CONTENTS - Central Public Works Department

260 SECTION 47
CHAPTER V
BUDGET
SECTION 47
BUDGET
47.1 General
Budget is the Annual Financial Statement of all transactions of the Central Government in and outside
India, including estimated receipts and expenditure occurring during the year in which the statement is
prepared as well as during the ensuing year.
47.2 Definitions
(1) The estimates of the current financial year, which are based on the actual transactions recorded
till the time of their preparation and the transaction anticipated for the rest of the year are termed as
“Revised Estimate”. The estimates for the ensuing financial year are termed as “Budget Estimates/
Schedule of Demands”.
(2) The instructions about the procedure for the preparation of the Budget Estimates/Schedule of
Demands, Revised Budget Estimates are issued by the Budget Division of Ministry of Finance in
their annual budget circular.
47.2.1 Budget Authority
The Director General (Works) is the “Budget authority’’ for the preparation and submission to the
Government the budget estimates relating to Central Public Works Department.
47.2.2 Consolidated Fund of India
All revenues received by Government, loans raised by it, and also its receipts from recoveries of
loans granted by it form the Consolidated Fund. All expenditure of Government is met from the Consolidated
Fund, as authorised by the appropriate legislature.
47.2.3 Demand for grants
The estimates of expenditure from the Consolidated Fund as are required to be voted by the Lok
Sabha are submitted in the form of Demands for Grants. Separate demand for each of the major services
is presented, e.g. Demand for Public Works, Demand for Housing and Urban Development, etc. Each
Demand normally includes the total provisions required for a service, that is, provisions on account of
revenue expenditure, capital expenditure, grants to States and Union Territories and also loans and
advances relating to the service.
47.2.4 New services & new instrument of services
“New Services” refers to expenditure arising out of a new policy decision, not brought to the notice of
the Parliament earlier. Likewise, relatively large expenditure arising out of important expansion of an
existing activity is treated as a “New Instrument of Service”. No expenditure can be incurred from the
Consolidated Fund of India on a “New Service”/”New Instrument of Service” without prior approval of the
Parliament through a Supplementary Grant.
47.2.5 Recoveries
Certain classes of receipts, like payments made by one department to another, and receipts of capital
projects or schemes are taken in reduction of the expenditure of the receiving department. “Recoveries”
shown for this purpose should be those from other Ministry/Departments of Central Government and in
respect of expenditure met from reserve funds in the Public Account. Recoveries from State Governments
and from Non-Government Organisations are treated as revenue receipts, and should not be shown as
“Recoveries”, but included in the estimates of revenue receipts.