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Budget documents presented to the Legislature besides Finance Minister’s speech
consists of the following.
The documents shown at Serial a, b, c are mandated by Article 202, 203,
206(1)(a) of the Constitution of India respectively. Document at Serial d is
presented in compliance of section 3 of the Karnataka Fiscal Responsibility Act
(KFRA 2002). Other documents are in the nature of explanatory statements
supporting the
mandated documents with narrative or other content in a user friendly format
suited for quick
contextual references. These documents are bilingual. Some of
these
documents are hosted on website
http://www.kar.nic.in/finance/bud2009/bud2009.html
.
In addition to the above, individual departments present Annual reports to the
Legislature. The Economic Survey of the current year which highlights the
economic
trends
in the state and facilitates a better appreciation of the mobilization / trends
in the use of resource
is brought out by the Planning, Programme Monitoring
and Statistics Department. Economic Survey is usually presented in advance of
the Budget. This document is posted on the departmental website
http://des.kar.nic.in/indexie.html
a Annual Financial Statement (AFS).
AFS is the core budget document that shows estimated receipts and disbursements
by the State Government for next year in relation to estimates for current year
as
also expenditure for the year before last. This statement shows the receipts and
disbursements of Government in three parts in which Government accounts
are kept: (i) Consolidated Fund, (ii) Contingency Fund and (iii) Public Account.
All revenues received by Government, loans raised by it and also its receipts
from recoveries of loans granted by it form the Consolidated Fund (Article
266(1) of
the
Constitution). All expenditure of Government is incurred from the Consolidated
Fund. No amount can be withdrawn from the Fund without authorisation from
Legislature.
Occasions may arise when Government may have to meet urgent unforeseen
expenditure pending authorisation from Legislature. In pursuance of Article
267(2)
of
the Constitution of India, the State Legislature has established a Contingency
Fund which is of the nature of an imprest. . This fund is operated by the
Principal
Secretary to the Government of Karnataka in the Department of Finance in
accordance with The Karnataka Contingency Fund Act, 1957. Approval of
Legislature
for
such expenditure and for withdrawal of an equivalent amount from the
Consolidated Fund is subsequently obtained and the amount spent from Contingency
Fund is recouped to the Fund. The corpus of the Fund authorised by the
Legislature is Rs.8,000 lakh.
Besides the normal receipts and expenditure of Government which relate to the
Consolidated Fund, certain other transactions enter Government accounts in
respect of which Government acts more as a banker viz., transactions relating to
State provident funds, Insurance and Pension funds, other deposits, etc. The
moneys thus received are kept in the Public Account and the connected
disbursements are also made there from (Article 266(2) of the Constitution).
Generally
speaking,
Public Account funds do not belong to Government and have to be paid back some
time or the other to the persons and authorities who deposited them.
Authorisation of the Legislature for payments from the Public Account is,
therefore, not required.
Under Article 202(2)(b) of the Constitution Budget has to distinguish
expenditure on revenue account from other expenditure. AFS, therefore, comprises
(i)
Revenue Account and (ii) Capital Account.
Revenue Account consists of the revenue receipts of Government (Tax revenues and
other revenues) and the disbursement met from these revenues. Tax revenues
comprise
proceeds of taxes and other fees levied by the State. The estimates of revenue
receipts shown in the Annual Financial Statement take into account the
effect of the taxation proposals that are carried in the Money Bills to be
presented to the Assembly by the concerned departments during the budget
session. Other receipts of Government mainly consist of interest and dividend on
investments made by Government and other receipts for services rendered by
Government.
Revenue expenditure is for the normal running of Government departments and
various services, interest charges on debt incurred by Government, subsidies,
etc.
Broadly
speaking, expenditure that does not result in creation of assets is treated as
revenue expenditure.
Capital Account consists of capital receipts and disbursement. The main items of
capital receipts are loans raised by Government from public which are called
Market Loans, tied borrowings by Government from Reserve Bank, loans received
from foreign Governments and multi lateral bodies, recoveries of loans granted
by State Government. Capital payments consist of capital expenditure on
acquisition of assets like land, buildings, machinery, equipment as also
investments in
shares, etc., public debt, and loans & advances granted by State to Government
companies, Corporations and other parties like Cooperative societies..
Under
Article 202(3) of the Constitution certain items of expenditure like emoluments
and allowances of the Governor, salaries and allowances of the Chairman and the
Deputy Chairman of the Legislative Council and the Speaker and the Deputy
Speaker of the Legislative Assembly, salaries, allowances and pensions of Judges
of the High Court, interest on and repayment of loans raised by Government and
payments made to satisfy decrees of courts etc. are Charged on the
Consolidated Fund and are not required to be voted by the Legislative Assembly.
The Annual Financial Statement shows the expenditure Charged on the Consolidated
Fund separately.
b Summary of Demands for Grants and Charged Appropriations Part – I & II.
The estimates of expenditure from the Consolidated Fund included in the Annual
Financial Statement and required to be voted by the Legislature are submitted in
the form of Demands for Grants. in pursuance of Article 203 of the Constitution.
A Demand for grant is a proposal made, on the recommendation of the
Governor
(in pursuance of Article 203(3) of the Constitution of India) for the
appropriation of funds for expenditure to be met from the Consolidated Fund of
the
State,
other than that charged. The amounts required for charged expenditure are shown
separately and are not subject to the Vote but can nevertheless be
discussed. There is usually one Demand for grant in respect of each department,
but in some cases Demand may include grants for two or more departments, or
there may be a demand for grant-in-respect of expenditure which cannot readily
be classified under particular department. Details of Department-wise / Major
head-wise Estimates included in a demand and the details of such estimates
included as Charged appropriation are given in this document Where the provision
for a service is entirely for expenditure Charged on the Consolidated Fund of
the State, for example, interest payments is also included under a Demand
(Demand
29 – Debt servicing) and presented to the Legislative Assembly, even though it
need not be voted.
c Vote on Account for Expenditure.
The Legislature is empowered by the Article 206(1)(a) of the Constitution of
India to make any grant in advance in respect of the estimated expenditure for a
part of the financial year, which is usually four months, pending completion of
procedure for the voting of the Demands as per Article 204(3) of the
Constitution of
India. It is a schedule of estimated expenditure for which a Vote on Account is
required. It indicates the total demand for the year and the amount required for
Vote on Account, which is approximately one third of the total grant for each of
the 29 demands.
d Medium Term Fiscal Plan (MTFP).
Medium Term Fiscal Plan is presented in compliance of Section 3 of the Karnataka
Fiscal Responsibility Act (KFRA) (2002). This document consists of the
Medium Term Fiscal Objectives of the Government
(Chapter
1), an evaluation of the performance of the prescribed fiscal indicators in the
previous years (Chapter 2), a statement of recent economic trends and prospects
for growth and development (Chapter 3), the strategic priorities and key fiscal
policies of the Government and an evaluation of their consistency (Chapter 4-7),
four year rolling targets (Chapter 7), an assessment of sustainability to the
revenue deficit and the use of capital
receipts for productive purposes.
The Macro-economic outlook Statement as enjoined by KFRA is in Chapter three. It
contains an assessment of the growth prospects of the economy with specific
underlying assumptions. It contains assessment regarding the GSDP growth rate
and fiscal balance of the State Government. Chapters four to seven contain the
Fiscal Policy Strategy Statements / Policies of the State Government for the
ensuing financial year relating to taxation, expenditure, redressing Regional
imbalances, interest payments, salaries, pensions and subsidies, Public finance
management and systemic reforms. It outlines the strategic priorities of the
Government
in the fiscal area, how the current policies are in conformity with sound fiscal
management principles and rationale for any major deviation in key fiscal
measures, as enjoined by KFRA 2002.
e Detailed Estimates of Expenditure.
There are eight volumes of Detailed Estimates of Expenditure. They deal with
Revenue and Capital disbursements of various Departments. Estimates in Rupees in
Lakh are given in respect of each Head of Account under ‘Plan’ and ‘non-Plan’.
Details as to whether ‘Charged’ or ‘Voted’ is provided. Document provides
allocation up to each detailed (=object) head, Accounts for the preceding year,
Budget Estimates and Revised Estimates for the current year and Budget Estimates
for
the succeeding year. Each volume has an abstract by major heads followed by
details up to object head. The estimates of expenditure included in these
estimates are for the gross amounts. The allocations may spread over more than
one major head in certain departments like Education, Health, Public Works,
Irrigation, etc under both Plan and non-Plan.
f Detailed Estimates of Public Works.
This volume consists of an aggregation of budget allocations that have a bearing
on creation and maintenance of buildings, roads, bridges, ports and housing to
some extent, in the state. Disaggregated data on allocations towards
infrastructure creation as above make it to this volume. Further, after budget
is passed, the
line department submits a support document called Appendix – E. This document
carries details of works proposed.
g Detailed Estimates of Irrigation.
This is popularly called Irrigation volume. This is an aggregation of budget
allocations that have a bearing on creation and maintenance of irrigation
potential in the state. Generation of such sector based disaggregated data on
irrigation helps for snap shot view.
h Detailed Estimates of Revenue and Other Receipt.
Estimates of receipts included in the Annual Financial Statement are further
detailed in this document. The document provides details of tax and non-tax
revenue
receipts and capital receipts into the Consolidated Fund of the State and gives
the estimates.
i Overview of Budget.
This document gives a glimpse of various fiscal indicators, details of
parameters and key particulars of budget. Major indicators are revenue & capital
receipts, non-plan & plan expenditure, provisional GSDP, revenue & fiscal
deficits and previous year & current budget estimates. Time series data for the
preceding seven
years along with current BE is also provided. Sources of funds like revenue
receipts, recoveries from loans & advances, miscellaneous capital expenditure,
increases
in public debt, net receipts from public account and contingency fund along with
application of funds under revenue expenditure, lending for development & other
purposes, capital expenditure, contingency fund, decrease / increase in cash
balance is tabulated. Funds that would be available during the next financial
year to the urban local bodies and Panchayat raj institutions under plan and
non-plan are indicated.
This document also provides details of Financing deficit, Time series data of 7
years on Fiscal Indicators, Sources and application of Funds, Devolution to
Urban Local Bodies and Panchayat Raj Institutions, Explicit subsidy extended by
the State Government, Investments by way of equity as at the end of 31st March,
Loans
& Advances outstanding at the end of 31st March, Level & Composition of
Liabilities, Guarantees given, Tax arrears, Off Budget borrowings and
Consolidated
deficits
(next year BE), Reconciliation between Budget at a glance, AFS and Demands for
Grants.
j Budget Highlights.
This document provides a quick look at budget initiatives. It provides the high
lights of Budget, allocation for Priority sectors, inter alia Agriculture
related
activities,
Water resources and Irrigation, Rural development, Urban development,
Infrastructure development, Extension of Railway network, Development of Ports,
Airports, Scheme for Power generation, Social Welfare, Women and Child
development, Housing, Subsidy for skill training, Food, Incentives for
development of Industries, Support for weavers, Animal Husbandry and Dairy
farming, Fisheries, Agricultural marketing, Project plan for permanent water
supply, Primary and Secondary Education, Higher Education, Health and Family
welfare.
k Action Taken Report (ATR).
This contains status of implementation on initiatives announced by the Finance
Minister in the previous Budget Speech. Action taken details are provided
department-wise under headings of Budget speech paragraph number, text of Budget
speech and the action taken. This normally reflects the status as on 31st
January prior to presentation of Budget
l Details of Provision for Plan Schemes.This document provides details of plan
allocations under eight provisions.
1. Statement I Sectoral outlay on State Plan.
2. Statement II Sectoral outlay on Centrally Sponsored Plan Schemes.
3. Statement III Sectoral outlay on Central Plan Schemes.
4. Statement IV Provisions for Heads of Development (Sectoral outlays)– State
Plan.
5. Statement V Provisions for Heads of Development – Centrally Sponsored Schemes
(CSS).
6. Statement VI Provisions for Heads of Development – Central Plan Schemes
(CPS).
7. Statement VII Abstract of Plan provisions by Major Head of Account.
8. Statement VIII Details of provisions for State Plan, CSS and CPS.
m Budget Memorandum (Details of Guarantees, Shares, Securities, etc.).
Budget Memorandum consists of particulars regarding Guarantees given by the
Government in respect of loans raised by the Companies, Corporations, Boards and
other local bodies, shares taken by Government in several industrial concerns,
list of securities held by Government and Public Debt Amortisation. The details
are presented in four Annexes. Annex-I is a statement of the guarantees given by
GOK in respect of loans raised by Local Bodies and other Institutions as on 31st
March of the year. Annex-II is a statement of the amount of share Debentures /
Bonds etc taken by GOK in several industrial concerns and the dividend /
interest
received during the year. Annex-III indicates list of securities. Annex-IV
indicates the position of Public Debt and loans due to the Government of India
and other
Institutions.
n Gender Budget.
Gender Budget statement is a citizen friendly disclosure of budget allocations
that have a bearing on women. This is being brought out since 2007-08.
Generation of gender disaggregated data will further the cause of Gender
Budgeting for deeper analysis. Such data would enable government to go for need
based policy
formulation and optimizing expenditure to meet growing demands for State support
for wellbeing of women, particularly the vulnerable amongst them. This document
presents the Gender Budget allocation as reflected in Demands for grants. These
allocations are presented in two categories; the budgetary allocations
for schemes designed to exclusively benefit women 100 per cent are classified as
Category ‘A’ and schemes that benefit women at least to the extent of 30 per
cent
of
allocations are classified as Category ‘B’.
o Appendix B to Budget Estimates.
This document provides details of estimates of expenditure on pay of officers
and pay of staff under state sector. Major head of account-wise details under
General, Social and Economic services is available along with sanctioned posts
as on 1st March.
p Appendix B Particulars of salary provided to ZPs.
This document has statement indicating major head of account-wise, pay
scale-wise, district-wise number of posts for which salary is provided along
with the
sanctioned
posts as on 1st March.
q Details of Provision for Plan Schemes, Special Development Plan (SDP), Special
Component Plan (SCP) and Tribal Sub Plan (TSP).
This document has three parts viz. (1) Details of provision for Plan Schemes,
(2) Special Development Plan, (3) SCP & TSP. Part One reproduces fund
allocations under three statements from the
Document
named ‘Details of Provision for Plan Schemes’. Part Two provides sector-wise /
scheme-wise
allocations as a package
for
implementing Dr. Nanjundappa Report for development of backward talukas of the
State. Part Three provides details on outlay for Special Component Plan
(SCP),
demand-wise under State-SCP, District-SCP and Pooled SCP. Similar details are
provided for Tribal Sub Plan (TSP).
r Budget allotment for Zilla Panchayath Plan & non-Plan (Zilla, taluk, Gram
Panchayat Scheme-wise).
These documents provide linkage to the Grants from State budget to the budget of
Panchayat Raj Institutions. Lump-sum provisions are made for schemes in their
domain of implementation. This document is organized into four volumes
corresponding to the four Regions of the State viz. Bangalore, Mysore, Belgaum
and
Gulbarga. Each volume carries allocations under Plan and non-Plan in separate
parts. These documents are popularly known as Link documents.
Note:
(1) Government also presents supplementary demands for grants from time to time
during the course of the year.
(2) The Finance Accounts, Appropriated Accounts and Audit Rep
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