ACCOUNTS DEPT AND ITS ROLE IN THE INDIAN RAILWAYS
IR CONSISTS EXECUTIVE DEPT AND SERVICE DEPT
EXECUTIVE BRANCHES
• OPERATING/COMMERCIAL
• CIVIL ENGINEERING
• MECHANICAL ENGINEERING
• ELECTRICAL ENGINEERING
• SIGNAL & TELECOMMUNICATION ENGINEERING
SERVICE BRANCHES
• STORES
• PERSONNEL
• ACCOUNTS
• MEDICAL
• SECURITY
ANALYTICAL
STATISTICS
RAILWAY Vs CENTRAL FINANCE
TILL 1924, RAILWAY FINANCE WAS PART OF CENTRAL FINANCE.
SEPARATED ON THE RECOMMENDATION OF ACWORTH COMMITTEE
SINCE THEN RLY BUDGET PREPARED SEPARATELY
PRESENTED TO PARLIAMENT AHEAD OF CENTRAL BUDGET
CENTRAL GOVT IS
OWNER OF THE RAILWAYS.
SOLE SHAREHOLDER OF INDIAN RAILWAYS
GETS DIVIDEND ANNUALLY FOR INVESTMENT.
DIVIDEND RATE FIXED BY RCC
(RAILWAY CONVENTION COMMITTE)
STURCUTRE OF GOVT FINANCE
CONSOLIDATED FUND OF INDIA (MAJOR RESERVOIR)
2. CONTINGENCY FUND OF INDIA. (EMERGENCY RESERVE)
3. PUBLIC ACCOUNTS OF INDIA.
(DEPOSITS FROM PUBLIC)
CONSOLIDATED FUND OF INDIA
ALL RAILWAY EARNINGS GO INTO CONSOLIDATED FUND OF INDIA.
ALL EXPENDITURES ARE MET FROM CONSOLIDATED FUND OF INDIA.
PARLIAMENT TO SANCTION GRANTS.
PRESIDENT TO SANCTION APPROPRIATIONS.
CONTINGENCY FUND OF INDIA
SERVES AS AN EMERGENCY RESERVE.
AVAILABLE AT THE DISPOSAL OF PRESIDENT OF INDIA.
RAILWAY PORTION OPERATED BY FC.
AMOUNT TAKEN TO BE REPLENISHED AT ONCE.
STRUCTURE OF RAILWAY ACCOUNTING
GOVERNMENT ACCOUNTING (FINANCE ACCOUNTS)
2. COMMERCIAL ACCOUNTING (CAPITAL AND REVENUE ACCOUNTS)
BOTH LINKED BY OPERATING SUSPENSE ACCOUNTS.
RAILWAY EARNINGS
CLASSIFIED INTO THREE
1. COACHING / ABSTRACT X
EARNINGS FROM PASSENGER TRAIN.
2. GOODS / ABSTRACT Y
EARNINGS FROM GOODS TRAIN.
3. SUNDRIES / ABSTRACT Z.
EARNINGS FROM OTHER SOURCES
COACHING EARNINGS
A) PASSENGER EARNINGS –
ASSESSED CLASS-WISE
PASSENGER KILO METER
(PKM) AS FACTOR
B) OTHER COACHING EARNINGS –
- BASED ON PREVIOUS YEAR ACTUALS.
GOODS EARNINGS
ASSESSED COMMODITY WISE.
NTKM USED AS FACTOR.
SUNDRIES
LICENCE FEE, ADVT.FEE, RENT ETC.,
PREVIOUS ACTUALS FORM BASIS.
EXPENDITURE
CLASSIFIED INTO
16 DEMANDS FOR GRANTS
REVENUE EXPENDITURE 1 TO 15.
CAPITAL EXPENDITURE 16.
PREPARATION
PREPARED AT GRASS-ROOT LEVEL i.e. DIVISIONS/EXTRA DIVISIONS.
COMPILED BY ASSOCIATE ACCOUNTS.
CONSOLIDATED AT BOARD’S LEVEL.
VOTE OF PARLIAMENT
BUDGET ESTIMATE (BE) TO BE VOTED BY PARLIAMENT. (VOTED)
CERTAIN EXCEPTED ITEMS SANCTIONED BY PRESIDENT. (CHARGED)
VOTED EXPENDITURE – CHARGED EXPENDITURE.
BOTH FROM CONSOLIDATED FUND OF INDIA.
APPROPRIATION ACT
BUDGET VOTED BY PARLIAMENT, APPROPRIATION BILL PASSED.
SPENDING AUTHORITIES AUTHORISED TO WITHDRAW FROM CONSOLIDATED FUND OF INDIA.
BUDGET ALLOTMENT ADVISED TO ZONES BY RAILWAY BOARD.
VOTED PORTION KNOWN AS GRANT.
CHARGED PORTION AS APPROPRIATION.
BOTH KNOWN AS BUDGET ALLOTMENTS
ADVISED TO ZONES THROUGH BUDGET ORDER.
EXPENDITURE CONTROL
BUDGET ALLOTMENT
SPENDING LIMIT
INTERNAL SPENDING LIMIT
PROPORTIONATE BUDGET ALLOTMENT
EXCHEQUER CONTROL
ACCOUNTS
• Plays the role of internal auditor – arithmetic, procedure, appropriation, delegation
• Plays the role accountant for IR
• Prepares budget
• Finance vetting of estimates, proposals, etc
• Finance member in surveys, tenders and condemnation committees
CANNONS OF FINANCIAL PROPRIETY
STORES CODE CHAPTER I
131. Standards of Financial Propriety: - In exercising these powers, the Controller of� Stores should pay strict regard to the standards of financial propriety among which are the following:-
(i) The expenditure should not prima facie be more than the occasion demands, and that 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 expenditure of his own money.
(ii) No authority should exercise its powers of sanctioning expenditure to pass an order, which will be directly or indirectly to its own advantage.
(iii) Public money should not be utilized for the benefit of a particular person or section of community, unless
(a) the amount or expenditure involved is insignificant
or
(b) a claim for the amount could be enforced in a court of law or
© the expenditure is in pursuance of a recognized policy or custom.
(iv) The amount of allowances, such as travelling allowances granted to meet expenditure a particular type should be so regulated that the allowances are not on the whole source of profit to the recipients.
Note: - � All proposals-involving financial implications except those which have been specifically exempt for this purpose should be referred to finance branch for advice before these are sanctioned.
REVISED CLASSIFCATION – FINANCE CODE II (ALLOCATION)
WORLD BANK STUDY: In a view to streamline the budget process, a study made by the world bank suggested the revision of accounts classification. The prime object is to gauge the railway expenditure activity wise and object wise
ADMINISTRATIVE REFORMS COMMITTEE: The Administrative Reforms Committee set up a task force to study the existing classification and offer meaningful classification as advised by the world bank.
W E F .1.04.1979 ONWARDS
CLASSIFICATON OF EXPENDITURE
DEMANDS FOR GRANTS FOR EXPENDITURE ON RAILWAYS AND THE NATURE OF EXPENDITURE COVERED BY EACH
The proposal of Government in respect of sums required to meet the expenditure proposed to be met from the "Consolidated Fund of India" are submitted in the form of "Demands for Grant" to the Parliament. The Demand shall be for gross expenditure the credits and recoveries being shown in the form of footnotes to Demands. The Demands are divided into sub-heads and detailed heads -
The demands for grants represent basically the estimated expenditure proposed to be concurred in a 'Single” and homogenous group of functions broken up further into detailed activities.
At present there are 16 demands for Grants for expenditure of the Central Government on Railways These are detailed below. The nature of expenditure booked against them is shown against each.
DEMAND NO, 1 - RAILWAY BOARD:-
This demand is for expenditure on Railway Board. The credits under this represent recoveries from the Ministry of works and Housing (CPWD) for expenditure on the maintenance of Rail Bhavan, which is arranged by the Railway Ministry in agreement with the Ministry of works and housing.
DEMAND NO. 2 - MISCELLANEOUS EXPENDITURE (GENERAL)
This demand includes
a The cost of surveys or preliminary investigation to examine the feasibility and prospects of new line construction and other projects:
b) Expenditure on the Research Designs and Standards Organization, which is attached to, but not part of Railway Ministry.
c) Expenditure on miscellaneous special establishments dealing with problems affecting the working of the Railways as a whole but not part of the Ministry like the Railway Inspectorate, Central Bureau of investigations railway liaison offices etc.,. Credits under this is head refer to the recoveries from CBI for the Railway staff seconded to the CBI.
d) Expenditure on Statutory Audit. The charged amounts represent the cost of the railway Wing of the office of the Comptroller and Audit General of India,
e) Expenditure regulated by contracts on -
i) The share of net earnings payable to owners of branch lines worked by, and as part of the Indian Govt. Rly. system,
ii) Subsidy and rebate to such branch lines to make up their total earnings to specified minimum;
iii) Subsidy payable to lines owned and worked by certain private companies when their net earnings do not give the guaranteed return on their capital,
f) Expenditure on Misc, charges like the Railways contribution to the experimental research stations at Khadakvasala, Subscriptions to the International Railway Congress Association enrolment of Indian Railways as an associate member of the International Union of Railways, on hospitality and entertainment expenses in connection with the visits of foreign dignitaries etc.
DEMAND NO. 3 GENERAL SUPERINTENDENCE AND SERVICE
This demand is for expenditure on the Zonal Head quarters and Divisional Office of Railway Administrations- For the Accounts, Personnel and Stores Departments, this demand includes the expenses at the Divisional, Workshop and Depot level also.
The credits or recoveries under this Demand relate to commission charges recovered from the Defence Department for audit of warrants and credit notes connected with military traffic and the cost of staff recovered from non-Railway Departments for work done on their behalf for service rendered to them.
DEMAND NO. 4 - REPAIRS AND MAINTENANCE OF PERMANENT WAY AND WORKS
This Demand is for expenditure on Repairs and Maintenance of the P-Way assets like track, other buildings and structures, Repairs and Maintenance of railway colonies , staff quarters and welfare buildings are included under Demand No, 11,
The credits under this demand are for materials released from works charged to Revenue and share of credits for freight on Railway materials including coal.
DEMAND NO. 5 - REPAIRS AND MAINTENANCE OF MOTIVE POWER
This Demand is for expenditure on repairs and maintenance of motive power.
The credits under this Demand arc mainly for materials released from works charged to revenue and share of credits for freights charges on Railway material, including coal.
DEMAND NO. 6 REPAIRS AND MAINTENANCE OF CARRIAGES AND WAGONS
This demand is for expenditure on repairs and maintenance of carriages and wagon including Electric Multiple Unit Coaches-
The credits under this Demand are mainly for materials released from works charged to revenue and share, of credits for freight charges on Railway materials including coal.
DEMAND NO 7 - REPAIRS AND MAINTENANCE OF PLANT AND EQUIPMENT
This demand is for expenditure on repairs and maintenance of all plant and equipment by the Civil, Mechanical, Electrical and signals and telecommunications, engineering departments,
The credits under this Demand are mainly for materials released from works charged to revenue and share of credits for freight charges on Railway materials.
DEMAND NO. 8 - OPERATION EXPENSES - ROLLING STOCK AND EQUIPMENTS
This demand is for expenditure on the operating expenses of mechanical, electrical, signalling and telecommunications equipment including Rolling Stock.
The credits under this Demand are for share of credits for freight on Railway materials including coal,
DEMAND NO. 9 - OPERATING EXPENSES - TRAFFIC
This demand is for expenditure on Traffic operating and Traffic Commercial Departments (excluding claims organization) This demand also includes Lease Charges of IRFC-
The credits under this Demand are for share of credits for freight on Railway materials including coal credit of unconnected coal wagons which used to be accounted for as earnings prior to 1972-73 are also included under this demand,
DEMAND N0.10 - OPERATING EXPENSES - FUEL
This demand is for expenditure on coal and other fuel for loco purposes, freight and handling charges, including fuelling of engines, sales lax, excise duty and cess on coal and electric current for traction purposes.
The credits under this Demand are for the value of cinders and coal ash sold, credits for electric energy supplied to outsiders and share of credits for freight charges on Railway materials, including coal. The credits for freight charges on coal in this and other demands offset the increase in Gross Budget in this Demand on account of freight.
DEMAND N0.11 - STAFF WELFARE AMENITIES
This demand is for expenditure on educational and medical facilities, health and welfare services, canteens and other stall amenities, repairs to staff quarters, residential and welfare buildings.
The credits under this demand relate to school fees collected, grants-in-aid to Railway schools received from State Governments,
DEMAND NO. 12 - MISCELLANEOUS WORKING EXPENSES
This demand is for miscellaneous working expenses like security, compensation claims for goods lost or damaged as also under workmen's compensation Act, catering expenditure on Hospitality and entertainment and the suspense heads which do not form part of other functional demands.
Credits or recoveries under this Demand relate mainly to credits adjusted under suspense heads-
DEMAND NO. 13 - PROVIDENT FUND, PENSION AND OTHER RETIREMENT BENEFITS
This is a composite Demand for all retirement benefits like Government Contribution to P-F, Special contribution to PP and payment of Pensionary charges to Railway staff covered by the retirement benefits. The various pension and other retirement benefits to pensionable employees are met out of Pension Fund and contributions to P.F. and payment of gratuities and special contribution, in respect of non-pensionable employees are met out of revenue.
Credits or recoveries represent service contribution from other Departments/Ministries in respect of staff on deputation. This gross demand includes recoupment from the public account to the consolidated fund of India of the sums voted initially by Parliament from out of the consolidated fund of India for meeting the expenditure chargeable to Pension Fund.
DEMAND NO, 14 - APPROPRIATION TO FUNDS
This demand is for appropriation from Revenue to the various Railway funds as under:-
a) Appropriation to DRF (As per RCC recommendations)
b) “ to pension fund (As per RCC recommendation)
c) " to Development fund (Out of revenue excess after Payment of dividend) ...
d) " to Capital Fund (Keeping in view the Plan requirement for building up infrastructure out of internal resources)
DEMAND NO. 15 Dividend to General Revenues, Repayment of loan taken from General Revenues and Amortization of over capitalization. This demand is for payment lo General Revenue and contribution for grants to Slates in line of passenger fare lax,
DEMAND NO, 16 ASSETS ACQUISITION - CONSTRUCTION AND REPLACEMENT
This demand is for expenditure on Assets-Acquisition, construction and replacement, whether met out of loans to he obtained from the General Exchequer on internal resources of the Railway viz. Revenue, the DRF, the DF and the Capital Fund. No re appropriation of funds will be permissible between Capital, Railway Fund and Revenue, credits or recoveries represents adjustment in the accounts as reduction of expenditure, but are outside the scope of the gross demand. The gross demand, includes recoupment from the public account to the consolidated fund of India of the sums voted initially by Parliament from out of the Consolidated Fund of India, for meeting the expenditure chargeable for the DRF, DF and Capital Fund
The charged expenditure under all the demands (except demand no, 14 and 15) is for payment in satisfaction of court decrees and arbitration award where made into rule of the court.
ITEMS OF EXPENDITURE BOOKED TO DEMAND NO. 2 MISCELLANEOUS EXPENDITURE
1) Surveys.
2) RDSO (Research, Designs & Standards Organization),
3) Cost of Railway Statutory Audit. . .
4) Payment of worked lines. Subsidized Companies
5) Miscellaneous Establishment;
I- Railway Recruitment Boards (RRBs)
2. Centralized Training Colleges.-
(Staff College, Vadodara, Pune, Jamalpur, Nasik, Secunderabad etc
3. Commissioner of Rly Safety, Railway Rates, Tribunal, Railway Claims Tribunal, Railway Transport Museum, Rail Fare and Freight Commission.
6) Miscellaneous Charges- such as
i) Contribution to research station at Khadakvasla
ii) Membership fee to the 'International Union of Railways
iii) Publicity for Tourism Promotion in India and abroad. Hospitality and Entertainment expenses in connection with visits of foreign Dignitaries,
iv) Children Train in some Parks
v) Grant-in-Aid lo Indian Rly. Welfare Organization,
vi) Grant-in-Aid in CRIS,
vii) Payment to RITES for the studies undertaken for Railways on various subjects (study on costing of repairs in Workshop, Preparation of Manual for General Power Supply, Installation, etc.)
Payment to Consultants for undertaking Study of Bombay Suburban System
SALIENT FEATURES OF THE REVISED CLASSIFICATION:
1. Demands 1 and 2 are the nature of General On cost as formulated by the Study Team 1970 of the Administrative Reforms Committee. These expenses are common to all railways.
2. Demand No 3 common to each railway as the management and office establishment are charged to this demand.
3. Demand Nos. 4,5,6 and 7 are the nature of maintenance cost otherwise known as common cost in the Traffic Costing of the Railways.
4. Demand Nos. 8,9 and 10 are the nature of direct ( cost ) expenses.
5. Demand No 11 pertains to Staff Welfare as suggested by the Estimates Committee 1955 in their 31st Report.
6. Demand No 12 incorporates all the expenses that do not fit into the above functional demands.
7. Demand No. 13 pertains to all Retirement Benefits as the concept has been enunciated by the Study Team on Reforms in the Structure of Budget and Accounts 1970.
8. Demand No 14 and 15 pertains to all Appropriation to Funds and Dividend.
9. Demand No 16 pertains to acquisition to capital accounts.
CLASSIFICATION OF EARNINGS
ABSTRACT DETAILS REMARKS
X Coaching earnings consisting passenger, luggage, parcels,
Y Goods earnings
Z Sundry other earnings
Classification of capital sources
APLPHA NUMERIC SUBJECT
P 20 CAPITAL
Q 21 DRF
R 22 OLW- R
S DF I (P) -23
S DF II (L) - 33
S DF III (U) - 43
S DF IV (S) - 53
T 26 RSF
U 27 SRSF
IR CONSISTS EXECUTIVE DEPT AND SERVICE DEPT
EXECUTIVE BRANCHES
• OPERATING/COMMERCIAL
• CIVIL ENGINEERING
• MECHANICAL ENGINEERING
• ELECTRICAL ENGINEERING
• SIGNAL & TELECOMMUNICATION ENGINEERING
SERVICE BRANCHES
• STORES
• PERSONNEL
• ACCOUNTS
• MEDICAL
• SECURITY
ANALYTICAL
STATISTICS
RAILWAY Vs CENTRAL FINANCE
TILL 1924, RAILWAY FINANCE WAS PART OF CENTRAL FINANCE.
SEPARATED ON THE RECOMMENDATION OF ACWORTH COMMITTEE
SINCE THEN RLY BUDGET PREPARED SEPARATELY
PRESENTED TO PARLIAMENT AHEAD OF CENTRAL BUDGET
CENTRAL GOVT IS
OWNER OF THE RAILWAYS.
SOLE SHAREHOLDER OF INDIAN RAILWAYS
GETS DIVIDEND ANNUALLY FOR INVESTMENT.
DIVIDEND RATE FIXED BY RCC
(RAILWAY CONVENTION COMMITTE)
STURCUTRE OF GOVT FINANCE
CONSOLIDATED FUND OF INDIA (MAJOR RESERVOIR)
2. CONTINGENCY FUND OF INDIA. (EMERGENCY RESERVE)
3. PUBLIC ACCOUNTS OF INDIA.
(DEPOSITS FROM PUBLIC)
CONSOLIDATED FUND OF INDIA
ALL RAILWAY EARNINGS GO INTO CONSOLIDATED FUND OF INDIA.
ALL EXPENDITURES ARE MET FROM CONSOLIDATED FUND OF INDIA.
PARLIAMENT TO SANCTION GRANTS.
PRESIDENT TO SANCTION APPROPRIATIONS.
CONTINGENCY FUND OF INDIA
SERVES AS AN EMERGENCY RESERVE.
AVAILABLE AT THE DISPOSAL OF PRESIDENT OF INDIA.
RAILWAY PORTION OPERATED BY FC.
AMOUNT TAKEN TO BE REPLENISHED AT ONCE.
STRUCTURE OF RAILWAY ACCOUNTING
GOVERNMENT ACCOUNTING (FINANCE ACCOUNTS)
2. COMMERCIAL ACCOUNTING (CAPITAL AND REVENUE ACCOUNTS)
BOTH LINKED BY OPERATING SUSPENSE ACCOUNTS.
RAILWAY EARNINGS
CLASSIFIED INTO THREE
1. COACHING / ABSTRACT X
EARNINGS FROM PASSENGER TRAIN.
2. GOODS / ABSTRACT Y
EARNINGS FROM GOODS TRAIN.
3. SUNDRIES / ABSTRACT Z.
EARNINGS FROM OTHER SOURCES
COACHING EARNINGS
A) PASSENGER EARNINGS –
ASSESSED CLASS-WISE
PASSENGER KILO METER
(PKM) AS FACTOR
B) OTHER COACHING EARNINGS –
- BASED ON PREVIOUS YEAR ACTUALS.
GOODS EARNINGS
ASSESSED COMMODITY WISE.
NTKM USED AS FACTOR.
SUNDRIES
LICENCE FEE, ADVT.FEE, RENT ETC.,
PREVIOUS ACTUALS FORM BASIS.
EXPENDITURE
CLASSIFIED INTO
16 DEMANDS FOR GRANTS
REVENUE EXPENDITURE 1 TO 15.
CAPITAL EXPENDITURE 16.
PREPARATION
PREPARED AT GRASS-ROOT LEVEL i.e. DIVISIONS/EXTRA DIVISIONS.
COMPILED BY ASSOCIATE ACCOUNTS.
CONSOLIDATED AT BOARD’S LEVEL.
VOTE OF PARLIAMENT
BUDGET ESTIMATE (BE) TO BE VOTED BY PARLIAMENT. (VOTED)
CERTAIN EXCEPTED ITEMS SANCTIONED BY PRESIDENT. (CHARGED)
VOTED EXPENDITURE – CHARGED EXPENDITURE.
BOTH FROM CONSOLIDATED FUND OF INDIA.
APPROPRIATION ACT
BUDGET VOTED BY PARLIAMENT, APPROPRIATION BILL PASSED.
SPENDING AUTHORITIES AUTHORISED TO WITHDRAW FROM CONSOLIDATED FUND OF INDIA.
BUDGET ALLOTMENT ADVISED TO ZONES BY RAILWAY BOARD.
VOTED PORTION KNOWN AS GRANT.
CHARGED PORTION AS APPROPRIATION.
BOTH KNOWN AS BUDGET ALLOTMENTS
ADVISED TO ZONES THROUGH BUDGET ORDER.
EXPENDITURE CONTROL
BUDGET ALLOTMENT
SPENDING LIMIT
INTERNAL SPENDING LIMIT
PROPORTIONATE BUDGET ALLOTMENT
EXCHEQUER CONTROL
ACCOUNTS
• Plays the role of internal auditor – arithmetic, procedure, appropriation, delegation
• Plays the role accountant for IR
• Prepares budget
• Finance vetting of estimates, proposals, etc
• Finance member in surveys, tenders and condemnation committees
CANNONS OF FINANCIAL PROPRIETY
STORES CODE CHAPTER I
131. Standards of Financial Propriety: - In exercising these powers, the Controller of� Stores should pay strict regard to the standards of financial propriety among which are the following:-
(i) The expenditure should not prima facie be more than the occasion demands, and that 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 expenditure of his own money.
(ii) No authority should exercise its powers of sanctioning expenditure to pass an order, which will be directly or indirectly to its own advantage.
(iii) Public money should not be utilized for the benefit of a particular person or section of community, unless
(a) the amount or expenditure involved is insignificant
or
(b) a claim for the amount could be enforced in a court of law or
© the expenditure is in pursuance of a recognized policy or custom.
(iv) The amount of allowances, such as travelling allowances granted to meet expenditure a particular type should be so regulated that the allowances are not on the whole source of profit to the recipients.
Note: - � All proposals-involving financial implications except those which have been specifically exempt for this purpose should be referred to finance branch for advice before these are sanctioned.
REVISED CLASSIFCATION – FINANCE CODE II (ALLOCATION)
WORLD BANK STUDY: In a view to streamline the budget process, a study made by the world bank suggested the revision of accounts classification. The prime object is to gauge the railway expenditure activity wise and object wise
ADMINISTRATIVE REFORMS COMMITTEE: The Administrative Reforms Committee set up a task force to study the existing classification and offer meaningful classification as advised by the world bank.
W E F .1.04.1979 ONWARDS
CLASSIFICATON OF EXPENDITURE
DEMANDS FOR GRANTS FOR EXPENDITURE ON RAILWAYS AND THE NATURE OF EXPENDITURE COVERED BY EACH
The proposal of Government in respect of sums required to meet the expenditure proposed to be met from the "Consolidated Fund of India" are submitted in the form of "Demands for Grant" to the Parliament. The Demand shall be for gross expenditure the credits and recoveries being shown in the form of footnotes to Demands. The Demands are divided into sub-heads and detailed heads -
The demands for grants represent basically the estimated expenditure proposed to be concurred in a 'Single” and homogenous group of functions broken up further into detailed activities.
At present there are 16 demands for Grants for expenditure of the Central Government on Railways These are detailed below. The nature of expenditure booked against them is shown against each.
DEMAND NO, 1 - RAILWAY BOARD:-
This demand is for expenditure on Railway Board. The credits under this represent recoveries from the Ministry of works and Housing (CPWD) for expenditure on the maintenance of Rail Bhavan, which is arranged by the Railway Ministry in agreement with the Ministry of works and housing.
DEMAND NO. 2 - MISCELLANEOUS EXPENDITURE (GENERAL)
This demand includes
a The cost of surveys or preliminary investigation to examine the feasibility and prospects of new line construction and other projects:
b) Expenditure on the Research Designs and Standards Organization, which is attached to, but not part of Railway Ministry.
c) Expenditure on miscellaneous special establishments dealing with problems affecting the working of the Railways as a whole but not part of the Ministry like the Railway Inspectorate, Central Bureau of investigations railway liaison offices etc.,. Credits under this is head refer to the recoveries from CBI for the Railway staff seconded to the CBI.
d) Expenditure on Statutory Audit. The charged amounts represent the cost of the railway Wing of the office of the Comptroller and Audit General of India,
e) Expenditure regulated by contracts on -
i) The share of net earnings payable to owners of branch lines worked by, and as part of the Indian Govt. Rly. system,
ii) Subsidy and rebate to such branch lines to make up their total earnings to specified minimum;
iii) Subsidy payable to lines owned and worked by certain private companies when their net earnings do not give the guaranteed return on their capital,
f) Expenditure on Misc, charges like the Railways contribution to the experimental research stations at Khadakvasala, Subscriptions to the International Railway Congress Association enrolment of Indian Railways as an associate member of the International Union of Railways, on hospitality and entertainment expenses in connection with the visits of foreign dignitaries etc.
DEMAND NO. 3 GENERAL SUPERINTENDENCE AND SERVICE
This demand is for expenditure on the Zonal Head quarters and Divisional Office of Railway Administrations- For the Accounts, Personnel and Stores Departments, this demand includes the expenses at the Divisional, Workshop and Depot level also.
The credits or recoveries under this Demand relate to commission charges recovered from the Defence Department for audit of warrants and credit notes connected with military traffic and the cost of staff recovered from non-Railway Departments for work done on their behalf for service rendered to them.
DEMAND NO. 4 - REPAIRS AND MAINTENANCE OF PERMANENT WAY AND WORKS
This Demand is for expenditure on Repairs and Maintenance of the P-Way assets like track, other buildings and structures, Repairs and Maintenance of railway colonies , staff quarters and welfare buildings are included under Demand No, 11,
The credits under this demand are for materials released from works charged to Revenue and share of credits for freight on Railway materials including coal.
DEMAND NO. 5 - REPAIRS AND MAINTENANCE OF MOTIVE POWER
This Demand is for expenditure on repairs and maintenance of motive power.
The credits under this Demand arc mainly for materials released from works charged to revenue and share of credits for freights charges on Railway material, including coal.
DEMAND NO. 6 REPAIRS AND MAINTENANCE OF CARRIAGES AND WAGONS
This demand is for expenditure on repairs and maintenance of carriages and wagon including Electric Multiple Unit Coaches-
The credits under this Demand are mainly for materials released from works charged to revenue and share, of credits for freight charges on Railway materials including coal.
DEMAND NO 7 - REPAIRS AND MAINTENANCE OF PLANT AND EQUIPMENT
This demand is for expenditure on repairs and maintenance of all plant and equipment by the Civil, Mechanical, Electrical and signals and telecommunications, engineering departments,
The credits under this Demand are mainly for materials released from works charged to revenue and share of credits for freight charges on Railway materials.
DEMAND NO. 8 - OPERATION EXPENSES - ROLLING STOCK AND EQUIPMENTS
This demand is for expenditure on the operating expenses of mechanical, electrical, signalling and telecommunications equipment including Rolling Stock.
The credits under this Demand are for share of credits for freight on Railway materials including coal,
DEMAND NO. 9 - OPERATING EXPENSES - TRAFFIC
This demand is for expenditure on Traffic operating and Traffic Commercial Departments (excluding claims organization) This demand also includes Lease Charges of IRFC-
The credits under this Demand are for share of credits for freight on Railway materials including coal credit of unconnected coal wagons which used to be accounted for as earnings prior to 1972-73 are also included under this demand,
DEMAND N0.10 - OPERATING EXPENSES - FUEL
This demand is for expenditure on coal and other fuel for loco purposes, freight and handling charges, including fuelling of engines, sales lax, excise duty and cess on coal and electric current for traction purposes.
The credits under this Demand are for the value of cinders and coal ash sold, credits for electric energy supplied to outsiders and share of credits for freight charges on Railway materials, including coal. The credits for freight charges on coal in this and other demands offset the increase in Gross Budget in this Demand on account of freight.
DEMAND N0.11 - STAFF WELFARE AMENITIES
This demand is for expenditure on educational and medical facilities, health and welfare services, canteens and other stall amenities, repairs to staff quarters, residential and welfare buildings.
The credits under this demand relate to school fees collected, grants-in-aid to Railway schools received from State Governments,
DEMAND NO. 12 - MISCELLANEOUS WORKING EXPENSES
This demand is for miscellaneous working expenses like security, compensation claims for goods lost or damaged as also under workmen's compensation Act, catering expenditure on Hospitality and entertainment and the suspense heads which do not form part of other functional demands.
Credits or recoveries under this Demand relate mainly to credits adjusted under suspense heads-
DEMAND NO. 13 - PROVIDENT FUND, PENSION AND OTHER RETIREMENT BENEFITS
This is a composite Demand for all retirement benefits like Government Contribution to P-F, Special contribution to PP and payment of Pensionary charges to Railway staff covered by the retirement benefits. The various pension and other retirement benefits to pensionable employees are met out of Pension Fund and contributions to P.F. and payment of gratuities and special contribution, in respect of non-pensionable employees are met out of revenue.
Credits or recoveries represent service contribution from other Departments/Ministries in respect of staff on deputation. This gross demand includes recoupment from the public account to the consolidated fund of India of the sums voted initially by Parliament from out of the consolidated fund of India for meeting the expenditure chargeable to Pension Fund.
DEMAND NO, 14 - APPROPRIATION TO FUNDS
This demand is for appropriation from Revenue to the various Railway funds as under:-
a) Appropriation to DRF (As per RCC recommendations)
b) “ to pension fund (As per RCC recommendation)
c) " to Development fund (Out of revenue excess after Payment of dividend) ...
d) " to Capital Fund (Keeping in view the Plan requirement for building up infrastructure out of internal resources)
DEMAND NO. 15 Dividend to General Revenues, Repayment of loan taken from General Revenues and Amortization of over capitalization. This demand is for payment lo General Revenue and contribution for grants to Slates in line of passenger fare lax,
DEMAND NO, 16 ASSETS ACQUISITION - CONSTRUCTION AND REPLACEMENT
This demand is for expenditure on Assets-Acquisition, construction and replacement, whether met out of loans to he obtained from the General Exchequer on internal resources of the Railway viz. Revenue, the DRF, the DF and the Capital Fund. No re appropriation of funds will be permissible between Capital, Railway Fund and Revenue, credits or recoveries represents adjustment in the accounts as reduction of expenditure, but are outside the scope of the gross demand. The gross demand, includes recoupment from the public account to the consolidated fund of India of the sums voted initially by Parliament from out of the Consolidated Fund of India, for meeting the expenditure chargeable for the DRF, DF and Capital Fund
The charged expenditure under all the demands (except demand no, 14 and 15) is for payment in satisfaction of court decrees and arbitration award where made into rule of the court.
ITEMS OF EXPENDITURE BOOKED TO DEMAND NO. 2 MISCELLANEOUS EXPENDITURE
1) Surveys.
2) RDSO (Research, Designs & Standards Organization),
3) Cost of Railway Statutory Audit. . .
4) Payment of worked lines. Subsidized Companies
5) Miscellaneous Establishment;
I- Railway Recruitment Boards (RRBs)
2. Centralized Training Colleges.-
(Staff College, Vadodara, Pune, Jamalpur, Nasik, Secunderabad etc
3. Commissioner of Rly Safety, Railway Rates, Tribunal, Railway Claims Tribunal, Railway Transport Museum, Rail Fare and Freight Commission.
6) Miscellaneous Charges- such as
i) Contribution to research station at Khadakvasla
ii) Membership fee to the 'International Union of Railways
iii) Publicity for Tourism Promotion in India and abroad. Hospitality and Entertainment expenses in connection with visits of foreign Dignitaries,
iv) Children Train in some Parks
v) Grant-in-Aid lo Indian Rly. Welfare Organization,
vi) Grant-in-Aid in CRIS,
vii) Payment to RITES for the studies undertaken for Railways on various subjects (study on costing of repairs in Workshop, Preparation of Manual for General Power Supply, Installation, etc.)
Payment to Consultants for undertaking Study of Bombay Suburban System
SALIENT FEATURES OF THE REVISED CLASSIFICATION:
1. Demands 1 and 2 are the nature of General On cost as formulated by the Study Team 1970 of the Administrative Reforms Committee. These expenses are common to all railways.
2. Demand No 3 common to each railway as the management and office establishment are charged to this demand.
3. Demand Nos. 4,5,6 and 7 are the nature of maintenance cost otherwise known as common cost in the Traffic Costing of the Railways.
4. Demand Nos. 8,9 and 10 are the nature of direct ( cost ) expenses.
5. Demand No 11 pertains to Staff Welfare as suggested by the Estimates Committee 1955 in their 31st Report.
6. Demand No 12 incorporates all the expenses that do not fit into the above functional demands.
7. Demand No. 13 pertains to all Retirement Benefits as the concept has been enunciated by the Study Team on Reforms in the Structure of Budget and Accounts 1970.
8. Demand No 14 and 15 pertains to all Appropriation to Funds and Dividend.
9. Demand No 16 pertains to acquisition to capital accounts.
CLASSIFICATION OF EARNINGS
ABSTRACT DETAILS REMARKS
X Coaching earnings consisting passenger, luggage, parcels,
Y Goods earnings
Z Sundry other earnings
Classification of capital sources
APLPHA NUMERIC SUBJECT
P 20 CAPITAL
Q 21 DRF
R 22 OLW- R
S DF I (P) -23
S DF II (L) - 33
S DF III (U) - 43
S DF IV (S) - 53
T 26 RSF
U 27 SRSF
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