MCQ on Appropriation Accounts

MCQ on Appropriation Accounts

1.  Which is not correct in respect of Appropriation Accounts ?

1. The Statements are presented to the Ministry of Finance. 

2. Presented through PAC - Public Accounts Committee

3. Comparing the amount of actual expenditure with the amount of grants voted by the Parliament & Appropriations sanctioned by President of India

4.  Prepared and signed by CRB & CEO and Member Finance at Railway Board level

2. Budget is  ________________

1.  An instrument of Government financial control and an important management control

2. An instrument of Parliamentary financial control and an important expenditure control

3. An instrument of Parliamentary financial control and an important management control

4. An instrument of Parliamentary financial control and an income & expenditure account

3. Appropriation Accounts are signed by _____________ at Zonal level 

1. GM and PDA

2. PDA and PFA

3. GM and PFA 

4. PFA and FA&CAO/G

4. What is the time given for Audit to  vet the Appropriation Accounts at Zonal Level

 

1. 2 weeks 

2. 4 weeks

3. 6 weeks

4. 8 weeks

5. In Appropriation Accounts letter ‘R’ stands for ? 

1. Revised Grant

2. Restricted amount

3. Reappropriation

4. Residual Modification

6.  Appropriation Accounts are shown in Rs. in_________ and Annexures in Appropriation Accounts are shown in Rs.in _________

1. Rs. in Thousands and Rs. in Units

2. Rs. in Units and Rs. in Thousands

3. Rs. in Lakhs and Rs. in Thousands

4. Rs. in Crores and Rs. in Lakhs

7. Total number of Grants shown in Appropriation Accounts are ______

1. 1 

2. 13

3. 15

4. 16 

8. Total Number of Annexures in Appropriation Accounts are _____

1. 12 

2. 8 

3. 10 

4. 16  

9. Annexure J of Appropriation Accounts reflects Staement of ___________

1.  Irregular Reappropriations

2. Important Misclassifications

3. Unsanctioned expenditure 

4. Defects in Budgeting

10. Total number of statements in Appropriation Accounts are ______________

1. 10 

2. 15 

3. 20

4. 25 

11. Misclassificatin of Revenue to Capital or vice versa is dealt at ________ and unresolved become part of ________

1. Zonal Level , Audit Report

2. Railway Board Level, Audit Report

3. Railway Board Level, Inspection Report

4. Zonal Level, Inspection Report

12.  Explanation for variations in Revenue Grant ( Excess or Savings) irrespective of percentage in Appropriation Accounts should be furnished for __________

1. Rs. 2  Crore and above 

2. Rs. 10 Crores and above 

3. Rs. 20  Crores and above

4. Rs. 5 Crores and above

Answers:

1. A  (The Correct one is the Appropriation Accounts are presented to the Parliament)

2. C  (stated in 4th chapter of Indian Railway Finance Code Volume 1)

3. C  (Railway Board level, the same were signed by CRB&CEO and Member Finance.  This cannot be delegated to any other authority)

4. A 

5. D ( ‘R’ stands for Residual Modification sanctioned by Competent authority (i.e., Railway Board, GM etc other than Parliament )  i.e., Reappropriations, withdrawals, surrenders etc.  ‘O’ stands for Original Grant and ‘S’ stands for Supplementary Grant)

6. A 

7. D ( Grants – Total 16 . They are as follows 1. MH 3001 (erstwhile Demand No. 1) 2. MH 3001 (erstwhile Demand No. 2) 3 to 14. Erstwhile Demands 3 to  14 (SMH 1 to 12 of MH 3002) 15. MH 5002 (erstwhile Demand No. 16) 16. Civil Grants (Loans & Advances, Pre partition payments, Interest on Debt, Income Tax, Deposits)

8. C 

9. B ( A - Unsanctioned Expenditure, B - Under charges detected by Audit and Railways, C - Remission & abandonment of claims, D - Expenditure on Important Open line Works & New Construction, E - Expenditure on Strategic Lines, F - Credits & Recoveries ( Estimated & Actual), H - Losses & Ex gratia payments (Rs. 5 Lakhs and above), I - Irregular Reappropriations, J - Important Misclassifications and K - Defects in Budgeting  (In fact, there is no alphabet K for this annexure. )

10. B 

11. B 

12. D

Appropriation Accounts

         Source: 4th Chapter of Finance Code

• The statements which are presented to the Parliament (through PAC) , 

• comparing the amount of actual expenditure with the amount of grants voted by the Parliament and Appropriations sanctioned by the President of India are called Appropriation Accounts

Grants	Voted	As voted by Parliament
Appropriations	Charged	As Sanctioned by the President of India

Object: 

• Budget is an instrument of Parliamentary financial control and an important management control. 

• Parliamentary control not only secured by the fact that all the voted expenditure must receive Parliament’s prior approval, but also by system of reporting back to it (Parliament) through PAC

Prepared & Signed by:

Railway Board level	CRB and Member/Finance
Zonal Railway level	GM and PFA

Note: This cannot be delegated to any other authority.

• Due Date: June/July 

• Submitted to Dy.C&AG/Railways, who has been entrusted by the C&AG with the duty of reporting on these Appropriation Accounts of Railways. 

• 2 weeks time for Audit for vetting the Appropriation Accounts.

• Presented to Parliament during Winter session of the Same Calendar year to which the accounts pertain.  (Example: 2021-22 Appropriation A/cs due 2022 Jan to December)

• Reconciliation certificate: Certificate should be invariably be given under each SMH that actual have been reconciled with the figures in March Final Account Current. 

• Grant 84  - Ministry of Railways  (for 2021-22)  - Two parts i.e., Revenue & Capital

Form

                            Grant No. 84 (for the year 2021-22)-SMH – 01 – General Superintedence & Servces

(Rs. in thousands)

Minor Head	Final Grant	Actual Exp.	Excess/Saving With ref to FG	Excess/Saving With ref to (O +S)
200 Financial Management ‘O’  - 80 ‘S”  - 30 ‘R’  -  (-) 10	100	85	(-) 15	(-) 25

‘O’ stands for Original Grant

‘S’ stands for Supplementary Grant

‘R’ stands for Residual Modification sanctioned by Competent authority (i.e., Railway Board, GM etc other than Parliament )  i.e., Reappropriations, withdrawals, surrenders etc,

• Due to merger of Railway Budget with General Budget, Single Grant Account (82 for 2019-20, 83 for 2020-21) shall prepare.

• Appropriation Accounts – Rs. In thousands

• Annexures  - Rs in units

Total enclosures in Appropriation Accounts are 44

Description	No of enclosures
Grants/SMH	16
Annexures	10
Statements	15
Annexure G (Final Accounts)	3
Grand Total	44

Grants – Total 16 . They are as follows

1. MH 3001 (erstwhile Demand No. 1)

2. MH 3001 (erstwhile Demand No. 2)

3 to 14. Erstwhile Demands 3 to  14 (SMH 1 to 12 of MH 3002)

15. MH 5002 (erstwhile Demand No. 16)

16. Civil Grants (Loans & Advances, Pre partition payments, Interest on Debt, Income Tax, Deposits)

Annexures (Total 10)

Statements of 

1. Unsanctioned Expenditure

2. Under charges detected by Audit and Railways

3. Remission & abandonment of claims

4. Expenditure on Important Open line Works & New Construction

5. Expenditure on Strategic Lines

6. Credits & Recoveries ( Estimated & Actual)

8. Losses & Ex gratia payments (Rs. 5 Lakhs and above)

9. Irregular Reappropriations

10. Important Misclassifications

11. Defects in Budgeting  (In fact, there is no alphabet K for this annexure. )

Statements: (Total 15)

1. Statement showing Distributable Expenditure and Receipts 

2. Statement showing changes in Forms & Classifications 

3. Operating Ratio 

4. Statement showing credits to Capital for Retired Assets

5. Statement of annual Voted and Charged expenditure

6. DRF

7. DF

8. Capital Fund

9. RSF & Debt Service Fund

10. Pension Fund

11. Statement of O/s balances under Suspense

12. Stores A/c

13. SA A/c

14. P&L A/c of Catering Dept

15. Statement of PH wise, Source wise, Works Expenditure (Gross, Credit & Net) and Voted & Charged. (New one - added in 2019-20)

Annexure G - Final Accounts - (complying the Commercial Accounts like Companies)

I - Capital Statement (Block A/c)  -  Part I - Commercial ,  Part II - Strategic 

II - P&L A/c or Manufacturing A/c (Commercial & Strategic)

III - Balance Sheet (Commercial & Strategic)

Important change in Annexure J

(after merger of Railway Budget with General Budget from 2017-18 onwards)

Type	Examples	Dealt at
Misclassifications	Voted to Charged or vice versa Capital to Revenue or vice versa	Railway Board.   Unresolved will become part of Audit Report
Other Mistakes	One SMH to another SMH	Zonal Railway only (Need not send to Railway Board)

Explanations for Variations  - Revenue (from 2019-20 onwards – as per 17th Loksabha recommendations)

Explanations for variations - Revenue

Excesses/Savings	5 Crores & above (irrespective of Percentages)	Original Grant
Excesses/Savings	2.5 Crores or 10 % whichever is higher	Original Grant
Savings	1 Crore or 10% whichever is higher	Supplementary Grant
Excesses	Rs. 25 Lakhs and above	Sub Heads

• Minor variations – should be explained. Because at IR level, these may be cumulative and required as such 

• Explanations should not be vague such as due to over estimates or covered by re appropriation etc.  It should be clear, precise and complete description.

Explanations for variations - Capital (for the following Plan Heads only)

1100	New Lines	All works
1400	Gauge Conversion	All works
1500	Doubling	All works
3500	RE	All works

3100	Track Renewals	Works of Rs. 20 Crores & above
3200	Bridge Works	Works of Rs. 20 Crores & above
3300	S&T	Works of Rs. 20 Crores & above

1. Entire Supplementary Grant – if unutilised

2. Entire Original  and Supplementary Grant – if unutilised

3. 10 % of Supplementary Grant or Rs. 1 Crore whichever is higher

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