The AP Budget Manual | Andhra Pradesh Budget Manual. Corrected upto April, 2011. Classification of transactions in Government Accounts on a function-cum- programme basis was introduced from 1st April, 1974. Based on the recommendations, the Comptroller and Auditor General of India prescribed a new List of Major heads and minor heads to come into force with effect from 1st April 1974. Andhra Pradesh Government adopted these heads leaving certain functions and programmes that were not needed by the State Government (given in Appendix-XI in Part III). The budget manual incorporated the new heads of account. AP Budget Manual outlines the process for formulation of the budget, changes to the budget execution during the year, in particular, it outlines the accountabilities of line Departments in the budget process.
Part - I
a) The Structure of Budget Accounts
b) The Budget and Accounting Classification
Part - II Instructions for the Estimating Officers in Preparation of Budget Estimates
APPENDIX -
The AP Budget Manual | Andhra Pradesh Budget Manual
Details and Introduction of the AP Budget Manual
- The Government of India appointed a team of officers to make detailed recommendations on the above lines. Based on these recommendations the Comptroller and Auditor General of India, had, under Article 150 of the Constitution prescribed a new list of major and minor heads of account, to come into force with effect from 1st April, 1974. the list of major heads and minor heads Sector-wise adopted by the State Government is at Appendix II in Part-III.
- The new system of heads of account to come into force on 1st April, 1974 will have a five tier classification corresponding to sectors, functions, programmes, schemes and inputs of Governmental activities.
- The present volume is in three parts. The proposed changes in the classification have been fully explained in Part-I of this Manual. Part-II brings up to- date the various instructions to the estimating officers for the preparation and examination of the Budget Estimates. Part-III contains Appendices I to V-B., Appendices VI to IX and Forms A to M are being brought out separately.
a) The Structure of Budget Accounts
b) The Budget and Accounting Classification
Part - II Instructions for the Estimating Officers in Preparation of Budget Estimates
What is Budget?
- Under Article 202 of the Indian Constitution Budget is ‘Annual Financial Statement’ of the State for each financial Year’ to be laid before the Legislature. A Statement of estimated receipts and expenditure of the state for each financial year is called Annual Financial Statement. Budget means estimated receipts and expenditure.
Budget Classification
Revenue Account:
The account of current income and Expenditure of the
State.
The income is derived mainly from taxes and duties,
fees for services rendered fines and penalties, revenue
from Govt., estates such as forests etc.,
Revenue Account
Receipts : Tax Revenue
- Direct Taxes (Income & ex., Land Revenue Stamps & Reg Others)
- Indirect Tax (Sales Tax, Excise Duty, Motor Vehicles tax etc.,)
- Non Tax Revenue Interest, dividends, Social service, Economic services and General services
- Grant in aid
- Organs of State- Legislature, Governor, Council of Ministers, Administration of justice and election. Fiscal Services - Interest Payments,
- Administration Services (Public service administration, police, jails, fire finance etc., Social Services Education, Health, Medical & Health Social welfare etc.,
- Economic Services Agriculture, Industry, Irrigation RD etc.,
Public Account: Article 266 (2)-
- Deposits received from the contractors, merchants and Judicial deposits
- Funds deposited by local bodies such a PR Institutions, Corporations, Companies and Boards
- Small savings, PF of Govt., servants
- Deposits and advances
- Suspense and Miscellaneous funds
Contingency Fund : Article 267 (2)
Apart from consolidated Fund there is
another fund called Contingency Fund which
shall be at the disposal of the Governor of
the State, created with Rs200 Crs. It is for
emergency, unforeseen and unavoidable
expenditure.
Structure of Accounts
Sectoral Classification
- Revenue receipts : 0020 to 1999
- Revenue expenditure : 2011 to 3999
- Capital expenditure :4011 to 5999
- Loans & Advances, : 6011 to 7999
- Contingency Fund : 8000 Public Account : 8001 to 8999
7 – TIER CLASSIFICATION
- MAJOR HEAD (functions of the Govt.,) --- 4 DIGITS CODE
- SUB MAJOR HEAD --- 2 DIGITS CODE
- MINOR HEAD (under each function plan or non plan) --- 3 DIGITS CODE
- GROUP SUB HEAD --- 2 DIGITS CODE
- SUB HEAD (Organization / Programme) --- 2 DIGITS CODE
- DETAILED SUB HEAD --- 3 DIGITS CODE (Nature of expenditure)
- SUB DETAILED HEAD --- 3 DIGITS CODE
- MJH 2700 – Major Irrigation
- SMJH 80 - General
- MH 001 - Direction and Administration
- SH 01 - Head quarters Office (CE, irrigation)
- 010- salaries
- 011- Pay
- 012-allowances 130,131,132,133, etc.,
- 310-Grants in Aid
- 312-other grants in aid
Contents of AP Budget Manual
PART - I THE STRUCTURE OF BUDGET AND ACCOUNTS
CHAPTER - 1.- 1.General Introduction to the Budget or the Annual Financial Statement 1 - 2
- 2. Definitions 3 - 13
- 3. Broad Objectives of the New Budget & Accounting Classification Adopted from 1st April, 1974 14 - 34
- 4. Classification of Receipts Classification Adopted from 1st April, 1974 35 - 38
- 5. Classification of Expenditure on Revenue Account Adopted from 1st April, 1974 39 - 47
- 6. Classification of Capital Expenditure Adopted from 1st April, 1974 48 - 52
- 7. Public Works Classification Adopted from 1.4.1974 53 - 55
- 8. Public Debt Classification Adopted from 1.4.1974 56
- 9. Loans and Advances Classification Adopted from 1st April, 1974 57 - 58
- 10. Public Account Classification Adopted from 1.4.1974 59 - 67
- 11. Inter-Departmental/Governmental Adjustments 68 - 70
- 12. Exhibition of Recoveries of Expenditure in Accounts 71 - 72
PART - II INSTRUCTIONS FOR THE GUIDANCE OF ESTIMATING OFFICERS IN THE PREPARATION AND EXAMINATION OF BUDGET ESTIMATES
CHAPTER -
CHAPTER -
- 13. Instructions for the Preparation of Departmental Estimates Receipts & Expenditure 73 - 81
- 14. Preparation and Scrutiny of Part-II Estimates 82 - 86
- 15. Preparation of the Budget Action in the Legislature - Appropriation Act 87 - 93
- 16. Control of Expenditure 94 - 101
- 17. Savings in Appropriation - Expenditure non provided for in the Budget Estimates criteria for treating expenditure as new service/new instrument of service- Reappropriations - Supplementary Appropriations - Savings in or Excesses over the Financial Appropriations 102 - 128
- 18. Committee on Public Accounts 129 - 130
- 19. Financial Powers as per Constitution of India 131 - 138
PART - III APPENDICES
APPENDIX -
- I. List of New Object Heads 139 - 144
- II. Detailed procedure/or distribution of establishment/ tools and plant, etc., in respect of common public works establishments 145 - 146
- III. The Andhra Pradesh Contingency Fund Act, 1957 147 - 151
- IV. Accounting Procedure for expenditure met out of advances from the Contingency Fund 152
- V. List of Non-Lapsable & Lapsable deposits as per G.O.Ms.No.43, Finance (W&M) Dept., Dt. 22.4.2000 153 - 162
- VI. A.P. Fiscal Responsibility and Budget Management (APFRBM) Act., 2005 163 - 170
- VII. A.P. Fiscal Responsibility and Budget Management (APFRBM) Rules, 2006 as per G.O.Ms.No.183, Finance (BG-I) Dept., Dt. 30.6.2006 171 - 192
- VIII. List of Demands and HODs 193 - 200
- IX. Approval of Non-Plan and Plan Schemes 201 - 210
- X. Sectoral and Major Head Classification of Govt. Transactions Prescribed by the Comptroller General of Accounts 211 - 236
- XI. List of Sectors (including Sub-sectors), Major Heads (Including Sub-Major) and Minor Heads as adopted by the State Government 237 - 602
- XII. Proforma for Number Statement 603 - 606
