Transcript Finance for Non

Finance
for
Non-finance
Officers
Finance function
 Non-finance Officer is a misnomer
 Every Officer is a finance officer
 Finance function is implicit and
universal in nature.
 We exercise finance function,
consciously or other-wise in our
personal life too.
First standard of financial propriety
 Expenditure should not prima facie be more than
the occasion demands and
 Every Government servant should exercise the
same vigilance in respect of expenditure incurred
from public moneys as a person of ordinary
prudence would exercise in respect of the
expenditure of his own money.
Finance function in Public affairs
Finance acquires added significance in
Government affairs because we are dealing with
public money.
Accountability to the public through public
representatives i.e. through the institution of
Parliament.
Finance
Establishment
Passengers
Goods
Misc.
Receipts
Total Receipts
Other
Coaching
Subsidy
Safety
Surcharge
Sundry
Appropriation
Operating
Expenses
to RSF
Appropriation to
Capital Fund
Appropriation
to Pension Fund
Total Outgo
Appropriation
to DF
Appropriation
to DRF
Misc Expd
Dividend
OLWR
2%
27
%
2%
4%
Where the Rupee came from – 2009-10
65%
Passenger
Earnings
Other Coaching
Earnings
Goods Traffic
Earnings
Sundry Other
Earnings
Misc.Receipts
Where the Rupee went - 2009-10
(as part of the total disbursements)
2%
8%
4%
6%
1%
6%
0%
1%
5%
Staff Wages & Allow.
Pension Fund
Fuel
Stores
Lease Charges
Other Pus
16%
Dividend
DRF
36%
CF
15%
DF
OLWR
Miscellaneous
Where the Rupee went - 2009-10
as part of working expenses
4%
10%
6%
19%
43%
Staff
Pension
Fuel
18%
Stores
Lease Charges
Other Pus
Finance Establishment deals mainly with …
 Creation of Additional Revenue Posts;
 Extension of Temporary Posts;
 Conversion of Temporary Posts to permanent
ones;
 Crediting money value of posts surrendered to Surplus
Bank;
 Release of matching money value from Surplus Bank
for creation of revenue posts concurred in
and
Finance Establishment deals with …
 Creation of Work-charged Posts;
 Extension of Work-charged Posts
 Six Monthly reviews of running staff – Drivers and
Guards
Finance Establishment also concerned with …
 Engagement of
 CMPs,
 Part-time lecturers etc.
 Fixation of Consolidated Traveling Allow.
Manpower Planning
 IR has as a well organised, well trained and very
responsive workforce, specific to the needs of the
organisation.
 Our staff and officers are in great demand in other
departments and also the private sector.
 Man power by itself is not a problem. Problem
related to sector wise requirements vis-à-vis
availability.
Staff Strength and Staff Cost
Year
Staff (in
lakhs)
Average Annual wage (Rs.)
1950-51
9.14
1,263
1995-96
15.86
59,219
2004-05
14.24
1,58,140
2005-06
13.24
1,73,911
2006-07
13.97
1,73,799
2007-08
13.95
1,86,070
2008-09
Impact of Pay commission
 Expenditure on staff and pension have
payments increased dramatically following
recommendations of successive Pay
Commissions, especially the V PC and VI PC.
 No room for complacency
Rightsizing IR
 Since the 1990s, Railways have been trying
to right-size manpower.
 Staff strength brought down
from about 18 lakhs in nineties
to
13.95 lakhs in 2007-08,
by almost 4 lakhs in about 18 years
Techniques followed
 Filling
up of only 1% as against 3% retirements
every year.
 Doing away with Yardsticks and Norms
 Bringing in IRBM
 Outsourcing non-core activities
 Identifying surplus posts
 Surrendering vacant posts
 Redeploying staff rendered surplus
 No indents for surplus categories
Creation of revenue posts
 Creation of additional posts only as last resort
 Alternative means to be explored for creation of
posts like
 re-arrangement of work and duties,
 elimination of unnecessary work,
 simplification of procedures
 rationalization of works etc
 computerisation of more activities
Pre-requisites for
creation of revenue posts
 Every proposal for creation of additional posts,
should be accompanied by
 statement showing the particulars of the existing
staff,
 the proposed staff and the increase or decrease in
each category of post.
 Creation of Revenue posts require matching
surrender from Surplus Bank
 Safety & operational posts can be created on 1:1
basis; Others 3:4 in Ratio.
Sanction Powers
Revenue Posts:
 Gazetted - Railway Board
 Non-Gazetted - G.M.
Work-charged Posts - Creation/ Extension :
Above JAG : Railway Board
Upto JAG : G.M. or lower authorities as per
delegation on the Railway
Creation of Work-charged posts
 No consultation with Finance necessary where
 funds are allotted for specific projects/objectives,
 with break up of establishment charges post-wise and
other charges.
 Within such financial limits, Departmental Officer can exercise
their discretion to sanction the expenditure without consulting
Finance.
 In all other cases prior finance concurrence is necessary.
Thank You