Acciones Simpl´ ecticas y Hamiltonianas

Without revenue no Govt can run, therefore it is very essential to mobilize the resources to run a Govt and it is also very essential that a Govt Departments with high voltage of revenue expenditure needs resources to meet the expenditure thro levy of taxes and for a service department like Medical and Public Health which cannot levy a tax on the public, it should mobilize resources thro Non Tax revenue. Revenue Receipts should also be estimated for the next year as well as the revised estimate for

the current year in as much as the over and above the current year budget allocation can be sought for to meet the revenue expenditure.

The monthly accounts of the State are compiled and consolidated from the accounts submitted by the District Treasuries, Public Works & Forest Divison etc., to the Accountant General (Accounts & Entitlement)

The Government Accounts are kept in three parts

Part I Consolidated Fund

Part II Contigency Fund

Part III Public Account

Main division of Consolidated Fund:

Revenue Division (Revenue Account) deals with the proceeds of taxation and other receipt classed as revenue and the expenditure met therefrom, the net result of which represent the reserve surplus or deficit for the year.

Capital division, the section “Receipt Heads (Capital Account)” deal with the receipt of Capital nature which cannot be applied as set off to capital expenditure. The section “Expenditure Heads (Capital Account) deals with expenditure met usually from borrowed funds with the object of increasing concrete assets of a materials and permanent character. It also includes receipt of Capital nature intended to be applied as a set off to capital expenditure

The section “Public Debt, loan and Advances, etc. comprises loan raised and their repayments by Government such as “ Internal Debt, Loans and Advances made (and their recoveries) by Government.

Contingency Fund of the State is designed to meet contingencies. The corpus of this fund is Rs.150/- Crore.

Appropriation Accounts:

Appropriation Accounts brings out the expenditure of the State Government against amounts voted and charged by the State Legislature.

Reconciliation of Accounts:

Accuracy and reliability of account depend among other things, on timely reconciliation of the departmental figures with the accounts figures.

Before annual accounts are finalized, the Head of Department reconcile the departmental accounts figures with those booked in accounts compiled by the Accountant General. The reconciliation of accounts figures is to be done monthly.

The Budget is an equally useful instrument for the executive for ensuring economy and orderliness in Public Administration.

Part I Continuance of the existing activities Part II Introduction of new Schemes.

Accountant General is watches all the payment ordered by or on the authority of the Government and ensures that the expenditure as voted by the Legislative under each demand is not exceeded. Treasury Officers working under his guidance sit in all Government treasuries and compile the accounts of the Government.

Accountant General sends a report analyzing the financial transaction for the year. In this report, he draws attention to any serious financial irregulaties committed by the Executive as the report examined by a Committee of the Legislature called Public Accounts Committee presided over by the Leader of Opposition.

The committee is assisted in its deliberation by Accountant General. It considers the explanation offered by the Executive for the objection pointed out in the report. The recommendation of this committee are placed before the legislature every year.

The receipts and disbursements of Government are organized in to different groups of major heads of accounts such as General Service, Social Services and Economic Services.

Further classification of head of account where digit number used to denote the nature of receipt and expenditure.

Four digit number used for an major head for receipt and expenditure to identify the services. Below a major head we may have sub major head giving a sub-group of programmes. Minor head beneath each major head or sub major head indicate the individual programme. The group head below the minor head gives the grouping of the various schemes under Non Plan and State Plan. The sub-heads under each group head reflect the individual scheme. The details of expenditure in respect of each scheme are depicted in the form of standard objects of expenditure like “Salaries” “Travel Expenses”.

To understand easily the concept of head is like Major Head Name of the State

Minor Head Name of the town

Group Head Postal Zone

Sub Head Name of the Street Or Road

For Example: Expenditure

Major Head 2210 Medical & Public Health 2211 Family Welfare

2215 Water Supply and Sanitation

2235 Social Security and Welfare

Sub Major Head 01 Urban Health Services 03 Rural Health Services 06 Public Health

Minor Head 109 School Health Scheme 101 Health Sub Centres 103 Primary Health Centres

Sub Heads:

2210-01-109 AA School Medical Inspection 2210-03-103 BI Primary Health Centres 2210-06-101 JZ Malaria Control Programme 2211-00-101 SC Sub Centres

Detailed Head: 01 Salaries 02 Wages

03 Dearness Allowances 04 Travel Expenses 05 Office Expenses

Items of expenditure that are non-developmental in nature viz., Stationery and Printing, Jails, Police, Treasury and Accounts, etc., are classified under Non Plan Expenditure and other development heads are classified under Plan Expenditure.

Under Article 202 of the Constitution of India, a statement of the estimated receipts of expenditure of the State for each financial year has to be laid before the legislature. This statement is known as Annual Financial Statement or Budget.

The “BUDGET” as defined in the Tamil Nadu Budget Manual is a predetermined plan, a financial and / or quantitative statement prepared prior to a defined period of time of the policy to be pursued during that period time for the purpose of attaining a given objective. Thus Budget is the estimation for getting funds in different stages based on the actual need for implementation of the schemes to run an office and to incur expenditure within allotment received. The difference between the estimation and actual expenditure is for constant review.

The Budget Estimate referred to above will have to be prepared taking into account the Part –I estimates and Part –II estimates. Part – I estimates will take cognizse of expenditure by virtue of existing laws, rules or orders (that is) on going schemes and expenditure continued to be incurred like the previous years.(Standing Sanctions) Whereas Part-II Estimates are “New Schemes” or “New Expenditure” otherwise than in accordance of authorized codes, manual, rules or orders.

Schemes without State budget support no expenditure can be met. Whether the schemes run by State or Sponsored Schemes by Central Govt or with the aid from foreign countries agencies viz.,WHO,World Bank Aided Programmes. All the funds thro various sources have to incorporated in the State Budget, no expenditure can be met.

In normal course Budgetory support is given in the Annual State Budget for various departments,sectors and other offices. Expenditure of the said schemes using the Budget Provision necessary bill has to presented to Treasury and Account Department where the bills were audited and passed for the expenditure. “Treasury and Account”Department is said to be the controlling of entire budgetary system. This is done on pre-audit basis. Post audit done by stuatatory executive department like Comptroller of Audit General of India

Control of Expenditure through Reconciliation with Treasury Figures

Control of expenditure statement prepared for reconciling the departmental figures with those prepared by the Treasury consisting the drawals of Govt money by the Drawing Officer.

1.Based on the entries in MTC 70 all the bills cashed during the month be posted first chronologically indicating the nature expenditure.

2.The pay bill register, contingency bill register etc., be verified and each drawal be classified under relevant sub detailed head.

3.Collect the MTC 100 from the Treasury for all the bills passed during the month.

4.Record voucher Number furnished therein against the drawals already posted in the control of expenditure.

5.Reconcile the departmental figures so prepared with Accounts prepared by the Treasury for different Major,Minor, Sub and Sub detailed head for the correctness of amount drawn and the heads classified. 6.The reconciliation work should be done on the prescribed date in consultation within Treasury when the accounts would ready. Delay in reconciliation would defeat the purpose of reconciliation.

7.If any discrepancy between the departmental figures and Treasury figures is noticed, in regard to amount as well as head of account, the correctness may be reconciled by referring to the MTC 100 available with the D.O. and list of payments available with the Treasury.

8.If any difference is found in the departmental figures the position may be corrected and on the other hand if the posting by the Treasury is found to be requiring revision, the same may be enlightened to the Treasury.

9.If any of the defect could not detected and rectified before completion of compilation process by the Treasury due to belated reconciliation, an Alteration Memorandum should be proposed in the prescribed format giving details of voucher number, amount, the correct head of account to which the expenditure actually relates and the head of account in which the expenditure has been classified by the Treasury. A copy of such Alteration Memorandum proposal should accompany the control of expenditure statement submitted to the Directorate in the format given in Annexure V. A certificate in the control of expenditure register be obtained from the Treasury for each head of account.

10.Where there are more than one drawing Officer in the District, the Controlling Officer nominated as District Reconciliation Offficer for reconciliation should collect departmental figures in duplicate. After reconciliation is over a copy of the statement furnishing the voucher number therein has to be retuned to the D.O. and furnishing a copy of the proposed if any, for his officer record.

11.The control of expenditure for each month for all heads of accounts should be sent to the Directorate before 25th of the succeeding month incorporating a certificate that the departmental figures have been verified with Treasury figures and found correct. The figures may be furnished through net of this directorate and e-mailed to:[email protected].

12.The control of expenditure statement so received by the Directorate will be compared with the accounts prepared by the Accountant General based on the accounts received by him from the Treasuries. There should not be any variation between the figures compiled by the Directorate based on the statements received from the Controlling Officers to that of accounts prepared by the Accountant General based on the accounts received from the Treasury, since these two documents once basically got reconciled at District level. But in practice it is found that there were huge variations. Such variation would only indicate that reconciliation is not done properly at district level.

13.Where any defects noticed is pointed out to the controlling officer, immediate action be taken at once to again check up the correctness and send report about the actual position.

14.There may be a occasion, where a particular major,minor, sub, sub-detailed head etc. which are not normally operated by the controlling officer, may be finding place in the Treasury account due to the drawal by other Drawing officers due to transfer of personal. Therefore the entire expenditure shown under the sub account should be reconciled.

Revision of norms for Infrastructure Maintenance of National Family Welfare Programme Source: 1. Annexure to the Office Order No.G.23014/1/97-FWB Dated 21.6.2001. 2. Tamil Nadu G.O. 312 Health & Family Welfare Deptt, dated 21.5.2001.