Define Re-appropriation, Finance Commission, Public Account, Outcome Budgeting, Expenditure Control?

 What is Re-appropriation? Question asked in HPFAS (2008)

Ans. Re-appropriation means the transfer of funds from one Primary unit of appropriation to another such unit.

 

Define Finance Commission? Question asked in HPFAS (2008)

Ans. Finance commission is constituted by the President under Article 280 of the constitution, mainly to give its recommendation on distribution of tax revenues between Union and States and amongst the States themselves. Two distinctive features of the commission work involve redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the Centre and the States respectively and equalization of all public services across the states.

 

Define Public Account? Question asked in HPFAS (2008, 2011)

Ans. Public Account" means the Public Account of the State Government in which all public moneys other than those which form a part of the Consolidated Fund of the State, received by or on behalf of the State are credited and from which disbursements are made in accordance with the specified instructions.

 

What is Outcome Budgeting? Question asked in HPFAS (2011)

Ans. An outcome budgeting or outcome-based budgeting (OBB) is a method of budgeting that measures the progress of each department and ministry and what they have done with its allocated budget. It is the practice of developing budgets based on the relationship between funding and expected results.

(i) It is a process of budgeting done at micro levels that sets measurable physical targets to be allocated on every planned project under various ministries.

(ii) The outcome budget becomes a means to establish a linkage between the fund spent by a Government and the outcome that follows.

(iii) It works as the progress card on what various ministries and departments have done within a particular years.

(iv) It measures qualitative and quantitative aspects of the budget.

(v) It makes the budget more accountable and transparent.

What is Expenditure Control? Question asked in HPFAS (2011)

Ans. Expenditure control means power of the various authorities to incur expenditure within prescribed limit for the purpose for which fund have been provided. Objective of the expenditure control is to ensure that public sources are spent as intended within authorized limits and following sound financial management principle.

Before incurring any expenditure the spending authority shall ensure that:-

(i) The expenditure does not exceed the budget allocation.

(ii) The expenditure is incurred for the purpose for which fund have been provided.

(iii) The expenditure is in the public interest.