Page 96 - IRSEM_Main Book

Para No. 4.1.10 Annexure: 4-A4

Preparation of the Budget
(Extract of Chapter III of Indian Railways Financial Code, Volume I)

(1) For the preparation of the Budget by the Railway Board, the Railway Administrations and
other authorities empowered to incur expenditure are required to submit to the Railway
Board their revised estimates for the current year and budget estimates for the following
year on the dates prescribed below: (Para 307)

st
Revenue Demands 2 to 15 .. .. .. .. 1 December.
rd
Works Demand 16 .. .. .. .. .. .. .. .. 23 December.

The revised estimates are required in respect of the current year and Budget Estimates
for the following year.

(2) Responsibility for framing the Estimates: Preparation of the Revised and Budget Estimates
should commence at the 'grass root level' i. e., Division, Workshop, Stores Depot, etc., as
the case maybe. The entire responsibility for framing the estimates devolves upon the
spending/earning authorities concerned, though the actual work of compilation and
scrutiny would rest with the Financial Adviser and Chief Accounts Officer who would also
draw the attention of the General Manager to matters of purely financial impart. (Para
309)

(3) The estimates should be as accurate as possible and, to achieve this object, care should be
taken to see that the data on which the forecast is based is adequate and reliable and that
the conclusions arrived at from the data can be sustained by past experience and future
expectations of likely events. (Para 310)

(4) No stereotyped method of estimating will be helpful in forecasting accurately, unless the
data on which the forecast is based is selected with due care and all the useful
knowledge is brought to bear on the conclusion to be derived from the data. The manner
in which the data required for the preparation of the estimate should be collected is,
therefore, left to the General Managers, but the general principles on the basis of which
the various estimates should be framed are described, wherever necessary, in the
following paragraphs. (Para 311)

(5) The Revised and Budget Estimates should be framed by the various concerned authorities
separately for

(i) Ordinary Working Expenses and (Para 312).

(ii) Works Expenditure.

(6) The estimates of expenditure in respect of each demand should be prepared in duplicate,
the figure being given in thousands of rupees. In preparing their estimates the Railway
Administrations should ensure that the figures of actual expenditure for the preceding
year shown in the estimate agree with those reported to the Railway Board. The figures
of actual expenditure for the current year should represent the latest data. (Para 325)

Chapter 4 Budget Estimates, Expenditure, Budget Control and Completion Reports Page 69 of 535