Allocations - New Primary Units

Railway Board introduced New Primary Units, modified existing Primary Units and deleted the existing Primary Units which are not required in Finance Code Volume II ( Revenue classification).  

                Please click the Board's letter here


                             New Primary Units

Primary Units ( Revenue) - Classification of Revenue Expenditure, Finance Code Volume Two

 

Miscellaneous Receipts on Capital side

 Miscellaneous Receipts on Capital side 

(as per Finance Code Volume II)

Detailed Head Allocations:

• 1198 under Plan Head 1100 - New Lines

• 1798 Under Plan Head 1700 - Computerization

• 3368 under Plan Head 3300 - S&T Works

• 6568 under Plan Head 6500 - Training/HRD

Consists of: 

1. Earnings from an unopened line or a line partially opened for traffic and not made over to the open line administration.

2. Sale proceeds of Tenders on the construction organisations, whether attached to Open Lines or not.

3. Forfeited EMD

4. Forfeited SD

5. Penalties recovered from Contractors.

***

Finance Accounts and Capital & Revenue Accounts

 

Finance Accounts and Capital & Revenue Accounts

·         Indian Railways is a Departmental Commercial Organization.  So not only secure essential requirements of Commercial Accounts, but also conforms to the Government Accounts. So it prepares Capital & Revenue Accounts and Finance Accounts to comply the Commercial Accounts and Government Accounts respectively

Commercial Accounts:

·         Also called as Capital and Revenue Accounts.

 

·         Recorded in such a way;

1.       How its Capital has been utilised (Balance Sheet)

2.       How it (IR) stands in relation to its Debtors and Creditors (Balance Sheet)

3.       Whether it (IR) is gaining or losing (Profit & Loss A/c)

4.       Whether the sources of its gains or losses

5.       Whether it is solvent or insolvent+

 

·         So, the Accounts of Railway presented in such a form as to facilitate a review of Railways as a Commercial undertaking.

 

·         To be included in Annual Report of IR

 

·         Sources :

1.       Revenue  - Revenue Allocation Register (RAR)

2.       Register of Earnings/Revenue 

3.       Registers of Capital, DRF, DF etc  - Works

 

·         Due date : 15th September or any other date prescribed by the Railway Board from year to year

·         Financial Results cannot be gauged correctly unless transactions recorded separately for Revenue and Capital

 

·         Loan A/c  - Assets created out of Capital only

 

·         Block A/c - Assets created out of all sources of finance (Capital + DRF + DF + RRSK + RSF)

 

·         Consists of : Statements of

1.       Authorised Capital

2.       Stock

3.       Loans, Debentures

4.       Receipts & Expenditure of Capital A/c

5.       Capital expenditure details for the year

6.       Capital A/c

7.       Revenue A/c

8.       Distribution of Earnings/Revenue and working expenses of worked lines

9.       GWE - Gross Working Expenses - Summary

10.   GWE - Gross Working Expenses - Details

11.   Earnings/Revenue

12.   Outstanding Earnings/Revenue (Traffic Suspense & DR)

13.   Net Revenue A/c

14.   DRF A/c

15.   Erstwhile Demands 1 & 2 / Major Head 3001

16.   Development Fund A/c (DF)

Government Accounts:

Government Accounts are kept in 3 Parts - Flow Chart

Government Accounts

 

 

  ·         Also known as Finance A/cs

·         Duly classified as per prescribed rules of Government

·         Object: Systematic record of all Receipts & Expenditure classified under certain appropriated headings.

·         Railway Fund:

 

1.       Though the Railway transactions form the part of Consolidated Fund, Contingency Fund & Public Account, they are accounted in the pro forma "Railway Fund"

2.       In the books of CAS - Central Accounting Section, RBI/Nagpur

 

·         Extra Railway Transactions:  Railway Audit expenditure  - booked in Railway Accounts for convenience purpose, though they do not pertain to Railway Revenue & Expenditure.

 

Structure of Booking of expenditure / earnings in Indian Railways

Hierarchy		Example:  HRA of PFA		Description
Major Head		3002		Indian Railways Commercial Lines -  Working Expenses
SMH - Sub Major Head		01		General Superintendence & Services
MH -Minor Head		200		Financial Management
Sub Head ( Subordinate Head)		210		Accounts
Detailed Head		211		Officers
Object Head ( PU -Primary Unit)		04		HRA - House Rent  Allowance

 

·         Final Allocation / classification of HRA of PFA - 03-0211-04

 

·         Note:  Still, allocation structure aligns with erstwhile Demand No. 03 - for Sub Major Head 01 -" General Superintendence & Services"

 

·         Monthly Account Current /Annual Account Current - complies the Finance A/cs

 

·         Railway Accounts further classified into 1. Commercial Lines  2. Strategic Lines

 

·         Strategic lines exists in 4 Zonal Railways.   They are NR, NFR, NWR & WR

 

·         Recoveries (of overpayments in last year) - shown as Earnings/Revenue in Current year.

 

·         However, recoveries due to difference in attendance of previous year - should be shown as reduction in the expenditure only in current year.

 

·         Credits up to Rs. 10 thousands pertaining to closed works - to be post as Earnings/Revenue

 

·         Para 217A -  Allocation of Receipts & Expenditure 

 

A.      The primary responsibility for the allocation of all receipts and payments rests with the concerned departmental officers.

 

B.      Each bill or voucher received from them should show the correct allocation of the receipt/expenditure in the fullest detail.

 

C.      The Accounts Department is responsible for seeing, to the extent it is possible for them to do so, that the allocation shown on the initial document is not prima facie incorrect.

 

·          Correct classification should be followed in recording the expenditure in accounts irrespective of whether provision in the budget has been made under correct budget head.

 

·         In order, however, to avoid undue variation between the budget and accounts figures, changed in accounting classification will not ordinarily be introduced during the course of the year.

 

·         In the case of works, the allocation of which has to be changed during the course of a year from one head of expenditure to another, classification of expenditure in that year should follow the original allocation. The change should be given effect to from the beginning of the next financial year only after making necessary provision in the Budget at the Budget stage or at the Revised Estimate stage to cover not only the estimated expenditure for the budget year but also write back of the expenditure incurred from the commencement of the work to the end of the previous year.

 

Link Heads between Govt Accounts & Commercial Accounts

 

	Demands Payable	Labour	Traffic	Bills Recoverable
Revenue / Capital	Revenue	Capital	Revenue	Revenue
Always having	Credit balance	Credit balance	Debit balance	Debit balance
Operated on	Expenditure side	Expenditure side	Earnings side	Earnings side

 

****

Plan Heads in Works expenditure - Major Changes

Major Changes in Plan Heads

 

of Capital Segment of Demand No. 83 (for 2020-21) -Ministry of Railways  (Erstwhile Demand No. 16)

 

 

·         Authority: RBA No. 77/2019  issued under  Letter No.2017/AC-II/3/2 dated 29.08.2019 – ACS No.143  Click here

 

 

·         The whole exercise is trimming the Number of Plan Heads duly merged PHs into the similar nature of PH and deleting the PHs which are not required in present circumstances.  Some PHs are renamed duly giving the effect of merger. Overall 7 Plan Heads are deleted (some are merged in other PHs)

 

 

·         Major Heads for Works expenditure are

 

ü  5002 – Capital outlay on Indian Railways – Commercial Lines

ü  5003 – Capital outlay on Indian Railways – Strategic Lines

 

·         Accounting Classification of Works expenditure   - 8 digit numerical code like follows.

 

1	2	3	4	5	6	7	8
Source of Finance		Plan Head (Minor Head)		Detailed Head		Primary Unit

 

 

 

·         Sources of Finance

 

Numerical Code (First 2 digits in Classification)	Source of Finance	Remarks
20	Capital
21	DRF – Depreciation Reserve Fund
23, 33, 43 & 53	DF I, II, III & IV respectively
25	Capital Fund
26	RSF – Railway Safety Fund
27	SRSF – Special Railway Safety Fund	Not in operation.  It was ceased in the 2008 year.
28	Capital – Nirbhaya Fund
29	RRSK - Rashtriya Rail Sanrakshak Kosh
84	EBR – IF (Extra Budgetary Resources – Institutional Finance)

 

 

 

The following Sources of Finance are ceased

 

Numerical Code	Description	Remarks
22	OLWR – Open Line Works – Revenue	Click here for reasons
24	ACSPF – Accident Compensation, Safety & Passenger Amenities Fund	Accident compensation is transferred to erstwhile Demand No.12 & SMH 10 – Miscellaneous Working Expenses.  Safety is chargeable to DF – IV.  Passenger amenities chargeable to DF - I

 

Changes in Plan Heads (Latest as per ACS – 143)

 

Deleted Plan Heads

 

Plan Head No	Description	Remarks
12	Purchase of New Lines	Deleted
34	Taking over of Line Wire from P & T Dept
37	Traction Distribution Works	Merged into PH 3600
52	Amenities for Staff	Merged into PH 5100
62	Investments in Govt Commercial undertaking – Public undertaking	Merged into PH 6100
63	Investment in Non – Govt undertaking incl: JVs/SPVs	Merged into PH 6100
83	New Lines (Construction) Dividend free project

 

Note:  PH 13 – Restoration of dismantled lines – Deleted already.

 

Modified Plan Heads

 

Plan Head No	Previous Description	New Description	Remarks
11	New Lines (Construction)	New Lines
36	OEW – Other Electrical Works Excl: Traction Distribution Works	Electrical Works	Previous PH 3700 – Traction Distribution Works is merged into PH 3600
51	Staff Quarters	Staff Welfare	Previous PH 52 – Amenities for Staff is merged into PH 51
53	1. Passenger Amenities 2. Other Railway Users amenities	Passenger & Other Railway Users amenities	Not much change. Only two parts are combined as one part
61	Investment in Govt Commercial undertaking – Road services	Investment in PSU/JV/SPV etc ( Govt & Non Govt)	Previous PHs 62 & 63 are merged in PH 61

 

Existing Plan Heads (Total -27)

 

Plan Head No	Description	Remarks
11	New Lines
14	Gauge Conversion
15	Doubling
16	Traffic facilities
17	Computerisation	New one
18	Railway Research	New one 2009 year
21	Rolling Stock
22	Leased Assets – Payment of Capital component of Lease charges to IRFC etc	New one – 2016 year
29	Road Safety Works – Level Crossing	New one
30	Road Safety Works (ROB/RUB)	New one
31	Track Renewals
32	Bridge Works, Tunnel Works & Approaches
33	S & T Works
35	Electrification Projects
36	OEW – Other Electrical Works incl: TRD works	Ph 3700- Traction Distribution Works is merged into PH 36
41	M & P – Machinery & Plant
42	Workshops incl: Production Units
51	Staff Welfare	1. Previous name of PH 51 is Staff Quarters 2.PH 52- Amenities for staff is merged into PH 51
53	Passenger & Other Railway Users’ Amenitities	Not much change. Only two parts are combined as one part
61	Investment in PSU/JV/SPV etc ( Govt & Non Govt)	Previous PHs 62 - Investments in Govt Commercial undertaking – Public undertaking & 63- Investment in Non – Govt undertaking incl: JVs/SPVs are merged in PH 61
64	Other Specified Works
65	Training / HRD	New one – 2016 year
71	Stores Suspense
72	Manufacturing Suspense
73	Miscellaneous Advances
81	MTP – Metropolitan Transport Projects
82	Transfer to SRSF – Special Railway Safety Fund	On books only. But not in operation

 

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