1. Finance Establishment

2. Finance function is implicit and universal in nature. We exercise finance function, consciously or other-wise in our personal life too. Finance function

3. 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.

4. 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.

5. Total Receipts Passengers Other Coaching Goods Sundry Misc. Receipts Subsidy Safety Surcharge

6. Total Outgo Operating Expenses Appropriation to DRF Appropriation to Pension Fund Misc Expd Appropriation to RSF OLWR Dividend Appropriation to DF Appropriation to Capital Fund

7. Where the Rupee came from – 2009-10

8. Where the Rupee went - 2009-10 (as part of the total disbursements )

9. Where the Rupee went - 2009-10 as part of working expenses

10. 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

11. Finance Establishment deals with … Creation of Work-charged Posts; Extension of Work-charged Posts Six Monthly reviews of running staff – Drivers and Guards

12. Finance Establishment also concerned with … Engagement of CMPs, Part-time lecturers etc. Fixation of Consolidated Traveling Allow.

13. 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.

14. Staff Strength and Staff Cost YearStaff (in lakhs) Average Annual wage (Rs.) 1950-519.141,263 1995-9615.8659,219 2004-0514.241,58,140 2005-0613.241,73,911 2006-0713.971,73,799 2007-0813.951,86,070 2008-09

15. 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

16. 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

17. Techniques followed F illing 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

18. 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

19. 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.

20. 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

21. 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.

22. Thank You