Preface to the Sixth Edition

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The fifth edition of the Budget Manual was released in 1962, with a view to include the procedural changes in the financial matters laid down in the Indian Constitution. The Manual was reprinted in 1967 but certain provisions like- budget provisions in England, provisions in Provisional Constitution, Powers&Duties of C&AG etc. were somehow retained. Under Article 150 of the Indian Constitution, the accounting procedure will be same in Govt. of India and the States as prescribed the C&AG. Our constitution is federal in character and the States are the main agencies of state interventions. All the States and Govt. of India should, therefore, need common classification of heads of account, i.e., uniform major functional department(major head) and their programmes(minor head).

After1962, under the recommendation of C&AG, the Govt. of India revised the Heads of Account thrice(in 1965,1976 and 1987). The U.P. Budget Manual, however, remained unupdated. The Govt. of U.P. was the first state in the country to introduce the 15 digit code for different levels of heads of account(4 digit Major head, 2 digit Sub Major head, 3 digit Minor Head, 2 digit Sub head, 2 digit Detail head, 2 digit Standard Object) from 01.04.1987. In 1986-87, U.P. took lead in reducing the number of Standard Objects(Primary unit of appropriation) which was more than 200 to 33. From 01.04.1999 they have slightly revised upwards to 45(lowest in the country). In July 1992, about three dozens of treasury bill forms were revised and the number was reduced to six. These six forms are used as "Computer Data Input" and contain total information related to budget literature.

Digital Dashboard System, productivity, capacity building, economic indicators, re-engineering, bench marking etc. are the buzzwords at the beginning of the twenty first century. U.P. Govt. took lead in computerizing the budget literature, treasuries, functions related to pensions, Group Insurance Scheme, budget allotment, payment of salary, pension through banks etc. U.P. is the first state in the country, where budget passed by the legislature, is put on the computer at delivery point i.e. treasuries. The bills presented at the treasuries against the Consolidated Fund of the State are compared with the heads of account of the budget literature enabling hundred percent "Online Checking" and automatic cheque generation(Online Cheque Generation).

The State govt. took several steps to strengthen financial accountability in line department viz.: budget information system at heads of department level through finance controller, at Govt. level through Integrated Financial Advisor(IFA),release of budget made computer compatible, control on "time over run", "cost over run" and "rush of expenditure", standardized budget calendar, need based drawing and concerns have been updated and weed out obsolescence. During the updation of sixth edition, Mr. Alok Ranjan, the then Finance Secretary, Mr.Vinod Kumar Verma, Senior Deputy Accountant General, Mr. Sunil Kumar Special Secretary Finance, Sri Vijay Bahadur Singh and Sri Vinay Kumar, Joint Secretary Finance, officers of the Institute of Financial Management Training & Research, U.P., Dr. Rakesh Goel & his colleagues of NIC, UP State Unit etc. gave suggestions of importance. Mr. T.N.Singh, Additional Director, financial Statistics, U.P., who had been assigned to update the Budget Manual, did a tremendous job of collecting the relevant materials and sticking to the the time schedule. Mr. Singh painstakingly thorough and listened to all suggestions, which could improve the final product. The final manuscript was gone into para by para along with the group of officer M/S T.N.Singh, M.M.Gupta, V.D.Pathak, D.K.Srivastava, Dr. Rakesh Goel etc., for which the Institute of Financial Management Training & Research provided the logistics. The concept of 'One transaction-one data entry- one record' has been incorporated in different formats of Budget Manual. I am grateful to all the above officers/officials who have contributed directly or indirectly in the updation of this edition.

From time to time, the whole team was, encouraged by Dr Yogendra Narain, Chief Secretary, and Sri Sushil Chandra Tripathi, Principal Secretary Finance,Govt. of Uttar Pradesh, therefore, this special mention, I consider, the most important duty of thanks giving

26th January 2000 Mohd. Haleem Khan
Secretary Finance(Budget)
Government of Uttar Pradesh