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

2. 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)

3. 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.

4. 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

5. 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

6. 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.

7. 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.

8. 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.

9. 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

10. 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

11. 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

12. Major head block Receipts Major heads 0020-1606
Exp. Head on Revenue A/c
Major hjeads on Cap A/c
Major heads on Public Debt Receipt/ Exp
Major heads under loans and advance
Contingency Fund and Public A/c

13. 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
NP-005-V-13-04

14. Example of various head:-
Revenue Exp NP-001-V (Pay) Capital Exp SP-003-V-13 (Land or Building) Loan Exp SP-001-V-55 (Loan Advance) Public Account /20 (Pay/ Receipt) Receipt (Sale )

15. Example of detail heads to subdetail head:-
01 – Salaries – Pay – D.A – HRA Adhoc Bonus Interim Relief Other Allowance Ex-gratia Ration Allowance – Overtime Medical All – Grade Pay