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Budget Manual 2012

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Budget Manual 2012 GOVERNMENT OF ASSAM BUDGET MANUAL UPDATED : 2012 FINANCE (BUDGET) DEPARTMENT DISPUR Report of the Committee The Government of Assam constituted a Committee under the Chairmanship of Shri S.C. Das, IAS, Chairman, ASEB vide Notification No. FEA 84/2007/Pt/24 dated 19th November, 2010 (Annexure 0.1) for revising the Budget Manual. Shri Vishal Solanki, IAS, Joint Secretary, Finance Department and Shri R.K. Buzarbaruah, AFS, Director, Finance (Budget) Department were other members of the Committee. The Committee held total 09 sittings. As the Committee started its functioning only in April, 2011, its term was extended thrice up to 31th October, 2011. The Committee referred to the existing Budget Manual of Government of Assam as well as Budget Manual of Government of India. Though the Committee was asked to finalise the updated Budget Manual, the Committee was of the view that the updated Manual will not meet the present requirements and it needs a thorough review as the existing Manual is in force since 1932. Therefore, the Committee has attempted a comprehensive revision of the entire manual to make it more relevant and updated. 2. Budget Manual is a compendium of general provisions and procedures relating to Budget making to be followed by all offices in the State Government who are involved in the budgeting exercise and dealing with matters relating to Budget as well as management and control of expenditure. This Manual is an attempt to cover the existing void faced hitherto due to the lack of a comprehensive guidebook on the subject matter of Budget process in the State Government. An attempt has been made to incorporate all the issues relating to Budget so as to make it a comprehensive one stop guidance material. 3. The purpose of this Budget Manual is to provide a guidance material for the managerial and supervisory staff and above all to the employees dealing with the Budget and Budget related issues. It provides a comprehensive outline of the processes of budgeting and other related issues along with various legislative and administrative policies, principles and practices which outline the budgeting system in the State of Assam. The effort has been made to draft this Manual in the form of a simple and usable document and as far as possible, to comprehensively outline the procedures and practices in vogue including the detailed check-lists and the mechanisms involved in its operation. The Manual attempts to outline in a linear fashion the entire chain of events leading to the presentation of State Budget and passing of the related Appropriation Bills, regulation of expenditure and finalisation of Accounts by the Assam Legislative Assembly. 4. Chapter 1 is introductory in nature and brings out the meaning and importance of Budget. Chapter 2 pertains to Definitions and glossary of important budget related terms. Chapter 3 brings out the important Constitutional and legal provisions related to State Budget. Chapter 4 of the Manual deals with the Organisational aspects bringing out the roles and responsibilities of the Assam Legislative Assembly and the responsibilities of various wings of the Executive in the Budget making process. Chapter 5 of the Manual deals in a comprehensive manner with the Structure of Government Accounts and the classification system. This is very crucial for any budgetary process since the budgetary and accounting classifications follow a common pattern and their clear understanding is crucial for any analysis on Budget and the related provisions. A detailed analysis of the three Funds viz. The Consolidated Fund, the Contingency Fund and the Public Accounts have also been dealt with in this Chapter. 5. Chapters 6 to 9 are the core of this Manual which bring out the entire chain of Budget preparation process right from the issue of the Annual Budget Circular. It deals in great detail with the process of estimations relating to receipts and expenditure and the consequent compilation of the Statement of Budget Estimates including Revised Estimates and proposals for New Expenditure. The procedures of consolidation and presentation of the Budget Estimates to the Assembly and of the communication and distribution of the grants are also explained in the relevant Chapters. All the related formats of estimation have been dealt with briefly in these Chapters in a sequential manner. 6. Chapters 10 to 12 of the Manual deal with the issues relating to other aspects of Budget implementation like management of expenditure and accounts etc. These chapters apart from other aspects outline the role of Departments in spending and control, cash management including the Act, provisions, guidelines and instructions relating to Assam Fiscal Responsibility and Budget Management Act, Delegation of Financial Powers Rules, Gender Budget and Outcome Budget. 7. The Committee acknowledges with thanks the valuable assistance rendered by other officers of the Finance (Budget) Department namely, Shri Anjan Chakrobarty, ACS, Joint Secretary; Shri Bhabesh Deka, AFS, Deputy Director; Shri Bikash Das, AFS, Deputy Director and Shri U. Basumatary, OSD for their contributions in drafting the Budget Manual. The present form of the Manual has evolved as a result of numerous interactions and valuable contributions from all the participants in this endeavour. Sd/- (S.C. Das) Chairman Sd/- Sd/- (R.K. Bujarbaruah) (Vishal Solanki) Member Member INDEX Chapter Content Page No. 1 Introduction 1 1.1 Background 1.2 Annual Financial Statement 1.3 Financial Year 1.4 Meaning of the Budget 1.5 Scope of the Budget 2 Definitions and Glossary of important Budget related 5 terms 3 Important Constitutional and Legal provisions related 12 to Budget 3.1 Constitutional provisions related to budget making process in the State of Assam 3.2 Provisions in the Assam Rules of Executive Business, 1968 4 Organisational Aspects 23 4.1 Roles and responsibilities of the Assam Legislative Assembly 4.2 Summary for the State Cabinet 4.3 Budget Presentation 4.4 General discussions 4.5 Cut-Motions 4.6 Guillotine 4.7 Appropriation Bill 4.8 Finance Bill 4.9 Vote on Account 4.10 Role of the Executive in the Budget process 4.11 Finance (Budget) Department 4.12 Budget Related Functions 4.13 Administrative Departments 4.14 Role of Financial Advisers 4.15 Budget related checks at the end of Financial Advisers 4.16 Accountability checks on Executive 4.16.1 The roles and procedures relating to the Standing Committees of Assembly 4.16.2 Public Accounts Committee 4.16.3 Committee on Estimates 4.16.4 Committee on Public Undertakings 4.16.5 Departmentally related Standing Committee 4.17 Planning Commission 4.17.1 Planning Process 4.17.2 Preparation of Plan Budget of the State 4.17.3 Hill Plan 4.17.4 Plan Fund for other Autonomous Councils, Tribal Sub Plan, Scheduled Caste Sub Plan 4.18 Reserve Bank of India 4.19 Role of the Comptroller and Auditor-General of India and Accountant General, Assam 5 Structure of Government Accounts 41 5.1 Consolidated Fund of the State 5.2 Contingency Fund of the State 5.3 Public Account 5.4 Steps in Accounting Process 5.5 Seven tier Accounting Classification 5.6 List of Major and Minor Heads of Accounts 5.7 Coding Pattern 5.8 Demands for Grants 5.9 Finance Accounts 5.10 Appropriation Accounts 5.11 Procedure For Opening New Heads Of Accounts 5.12 Uniformity in structure of Accounts of Union and State Governments 6 The Budget Process 52 6.1 Budget Calendar 6.2 Budget Circular 6.3 Relationship of Budget Heads with Account Heads 6.4 Supply of Forms for preparation of Budget Estimates 6.5 Preparation of Budget Estimates 6.6 Estimates of Revenue and Receipts 6.7 Estimates of Expenditure - General Instructions 6.8 Pay of Officers and Pay of Establishment 6.9 Other Items 6.10 Revised Estimates 6.11 New Expenditure 6.11.1 New Service 6.12 Works carried out by the Works Department - Major Works 6.13 Additions and alterations to residential buildings 6.14 Minor Works 6.15 Consolidation and Presentation of the Budget Estimates 6.16 Departmental Estimates and abstract of receipts and expenditure for the next financial year 6.17 Presentation of the Budget to the Assembly and Finance Minister’s Speech 6.18 Motion relating to expenditure 6.19 Appropriation Bill 6.20 Common types of Budgetary errors 7 The Budget Implementation 68 7.1 Communication of Grants to the Controlling Officer 7.2 Distribution of Grants amongst Disbursing Officers 8 Supplementary, Additional and Excess Demands 70 8.1 General Remarks 8.2 Supplementary Grants 8.3 Restriction on Expenditure not provided for 8.4 Restriction on an item reduced or refused by the Assembly 8.5 Procedure regarding Supplementary or Additional Grants 8.6 Charged expenditure 8.7 Uncovered and inevitable expenditure 8.8 Excess Grant of Appropriation 9 Re-Appropriations 75 9.1 General Principles 9.2 Powers of Re-Appropriation 9.3 Re-Appropriations in the Works Department 10 Management of Expenditure and Accounts 78 10.1 Information for the Appropriation Accounts 10.2 Draft Audit Paragraphs 10.3 Accounts and Report of the Comptroller & Auditor General 10.4 Procedure in respect of irregularities 10.5 Assam Fiscal Responsibility and Budget Management Act 11 Monitoring the progress of Revenue and 82 Expenditure 11.1 Duties of Collecting and Controlling Officers 11.2 Revenue Returns 11.3 Monitoring of Central Revenues 11.4 Procedure for Controlling Officers 11.5 Procedure for Disbursing Officers 11.6 Register of Expenditure 11.7 Presentation of bill and bill extract at the treasury 11.8 Return of Expenditure 11.9 Receipt of return
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