Published on July 21, 2014
BUDGET PROCEDURES STRUCTURE OF GOVERNMENT ACCOUNTS CONTROL OF EXPENDITURE : BUDGET PROCEDURES STRUCTURE OF GOVERNMENT ACCOUNTS CONTROL OF EXPENDITURE Presentation by… Er. S. SIVALINGAM ASST. EXECUTIVE ENGINEER, PWD, WRO COIMBATORE W E L C O M E B U D G E T: B U D G E T ANNUAL FINANCIAL STATEMENT BUDGET…: BUDGET… A statement of the estimated Receipts and Expenditures of the State for each Financial Year which has to be laid before the Legislative Assembly. BUDGET PROCESS: BUDGET PROCESS Preparation of Budget Estimates and onward transmission to the Finance Department Proposals for new Expenditure Presentation of Budget Statements to the Legislative Assembly Discussion and voting by the Legislative Assembly Appropriation / assent by the Governor Authorization of Expenditure BUDGET PROCESS…: BUDGET PROCESS… Budget Estimate ( BE ) As fixed during the previous financial year With effect from April 1 st Revised Estimate (RE ) 1. Revision of current year’s Budget 2. Assessment of next year’s Budget Estimate August Final Modified Appropriation ( FMA ) Modified final Budget for the current year February Budget related Events: Budget related Events Address by the H.E. Governor in the Legislative Assembly Budget speech by the Hon’ble Finance Minister in the Legislative Assembly Detailed demand for Grant (demand no:40) by the Hon’ble Minister for PWD / WRD Demand for Grant for supplemental Estimates Policy Note Citizens’ Charter Announcements by the Hon’ble CM / Minister in the Legislative Assembly STRUCTURE OF GOVERNMENT ACCOUNTS: STRUCTURE OF GOVERNMENT ACCOUNTS PART I : CONSOLIDATED FUND OF T.N PART II: CONTINGENCY FUND OF T.N PART III: PUBLIC ACCOUNT OF T.N SECTORS AND HEAD OF ACCOUNTS: SECTORS AND HEAD OF ACCOUNTS 1. General Services ( Defence , Police, General Administration ) 2. Social and Community Services ( of the development functions like Education, Public Health, etc ) 3. Economic Services (Agriculture, Industry, Power, etc) HEAD OF ACCOUNT: HEAD OF ACCOUNT First tier sector Second tier major head / sub major head Third tier minor head Fourth tier group sub head / sub head Fifth tier detailed head Sixth tier sub detailed head 2701- major & medium- 80- general- 001- direction & administration- I non-plan- AA- chief engineers (WRO)- 01- Salary- 01- pay: 2701- major & medium- 80- general- 001- direction & administration- I non-plan- AA- chief engineers (WRO)- 01- Salary- 01- pay major Sub major minor Sub head Detailed head Sub detailed head Sub-Head Identity: Sub-Head Identity AA NON PLAN SCHEMES JA, JB, JC, … PLAN SCHEMES PA, PB, PC,… PLAN SCHEMES WITH EXTERNAL AID, LIKE NABARD, ETC MINOR HEADS: MINOR HEADS Non-plan State plan Centrally sponsored Schemes financed by autonomous bodies Schemes shared between State and Centre Budget related Subjects: Budget related Subjects Administrative approval / Sanction Appropriation Budget Control Budget Year Budget Estimate / Revised Estimate FMA(Final Modified Appropriation) Letter of Credit (LOC) Surrender of Savings Supplementary Grant Re-appropriation of Funds Budget related Subjects…: Budget related Subjects… Part – II Schemes Number Statement Technical Sanction Revenue and Receipts Reconciliation of Accounts New Service Correlation Statement Commercial Budget Estimate Committee Tamil Nadu Budget Manual CONTROL OF EXPENDITURE: CONTROL OF EXPENDITURE Proper formulation of Estimates Proper communication of appropriation to the field Officers and Treasuries Prompt accounting and reporting Analysis of trends of expenditure and regulation Communication and implementation of decision Review of implementation PERFORMANCE BUDGET: PERFORMANCE BUDGET A comprehensive operational document, conceived, presented and implemented in terms of programs, projects and activities, with their financial and physical aspects closely inter-woven. ZERO BASELINE BUGETING FOR ACCELERATED GROWTH ( Ze-BAG ): ZERO BASELINE BUGETING FOR ACCELERATED GROWTH ( Ze -BAG ) Implemented in 1988 Modified from 1992-93 Reviewing and reordering in a holistic manner Set out all the goals and specific objectives BUDGETARY IRREGULARITIES: BUDGETARY IRREGULARITIES Excess expenditure over a Grant Defective or inaccurate budgeting Defective control of expenditure Audit Review of PUBLIC ACCOUNTS: Audit Review of PUBLIC ACCOUNTS Accountant General ( A.G.) Comptroller and Auditor General of India ( C.A.G. ) Public Accounts Committee ( P.A.C ) discussions: discussions [email protected] PowerPoint Presentation: THANK YOU !