Introduction
1. Budget is a statement of estimated annual receipts and expenditure, and estimates of expenditure are divided into two parts, namely charged and voted.
2.In the context of department of Posts, charged expenditure represents any sum required to satisfy the decree of a court of Law etc.
3.The estimates of expenditure are met from the Consolidated Fund of India, which is presented to the Lok Sabha in the form of Detailed Demand for Grants except to the extent to which such expenditure is charged.
4.The responsibility for the preparation of the Budget estimates of Department of Posts lies with the Secretary Department of posts, also called Chief Accounts Authority.
5.The detailed procedure for formulation and consolidation of budget estimates in Department of Posts is outlined in Postal Manual Volume-II.
6. The whole process of formulation of Budget and its submission to the Ministry of Finance for approval is by Budget division of the Postal Directorate, PA wing after obtaining e-data inputs from Head of circles.
7. The estimated expenditure on scheme related is obtained from Corporate Planning Division of the Directorate.
8. The Budget and Revised estimates are framed with the objective of furnishing the Government of India and the Parliament with accurate and detailed information regarding the anticipated revenue and expenditure in connection with various activities of Government
Detailed
Demand for Grants
Revenue
expenditure and Capital expenditure
Revenue
Receipts
Financial
Results on the working expenses of the Department of Posts
1. In the Demand for Grants, statement showing the financial results on the working expenses of DOP is projected considering the gross receipt, total expenditure less recoveries.
2. The difference between gross receipt and net revenue expenditure shows either profit or deficit.
3. The allocation made to NE region under 2552 is also included under the statement.
Concept
of recoveries
1. As Department of Posts is commercial Department and performs several works pertaining to other Ministries/department on agency basis. Such revenue is shown as deduct working expenses and targets are prescribed for such recoveries during the year under consideration.
2. The various items of revenue shown as recoveries in the Demand for Grants are as under.
- Amount recovered from other Government departments as service charges on account of EPF 95
- Collection of custom duty
- Miscellaneous services
- Commission on account of payment of family pension under EPF scheme 1971
- Commission for payment of family pension Coal Mines and other Misc. schemes 1971.
- Commission for payment of pension to railway through POSB
- Commission for payment of POs provident fund
- Commission on account of payment to Assam Rifles Ex-servicemen.
- Commission on account of disbursement of pension of DOT/BSNL/MTNL by Post Offices
- Incentive paid to staff from the commission under retail postso Share of spread margin received from WUFSI
- Incentive paid to staff engaged in the work of CPI rural data collection.
- GST input tax credit
- Incentive paid to staff as product promotion allowance under world net express product.
- Remuneration to the Department of posts for PLI
- Remuneration to the department of posts for RPLI
- Receipts from other Government departments
Preparation
of Preliminary schedule of Demands
1. The Budget control Unit Circle, shall prepare the preliminary schedule of demands, prepared in two parts in the prescribed forms.
2. Part I will only the standing budget , while part II consists Budget forms 17, 17A, 18, 18A, 19, 19A and 20 will include only the new items of expenditure.
3. For preparing the estimates of standing budget, statement in form Bgt-2 will be compiled separately containing the following information.
a. The actual for the first two of the three preceding years;
b. The allotments against each detailed head for the current year;
c. The actual for the first five months of the current financial year;
d. Estimate for the last seven months of the current financial year
Procedure
at DOP HQ
1. The statements received from circles/units Viz PLI, BD, PAF, C&A etc.. will
be thoroughly examined and consolidated including those to be worked out at
HQ including the amounts of new items proposed by the circle/units under
each detailed head and total of amount struck. Statement in form Bgt-1 will
again be compiled at HQ containing the information in respect of (1) all
abstracts except ―D‖ Account and Audit.
2.The estimates prepared in connection with six monthly estimates and the
preliminary schedule of demands will be re-examined with reference to the
actual received from the Postal Accounts, modifications reported by circles
from the concerned units/circles in the below segment and the revised
estimates for the current and budget estimates of the next year worked out and
posted in the different abstracts on form Bgt-1 against the respective heads.
3. As the revised estimates for the current financial year and budget estimate for
the next financial year are prepared in the format prescribed and guidelines
issued by the Budget Division, department of economic Affairs, AND
ministry of Finance during October –November of each year, and submitted to
MOF for approval with appropriate comments for acceptance. The estimates
of revenue receipts with notes received from Budget control unit on 10th of
January are also submitted with comments to Ministry of Finance for
approval.
4. Once the figures are approved by MOF both for revised estimates and budget
estimates should be filled in the proof pages of demand and budget notes &
clean copies of proofs printed from press. The proof copy of the demands for
the grants till this stage, will include the figures of staff as on the last day of
5. February by means of a statement in the prescribed form from Heads of
circles. After receipt of orders from MOF on revised and budget estimates or
edition of the demands for grants incorporating the modifications , if any ,
ordered by the MOF is printed for distribution amongst the members of
Parliament.
6. The proposed estimates, as approved by the Government are then laid before
the Parliament. On acceptance, communicated by the MOF with a statement
showing distributions of grants for voted and charged expenditure sub Head
wise and demand units. The final edition of the budget notes and the demands
for grants is then printed and supplied to HOC.
Allotment
to Controlling units
1. At HQ level, as soon as the orders of MoF fixing the budget grants by sub Heads/demand units are received, funds under the heads are allotted to them for appropriation with due regard to their budget estimate and other factors as per requirements.
2. Similarly, the grants as approved under the scheme heads is conveyed to CP division who further allot to the circles/units as per their requirements as indicated in the estimates.
3. A copy of the distribution will be provided to the Budget division of PA wing for actual allotment for usage with a copy to Postal Accounts Offices.
4. At circle level, once the advice of circle allotment is received by the circles from HQ, it will be distributed by Budget Operation unit of circle amongst spending units sub ordinate to them as per their requirement as indicated in the estimates and other factors.
5.The Director Postal Services (HQ) shall allocate the budget to sub ordinate units in consultation with CIFA and HOC as per the need and maintain all such subsidiary registers to appr//opriate the budget in all cases of Budget, revised estimate , final grant etc.
6. BOU shall ensure that all allocations be done through system based application. DPS (HQ) shall be assisted by Accounts personnel posted at Circle Offices based on the re-engineered process of allocation of budgets.
Control
Over expenditure and revenue targets
1. Secretary (Posts) is responsible for controlling the whole expenditure of the DOP against grants and HOCs are required to provide such inputs to him, and bound to watch over expenditure by monthly comparison of budget Vs expenses and also budget Vs revenue receipts under each minor head. Control over budget allotment and expenditure must aim to detecting probable excesses or savings against grants by adopting a systematic watch over expenditure by monthly comparison with grants. There should be no excess expenditure or expenditure under any head of account where the allotment has not been made.
2. The revenue targets as well as recoveries (deduct from working expenses) as approved by the MOF should also be monitored by the HOCs and their progress of realisation as compared with budget estimates. The director of Postal Accounts shall, by the end of each month furnish the actual figures of revenue and recoveries made in the preceding month. It shall be the joint responsibility of HOC and PAO for reconciliation of booked figures with subsidiary figures against any budget GL. The PA section of PAO shall also check the correctness of booked figures with that of Budget while performing detailed check on a continual basis and report if any variation is noticed.
3. Secretary (Posts) is kept informed by means of Monthly statement to be submitted by Budget Division in watching the progress of expenditure/receipts, under both scheme and non-scheme expenditure depicting corresponding budget/proportionate budget allotment. Financial review on the revenue and expenditure is carried out and submitted to MoC and MoF in the following format. Monthly Revenue / Expenditure in accordance with Cash Management system
