Transcript 1.1 - Office budgeting

GUIDING PRINCIPLES FOR AN
OFFICER
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High standards of financial propriety
Financial Economy
Observance of Financial Rules and
Regulations
Expenditure within limits of authorised
grants
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RULES AND REGULATIONS OF
FINANCIAL MANAGEMENT
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GENERAL FINANCIAL RULES, 1963
DELEGATION of FINANCIAL POWERS
RULES, 1978
CENTRAL GOVERNMENT ACCOUNT
(RECEIPTS AND PAYMENTS) RULES,
1983
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PURPOSE OF FINANCIAL
MANAGEMENT
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To prevent and detect errors and irregularities
To guard against loss and wastage of public
money and stores
To apply prescribed systemic checks
effectively
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BUDGET - definition
Oxford English Dictionary has defined Budget as
“a statement of probable revenue and
expenditure for the ensuing year with
financial proposals founded thereon annually
submitted by the Exchequer for the approval
of the House of Common…….hence, any
analogous statement, estimate or proposals”
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BUDGET - elements
Budget comprises of three documents a statement of the sums required for the due
conduct of affairs during the period to which
such estimate relates;
 an estimate of the probable income from
revenue and loans on the basis of existing
provisions of law regarding public dues and
credit operations.
 a statement showing conditions of treasury in
terms of the assets and liabilities.
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BUDGETING
Involves
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preparation of the estimates;
collection and custody of funds;
disbursement and control of expenditure,
and
recording of all the transactions whose
legality and regularity are duly verified by
the independent offices
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ANNUAL FINANCIAL
STATEMENT
DEFINITION
AUTHORITY
 Article 112 (1) of the
Constitution
 Rule 45 of General
Financial Rules, 1963
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Statement of Estimated
Receipts and
Expenditure
of Central Government
of a Financial Year
-also referred as
‘BUDGET’
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Departmental Accounting System
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Introduced in 1976
Applicable to all Central Civil Ministries/
Departments and Union Territories
Exceptions
Defence, Postal/ Telecommunications
Departments and Railways have their own
departmental accounting system.
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BROAD FEATURES
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Chief Accounting Authority –Secretary of the
Ministry/ Department
C & AG – provides directions to the Ministries
and Departments
Pay and Accounts Officer (PAO)
Cheque-Drawing and Disbursing Officer
(DDO)
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TYPES OF CHEQUES
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Negotiable cheques
Non-transferable cheques
Government account cheques
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Modes of Payments
By Drafts
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Legal requirement
Pay and Allowances
Private parties
Mail Transfer
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To Autonomous Bodies
To Private Sector
Undertakings
To Grantee Institutions
for payment of grant-inaid
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PROCEDURE – for Payments
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Submission of bills by non cheque drawing officers
Pre-check of bills
Payments – Form CAM 13
Post-check – objection memo
Cancellation of sub-vouchers
Consolidation of Accounts – Compilation Sheet
(CAM 33), Receipts (CAM 37), Disbursements
(CAM 38) and Consolidated (CAM 39)
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Provident Fund Account - Maintenance
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Allotment of Account Number – Rule 4 of
GFRs
Nominations
Advance / Withdrawals
Transfer of account
Annual Accounts
Accounts for Group ‘D’ staff
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Relevant General Financial Rules
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Rule 62 & 63(1)
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Rule 45 r.w.r.54 & 62
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Rule 53
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Rule 60
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Submission of Budget
estimates by individual offices/
Heads of Departments
Plan and Non-Plan estimates
to be given separately
Financial management for the
months when budget is
pending
Communication of grants to
the Departments
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Budget preparation
Parliament
Office
C
Grants
Ministry /
Department
Plan
Estimate
budget
Non- Plan
Office
A
Office
B
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Relevant General Financial Rules
- contd.
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Rule 70
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Provision for
Supplementary grant
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Rule 64, 69, 71 & 72
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Application of the grant
towards a given financial
year
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Rule 48 & 59
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Submission of estimates
in the given forms
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REVISED ESTIMATES – aspects
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Due dates
Budget Estimates
Plan and Non-Plan Estimates
Revised Estimates
Final Estimates
Communication of Budget Grant
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CONTROL OF EXPENDITURE
–procedure and requirements
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Bill Passing –cum-Expenditure Control Register : Bill-wise and
Head-wise in Form GFR 9 [Rule 66(2)(i)]
Monthly Statement –to be maintained by the DDOs
Broadsheet in GFR 10 – to be maintained by the Controlling
Officer
Statement in GFR 11- by the Controlling Officer
Complete Expenditure in GFR 12 – to be shown by Head of the
Department
Quarterly returns
Liability Register
Appropriation Audit Register (CAM 62)
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RECONCILIATION
-procedure
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PAO to send figures of expenditure/ receipts booked for a
month and progressive figures up to that month, from the
DDO-wise Expenditure Control Register or Compilation
Sheet to the DDOs
DDO will send monthly statement (containing departmental
figures, PAO’s figures, differences, and details of adjustments pending
with DDO/ PAO) showing progress of reconciliation to
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Head of Department
Head of Department to furnish a Quarterly Certificate to
the PAO certifying the correctness of the figures
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FINANCIAL POWERS
- relevant GFRs and DFPRs
Defines 
General powers
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Head of Department – the
‘Authority’
Head of Office
Powers of subordinate
authorities
Delegation of enhanced
powers
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Rule 34 GFRs & Rule 5
DFPRs
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Rule 3(f) GFRs and
Schedule I to DFPRs
Rule 14 DFPRs
Rule 13 DFPRs
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Rule 13(2) and 35 DFPRs,
GID 1 to Rule 13 DFPRs.
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FINANCIAL POWERS
- relevant GFRs and DFPRs contd.
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Authorisation of
subordinate officers
Powers are to be
exercised subject to
availability of budget
provisions
Sanctions
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Rule 13(3) and
16DFPRs.
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Rule 89 GFRs and
Rule 13 DFPRs
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Explanation below
Schedule V to
DFPRs and GID 1,
Rule 89, GFRs
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