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Finance Establishment. Finance function is implicit and universal in nature. We exercise finance function, consciously or other-wise in our personal life too. Finance function. First standard of financial propriety. - PowerPoint PPT Presentation
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Finance Establishme
nt
Finance function is implicit and universal in nature.
We exercise finance function, consciously or other-wise in our personal life too.
Finance function
First standard of financial propriety
Expenditure should not prima facie be more than the occasion demands and
Every Government servant should exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of the expenditure of his own money.
Finance function in Public affairs Finance acquires added significance in Government affairs because we are dealing with public money.
Accountability to the public through public representatives i.e. through the institution of Parliament.
Total Receipts
Passengers
Other Coaching
Goods
Sundry
Misc.Receipts
Subsidy
Safety Surcharge
Total Outgo
OperatingExpenses
Appropriation to DRF
Appropriation
to Pension Fund
Misc Expd
Appropriation
to RSF
OLWRDividend
Appropriation
to DF
Appropriation to
Capital Fund
65%
PassengerEarnings
Other CoachingEarnings
Goods TrafficEarnings
Sundry OtherEarnings
Misc.Receipts
Where the Rupee came from – 2009-10
Where the Rupee went - 2009-10 (as part of the total disbursements)
5%
4%
8%6%
6%
2%1%
1%
16%
15%
0%
36%
Staff Wages & Allow.
Pension Fund
Fuel
Stores
Lease Charges
Other Pus
Dividend
DRF
CF
DF
OLWR
Miscellaneous
Where the Rupee went - 2009-10 as part of working expenses
6%4% 10%
43%
18%
19%Staff
Pension
Fuel
Stores
Lease Charges
Other Pus
Finance Establishment deals mainly with …
Creation of Additional Revenue Posts; Extension of Temporary Posts; Conversion of Temporary Posts to
permanent ones;Crediting money value of posts surrendered to
Surplus Bank; Release of matching money value from Surplus
Bank for creation of revenue posts concurred inand
Finance Establishment deals with …
Creation of Work-charged Posts;Extension of Work-charged PostsSix Monthly reviews of running staff –
Drivers and Guards
Finance Establishment also concerned with …
Engagement of CMPs, Part-time lecturers etc.
Fixation of Consolidated Traveling Allow.
Manpower PlanningIR has as a well organised, well trained and very
responsive workforce, specific to the needs of the organisation.
Our staff and officers are in great demand in other departments and also the private sector.
Man power by itself is not a problem. Problem related to sector wise requirements vis-à-vis availability.
Staff Strength and Staff Cost
Year Staff (in lakhs) Average Annual wage (Rs.)
1950-51 9.14 1,263
1995-96 15.86 59,219
2004-05 14.24 1,58,140
2005-06 13.24 1,73,911
2006-07 13.97 1,73,799
2007-08 13.95 1,86,070
2008-09
Impact of Pay commission
Expenditure on staff and pension have payments increased dramatically following recommendations of successive Pay Commissions, especially the V PC and VI PC.
No room for complacency
Rightsizing IR
Since the 1990s, Railways have been trying to right-size manpower.
Staff strength brought down
from about 18 lakhs in nineties
to 13.95 lakhs in 2007-08,
by almost 4 lakhs in about 18 years
Techniques followedFilling up of only 1% as against 3% retirements
every year.Doing away with Yardsticks and NormsBringing in IRBM Outsourcing non-core activitiesIdentifying surplus posts Surrendering vacant postsRedeploying staff rendered surplusNo indents for surplus categories
Creation of revenue postsCreation of additional posts only as last resortAlternative means to be explored for creation of
posts like re-arrangement of work and duties, elimination of unnecessary work, simplification of procedures rationalization of works etc computerisation of more activities
Pre-requisites for creation of revenue posts
Every proposal for creation of additional posts, should be accompanied by statement showing the particulars of the existing
staff, the proposed staff and the increase or decrease in
each category of post. Creation of Revenue posts require matching
surrender from Surplus BankSafety & operational posts can be created on 1:1
basis; Others 3:4 in Ratio.
Sanction Powers
Revenue Posts:Gazetted - Railway BoardNon-Gazetted - G.M.
Work-charged Posts - Creation/ Extension :
Above JAG : Railway Board
Upto JAG : G.M. or lower authorities as per delegation on the Railway
Creation of Work-charged posts No consultation with Finance necessary where
funds are allotted for specific projects/objectives, with break up of establishment charges post-wise and
other charges.
Within such financial limits, Departmental Officer can exercise their discretion to sanction the expenditure without consulting Finance.
In all other cases prior finance concurrence is necessary.
Thank You
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