Financial Administration in India

What is Appropriation Act?
After demands for grants have been passed by the Legislature, Appropriation Bill is introduced on account of making expenditure out of Consolidated Fund. Until and unless Appropriation Bill is passed by the Legislature, Govt. is not authorised to make any expenditure from 1st April. No amendment shall be proposed to any such Bill, which will have the effect of varying the grant already passed by the Legislature. While the Appropriation Bill is passed by the Legislature, the same should be treated as Appropriation Act. It covers all the charges including the liabilities of the past years to be paid during a financial year.

What is the detailed head?
For the purpose of itemwise control over expenditure and indicate the object or nature of expenditure on a scheme out of Consolidated Fund in terms as an object of classification as ‘Detailed Head’ viz. Salaries, Office expenses, Grant-in-aid, Loans etc.

What is the Re-appropriation?
Transfer of savings in the appropriation for a unit of appropriation to meet the excess expenditure anticipated under another unit within the financial year which is called Re-appropriation.

What is ways and means/Cash balance of the Govt.?
Cash balance of the Govt. at all times should be sufficient during the year to meet its requirement. The forecast of the opening balance and the monthly incoming and monthly outgoings are to be watched very carefully so that the cash balance never falls unduly low.

What is the Treasury Rule?
Power to regulate the payment of money into the Consolidated Fund, Contingency Fund and Public Accounts and withdrawal of the money therefrom and custody of moneys is vested in the Legislature. These matters are regulated by the rules made on behalf of the President/ Governor of the State as the case may be. The same is called the Treasury Rule.
TREASURY
1. Treasury is the pivot of the financial administration in the State. At the headquarter of each district there is a Dist. Treasury with one and more sub-treasuries in Sub-Division level. All Sub-treasuries have been up-graded to Treasuries in West Bengal. The distinction between a Treasury and a Sub-treasury is that while the former submits monthly accounts to the Accountant General direct, the latter submits the same through the treasury at the district headquarter. There may be more than one treasury at district/subdivision level. The Collector of a district is in overall charge of the treasury. The Treasury Officer acts on behalf of the Collector and is directly responsible to him.
2. The Govt. funds are kept with the R.B.I, In the Districts and Sub-Divisional Headquarters, as agent of the R.B.I. the State Bank of India and the Central Bank of India (in Coochbehar Dist. only ) handle the fund of the Govt. All the treasuries in this State are banking treasuries. A treasury operates through a branch of the S.B.I. or the Central Bank of India (In Coochbehar Dist. only). A list of such banks is given in Appendix-II of W.B.T.R, Vol. II (T.R. 4, 4A and 5 and amended from time to time).
3. The bank makes payment on the order of the Treasury Officer except in the case of the Executive Engineers and the Divisional Forest Officers who are authorised by the Govt. as Cheque Drawing Officers.
4. All bank renders a daily account to the Treasury.
5. All money received by a Public Servant is to be deposited into the Treasury attached bank within the next working day. By order of the Head of the Deptt. such money may be deposited within three working days under special circumstances. Expenditure should not be made out of such Receipts except in the cases viz. Civil and Revenue Deposits in the Courts for Service of Summons, Cash found from the Convicts in Jails, money awarded in cases out of fines to the parties etc. where such expenditure has been permitted by the competent authority (TR-7).
6. No Bank Account should be opened by any Public Servant for keeping Govt. money there without specific permission from the Govt.
7. Deposits to Govt. account are made in TR Form No. 7. and such other forms approved by the Sales Tax and other officers in consultation with the Finance Deptt. Banks accept deposit on the basis of order of the Treasury Officer or an officer of the concerned Deptt. Very carefully the heads of account with detailed head should be noted on the challan otherwise serious difficulties will arise in respect of classification of accounts. Any money received by any Govt. official should be credited to the Govt. account without delay, usually on the same day or on the next day unless specifically permitted otherwise. Departmental Receipts are also given in TR Form No.6.