofexistingactivitiesand/or adoption of new activities. For example, creation/ upgradation of post(s),creation of new office(s)/division(s),purchase of new vehicle(s) (2wheeler, 3wheelerand4wheeler,etc.),computer,faxmachine,photocopier,projector,scanner,risograph,laptop, new telephone/DTH/Cable/IPTV connection,mobile handset, air conditioner,waterpurifier,watercooler, furniture,geyser, television,camera,LCDandothernonrecurringitemsthecostofwhichexceedslimitsspecifiedbytheFinanceDepartment.

2.43 NewService1:TheexpressionnewservicesoccursinArticles115(l)(a)and205(l)(a)oftheConstitution.New service refers to expenditure on a new function/ programme/project/ scheme not brought to the notice of the LegislativeAssembly earlier. New

1IntheeventofdoubtastowhetheraparticularitemistobeclassifiedasNewservice,theadviceoftheFinanceDepartmentshouldbetaken.



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service includes expenditure that requires opening of a new budget head, such asexpenditureon:

Constitutionofanewdepartment

Investmentinformofsharecapital,loanorgrantinanewGovernmentcompany/corporation/undertaking/board/ULB/privatecompany

Intheeventofdoubtastowhetheraparticular item istobeclassifiedasnewservice,thefinaldecisionwillbetakenbytheFinanceDepartment.

2.44 NonPlanExpenditure:Allexpenditurewhichhasnotbeenexpresslyclassifiedasplanexpenditureandwhich isnotcoveredby theplanceiling fixed for thedepartments, isnonplanexpenditure.

2.45 NonRecurringExpenditure: includes expenditure incurredon specific itemsduring aspecificperiod.

2.46 ObjectHead:constitutesthelowestunitofappropriationintheaccountingclassificationadopted ingovernmentaccounts.Objecthead isalsotermedasanobjectclassification.On the expenditure side of the accounts,particularly in respect of heads of accountswithin theConsolidated Fund, object heads areprimarilymeant for itemized controloverexpenditureandindicatetheobjectornatureofexpenditureonaschemeoractivityororganization in termsof inputs,suchas, Salaries, OfficeExpenses, Grantsinaid,Loans.Investments(videparagraph3.7.3).

2.47 OffBudgetFunds: refer to funds (videChapter27)directly releasedbyGovernmentofIndiatotheprogrammeimplementingagenciesofGovernmentofRajasthanandarenotroutedthroughtheConsolidatedFundoftheState.

2.48 PlanExpenditure: isexpenditureonprogrammes/projectsenlisted in theongoingFiveYearPlan/AnnualPlan.Classificationofexpenditureasplanexpenditureisbasedontheprinciples/guidelinesissuedbythePlanningCommissionofIndiaatthecommencementofeveryFiveYearPlanperiod.

2.49 PrimaryDeficit:isthedeficitobtainedbysubtractinginterestpaymentsfromthefiscaldeficit of the State in a given financial year. Primary deficit corresponds to the netborrowing required tomeetexpenditureexcluding the interestpayments.Anegativefigureforprimarydeficitwouldrepresentprimarysurplus.

2.50 PublicAccount: as defined inArticle 266(2) of theConstitution comprises all publicmoneys received by or on behalf of the Government of the State other than thosecreditedtotheConsolidatedFundoftheState(videChapter4).

2.51 Re appropriation:means the transferby a competent authority of a sum ofmoneyfrom one unit of appropriation tomeet specific expenditure under another unit ofappropriation(videChapter23).



13

2.52 Recurring Charges: are charges which involve liability beyond the financial year inwhichsuchchargeshavebeenoriginallysanctioned.

2.53 Reserve Funds: are created for specific and well defined purposes and are fed bycontributionsorgrants from theConsolidatedFundofStateor fromoutsideagencies(videparagraph4.5).

2.54 Revenue Deficit: is the excess of revenue expenditure over revenue receipts of thegovernment in a given financial year. A negative figure for revenue deficit wouldrepresentrevenuesurplus.

2.55 Revenue Expenditure or Expenditure on Revenue Account: is expenditure on currentconsumptionofgoodsandservicesandestablishmentexpenditureofadepartmentforactivitiesofnoncapitalcharacter.Revenueexpenditureofadepartmentalsoreflectsallcharges for maintenance and working expenses of a project, such as, renewals,replacements, improvements,andextensions.Grants, subsidiesand interestpaymentsarealsodebitabletotherevenueaccount.

2.56 RevisedEstimates:are theestimatesofprobablerevenueorexpenditureofa financialyear under the variousmajor andminor heads and their object heads framed in thecourseoftheyearonthebasisofactualtransactionstillthenrecordedandinthelightofthefactswhichmaybeknownasregardstheremainderoftheyear(videChapter22).

2.57 State FinanceCommission: refers to theRajasthan State FinanceCommission.UnderArticle243IandArticle243Yof theConstitution, theGovernorconstitutesaFinanceCommissionaftertheexpiryofeveryfifthyearto:

ReviewthefinancialpositionofPanchayatiRajInstitutionsandMunicipalitiesintheState

MakerecommendationstotheGovernorregardingdevolutionoffinancialresourcesfromtheStateGovernmenttothesebodies

SuggestintersedistributionofsharesofPanchayatiRajInstitutionsandMunicipalitiesonanefficientandequitablebasis

2.58 SubHeads: In the accounting classification of government accounts, SubHeadsrepresent schemes or activities undertaken under a given programme (vide paragraph3.7.1).

2.59 SubMajorHeads: In theaccounting classificationofgovernmentaccounts,SubMajorHeads breakdown the functions of thedepartment into smallerunits (vide paragraph3.6.3).

2.60 SupplementaryStatementofExpenditure:means the statement tobe laidbefore theLegislative Assembly under Article 205 of the Constitution showing the estimatedamountoffurtherexpenditurenecessaryinrespectofafinancialyearoverandabovetheexpenditureauthorizedforthatyear.



14

2.61 Technical Sanction: means the sanction of the competent authority to a properlydetailedestimateofthecostofawork.Atechnicalsanctionamountstonomorethanaguarantee that the proposal is structurally and technically sound, the estimates areaccuratelycalculatedandbasedonadequatedata.

2.62 Treasury: refers to treasury establishment(s) located at the headquarters of therespective district or any other convenient places in a district and includes subtreasuries.

2.63 Treasury Bills: are shortterm debt obligations backed by the Government withvaryingmaturityof less thanoneyear.TreasuryBillsaregenerally issued throughacompetitivebiddingprocessatauctionscarriedoutby theReserveBankof IndiaonbehalfoftheStateGovernment.

2.64 TokenDemand: is a demandmade to the LegislativeAssembly for a nominal sumeithertosecureadvanceapprovalofLegislativeAssemblyforincurringofexpenditureonascheme,detailsofwhichareyet tobe finalizedor tobringexpenditureonnewservice to the notice of LegislativeAssemblywhere funds tomeet itwill bemadeavailablebyreappropriationwithinthegrant.

2.65 Votes onAccount:means a grantmade in advance by theLegislativeAssembly, inrespect of the estimated expenditure for a part of new financial year, pending thecompletionof theprocedure relating to thevotingof thedemand forgrantsand thepassingoftheAppropriationAct(videChapter19).

2.66 Voted expenditure: means the expenditure which is subject to the vote of theLegislativeAssembly.

2.67 WaysandMeansAdvances:areprovidedbytheReserveBankofIndiaasperSection17(5)ofRBIAct,1934,totheStates,tohelpthemtotideovertemporarymismatchesinthecashflowoftheirreceiptsandpayments.TherearetwotypesofWaysandMeansAdvancesNormalandSpecial.WhileNormalWaysandMeansAdvancesarecleanadvances,SpecialWaysandMeansAdvancesaresecuredadvancesprovidedagainstthepledgeofsecuritiesofGovernmentofIndia.

BudgetManual Chapter3:ClassificationofGovernmentAccounts


15

Chapter3 ClassificationofGovernmentAccounts3.1 Pursuant to requirements ofArticles 150, 266 and 267 of the Constitution, the basic

structureofGovernmentbudgetandaccountsclassificationisasfollows:Figure4:ClassificationofGovernmentAccounts

3.2 Asageneralrule,classificationoftransactionsingovernmentaccountshasaclosereferenceto the function,programmeandactivityof thegovernmentand theobjectof receiptsorexpenditure,ratherthanthedepartmentinwhichthereceiptsorexpenditureoccurs.

3.3 ClassificationoftransactionsprescribedbyControllerGeneralofAccounts:Transactionsunderthe Consolidated Fund are divided into sectors, such as, General Services, SocialServices,EconomicServices,andGrantsinaidandContributionsunderwhichspecificfunctions or services are grouped. Sectors are classified into subsectors andMajorHeadsofaccountswhich functionas themainunitofclassification inaccounts.Major

RevenueAccountconsistingof: ReceiptHeadssectiondealingwithproceedsoftaxationandother receipts classified asrevenue

Expenditure Heads sectiondealingwithexpendituremetfromRevenueAccount

CONSOLIDATEDFUND All revenues received by the StateGovernment, all loans raised by issueof treasury bills, internal and externalloans and all moneys received by theGovernment in repayment of loansshall form one consolidated fundentitled 'The Consolidated Fund ofState'establishedunderArticle266(1)oftheConstitution.

Nomoney can be appropriated out ofthis fund except in accordance withlawandforpurposeandinthemannerprovidedintheConstitution

CONTINGENCYFUNDContingency Fund of the Stateestablished under Article 267(2) of theConstitution is in the nature of animprest placed at the disposal of theGovernor to enable him to makeadvances to meet urgent unforeseenexpenditure.ApprovaloftheLegislativeAssembly for such expenditure and forwithdrawal of an equivalent amountfrom the Consolidated Fund issubsequently obtained, whereupon theadvancesfromtheContingencyFundarerecoupedtotheFund

Capital,PublicDebt,Loans&AdvancesandAppropriationtoContingencyFundconsistingof: ReceiptHeadssectiondealingwith such receipts of capitalnature which cannot beappliedas a set off toCapitalExpenditure

Expenditure heads sectiondealingwithexpendituremetusually from borrowed fundswith the objective ofincreasing concrete assets ofmaterial and permanentcharacter. Also includes suchreceipts of capital natureintended to be applied as setofftoCapitalExpenditure.

Public Debt, Loans andAdvancessectiondealingwithloans raised and theirrepayments by Governmentsuch as Internal Debt,External Debt, Loans andAdvances made by theGovernment and theirrecoveries; and transactionsrelating to 'Appropriation toContingencyFund'

AccountingClassification

PUBLICACCOUNT Receipts and disbursements, in respect

of certain transactions such as, smallsavings, provident funds deposits,reserve funds, suspense, remittances,etc., which do not form part ofConsolidated Fund are kept in PublicAccount setup under Article 266(2) ofConstitutionandarenotsubjecttovotebytheLegislativeAssembly.



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HeadsarefurtherdividedintoMinorheads,eachofwhichhasanumberofsubordinateheads,generallyknownasSubheads.Sometimes,MajorHeadsmaybedividedintoSubMajorHeadsbeforetheirfurtherdivisionintoMinorheads.

3.4 Sectors,subsectors,majorheads,submajorheadsandminorheadscomprisesystemofclassificationasprescribedbytheControllerGeneralofAccounts,IndiaandarerequiredtobeuniformlyadoptedbytheUnionGovernmentandalltheStateGovernments.HeadsofaccountsatthelevelbelowMinorHeads,i.e.subhead,groupheadandobjectheadcanbeopenedbytheStateGovernmentrequiredinconsultationwiththeAccountantGeneral.

3.5 AlistofauthorizedmajorandminorheadsofaccountsisgiveninaseparatepublicationListofMajor andMinorHeads ofAccounts ofUnion and State issued by theControllerGeneral ofAccounts.

3.6 Eachlevelofclassificationisdefinedasfollows:

3.6.1 Sectors andSubSectors:Sectors, comprising sub sectors,wherevernecessary, representaggregationofoperations relating to thegroupof functionsof services.Eachsector isdistinguishedbyacapital letterof theAlphabet,while sub sectorsare listedby smalllettersoftheAlphabet,asillustratedforfoursectorsinTable2.

Table2:SectorsandSubSectors

A.GeneralServices B.SocialServices C.EconomicServicesD.GrantsinAidandContributions

a) OrgansofStateb) FiscalServicesc) Interestpayment

andservicingofDebt

d) AdministrativeServices

e) PensionsandMisc.GeneralServices.

f) DefenceServices

a) Education,Sports,ArtandCulture

b) HealthandFamilyWelfare

c) WaterSupplyd) Sanitation,Housing

andUrbanDevelopment

e) InformationandBroadcasting

f) WelfareofScheduledCastes,ScheduledTribesandOtherBackwardClasses

g) LabourandLabourWelfare

h) SocialWelfareandNutrition

i) Others

a) AgricultureandAlliedActivities

b) RuralDevelopment

c) SpecialAreasProgrammes

d) IrrigationandFloodControl

e) Energyf) Industryand

Mineralsg) Transporth) Communicationsi) Science

TechnologyandEnvironment

j) GeneralEconomicServices

GrantsinAidandContributions



17

3.6.2 MajorHeads: are themain units of accounts classification under various sectors/ subsectors.Theynormallyreflectthedistributionofexpenditureamongbroadfunctionsofthegovernment.

3.6.3 SubMajorHeads:areopenedunderaMajorHeadtorecordthosetransactionswhichareofadistinctnatureandofsufficient importance tobe recordedexclusively,butat thesametimealliedtothefunctionoftheMajorHead.

3.6.4 Minor Heads: are subordinate to Major or Sub Major Heads and correspond toprogrammes/ broad group of programmes undertaken to achieve objectives of thefunctionsrepresentedbyMajorHeads.

3.7 Six tierclassificationofAccountsadopted inStateBudgetDocuments:Thebudget literatureprepared and presented by Government of Rajasthan to the Legislative AssemblyfollowsasixtieraccountingclassificationcomprisingofMajorHeads,SubMajorHeads,MinorHeads,SubHeads,GroupHeadsandObjectHeads.The last threearedefinedbelow:

3.7.1 SubHeadsrepresentschemesunderprogrammessubordinatetoMinorHeads.

3.7.2 GroupHeadsrepresentsubschemesunderschemesandaresubordinatetoSubHeads.

3.7.3 ObjectHeadsrepresenttheactualnatureandformofexpenditure.Theseareshowninthebudget toensure that financial transactionsarerecorded to theminutestdetail.ListofobjectheadshasbeenprovidedinAnnexure3.

3.8 Charged andVotedExpenditure: Apart fromabovementioned levelsof classificationofaccounts, expenditure is also categorized as charged or voted expenditure in budgetdocumentsofGovernmentofRajasthan.Chargedexpenditureisanexpenditurechargedon the revenues of the State not subject to vote of Legislative Assembly under theConstitution.Expenditureclassifiedaschargedhasbeenlistedindetailinparagraph2.21.VotedexpenditureissubjecttovoteofLegislativeAssembly.

3.9 Demands for Grants Number: Demands for grants are proposals made onrecommendationoftheGovernortotheLegislativeAssemblybytheFinanceMinisterorother Ministers, for appropriation from State revenues to expenditure (other thancharged)proposedtobemetfromtheConsolidatedFundoftheState.AllsuchdemandsareassignedatwodigitcodecalledtheDemandsforGrantsNumber.

3.10 DevelopmentandNonDevelopmentExpenditure2:Inordertoanalyzespendingprioritiesofthe government, expenditure excluding that on debt services is also classified intoDevelopmentExpenditureandNonDevelopmentExpenditure.

(a) Development Expenditure is an expenditure comprising expenditure on socialservices (e.g.,education, sports,artand culture,medicalandpublichealth, familywelfare, water supply and sanitation, housing, urban development, welfare of

2Source:ReserveBankofIndia



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ScheduledCastes,ScheduledTribesandotherBackwardClasses,socialsecurityandwelfare) and economic services (e.g. agriculture and allied activities, ruraldevelopment, special area programmes,major andmedium irrigation and floodcontrol, energy, industry and minerals, transport, communications, science,technologyandenvironmentandgeneraleconomicservices).

(b) NonDevelopmentExpenditure:includesexpenditureongeneralservicesincludingorgans of the State, fiscal services, interest payments and servicing of debt,administrativeservices,pensions,miscellaneousgeneralservicesandGrants inaidandContributions.

3.11 CodingPattern:Under the current budget classification of the State, a 15 and 13digitcoding pattern is adopted for expenditure (with some exceptions) and receiptsrespectively.Thishasbeenshownindetailbelow:

Figure5:CodingPatternforexpenditureandreceipts

ExpenditureCodingPattern

MajorHead FourDigit

SubMajorHead

TwoDigit

MinorHead ThreeDigit

SubHead

GroupHead

TwoDigit

TwoDigit

ObjectHead TwoDigit

Receipts CodingPattern

MajorHead FourDigit

SubMajorHead

TwoDigit

MinorHead ThreeDigit

SubHead

TwoDigitGroupHead

TwoDigit



19

3.11.1 MajorHeads:The firstdigitof the fourdigitcodeallotted toMajorHeadsdenotes thefollowing:

FirstDigit 0or1 RevenueReceipts

2or3 RevenueExpenditure 43 CapitalReceipts 4or5 CapitalExpenditure 6or7 LoanHead 8 ContingencyFundandPublicAccount

FirstDigitofRevenuereceipts+2=FirstDigitofRevenueExpenditure

FirstDigitofRevenueExpenditure+2=FirstDigitofCapitalExpenditure

FirstDigitofCapitalExpenditure+2=FirstDigitofLoanHead

Suchapattern,however,maynotberelevantforsomemajorheads,suchastheRoads&BridgesandSectretariatservices.

The last three digits out of four digits represent the same function/departmentirrespective of the type of revenue/expenditure, viz., Receipt on Revenue Account,ExpenditureonRevenueAccount,CapitalExpenditureandLoansandAdvances.TheonlyexceptioniswheremorethanonefunctionhasbeengroupedtogetherassubmajorheadunderasinglemajorHead,suchasEducation.

TheabovedescribedpatternisillustratedinTable3.

Table3:CodingPatternforMajorHeadsReceipt(RevenueAccount)

Expenditure(RevenueAccount)

CapitalExpenditure

Loans&Advances

0401CropHusbandry

2401CropHusbandry 4401CapitalOutlayonCropHusbandry

6401LoansforCrop.Husbandry

0202Education,Sports,Art&Culture

2202GeneralEducation2203TechnicalEducation2204Sports&YouthServices2205Art&Culture

4202CapitaloutlayonEducation,Sports,Art&Culture

6202LoansforEducation,Sports,Art&Culture

1054Roads&Bridges

3054Roads&Bridges 5054CapitaloutlayonRoads&Bridges

**

* 2052SecretariatGeneralservice2251SecretariatSocialServices3451SecretariatEconomicalservices

* *

*Receipt,CapitalandLoanHead(Major)havenotbeenprescribedbyCGA**LoanHeadhasnotbeenprescribedbytheControllerGeneralofAccounts

3Thereisonlyonemajorheaddepictingcapitalreceiptsi.e.MajorHead4000MiscellaneousCapitalReceipts.



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3.11.2 SubMajorHeads:Atwodigitcodehasbeenallotted,thecodestartingfrom01undereach Major Head. Where no SubMajor Head exists, it is allotted a code 00.NomenclatureGeneralhasbeenallottedcode80,sothatevenafterfurtherSubMajorHeadsareintroduced,thecodeforGeneralwillcontinuetoremainthelastone.

3.11.3 MinorHeads:Thesehavebeenallotteda threedigitcode, thecodesstarting from 001under each subMajor/MajorHead (where there is no subMajorHead).Codes from001to100andfewcodes750to900havebeenreservedforcertainstandardMinorHeads.Forexample,Code 001always representsDirectionandAdministration.NonStandardMinorHeadshavebeenallottedcodesfrom 101intheRevenueExpenditureseriesand201intheCapitalandLoanseries.WherethedescriptionunderCapital/LoanisthesameasintheRevenueExpendituresection,thecodenumberfortheMinorHeadisthesameastheoneallottedintheRevenueExpendituresection.Codenumbersfrom900arealwaysreservedforDeductReceiptorDeductExpenditureHeads.

The code for Other Expenditure is 800 while the code for Other Grants/OtherSchemes,etc.,whereminorhead OtherExpenditurealsoexists, iskeptas 600.Thishasbeendone toensure that theorder inwhich theMinorHeadsare codified isnotdisturbedwhennewMinorHeadsareintroduced.

3.11.4 SubHeads:ThesearedenotedintheBudgetbytwodigitcodesinroundbrackets,suchas,(01),(02),(03),(04),andsoon.

3.11.5 GroupHeads:ThesearerareandaredenotedintheBudgetbytwodigitcodesinsquarebrackets,suchas,[01],[02],[03],[04],andsoon.

3.11.6 ObjectHeads:Thesearedenoted intheBudgetbytwodigitcodes,suchas,01.,02.,03.,04.,andsoon.

Figure6:ExpenditureincurredforconstructionofbuildingsforSecondaryEducation

MajorHead

SubmajorHead

MinorHead

SubHead

GroupHead

ObjectHead

ConstructionWorks

4202

01

202

(01)

[90]

17.

CapitalOutlayonEducation,Sports,ArtandCulture

GeneralEducation

SecondaryEducation

Buildings

MajorConstructionWorks



21

3.12 As an illustrative example, expenditure incurred for construction of buildings forSecondaryEducation,asshowninbudgetbooksisdepictedinFigure6.

3.13 The list of approvedmajor heads byControllerGeneral ofAccounts and the objectsheadsofexpenditurehavebeengiveninAnnexure2andAnnexure3.

3.14 OpeningofNewHeads:Theintroductionofanymajor,submajorandminorheadandtheabolitionor changeofnomenclatureofanyof theexistingmajor, submajororminorheadsrequirestheapprovaloftheControllerGeneralofAccounts,GovernmentofIndia.TheFinanceDepartmentwillhave thediscretion toopen the subheads,groupheadsandobjectheads,wherevernecessary,inconsultationwiththeAccountantGeneral.

BudgetManual Chapter4:PublicAccounts


22

Chapter4 PublicAccount4.1 Public Account, defined in Article 266(2) of the Constitution, comprises all public

moneys received by or on behalf of the Government of the State other than thosecreditedtotheConsolidatedFundoftheState.

4.2 ThePublicAccountisprimarilytoaccountforfundsthattheGovernmentreceivesandmanagesasabankerorTrusteeratherthanfundingofexpenditure.However,thereareanumberoffundswhicharenotheld inTrustbut included inthePublicAccount, i.e.Depreciation Reserve Fund, State Disaster Response Fund. Similarly, Small Savings,ProvidentFunds,SecurityDepositandotherDeposits, etc.,underPublicAccountareliabilitiesthattheGovernmenthastorepayatappropriatetime.

4.3 ThecomponentsofPublicAccountareasunder:

SmallSavings,ProvidentFunds,etc.(MajorHeads8001to8032)

Reservefunds(MajorHeads8115to8235)

DepositsandAdvances(MajorHeads8336to8554)

SuspenseandMiscellaneous(MajorHeads8656to8680)

Remittances(MajorHeads8781to8797)

CashBalance(MajorHead8999)

4.4 SmallSavings,ProvidentFunds, etc.:Transactionsunder thisheadoccurunderStateProvident Funds, Insurance and Pension Funds. Estimates for receipts (includinginterest) and disbursement under this fund shall be prepared and sent by StateInsuranceandGeneralProvidentFundDepartment.

4.5 ReserveFunds:whichhavebeencreatedforspecificandwelldefinedpurposesandarefed by contributions or grants from theConsolidated Fund of State or from outsideagencies. Reserve Funds are further divided into reserve funds bearing interest andreserve fundsnotbearing interest.Someof themainReserveFundsareDepreciation/RenewalReserveFund,RoadsandBridgesFundandStateDisasterResponseFund.

4.5.1 A Reserve Fund is created by the sums transferred by debiting the concernedexpenditure head of the Consolidated Fund of the State. If earmarked receipts areforthcoming for the purpose the Fund has been created for, these shall be recordedunderappropriaterevenueheadsintheConsolidatedFundoftheState.

4.5.2 Expenditure in this regardshallbe incurred from theconcernedexpenditurehead forimplementationof schemes thathavebeen formulated toachieve thestatedobjective/rules/orders/instructions/ActsforwhichtheReserveFundhasbeencreated.

4.5.3 Thereafter,thetotalexpenditureincurredduringtheyearistobereimbursedfromtheconcernedReserveFund.Anegative entry for the sameamount is tobemadeunder



23

corresponding expenditureheadsof account asper cashbased accountingprinciples.Anillustrativeexamplehasbeengivenbelow.

4.6 Deposits and Advances: This head is classified into deposits bearing interest anddepositsnotbearinginterestandconsistsof:

a) AccountsofLocalFundsandotherlocalauthoritieswhoarepermittedtodealwithGovernmenttreasuries

b) Transactions relatingmainly tosumsdepositedwith theGovernment in thedailycourseofpublicbusinessbyoronbehalfof themembersof thepublic, such as,security deposits of contractors, personal deposits, deposits made in RevenueCourtsonorinconnectionwiththerevenueadministration

c) Transactions, connected with funds accumulated from contributions made bygovernment,semigovernmentandautonomousbodies

IllustrativeExample:RajasthanStateRoadDevelopmentFund

TheRajasthanStateRoadDevelopmentFundhasbeencreatedbyimposingacessofRs.0.50perlitre(currentrateapplicable)ofpetrolandhighspeeddieseloilsold. Thefundisutilizedforthe development of state roads and disbursement in respect of such projects of State roaddevelopment,asmaybeprescribed.

OperatingtheRajasthanStateRoadDevelopmentFund

DieselandPetrolcesscollectedduringafinancialyeariscreditedundertheReceiptHead0040Taxesonsale,trade,etc.,800OtherReceipts,(03)Cessondieselandpetrol.

Fortransferringthisamountinreservefund,thetotalamountcollectedthroughthiscessisshownasexpenditureunderthehead3054RoadsandBridges,80General,797Transferfrom/toReserveFundsandDepositAccounts,(02)Transferfrom/toStateRoadFund;andis then deposited under the head 8225Roads andBridges Fund, 02State Roads andBridgesFund,101StateRoadsandBridgesFund,(01)StateRoadsandBridgesFundinthePublicAccount.

Expenditure on development of state roads is entered under an appropriate expenditureheadintheConsolidatedFund,suchas,under 5054CapitalExpenditureonRoadsandBridges,04DistrictandOtherRoads,800OtherExpenditure,(14)RoadsfundedthroughState Road Fund. This expenditure is reimbursed from the fund and an appropriatedisbursement (deduct) entrymade under the head 8225RoadsandBridgesFund,02State Roads and Bridges Fund, 101State Roads and Bridges Fund, (01)State Roads andBridgesFundinthePublicAccount.Thereimbursementisshownasanegativeentryunder5054Capital Expenditure on Roads and Bridges, 04District and Other Roads, 800OtherExpenditure,(15)TransferfromtheRoadsandBridgesFund8225.



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4.6.1 PersonalDeposit (P.D.Account):APersonalDepositaccount isanaccountopenedwiththeconcernedTreasuryundertheDepositsheadofthePublicAccount.Itisoperatedbymeans of cheques and regulated by instructions of the government or special rulesframed for the operation of the account. Transfers to the personal deposits accountsfromtheConsolidatedFundwillrequirepriorsanctionoftheFinanceDepartment.

4.6.2 ThepracticeofwithdrawingfundswithaviewtoavoidinglapseofbudgetgrantsandplacingsuchmoneysindepositsinthePublicAccountorthebankisforbidden.

4.7 SuspenseandMiscellaneous:Thisheadclubsthoseitemsofpaymentsorreceiptswhichforinsufficient information or other reasons cannot be accounted for directly under properheadsofaccount.Thus,thisheadisintendedfortemporaryaccommodationoftransactionsaffectingthebalancesoftheState,pendingfinaladjustmentsonreceiptofdebitsandcredits.TransactionsonbehalfofCentralGovernmentarealsoaccountedforinthishead.Exampleofone suchmajor transaction isunder 8658SuspenseAccount 112TaxDeductionatSource.Examplesofothertransactionsrecordedunderthesuspenseheadare:(a) TransactionsofthePublicWorksDivisionsinvolvingstorepurchasesfrom/byone

divisiontoanotheroncreditinamonthincludingpurchasesfromtheDirectorateGeneralofSuppliesandDisposal

(b) TransactionsdealingwithconstructionandmaintenanceofNationalHighwaysonbehalfoftheCentralGovernment

4.8 Remittances: Departmental accounts and transactions of Public Works Offices andForestDepartmentwith treasuriesandotherofficesof theCivilDepartment includingchequesissued,arerecordedunderthishead.

4.9 ThefirstthreedivisionsofPublicAccounts,namely(i)SmallSavings,ProvidentFunds,etc.(ii)ReserveFunds(iii)DepositsandAdvances,compriseofreceiptsandpaymentsinrespectofwhichGovernmentincursaliabilitytorepaythemoneyreceivedorhasaclaimtorecovertheamountspaid.

4.10 Remittances embrace all adjusting heads, under which appear remittances of cashbetweentreasuriesandtransfersbetweendifferentaccountingcircles.Theinitialdebitsor credits to the heads in these divisions are cleared eventually by correspondingreceipts or payments eitherwithin the same circle of account or in another accountcircle.

4.11 ReceiptsunderPublicAccountdonotconstitutenormalreceiptsofGovernmentasthesehave tobepaidback some timeor theother to thepublic as in the caseof theStateProvidentFund,depositsoflocalbodies,orhavetobeutilizedbytheGovernmentinanagreedmanner as in the case of Reserve Funds set up for special purposes. Thus,legislativeauthorizationforpaymentsfromthePublicAccountisnotrequired.

4.12 TheOfficeofAccountantGeneralshallforwardBudgetEstimatesforensuingfinancialyearandRevisedEstimatesforcurrentfinancialyeartotheFinanceDepartmentinrespectofallcomponentsofPublicAccount.FinanceDepartmentalsotakestimelysupportwithregardtoBudgetEstimatesandRevisedEstimates fromdepartments,suchas State Insurance&ProvidentFundDepartmentandDisasterManagementandReliefDepartment.

BudgetManual Chapter5:ContingencyFund


25

Chapter5 ContingencyFund5.1 ContingencyFund for theStateofRajasthanhasbeenestablishedunder theRajasthan

ContingencyFundAct,1956,inaccordancewiththeprovisionsofArticle267(2)oftheConstitution.TheContingencyFundisinthenatureofanimprestplacedatthedisposalof the Governor and is intended to provide advances to the Government to meetunforeseenexpenditurearisingduringthecourseofayearpendingitsauthorizationbytheLegislativeAssembly.

5.2 InexerciseofthepowersconferredbySection4oftheRajasthanContingencyFundAct1956, theStateGovernmenthas framed the RajasthanContingencyFundRules 1956(NotificationNo.F.2(1)F(B)/56dated 14.02.1957) toprovide for the establishment andmaintenanceofContingencyFundfortheState. ExtractsofthesaidActandtheRulesaregiveninAnnexure5.

5.3 TheFund,thus,helpstheGovernmenttoincurexpenditure,eitheronanexistingserviceorinrespectofanewservice,whichcouldnotbeforeseenatthetimeofpreparationofBudget Estimates; andwhich cannot be postponed till a Supplementary Grant (videChapter24) isobtained from theLegislativeAssembly in regular course.Alladvancesfrom theContingencyFundaresubsequently required tobe recouped to theFundbyobtainingaSupplementaryGrantintheverynextsessionoftheLegislativeAssembly.

5.4 ThisFund is in the custody of theFinanceDepartmentwith a corpus4 of an amountspecifiedintheRajasthanContingencyFundAct.

5.5 The proposals for sanctioning an advance from the Contingency Fund shall beforwarded to theFinanceDepartmentby theadministrativedepartmentsconcerned intheprescribedformatandshallcontainthefollowing: Briefparticularsoftheproposedexpenditure Circumstancesinwhichprovisioncouldnotbeincludedinthebudget Whyitspostponementisnotpossible Amount required tobeadvanced from theContingencyFundwith fullcostof the

proposal for the year or part of the year as the casemay be alongwith list ofDrawingandDisbursingOfficersandtheTreasuriesfromwhichtheamountistobedrawn.

Anysavingsthatcanbewhollyorpartiallybeutilized Grant or appropriationunderwhich the supplementaryprovisionwill eventually

havetobeobtained Theapplication foradvance fromContingencyFund shallbeaccompaniedwitha

certificate tobe signedbyanofficernotbelow the rankofaDeputySecretary,asprescribedundertheRules

4ThecurrentcorpusoftheRajasthanContingencyFund is`200.00croreaspertheRajasthanContingencyFundAct,1956.



26

5.6 All preliminaries, such as,AdministrativeApproval, Technical Sanction, selection ofsite, etc., should be completed before an advance is applied for. The amount of theadvanceshouldberestrictedtotheexpenditurelikelytobeincurredtillitisrecoupedinthenextSupplementaryAppropriationAct.

5.7 AdvancesfromtheContingencyFundoftheStateshouldnormallybedrawnonlywhentheLegislativeAssembly isnot in session.However,whenLegislativeAssembly is insession, a Supplementary Grant should preferably be obtained before incurring anyexpenditureonanewservice.Exceptionsmaybemadeincaseavalidimmediateneedforfundsarises.Insuchacase,beforethewithdrawal ismade,theministerconcernedmaymake a statementon the floorof theLegislativeAssembly,givingdetailsof theamountand the scheme forwhich themoney isneeded. Inemergent cases,however,whereitisnotpossibletoinformtheMembersinadvance,thewithdrawalmaybemadefromtheContingencyFundandsoonthereafterastatementmaybelaidonthetableoftheLegislativeAssemblyfortheinformationoftheMembers.

5.8 SomeessentialconditionalitiesrelatingtotheutilizationoftheFundareasfollows:

1. WhenanadvanceissanctionedfromtheContingencyFund,theamountshallcontinueto remain physically apart of that Fund and shall not go out of it till it is actuallywithdrawnandspentonthespecificpurposeforwhichtheadvanceissanctioned.

2. TheorderauthorizinganadvancefromtheContingencyFundshalllapseassoonastheSupplementaryAppropriationAct, incorporating thegrants authorizedby theLegislativeAssembly,ispassedandhasreceivedtheassentoftheGovernor.

3. A copyof theorder sanctioning theadvance,which shall specify theamount, thegrant orappropriation towhich it relates,andgivingbriefparticularsof relevantsubheads and units of appropriation shall also be forwarded to theAccountantGeneralbytheFinanceDepartment.

4. NoadvancefromtheContingencyFundcanbesanctionedtocoveranyexpenditurewhich has already been incurred out of the Consolidated Fund. If in anyexceptional case, the expenditure,whether partly or fully on a New Service hasbeen incurred inadvertentlyand this factcomes tonoticewithin the financialyear,anadvancefromtheContingencyfundshouldbeobtainedduringtheyearitselftocovertheexpenditurealreadyincurredasalsotheexpenditurelikelytobeincurredbeforeaSupplementaryGrantforthatServicebecomesavailable.

5. All bills and vouchers for the drawals of moneys out of advances from theContingencyFundshallcontainthewordsContingencyFundprominentlywritteninredinkatthetopofthebillorvoucher.This,however,shallnotdispensewiththenecessity of furnishing the usual classification of the expenditure in the bill orvoucher,asthecasemaybe.

6. The administrative and financial sanction to be issued by the AdministrativeDepartment,afteranadvance from theContingencyFundhasbeensanctionedbytheFinanceDepartment,shallbeintheformasgiveninAnnexure5.



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5.9 ItshallbetheresponsibilityoftheAdministrativeDepartmenttowatchtheprogressofexpenditure in respect of the advance obtained from the Contingency Fund and tointimate it to the FinanceDepartment; andwhenever necessary, to cancel, reduce orincreasetheadvanceonthebasisoftheprogressofexpenditure.

5.9.1 If inanycase,after theordersanctioninganadvance from theContingencyFundhasbeenissuedandbeforeitsrecoupmentthroughSupplementaryGrantshastakenplace,it is found that the advance sanctionedwill remainwholly or partly unutilized, anapplicationshallbemade to thesanctioningauthority forcancellingormodifying thesanction,asthecasemaybe.

5.9.2 TheBudgetControllingOfficer shall reconcile the accounts of theContingency FundmaintainedbyhimwiththeaccountsmaintainedbytheAccountantGeneralatthetimeof carrying out the periodical reconciliation of expenditure booked under theConsolidatedFund.

5.10 All supplementary demands submitted by the Administrative Departments to theFinanceDepartment for the recoupment of the advance from theContingency Fundshall invariablybeaccompaniedwithacertificate tobesignedbyanofficernotbelowtherankofaDeputySecretaryasgiveninAnnexure5.

5.11 If theadvancemade from theContingencyFund formeetingunforeseenexpenditure,remainswhollyorpartlyunutilized,acancellationormodificationof the sanction forthesameshouldbeobtained fromFinanceDepartment.Implementationof therules isprimarily the responsibility of the Administrative Department. However, as anadditionalmeasure, the FinanceDepartmentwould alsomonitor it.TheGovernmenthas issued detailed instructions on this subject vide Circular No. F.2 (1)/FD/1/l/Budget/79dated28thNovember1987,whichisreproducedatAnnexure5.

5.12 Till the time of recoupment, the amount of advance given would stand under theaccountof8000ContingencyFund.

5.13 EnhancementofthecorpusamountoftheContingencyFundshouldbecarriedoutbydebitingExpenditureHead7999.

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Chapter6 RoleofFinanceDepartment6.1 FinanceDepartment is the nodaldepartment formanaging all financial affairs of the

StateGovernment.ItisconcernedwithalleconomicandfinancialmattersaffectingtheStateincludingmobilizationandallocationofresourcesforinfrastructuredevelopment,socialwelfareandhumandevelopment.

6.2 In exercise ofpowers conferredon theGovernorunderArticle 166 (2) and (3)of theConstitution,FinanceDepartment5isresponsibleforthefollowing: Preparationofbudget Controlofexpenditureandways&meansmanagement Mattersrelatedtoaudit Taxadministration Treasuryadministration Resourcemobilization MattersrelatedtoGovernmentguarantees Rules and procedures concerning financial transactions having bearing on State

financeandtheirimplementation SafetyandinvestmentoffundsfromtheConsolidatedFund,ContingencyFundand

PublicAccount Recoveryandrefundofrevenue,etc.

6.3 FinanceDepartmentistheAdministrativeDepartmentofthefollowingdepartments: CommercialTaxesDepartment ExciseDepartment InspectionDepartment LocalFundAuditDepartment PensionandPensionersWelfareDepartment RegistrationandStampsDepartment StateDirectorateofRevenueIntelligence StateInsuranceandProvidentFundDepartment TreasuriesandAccountsDepartment RajasthanSalesTaxBoard

6.4 Administrationof theabove listeddepartmentshasbeenentrusted tovarious internalDivisions of the Finance Department. These Divisions may have one or moredepartmentsunderthem.

6.5 Forallgovernmentdepartmentsandagencies in theState,FinanceDepartment is thepoint of contact through their concerned administrative departments for all budgetrelatedqueries,approvalsandsanctions.Frombudgetpreparationandpresentationtothe LegislativeAssembly to ensuring that expenditure is carried out effectively andefficientlyandisproperlyaccountedfor,FinanceDepartmentsinvolvementisnotonlymandatorybutalsocrucial.

5FunctionsdetailedinTheRajasthanRulesofBusiness,2005

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6.5.1 The Finance Department plays the key role in preparation of all budget relateddocumentstobepresentedtotheLegislativeAssembly.Otherdepartmentsinvolvedinfinalization of these documents are the Planning Department and Directorate ofEconomicsandStatistics.

6.6 Paragraphsbelowdetailkey functions carriedoutby theFinanceDepartmentduringdifferentstagesofthebudgetcycle.

6.7 BudgetPreparation:TheBudgetCircular is issuedbyFinanceDepartment to all Statedepartmentsalongwithother instructions forpreparationof receiptsandexpenditureestimatesfortheensuingfinancialyear. TheBudgetCircular includesthecalendarofdatesforsubmissionandreviewofestimatestobepreparedbydepartments.

6.7.1 Thereafter,FinanceDepartmentcarriesoutadetailedevaluationof theStates financialresourcesbasedonguidelinesissuedbythePlanningCommissionofIndia.Inputsfromrevenueearningdepartmentsarealsoincorporatedintheseestimates.Anestimationofresources of local bodies and State Public SectorUnits is alsomade. Based on thequantumofresourcesestimated,FinanceDepartmentdeterminestheaffordablelevelofplan expenditure in the budget for the ensuing financial year and communicates thesametothePlanningDepartment.

6.7.2 Onreceivingbudgetestimatesofexpenditurefortheensuingfinancialyearandrevisedestimates for the current financial year from departments through administrativedepartments,FinanceDepartmentscrutinizesandfinalizestheseestimates.Withaviewtoassisting the Finance Department in discharge of this function, Budget FinalizationCommittees(BFCs)(videChapter17)areconstitutedbytheFinanceDepartment.

6.7.3 Once finalized by the Budget Finalization Committees, estimates are compiled byFinanceDepartment in formats inwhich these are to bepresented to theLegislativeAssemblyforvoteandapproval.

6.7.4 Finance Department also prepares statements required under the Rajasthan FiscalResponsibility and Budget Management Act. These consist of the MacroeconomicFramework,MediumTermFiscalPolicyStatementandFiscalPolicyStrategyStatement.

Budget Execution and Control:Once theAppropriation Bill has been passed by theLegislative Assembly, it is the duty of Finance Department to communicate to alldepartmentstheirapproveddemands.

6.7.5 FinanceDepartment is entrustedwith the responsibility to review and analysemonthlystatementsofreceiptsandexpenditurepreparedandsentbytheAccountantGeneral.

6.7.6 Finance Department also reviews requests made for supplementary grants and reappropriationsbydepartmentsduringthecourseoftheyear.

6.8 Budget Monitoring: Finance Department monitors progress of expenditure andcollectionofreceiptssoastoensurethat:(a) State budget presented and approved by the Legislative Assembly remains a

reliableguidetotheactualexpenditureincurredduringthefinancialyear(b) Moreinformedinyearresourceallocationdecisionscanbemade(c) Propercashmanagementtakesplace

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Chapter7 RoleofFinancialAdvisors7.1 FinancialAdvisors (FAs)/ ChiefAccountsOfficers (CAOs)/ SeniorAccountsOfficers

(SAOs)/AccountsOfficers(AOs)areofficersofRajasthanAccountsService.Theseniormostmember of the Rajasthan Accounts Service posted in the department shall beoverallinchargeofthebudgetsectionofthedepartmentandshallfunctionasFinancialAdvisortoadvisetheHeadofDepartment(HoD)onallbudgetarymatters.

7.2 FinancialAdvisorsshallalsoassisttheHeadsofDepartmentsinattainingareasonablehighstandardoffinancialadministrationsothatfinancialregularitymaybesecuredbyenforcing implicit observance of rules and orders relating to financial procedure andpropriety. The duties and responsibilities6 of these officers in different stages of thebudgetcyclehavebeenpresentedbelow.

7.2.1 BudgetPreparationandExecution:1. Toassistinmattersconnectedwith:

i. ScrutinyandcompilationofBudgetEstimatesandRevisedEstimatesofreceiptsandpaymentspreparedbytheestimatingofficersofthedepartment[NonPlan,PlanandCentrallySponsoredSchemes(CSS)/CentralSectorSchemes(CS)]

ii. Scrutinyofproposalsfornewservice/newitemsofexpenditureiii. FinalizationofBudgetEstimatesbyBudgetFinalizationCommittees(BFCs)iv. Allotmentofbothplan (includingCSS andCS) andnonplan funds amongst

DrawingandDisbursingOfficersv. ScrutinyofproposalsforsanctionofadvancefromtheContingencyFund,utilization

oftheadvancereceivedanditsrecoupmentthroughsupplementarygrantsvi. Redistributionvii. Reappropriationviii. Controlofexpenditureix. Monitorreceiptsandidentifyadditionalresourcesofrevenuex. Scrutinyofproposalsforsupplementaryestimates

2. Toassistinissuingfinancialsanctionsforprojects/schemesasperthedelegationofpowers

3. ToevaluatedetailedprojectreportsasmemberofTechnicalCommitteesconstitutedfor approval of projects undertaken by departments, and ensure year on yearcommittedprojectfunding

4. To monitor financial reporting of all offbudget funds received by department/departmentalagencies(referChapter27)

5. To prepare Performance Budget of theDepartment for submission to LegislativeAssembly,whereverprescribed

6Fordetailedstatus,duties,responsibilities,andpowersoftheofficerspostedinthedepartment,refertoGeneralFinancialandAccountsRulesofGovernmentofRajasthan.



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7.2.2 BudgetMonitoring:

Theseofficersareprimarilyresponsiblefor:

1. EnsuringthatnogovernmentmoneyiskeptoutoftheConsolidatedFundandthatexpenditure is incurredonlybywithdrawing funds from theConsolidatedFundthroughappropriatebudgetaryprocess.

2. Ensuring that actual departmental expenditure does not exceed the RevisedEstimates/modified grant and apprising the Head of Department of majorvariationsinexpenditureorinreceiptsagainstthebudgetedprovisions.

3. Identifyingpossibleareasofmisuseoffunds,infructuousexpenditure,overstaffing,delayinrenditionofaccountsofadvances&adjustmentsanddelayinpreparationofdetailedcontingentbillorrecoveryofunspentbalancesoutoftemporaryadvances.He shall bring the lapses to the notice of the concerned higher authorities andFinanceDepartmentfortakingappropriateandcorrectivemeasures.

4. Arranging financialstock takingofbigprojectsat theprescribedperiodsoas tocorrelatetheprogressofexpenditurewithphysicalprogressofworksactuallydoneascomparedwiththeestimates/targets.

5. Reconciling the figuresofreceiptsandexpenditurewithbooksof theAccountantGeneral

6. AssistinginpreparationofrepliestotheAppropriationAccountsandAuditReports7. Ensuring submission of returns/statement to concerned authorities and

organizations for timely reimbursement or release of funds under CentrallySponsored Schemes/Central Sector Schemes/ Externally Aided Projects/Otheragencies,etc.,andmonitorreceiptofsuchfunds.

8. Ensuring thataccountsareproperlymaintainedand instructions forutilizationofaidfundsorfreematerialreceivedfromGovernmentofIndiaoranyotheragencyareadheredto.

9. Ensuring implementation of instructions of the government issued in relation toeconomyinexpenditure.

7.2.3 Whereletterofcredit(L.C.)systemisfollowed,theseofficersshallberesponsiblefor:

(a) Correctness of the proposals and the data contained therein, such as, stocksuspense, deposit works, agency works, direction and administrative cost,establishment cost, wages of the work charged employees, expenditure to bebookedthroughintergovernmentadjustmentaccount

(b) Ensuring that thedistributiondoesnotexceed the limit laiddownby theFinanceDepartment

(c) Ensuringthatthecreditlimitisutilizedonlyforthepurposeforwhichitisissued



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7.2.4 Others:

Theyarealsorequiredto:

1. Identifypossiblewaysof financingplanactivitiesof thedepartment from sourcesotherthanbudgetarysupport,suchasprivatizationandPublicPrivatePartnerships,etc.

2. AssistinnegotiationsofloanswithExternalAgencies

3. Assist in the matter related to duties as enumerated in General Financial andAccountsRules,and/orassignedbytheFinanceDepartment/HeadofDepartment.

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Chapter8 RoleofBudgetControllingOfficersandDrawingandDisbursingOfficers

8.1 BudgetControllingOfficer:meansaHeadofaDepartmentorotherdepartmentalofficerwho is entrustedwith the responsibility of controlling the incurring of expenditureand/or the collection of revenues by the authorities subordinate to him. BudgetControlling Officers are declared by the Finance Department on the advice of theconcernedadministrativedepartment.

8.2 For discharge of their duties of administering budget allocations and control ofexpenditure,HeadofDepartmentmaydeclareanygazettedofficersubordinatetohimasHeadofOfficewhofunctionsastheDrawingandDisbursingOfficerforeachofficeofthedepartment.Ifrequired,theHeadofOfficemayalsoauthorizeanygazettedofficerservingunderhimfordischargingthefunctionsofaDrawingandDisbursingOfficer.

8.3 The BudgetControllingOfficer shallmaintain a register ofDrawing andDisbursingOfficers for the grant for which he has been nominated as the Budget ControllingOfficer.

8.4 Inallbudgetrelatedmatters,BudgetControllingOfficersshallbeassistedbytheseniormostofficeroftheRajasthanAccountsServicepostedintheconcerneddepartment.

8.5 Themain duties and responsibilities of Budget Controlling Officers with respect tograntsplacedattheirdisposalare:1. Collation of estimates of receipts and expenditure: Budget Controlling Officers are

responsibleforcollatingandreviewingestimatesofreceiptsandexpenditurepreparedbyestimatingofficersunder theiradministrativecontroland forwarding thesame tothe Finance Department through their administrative departments. For planexpenditure,BudgetControllingOfficers are responsible for submitting preliminaryplanproposalsfortheensuingfinancialyeartothePlanningDepartmentincorporatingtheneedand rationalizationofanynew serviceproposed.Once sector/schemewiseceilingshavebeenissuedbythePlanningDepartment,BudgetControllingOfficersareresponsiblefortailoringdepartmentalplanexpenditureestimatesaspertheseceilingsand submitting them to the Finance Department through their administrativedepartmentaspertimelinesspecifiedintheBudgetCircular.

2. OffBudgetEstimates:BudgetControllingOfficersarerequired toprepareestimatesofoffbudgetfundslikelytobeprovidedbyGovernmentofIndiafordepartmentalschemes and submit the same alongwith estimates of other expenditure to theFinanceDepartment.

3. Performance Budget: If applicable, Budget Controlling Officers are required toprepare,compileandcollatetheperformancebudgetforthedepartmentasawhole.

4. Communication andDistribution ofGrants:Once the authorization is issued by theFinanceDepartmentafterenactmentoftheAppropriationAct,BudgetControlling

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OfficersshalldistributethegrantsplacedattheirdisposalamongtheDrawingandDisbursingOfficers.

5. BudgetControl:ThiswouldrequireBudgetControllingOfficerstoensurethat:i. There is a prior sanction of the competent authority for expenditure being

incurredii. Expendituredoesnotexceedthebudgetallocationiii. Expenditureisincurredforthepurposeforwhichfundshavebeenprovidediv. Expenditureisincurredinpublicinterestv. Adequatecontrolmechanismsare inplace forprevention,detectionoferrors

and irregularities inthefinancialtransactionsoftheirsubordinateofficesandtoguardagainstwasteandlossofpublicmoney

vi. Mechanismsorcheckscontemplatedat(v)aboveareeffectivelyapplied6. Expenditure incurredby subordinate officers on objects classed as countersigned

contingent expenditure drawn on Abstract Contingency Bill should be directlysupervised and scrutinized by the Budget Controlling Officer who signs thedetailedbillsrelatingtohim.

7. Budget Controlling Officers are responsible for review, cross verification,consolidationand submissionof the revenueandexpenditureestimatespreparedby estimating officers. They are required to coordinate with the Directorate ofTreasuriesandAccountsandAccountantGeneral tokeepa constant trackof theexpenditureincurredunderaccountheadsassignedtothem.

8. BudgetControllingOfficersarerequired toprepareandsubmitmonthlyprogressreports on expenditure and achievement of physical targets of plan schemesexecutedbythedepartmenttothePlanningDepartment.

9. BudgetControllingOfficersareresponsible forreconciliationofaccountsmaintainedby them (including records of transactionunder theConti

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