Budget Planning in Indian Railways

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Budget planning

in

Indian Railways


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Done & submitted by:

Ranjeet. R. Iyer

Roll No. 107

T.Y.B.M.S- B div.

S.K.Somaiya College, Vidyavihar,Mumbai


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About this project

This project is not extracted or copied fromany existing project.

Information in this are collected by mepersonally after visiting the concerned officialsand doing my project under hem for a month.

I have provided the brief information in this

project of the entire Budget Planningprocess.

The actual process is very tedious and will runinto pages if described.


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The information is taken from various sources

which includes people and books.

These information is true to my knowledge.

However, any error if discovered is regretted.

Also, the photos of Railways put in slides are

taken by me with my own camera out of adeep interest towards INDIAN RAILWAYS.


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Effective Planning

Effective planning is essential to any

organisation.

It leads to proper allocation of resources andproper framing of decisions on time.

Planning should be done systematically and it

is not a days job.

It should be done for the future based on

previous facts and information.


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Planning in Indian Railways

Indian Railways is a very big organisation

concerning several departments and

manpower.

It is worlds largest employer and is spread

across the length & breadth of the country.

Planning and decision making is very crucial in

Indian Railways.

And for this planning proper allocation of

funds and resources are required.


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And this allocations comes under BudgetPlanning of Indian Railways.

These things are planned over a great period

of time involving many engineers, senior level

managers etc.

This budget is presented in the Indian

parliament every year as Railway Budget by

the railway minister on February 28th.


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History of Railways In India

Railways was first started in India in April 1853during the British rule in India.

The first train ran between Boribunder (nowMumbai) to Thana (now Thane).

Nearly 50 years after 1853, there were 33separate railway administrations operating

over 41,000 kilometers. Of these, 4 were worked by GoI and 5 by

erstwhile Indian states and remaining 24 byvarious railway companies.


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The non-governmental railways were operatedunder varying degrees of government

supervision.

Their regulation & control were vested inrailways branch of Public Works Department

(PWD). The department was head by an officer of

Indian civil service who was a member ofviceroy & governor general executives

council. He was assisted y one secretary, 3 deputy

secretaries, 4 under secretaries and 4 assistantsecretaries.


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The entire circle was divided into 7 circles.

A team of consulting engineers & one

government examiner of accounts was posted

to each of these 7 circles.


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Sir Thomas Robertsons report

In October1901, Sir Thomas Robertson, C.V.Owas appointed as special commissioner forIndian Railways to report on the

administration & working of Indian Railways. Sir Thomas recommended setting up of a

Railway Board consisting of a president orchief commissioner & 2 other commissioners .

Sir Thomas said all of these people shouldhave high practical knowledge about theworking of railway matters.


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He also insisted that the board should be

assisted by a secretary, a chief inspector of

Railways, the necessary number of ordinary

inspectors & the requisite number of

government auditors.

This lead to abolishing Railway Branch under

PWD and setting up of a Railway Board.


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The Railway Board

The board assumed office in March1905.

It was being directly responsible to GoI in

department of Commerce & Industry. It comprised of an examiner of accounts later

redesignated as Railway Accounts Officer

amongst other staff.


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The Actworth Committee

It was a major landmark in Railway finance.

It aimed at separating Railway finance from

the general finances of the government. 20th September1924: Resolution passed for a

separate RAILWAY BUDGET and this was

known as Separation convention.

Hence Railway Budget came into existence

separately.


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The Railway Budget is presented on bothhouses of the parliament.

It is presented ahead of the general budget.

The railway budget includes presentation ofreceipts and expenditure of railways.


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The Consolidated Fund of India

(CFI)

All receipts of Railways gets credited to the

CFI.

No money can be withdrawn from the CFIwithout exercising the procedure laid down in

the constitution.

Even the railway staff salary cannot be taken

from CFI unless the procedure is exercised.

Withdrawals from the CFI is allowed only once

the President of India signs.


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Procedure for withdrawals

The estimate of expenditures is to be

presented in the parliament in the form of

Demand for grants.

The railway budget totally involves 16

demands which deals with various expenses.

The parliament then discusses each demand

with the members who have the right to

propose motions.


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After discussing, each demand is voted & passed.

After this the request for total money to be

appropriated from the CFI is made to meet the

railway expenses.

This is presented in the parliament in the form of

Appropriation Bill. Once this bill is passed and signed by the

President of India, it becomes the Act.

Only after this, the withdrawal is possible fromthe CFI for the F.Y.

That is why it is necessary to complete the

parliamentary procedures before 31st of March.


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Planning & work for Budget

Budget work is done after realising all the

needs.

Each railway zone will have its own needs rightfrom a small to a very big project.

Indian Railways has 16 zones under it.

S

o Budget planning is a huge task indeed inRailways!


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Planning procedure

The need or requirement of a work is

realised by the Field Officer.

He may realise this through passengerscomplaints/suggestions or through the

maintenance engineers or by himself.

Maintenance engineers are present at every

100 kms. across the length & breadth of the

country.


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Based on their observations & requirements

of passengers, they communicate the need to

the Field officer.

The Field officer then analyses the work.

Based on the nature of the work and the

amount involved, he may himself sanction it.

If the amount is high, then it is forwarded to

the D.R.M or the G.M.

Note: D.R.M is Divisional Railway Manager

Note: G.M is General Manager


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So, like this all the Railways zones decide

about their need and get the need or work

approved.

Sometimes, the Railway Board may not

sanction some work and send it back to the

respective zone.

If the zonal railway feels that the work is of

utmost importance, then it will request the

Board to sanction it after providing moredetails about it.


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Schedule of planning

Process Deadline date

1. Prior approval of the board. 30th June

2. Ceiling advised April

3. Preliminary works program September

4. Works program- Advisors meeting November-December

5. Full board meeting December-January

6. Budget presentation 28th February


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Bibliography

This project is done by me after collecting all

the necessary information by myself during

my summer project with Western Railways.

I was guided by certain officials from Western

Railways and Im thankful to them.

Documents

Budget Planning in Indian Railways