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.

 

Define Vote of Credit, Contingency Fund, Finance Bill, Appropriation Bill, Book Transfer, Controlling Officer, Disbursing Officer?

 Define Vote of Credit? Question asked in HPFAS (2004)

Ans. Vote of credit is the financial grant given to the executive from the resources of India to meet urgent financial requirements whose details can not be shared ordinarily in budget.

 

Define Contingency Fund? Question asked in HPFAS (2006)

Ans. Contingency Fund means the contingency fund of the State established under the Himachal Pradesh Contingency Fund Act, 1971 (Act 9 of 1971) and maintained under clause (2) of Article 267 of the Constitution of India.

 

Define Finance Bill? Question asked in HPFAS (2006)

Ans. Finance Bill is a money bill, the Government seeks to levy new taxes, make alterations in the current tax structure or make proposals from the continuance of the present tax structure for a certain period beyond what was originally approved by the Parliament. The Parliament approved this bill for one fiscal year. Post getting approved, the Finance bill becomes the Finance Act.

 

What is Appropriation Bill? Question asked in HPFAS (2006)

Ans. An appropriation bill is a bill that authorizes the Government to withdraw funds from the Consolidated Fund of India for use during the financial year.

(i) As per Article 114 of the constitution, the Government can withdraw money from the consolidated fund only after receiving approval from the Parliament.

(ii) The amount withdrawn is used to meet the current expenditure during the financial year.

  

What is Book Transfer? Question asked in HPFAS (2006)

Ans. Book Transfer means the process whereby financial transactions which do not involve the giving or receiving of cash or of stock material, are brought to account. Such transactions represent liabilities and assets brought to accounts either by way of settlement or otherwise but they may also represent corrections and amendments made in cash, stock or book transfer transactions previously taken into account;

Define Controlling Officer? Question asked in HPFAS (2006)

Ans. Controlling Officer means Head of the Department or any other officer entrusted by a department with the responsibility of controlling the incurring of expenditure and/ or collection of revenue.

Define Disbursing Officer? Question asked in HPFAS (2006)

Ans. Disbursing Officer means Head of the Department, Head of office and also any other officer designated by Head of the Department, to draw bills and make payments on behalf of the State Government.