Anand dubey (JWM/OFILKN

)

What is budget ?
 An estimate of income and spending for a set period of time.  An amount of money needed or available for a purpose.  A regular estimate of national income and spending put forward by a finance minister.

Financial - budget
It is a set of documents explaining the estimate of

Receipts and Expenditure of the Organisation for the
given period.

i.e. the financial year beginning with first April to
31st March.

Financial budget It is a Management tool for planning monitoring and controlling the activities of the Organization in line with the changes occurred from time to time. .

Plans. 3.The Financial Budget documents include detailed information of the following: 1. programme. . 2. Standard Data/Statistic Regarding various performances of the Organization. projects and activities of the present as well as future. Resources available.

Finance budget in ordnance factories .

Receipts and Recoveries. . 2. Expenditure side.Budget at a glance Budget is having two parts1.

(E) Miscellaneous exp. Of P&M (B) New capital Expansion Diversification New project (C) Civil works (D) Movement of personnel. (C) Capital works and store (F) Research & development . & Repl.Expenditure Revenue expenditure (A) Manufacture (B) Store purchase Capital expenditure (A) Ren.

. All other expenditure is falling under general category and susceptible to control against budget provisions by the Executive Authority under the Government of India. This is un-avoidable commitment depending on the strength and composition of the Organisation and other factors. which are governed by the policy decisions of the Government of India.The Manufacture (revenue expenditure) represent the most part and obligatory charges.

From CT/MHA/NMD etc. To Services 2. Sale of Waste / Scrap 4. Pile 5.Sale of Sur/Obs. Recoveries 1. Store 3. Receipts . Deptt. 2 . Transfer from Stk. Other Def.Receipt / Recoveries Issues 1. Misc.

General rules for the preparation of budget  Only sanctioned expenditure may be included.  A statement of case is to be submitted in the usual manner for such fresh charges. .  At the end of the estimate any fresh charge requiring sanction during the year should be noted.

 All variations between the provision for the ensuing financial year and that for the current year must be explained. The estimates should be prepared on the basis of what is expected to be actually received or paid. .

 Fixed charges and charges for supplies and services should be based on data with due regard to past experience.  fixed establishments are not fixed all times and should be brought under the formal review of controlling officers from time to time. .

of the year to which the budget relates should be adopted. The estimates should be based on the existing order of the Govt.  In the case of progressive salaries. the rate of pay which will be due on the1st Sept. The estimate should be based on the existing strength suitably increase to provide for further recruitment and availability of such personnel. of India. .

. should be calculated with reference to the average normal expenditure of the previous three years. Fluctuating charges.  All temporary and supernumerary office and other establishments should be shown separately from permanent establishments. contingent and miscellaneous charges etc. such as traveling allowances.

provision should be made for the amount due for the period 1 st.  In respect of other charges which are payable as soon as incurred. Provision should be made for changes likely to be incurred during the period 1st April to 31st March. For arrears. March to 28-29th February. .

 Pay and Allowances.  No lump provision should be made in the budget estimates except under definite orders. which are fixed at the daily rates. . should be calculated for 365 days 366 days in the case of leap year and not on a monthly basis.

 Provision for losses should not be made in the estimates unless otherwise authorized in the regulations or special sanction is obtained. .

The process of estimating does not end with the preparation of the original budget estimates for the year but continues through out the year and at intervals. Budget figures are reviewed in the light of the progress of the actual expenditure and other factors affecting the budget estimates for the year. .

(OF PREVIOUS YEAR) NOV. (OF CURRENT YEAR) OCT. (OF CURRENT YEAR) PRELIMINARY REVISED ESTIMATE – (PRE) REVISED ESTIMATE – (RE) FINAL MODIFICATION REPORT/ MODIFIED APPROPRIATION – ( FMR/ MA ) Note- FEB. (Current year) RE (of current year) & BE (of next year) be submitted by NOV.Budgetary reports (Budgetary projection to OFB) REPORT FORECAST ESTIMATE BUDGET ESTIMATE PRELIMINARY REPORT DUE MONTH – (FE) – (BE) – (PR) OCT. (OF CURRENT YEAR) NOV. (OF CURRENT YEAR) PRE (of current year ) & FE (Of next year) be submitted by OCT. (OF PREVIOUS YEAR) AUG.(current Year) .

Preliminary report (PR)  This is a estimate.  Original budget estimates are then be reviewed by the Ministry of Finance (Defence) and Ministry of Defence and decision is taken with regard to any special action considered necessary. . which should take into account the progress of actual and other relevant factors.

Preliminary revised estimates (PRE)  This estimate is a forecast as accurate as possible of what the actual results for the year are likely to be. .  This estimate will then be reviewed by the Ministry of Defence and the Ministry of Finance (Defence) for taking similar action as in the case of the Preliminary Report.

Revised estimates (RE)  This is a more accurate estimate of what the results of the year are likely to be and is based mainly on actual expenditure known to date. further action is taken by the Ministry of Defence to obtain additional Grants from the Parliament. if any) under any of the demands for Grants.  If Revised Estimate shows an unavoidable increase over the sanctioned Grant (including the Supplementary Grant. .

.  On the basis of this estimate. necessary re-appropriations and or surrenders are formally sanctioned by the Ministry of Finance (Defence).Modified appropriation (MA)  This is a final estimate for the year and to be based on the latest known actual and the likely expenditure during the remaining period of the year.  This estimate should correspond in total and in detail to the actual expenditure for the year.

whose duty it is to scrutinize and where necessary. of Fin.  The responsibility of the Ministry of Defence. (Defence). The Ministry of Defence jointly with the Ministry of Finance (Defence) are responsible for the sufficiency and moderation of the Defence Services Estimates. amend them before transmission to the Min. . in regard to framing the estimates is exercised mainly through the Heads of Branches at Armed Force Headquarters or of other organizations under the Ministry of Defence.

Wages. district police. Object-Heads Are the primary units of appropriation like Salaries. Sub-Heads Indicate Scheme or organisation or activity under Programme Detailed-Heads Indicate sub-schemes. Health. etc. primary education. Dairy Development. Police. Minor-Heads Indicate Programmes under the functions or sub-functions. Sub-Major Heads : Indicate sub-functions like special police.Major-Head Indicates function of the Government under the Sector/Sub-Sector like Administration of Justice. Education. Office Expenses. Village and Small Industries. elementary education. .

 Minor head 053-maintenance 807/01 807/02 I II Expdr. Pay & Allowances I II III IV V VI VII Officers NGOs/NIEs Industrial Employees DSC Personal (including officers) Trainees Others Medical Reimbursement 805/01 805/02 805/03 805/04 805/05 805/06 805/10 . On M & E Custom duty Minor head 054 manufacture 1.

II. Overtime Allowance Industrial Employees Others NGOs/NIEs 805/08 805/09 805/07 3. III.2. I. Contract Labour for Production 805/11 .

Hiring of Vehicle for Movement of Personnel 808/01 808/01 808/02 808/03 808/03 808/03 808/03 808/04 .Movement of Personnel I. (a) Temporary Duty Moves (b) Temporary Duty Moves-For training II. Foreign Training (a) For Training (b) For PDI (c) For Marketing (d) For Other purposes IV. Permanent Moves III.

Local Purchase II. Local Purchase II. Central Purchase Software 806/22 806/23 806/24 806/25 (3) I. Central Purchase 806/20 806/21 (2) I. Central Purchase Maintenance . Local Purchase II.Minor head 110-stores (1) (Information Technology) Hardware I.

IT Training Local Central 806/28 806/29 . Computer Stationery & Consumables Local Purchase Central Purchase 806/26 806/27 (6) I. II.(5) I. II.

Expenditure on Building 809/01 809/02 Expenditure on Bldg. 809/06 809/07 .2 Lakhs. Expenditure on Residential not forming capital assets. other than Residential quarters not forming capital assets. Original Work other than Residential Qtrs. costing up to Rs. Other Revenue Expenditure. (2) I. II. II.2 Lakhs.(1) I. Original Work on Residential quarters costing up to Rs.

In India-Course Fee b. Abroad-Course Fee d. In India-Others c.Minor head 800-other expenditure (Other misc. Abroad-Others (3) Office equipments 810/03 810/04 810/04 810/04 810/04 810/04 810/05 . Heads) (1) Communication (telephone/telex/ Fax /postage & telegraph/microwave) (2) Training a.

(4) Contract labour 810/08 810/08 810/08 810/08 a. Conservancy b. Private Securities c. Others .

L. Payments under workmen compensation Act. Sales Tax. K. J. if any.Others. Expenditure on account of participation in international Trade Fairs. 810/12 D. H. Advertisement Expenditure. . Exhibition Expenditure. C. I. Expenditure in connection with publicity of articles manufactured in Ordnance Factories for civilians. Expenditure on account of participation in Trade Fairs within India. B. Excise Duty during current year .(5) Other misc expenditure A. E. Other than through DAVP. G. F.

Misc. II. Receipts I.Ord. Fys. V. III. Water Conservancy From Estate Fund 802/04 802/05 802/06 . Misc hospital Receipts Rent Electricity 802/01 802/02 802/03 IV. VI.

Thank you .

.Estimates for fresh expenditure Every application for sanction to fresh expenditure. (to Controller of Defence Accounts concerned in the case of proposals initiated by authorities lower than Armed Forces Headquarters) with such data as are enable the latter to check it. This authority. with whom the proposal originates shall frame the estimate as accurate as possible and shall be responsible for its scope and for furnishing the financial authorities concerned. shell be accompanied by a clear estimate of its financial effect.

If the opinion of the financial authorities or the Controller of Defence Accounts. The administrative authorities cannot call upon the Defence Accounts Department to furnish data/figures which are available in their own office or which necessitate the recompilation of accounts. the estimate is defective. The financial scrutiny of these proposals is intended to secure that they are in accordance both with general financial principles and with any particular regulations that may be applicable and that they are not open to criticism on the ground of over spending. . the initiating authority will be called upon to furnish such further information as are enable them to place before the sanctioning authority a reliable estimate of the cost involved.

. the Ministry of Defence shall at once report the matter to the Financial Adviser. the conditions of service and concessions applicable to the troops non-combatants (enrolled) and non-combatants (un-enrolled) to be employed. Defence Services.Estimates of fresh expenditure due to operations When operations or important special services involving expenditure of large amounts of money are to take place. and shall supply that authority with out delay as possible with a scheme giving in detail the composition and strength of the force. together with a forecast of the probable duration of the operation.

All subsequent changes. . which may materially affect expenditure. Defence Services. shall be communicated promptly to the Financial Adviser. Defence Services. Copies of the scheme as soon as it has received the sanction of the Government of India shall be furnished by the Ministry of Defence to the Financial Adviser.And such other particulars as may be necessary. for communication to all Controllers of Defence Accounts and it will form the recognized basis of estimates and audit by the Ministry of Finance and its officers. the Controllers and other concerned.

rests with the Defence authorities. .It is to be clearly understood in questions of this nature that the responsibility for expenditure on field operations and similar services. at the base. the general rules in these regulations as to the exercise of financial-powers during peace apply equally during war or when special operations are undertaken. It is for them to see that the utmost economy is observed in expenditure in the field. and in the supplies required by the forces concerned. Subject to the above consideration.

No provision will ordinarily be made in the budget estimates of the ensuing year for proposals.Proposals involving extra expenditure The annual budget estimates are closed on the'31st December of the. unless specially allowed. which are not received in sufficient time to admit of their full consideration by the Government of India before the 31st December. .preceding year. and only those proposals involving extra expenditure which are sanctioned by the Government of India prior to that date are provided for therein. Such sanctions will not. have effect until the following financial year.

.Expect in urgent cases proposals. which require the sanction of the Government of India mush reach them by the 15th November. An application for the renewal of sanction to a temporary establishment to be made in time to admit of orders being passed by the authority competent to sanction its retention before the existing sanction expires.

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