Budget Sib Sankar Banik, W.B.A&A.S Internal Audit Officer Finance (Internal Audit) Deptt. GoWB

Budget may be defined as estimation of money/ fund available and/ or needed. In Government organisation Budget is statements of miscellaneous collection of information which aggregates into Annual Financial Statement made to the House of People. In short, State Budget denotes a statement of estimated receipts and expenditure of the State in respect of a financial year (Article 202 of the Constitution)

Finance Department is the nodal Department of the Government for preparation of budget and placing the same in the State Assembly at the end of March every year. The followings are the important documents placed before the Assembly every year for acceptance.

Annual Financial Statement – Publication No 1 Vote on Account for expenditure – Publication No 2 Receipts under Consolidated fund - Publication No 4 Receipts and disbursement under Contingency fund and Public Accounts - Publication No 5 Statement showing Financial Results of Govt./ Semi Govt. organisation - Publication No 7 Gross Net Exp. under Non Plan and Plan head - Publication No 8 Key to Budget documents - Publication No 10 Demand No 1 to 61- Publication No 11 to 25

Allotment of Fund Once the vote on account/ demand for a particular Deptt. Is passed by the Assembly, the Administrative Deptt. is now eligible to make necessary allotment of fund to the subordinate offices Bills are prepared in local offices and placed with the treasury upto the limit of fund so received

Process adopted in Preparation of budget Non Plan Expenditure Step i) Submission of revised estimate of expenditure for the current financial year based on actual expenditure for last 6 months Step ii) Estimate for next financial year. These two statement in respect of all the Deptts must be sent to the Finance Deptt immediately after September every year.

Process adopted in Preparation of budget Plan Expenditure Step i) Size of the plan expenditure is finalised with the Planning Commission in December/ January Step ii) The District Planning Board prepares details of Plan Projects and send them to the Development and Planning Deptt. Various Deptts prepare and submit their plan/ scheme to Dev & Planning Department. Step iii) The size and plan projects are finalised by the Dev & Planning Dept in consultation with the Finance Deptt.

Final Budget Documents Fin (Budget) Deptt collects actual figures of receipts/ expenditure from A.G (WB) within July/ August. Non plan budget is prepared on the basis of estimated receipts and expenditure after examining the availability of fund. Plan Budget is prepared on the basis of estimates and approved plan projects/ schemes sent by Dev & Planning Deptt. Budget for contingency fund i.e Public Accounts are prepared for submission before State Assembly.

In short followings are the steps for Budget Collection of data for actual expenses of previous year from AG. Resource Estimation and finalisation of Plan size. Receiving of estimates from all Departments Analysis of data, estimates, documents Inputting of Data with proper classification of head of A/C Preparation of non plan budget for expenditure Preparation of Plan budget for Expenditure Preparation of Budget for receipts

In short followings are the steps for Budget Preparation of Budget for Public Accounts Publication of Budget documents Presentation of Budget before Assembly Authorisation of vote on account Authorisation of Full Budget by Assembly and separate demands

Classification of Account All income and expenditures are classified under different codified units known as Head of Accounts. Head of Accounts are alpha-numeric figures and classified as major, sub-major, minor/ plan states/ schemes/ voted charged/ detail- subdetail head. Payment heads are of 17 digits/ 19 digits whereas public A/cs and receipt heads are of 14 digits

Major head block Receipts Major heads 0020-1606 Exp. Head on Revenue A/c 2011-3606 Major hjeads on Cap A/c 4046-5475 Major heads on Public Debt Receipt/ Exp 6001-6004 Major heads under loans and advance 6075-7999 Contingency Fund and Public A/c 8000-8999

Classified head comprises of following item:- Major (function) 4 digit Sub Major (Division of function) 2 digit Minor (Programme) 3 digit Plan Status (Plan type) 2 digit Scheme (Project) 3 digit Voted/ Charged 1 digit Detail (Object) 2 digit Sub – detail (sub object) 2 digit Example 2070-00-003-NP-005-V-13-04

Example of various head:- Revenue Exp 2401-00-103-NP-001-V-01-01 (Pay) Capital Exp 4401-00-104-SP-003-V-13 (Land or Building) Loan Exp 6401-00-109-SP-001-V-55 (Loan Advance) Public Account 8654-00-800-001-10/20 (Pay/ Receipt) Receipt 6401-00-103-001-17 (Sale )

Example of detail heads to subdetail head:- 01 – Salaries 01-01 – Pay 01-02 – D.A 01-03 – HRA 01-04- Adhoc Bonus 01-05 - Interim Relief 01-07- Other Allowance 01-08 Ex-gratia 01-09- Ration Allowance 01-10 – Overtime 01-12- Medical All 01-14 – Grade Pay