Important Provisions of Ch.

12 (Estimates)
Def Acc Code

SAS PATHSHALA
 Demands for Grant
(As per 2014 Edition)
➢ Ministry of Defence submits 8 Demands for Grants to
the Parliament.
➢ 6 Demands under Defence Services Estimates for
Army, Navy, Air Force, Ordnance Factories, Research
and Development and Capital outlay
➢ 2 demands under Civil Estimates for:
✓ (i) Ministry of Defence (Civil) including Defence
Accounts Department, Loans and Equities to PSUs
under Ministry of Defence and Loans to States for
Water Supply Scheme and
✓ (ii) Defence Pensions.
 Demands for Grant
(As per 2014 Edition)
➢The Defence Services Budget Estimates are
presented in six Demands for Grants.
✓Revenue Account-05 (Major Heads 2076,
2077, 2078, 2079 & 2080)
✓Capital Account-01 (Major Head 4076)
 Demands for Grant
(Latest Position)
➢Only 04 Demands for Grants for MoD:
✓Demand No. 18- Min of Def (Civil)
✓Demand No. 19- Def Services (Revenue)
✓Demand No. 20- Capital Outlay on Def
Services
✓Demand No. 21- Defence Pensions
Auth: MoF (Dept of Economic Affairs) letter no. 2 (28)-B (D)/2020
dt. 18.01.2021
 Centrally & Locally Controlled Heads of
Expenditure
➢ (1) Pay and allowances of regular personnel of the Armed
Forces.
➢ (2) Payments to Industrial Establishment employed in store
depots, factories, etc.,
➢ (3) Transportation charges.
➢ (4) Miscellaneous expenses.
➢ (5) Payment for stores.
➢ (6) Works expenditure and
➢ (7) Pensions.
❑ Centrally Controlled Heads – 01
❑ Locally Controlled Heads – 02 to 07
 Centrally & Locally Controlled Heads of
Expenditure
➢ Centrally Controlled Heads:
✓ Represent obligatory charges dependent upon the
strength and composition of the Defence Services
maintained for the defence of the country.
✓ MoD decides on the policy regarding strength and
composition of the Defence Services and hence the
responsibility for implementing the decision and
ensuring proper control over expenditure is vested
with various controlling authorities at Armed Forces
Headquarters etc.,
✓ No distribution of provision is made to subordinate
authorities.
 Centrally & Locally Controlled Heads of
Expenditure
➢ Locally Controlled Heads:
✓ In general, susceptible to control against budget
provision by the various administrative and
executive authorities subordinate to the
Government of India.
✓ Some part of the total budget provision for these
categories of expenditure is placed at the disposal
of local administrative authorities through budget
allotments, while the remaining part is controlled
by the authorities at the Armed Forces
Headquarters.
 Periodical Review and Estimates
The requirement of funds for the Defence Services is kept
under review at periodical intervals.
i. Preliminary Report for the current financial year –
20th August
ii. Preliminary Revised Estimates for the current
financial year and Forecast Estimates for the ensuing
financial year – 10th November
iii. Revised Estimates for the current financial year and
Budget Estimates for the ensuing financial year – 20th
December
iv. Modified Appropriation for the current financial year
– 10th March
 Estimates for Centrally Controlled Heads
➢ Estimates of receipts and charges (Centrally
controlled heads) are prepared by the concerned
Branches/Directorates at the Armed Forces
Headquarters/Departments.
➢ These are submitted for consolidation to Financial
Planning Directorates.
➢ Financial Planning Directorates submit the
consolidated requirements to the concerned
Integrated Finance and Ministry of Defence
(Finance/Budget).
 Estimates for Locally Controlled Heads
➢ Army: Estimates are prepared by Headquarters of
Commands and Areas and Commanders of units and
formations which are directly administered by Army
Headquarters.
➢ Similar authorities on the Air Force and Navy sides will
prepare their respective estimates.
➢ These estimates are rendered to the PCsDA/CsDA
concerned for check and onward transmission to the
respective Branches/Directorates at Armed Forces
Headquarters, so as to reach them well before the due
dates indicated in above slide.
 .
➢The estimates will distinctly show the
'Charged' portion and the 'Voted' portion.
➢Important corrections to the Revised
Estimates (current financial year) and the
Budget Estimates (ensuing financial year)
coming to notice after the submission of
original estimates will be intimated by the
local controlling authorities through the
PCsDA/CsDA concerned as early as possible
but not later than 15th January.
 Estimates for Locally Controlled Heads
➢After checking the estimates prepared by the
local controlling authorities, the PCsDA/CsDA
will record any corrections which they may
consider necessary to those estimates with
reference to past actuals or any other known
factors and transmit the estimates to the
authorities concerned at Armed Forces
Headquarters through the Command
Headquarters where necessary.
 The Estimates of DRDO
➢ The estimates in respect of Defence Research and
Development Establishments are prepared by the
Directors of the concerned
Laboratories/Establishments.
➢ The estimates are checked by the local Accounts
offices and transmitted to the DRDO Headquarters
for consolidation and submission to Integrated
Finance and Ministry of Defence (Finance/Budget).
➢Copies of sanctioned Budget Estimates are
.
distributed by Ministry of Defence
(Finance/Budget) to all concerned.
➢The authorities at Armed Forces Headquarters
will communicate to subordinate formations
the amount allotted under the various locally
controlled heads with which they are
concerned.
 BUDGET ESTIMATES PREPARED BY THE DAD
FOR THE DAD
➢ Budget Estimates for Centrally Controlled Heads:
(i) Major Head 0049-Interest Receipts
Sub Major Head 00-Interest Receipts
Minor Head 191- Interest Receipts from Local Bodies
800-Other Receipts
(ii) Major Head 0235- Social Security and Welfare
Sub Major Head 60- Other Social Security & Welfare Programme
Minor Head 105-Government Employees Insurance Scheme
(iii) Major Head 2049-Interest Payments
Sub Major Head 00-Interest Payments
Minor Head 104-Interest on State Provident Funds
191- Intereston Special Deposits and Accounts
110-Bonus on Field Deposits
701-Interest on Other Miscellaneous Accounts Deposits
 BUDGET ESTIMATES PREPARED BY THE DAD
FOR THE DAD

➢ Budget Estimates for Centrally Controlled Heads:

(iv) Major Head 2235 – Social Security and Welfare
Sub Major Head 60 – Other Social Security and Welfare Programmes
Minor Head 104-Deposit Link Insurance Scheme
105– Govt. Employees Insurance Scheme
(v) Major Head 0210 – Medical and Public Health
Sub Major Head 01 – Urban Health Services
Minor Head 103 – Contribution to Central Govt. Health Scheme
(vi) Major Head 0216 – Housing
Sub Major Head 01 - Govt. Residential Building
Minor Head 106 – Central Pool Accommodation
(vii) 0216 – Housing 2052 – Secretariat General Services
01 - Govt. Residential Building 092 – Other Offices.
106 – Central Pool 02-Defence Accounts Department
Accommodation 01-Establishment
01-Salaries
 BUDGET ESTIMATES PREPARED BY THE DAD
FOR THE DAD

➢ Budget Estimates for Locally Controlled Heads:

(i) Major Head 2052– Secretariat General Services
Sub Major Head 00
Minor Head 92– Travel Expenses
- Office Expenses
- Professional Special Services Payment
- Rent/Rates/Taxes
- Overtime Allowances
- Other Expenditure
- Departmental Canteens
(ii) Major Head 2059 – Public Works
Sub Major Head 01 – Office Building
Minor Heads 051 – Constructions
053 – Maintenance/Repairs
(iii) Major Head 2216 – Housing
Sub Major Head 05 – General Pool Accommodation
Minor Head 053– Maintenance/Repairs
 BUDGET ESTIMATES PREPARED BY THE DAD
FOR THE DAD

➢ Budget Estimates for Locally Controlled Heads:

(iv) Major Head 4059 – Capital Outlay on public works
Sub Major Head 060 – Other Buildings
Minor Head 051 – Construction

(v) Major Head 4216 – Capital Outlay on Housing

Sub Major Head 01 – Govt. Residential Buildings
Minor Head 700 – Other Housings
(vi) Major Head 7610 – Loans to Govt. Servants etc.
Sub Major Head 00 – Loan to Govt. Servants bearing interest
Minor Head 201 – House Building Advance
202 – Advances for purchase of Motor Conveyance
203 – Advances for purchase of Other Conveyance
204 – Advances for urchase of Computers
800 – Other Advances
 BUDGET ESTIMATES PREPARED BY THE DAD
FOR THE DAD

➢ Budget estimates in respect of only the Heads relating to DAD

mentioned above and Defence Services Pensions are prepared
by the DAD itself.
➢ These estimates will be prepared by the PCDA/CDA on forms
prescribed by the CGDA or the FADS as the case may be.
➢ The Estimates will be framed strictly in accordance with the
relevant Rules of Financial Regulations Part I Vol-l and will be
dispatched by the PCDA/CDA so as to reach the authorities
concerned on the due dates.
 BUDGET ESTIMATES PREPARED BY THE DAD
FOR THE DAD
➢ The estimates in respect of the Heads pertaining to the DAD will be
dispatched by the PCsDA/CsDA so as to reach the CGDA on the dates shown
below.
➢ The CGDA after checking the same will submit the consolidated estimate so
as to reach the MoD (Finance) on the date shown against each.

Estimate To be sent by Consolidated Estimate to

PCDA/CDA be sent by the CGDA so
as to reach the CGDA as to reach the Min. of
by Def. (Finance) vide note
below
1. Revised Estimates for the 1st December 30th September
current financial year and
Budget Estimates for the
ensuing financial year
2. Modified appropriation 20th February 10th March
for the current financial year
 Estimates for the MoD (Civil)
• Estimates for the MoD (Civil) are prepared by the
USD (Est.ll/Genl.), CGDA (for DAD), DFA (PSUs), DFA
(Works) (in respect of Water Supply Schemes) US
(Plg) for IDSA, GM CSD, Mumbai & Chief Directorate
of Purchases and submitted to DFA/MO for vetting
and processing.
 BUDGET ESTIMATES FOR DEFENCE PENSIONS

➢ The various estimates for Defence Pensions will be dispatched

by the PCDA(P), Allahabad through CGDA so as to reach the
Deputy Financial Adviser (MO), MoD (Finance) on the dates
shown below :-
(1) Revised Estimates for the current year and 30th September
budget estimates for the ensuring year

(2) Modified Appropriation for current year 4th March

 BUDGET ESTIMATES FOR DEFENCE PENSIONS
➢ To arrive at the figures to be included in the Forecast Estimates for
Defence Pension Heads, the actuals of the preceding year will be
taken as the basis and they will be increased or decreased with
reference to the average increase or decrease in expenditure during
the three years previous to that year.
➢ Due regard being paid to the orders or circumstances which may
have given rise to those differences such as financial impact due to:
✓ fresh retiree,
✓ revision of pension,
✓ implementation of new pension orders,
✓ increase in Dearness Allowance etc. in the current financial year
✓ provisions for restoration of commuted portion of pension after 15
years in respect of service pensioners,
✓ death and disqualification of the pensioners etc.
 CASH REQUIREMENT ESTIMATES OF
DEFENCE SERVICES
➢ The Cash Requirement Estimates of Defence Services for
Revenue, Debt and Remittance Heads are prepared by the
CGDA, PCsDA/CsDA and other authorities as indicated in this
section.
➢ The CGDA and PCsDA/CsDA prepare Cash Requirement
Estimates for the Revised Estimates for the current Financial
year and Budget Estimates for the ensuing year and dispatch
them so as to reach the MoD (Finance/Budget) by 20th
October.
 CASH REQUIREMENT ESTIMATES OF
DEFENCE SERVICES
➢ The Cash Requirement Estimates are generally based on the
compiled actuals for the first six months of the current
financial year and the last six months of the previous financial
year and the figures thus arrived at are suitably modified
taking into account the compiled actuals of the previous
financial year.
➢ The Cash requirements for the following heads are prepared
by the PCsDA/CsDA and submitted to Deputy Financial
Adviser (Budget), MoD (Finance) through CGDA so as to reach
them by 10th November or the date as intimated by them.
 CASH REQUIREMENT ESTIMATES OF
DEFENCE SERVICES
(1) Receipts and Charges
i. Reserve Bank Suspense
ii. Reserve Bank Suspense-Unclassified
iii. Reserve Bank Suspense-English transactions
iv. Accounts with States etc. (Defence), Railways and Posts Department
v. General Provident Fund
vi. Defence Savings Provident Fund
vii. Defence Services Officers Provident Fund
viii. Indian Miscellaneous Military Service Provident Fund
ix. Defence Services Personnel Provident Fund
x. Indian Ordnance Factories Workmen's Provident Fund (Other than those dealt with by
the Principal Controller of Accounts (Factories), Kolkata
xi. Indian Naval Dockyard Workmen's Provident Fund
xii. Deposits and Advances
xiii. Remittances between MES Offices and Exchange Accounts between Defence Accounts
Offices under Major Head 8782 and 8797 respectively etc.
 CASH REQUIREMENT ESTIMATES OF
DEFENCE SERVICES
(2) Charges-Small Savings Provident Fund etc.
(i) Interest on General Provident Fund (Defence Services),
(ii) Interest on Defence Savings Provident Fund,
(iii) Interest on Defence Services Officers Provident Fund,
(iv) Interest on Defence Services Personnel Provident Fund,
(v) Interest on other Miscellaneous Provident Fund in so far as it relates to Indian
Miscellaneous Military Services Provident Fund
(vi) Interest on Indian Ordnance Factories Workmen's Provident Fund (Other than those
dealt with by the Principal Controller of Accounts (Factories),
(vii) Interest on Indian Naval Dockyard Workmen's Provident Fund
(viii) Interest on Field Deposits
(ix) Interest on Contributory Provident Fund
(x) Interest on other Miscellaneous Provident Fund (excluding Indian Miscellaneous Military
Service Provident Fund)
(xi) Bonus on accumulation of credit balance in the IRLAs of JCOs/PBOR/ Airmen / NCs / (E)
(Air Force) and Sailors whose pay accounts are maintained on IRLA System, (with effect from
1/12/70)
 CASH REQUIREMENT ESTIMATES OF
DEFENCE SERVICES
➢ The estimates in respect of all other heads are prepared centrally
by the Deputy Financial Adviser (Budget), MoD (Finance).
➢ The PCsDA/CsDA through CGDA will, in respect of the following
heads, intimate to them annually by 20th October any
extraordinary or abnormal transactions included in the past
actuals or likely to come forward in the year to which the
estimates pertain.
1. Head 0021 Taxes on income other than Corporation tax
2. Head 0049 Interest etc.
 Annual Statement of expenditure under Major Head 2049
Sub Major Head 03—Interest on Small Savings Provident Fund etc.

➢ An annual statement showing expenditure under different

heads of Major head 2049- Interest Payments-Interest on
Small Savings Provident Funds etc. to the end of March
Supplementary will be rendered by the CDA (Funds), Meerut
and also by other PCsDA/CsDA maintaining Fund Accounts,
who furnish Estimates under this head to the Deputy Financial
Adviser (Budget), MoD (Finance).