Lok Sabha Question No. 1892 (UNSTARRED), answered on 2018-12-21
Subject: Budget Division
Ministry: FINANCE
Asked by: HARISH DWIVEDI

No.1892

## SHRI HARISH CHANDRA ALIAS HARISH DWIVEDI:

Will the Minister of FINANCE be pleased to state:-

- a. the details of work performed by Budget Division of his Ministry;
- b. the number of Sections in which this division has been divided along  with the details of works performed by these Sections; and
- c. the funds allocated by the Government to Budget Division to perform its duties?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI P RADHAKRISHNAN )

| Point    | Reply                                                                                                                                                                                                                                                                                                                                                                           |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) &(b) | The Budget Division is responsible for preparation of the Union Budget, Supplementary Grants and Excess Demands for Grants of the Central Government and the Annual Budget of the States under the President's Rule and their submission to Parliament. The Budget Division is divided into 13 Sections. The Section wise details of work performed by the Division is annexed. |
| (c)      | Funds allocated by the Government to Budget Division to prepare Budget duties during the F.Y. 2018-19 is Rs. 2.05 crore.                                                                                                                                                                                                                                                        |

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## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 1892

TO BE ANSWERED ON FRIDAY 21 st  DECEMBER, 2018

## 'BUDGET DIVISION'

## Annexure

## Section wise details of Work performed by Budget Division

## (1) Ways & Means

Resources and Ways and Means of Central Government, Market Loans by Central Government, Treasury Bills and Deficit financing, Market Stabilization Scheme, Cash Management, Receipt Budget Coordination, Administration  of  Bonds  issued  by  the  Government  of  India  (viz.  Savings  Bonds/  Relief  Bonds  etc.), Repayment of Debt, Interest Payments, Sovereign Gold Bond, Handling budget related work of Demands for Grants.

## (2) Budget Administration

Internal Administration of Budget Division, Nomination for domestic and foreign training, Sundaramoorti Committee work, Budget Press, Administration of National Savings Institute and Public Debt Management Cell, Handling budget related work of Demands for Grants.

## (3) Report and Coordination

Administration  of  the  C&AG  (Duties,  Powers  and  Conditions  of  Service)  Act-  1971,  Proposals  for Entrustment/re-entrustment  of  audit  of  Non-Government  Bodies  and  Authorities  to  the  C&AG  of  India under  Section  20(1)  of  the  C&AG's  (DPC)  Act-  1971,    Processing  Audit  reports  of  the  C&AG  of  India relating  to  the  Accounts  of  the  Union  Government  and  laying  them  in  both  houses  of  Parliament  in pursuance of Article 151 of the Constitution of India after obtaining approval of the President of India, Coordination work on PAC and other Parliamentary Committee Reports that directly and exclusively concern the Budget Division, Co-ordination of Parliament Issues, Intra-division Coordination Matters Miscellaneous Reports of the Budget Division, Preparation and laying of the Annual Report of the Ministry of Finance in Parliament,  Security  and  other  arrangements  related  to  presentation  of  Central  Budget,  Handling  budget related work of Demands for Grants, Grievance redressal and RTI matters. Budget Statistics Compilation and analysis, MIS concerning expenditure and receipt, Monitoring and analysis of expenditure and receipt trends,  MIS  Report  compilation  for  internal  assessment  by  Budget  Division,  Computerization  of  budget work, including work relating to NTR (other than those handled by PDMC)

Legislations : The Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 (56 of 1971)

## (4) State

Release  of  States'  share  of  Central  Taxes  and  duties  to  State  Governments,  Work  relating  to  the Constitution  of  the  Finance  Commission  and  processing  of  its  reports,  Matters  relating  to  financial provisions of various States' Reorganisation Acts Monitoring and review of repayment of Central loans and payment of interest by State Governments, Common pool of resources for North Eastern Region, Handling budget  related  work  of  Demands  for  Grants,  Processing  and  presentation  of  Budget  and  Supplementary Demands for Grants to  Parliament  in  respect  of  States  under  President's  Rule,  Non-Tax  Revenue  of  the Central Government-finalization and compilation of estimates thereof, incorporation of estimates in respect of States' share of Tax Revenue in Revenue Receipt of the Central Government in the Budget Documents, Issues concerning CPSUs , Direct Benefit Transfer.

Legislations : The Finance Commission (Miscellaneous Provisions) Act, 1951 (33 of 1951)

## (5) Planning & Allocation

Issues concerning Central Sector and Centrally Sponsored Schemes, Issues concerning NITI Aayog, Gross Budgetary  Allocation,  Outcome  Budget,  SC/  ST/  NER  Allocation,  Externally  Aided  Projects,  Handling budget related work of Demands for Grant.

## (6) National Savings

Policy  and  administration  of  all  Government  Small  Savings  Schemes  like  namely  Post  Office  Savings Account, Post Office Recurring Deposit Account, Post Office Time Deposit Accounts, Post Office Monthly Income  Account,  National  Savings  Scheme,  Indira  Vikas  Patra,  National  Savings  Certificate,  Public Provident Fund Scheme, Senior Citizens Savings Scheme, Sukanaya Samriddhi Account Scheme and new schemes introduced from time to time, framed under Government Savings Bank Act, 1873, Government Savings  Certificates  Act,  1959  and  Provident  Fund  Act,  1968;  Administration  of  Government  Securities Act, 2006 and regulations framed thereunder through Reserve Bank of India, Computerization of National Small Savings Fund (NSSF) processes.

Legislations :The Government Savings Bank Act, 1873 ( 5 of 1873), The Government Securities Act- 2006, The Government Savings Certificates Act, 1959 (46 of 1959), The Public Provident Fund Act, 1968 (23 of 1968), The Additional Emoluments (Compulsory Deposit) Act, 1974 (37 of 1974).

## (7) Public Debt Management Cell

Plan borrowings of GoI, including market borrowings, other domestic borrowing activities of GoI through specific  products,  including  Sovereign  Gold  Bond  issuance,  Manage  Central  Government  liabilities, including Internal Debt, Guarantee proposals and contingent Liabilities, and National Small Saving Fund,

Monitor  cash balances of the  Government,  improve  cash forecasting and promote  efficient cash management practices, Foster a liquid and efficient market for Government securities, Analyze and advise concerned  Divisions  of  DEA  on  the  proposals  of  External  borrowing  as  regards  cost,  tenure,  currency, hedging requirements, etc. and monitor development in foreign exchange markets, Develop an Integrated Debt Database system (IDMS) as a Centralized data base for all liabilities of GoI, on a near real time basis, Advise on matters related to Investment, Capital Market operations, Guarantee proposals, administration of interest rates on Small savings, and various loans and advances given by GoI, Undertake requisite market interface  with  various  stakeholders,  including  Government  departments,  Central  Bank,  investors,  primary dealers,  financial  market  regulators,  market  participants,  etc.  to  carry  out  assigned  functions  efficiently, Undertake such research work, including those relating to new products development, market development, risk  management,  debt  sustainability  assessment,  and  other  debt  management  functions,  as  and  when required by Ministry of Finance, Undertake requisite preparatory work  for  PDMA. Legislation: Government Securities Act, 2006

## (8) Demand

Issuing  the  Budget  Circular,  Maintaining  the  list  of  Demands  as  per  the  Allocation  of  Business  Rules, Maintaining the format of the Demands  for  Grants  and  its accompanying  annexures  as  per  the recommendations  of  the  Estimates  Committee/Public  Accounts  Committee,  Opening  of  new  subheads, detailed  heads  and  object  heads  of  accounts  in  Detailed  Demands  for  Grants,  Coordinate  the  work  of compilation  of  Demands  for  Grants  of  all  the  Ministries/Departments,  Presentation  of  all  the  Budget documents  in  Parliament  and  the  legislative  work  relating  to  preparation  of  Vote  on  Account  and  main Appropriation  Bills,  Gender  Budgeting,  Handling  budget  related  work  of  Demands  for  Grants,  Social Welfare Sector Ministries and Departments, Financial policy in regarding to the utilization of the proceeds of  disinvestment  channelized  into  the  National  Investment  Fund,  Printing  and  distribution  of  budget documents.

## Legislations : Appropriation Act

## (9) FRBM

Administration of Fiscal Responsibility and Budget Management Act (FRBM), 2003 and the Rules framed there under, Work relating to preparation and presentation of FRBM Report, Preparation of Medium Term Expenditure  Framework  (MTEF)  Statement  for  presentation  in  Parliament,  Preparation  of  Statements  on quarterly review of the trends in receipts and expenditure in relation to the budget, Preparation of Disclosure Statements such as Asset Register, Tax Revenue Raised but not Realised and Arrears of Non-Tax Revenue, Handling budget related work of Demands for Grants.

Legislations :

Fiscal Responsibility and Budget Management Act, 2003

## (10) Supplementary Demand

Presentation of Supplementary Demands for Grants, Presentation of Demands for Excess Grants, Financial Sector related issues concerning schemes dealing with Central Government Guarantees, Administration of the  Contingency  Fund  of  India  Act  and  Rules,  Administration  of  various  Cesses,  Fresh  Government Guarantees, guarantee fee recovery and Contingent Liability Management, Handling budget related work of Demands for Grants.

Legislations: Contingency Fund of India Act, 1950

## (11) Public Debt

Fixation of Interest rate of GPF and similar Funds including Special Deposit Scheme, Employees Provident Fund (EPF), Coal Mines Provident Fund (CMPF), National Defence Fund etc., Fixation of interest rates of loans  and  advances  sanctioned  by  Central  Government  to  States/Union  Territory  Governments,  Public Sector Enterprises etc. (ii) Rate of interest to be charged on advances to Government servants for purchase of conveyance, and (iii) Advances to Government servants - Rate of interest on House Building Advance etc.,  Recovery  of  Principal  and  Interest  on  all  Government  loans,  Recoveries  of  Loans  and  Advances, including from Public Sector Units/ Financial Institutions but excluding repayment from States; and Interest Receipts, Handling budget related work of Demands for Grants.

Legislations: Public Debt Act, 1944 ,The Charitable Endowments Act, 1890 (6 of 1890)

## (12) Accounts

Dealing with all issues relating to the Accounting of Government transactions of Ministries/Departments arising  out  of  various  Constitutional  provisions  and  Acts  of  Parliament;  Accounting  classification  and procedures including Reforms in Budget and Accounts; Vetting of Accounting Procedure and operation of approved funds in respect of external assistance (in cash or in kind) drawn up by Controller of Aid Accounts and  Audit  before  obtaining  concurrence  of  C&AG,  Administering  Public  Accounts  including  National Investment Fund, National defence fund (other than fixing interest rates), etc., Collection and transfer of Cesses to corresponding fund, Non-debt Capital Receipts/Disinvestment Receipts, GFR and DFPR related issues, Handling budget related work of Demands for Grants.

## (13) Budget Press

Printing  of  Budget  documents  including  Detailed  Demands  for  Grants  of  the  Ministry  of  Finance  and Supplementary Demands for Grants.

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