CHAPTER II

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Definitions and General Explanations

15. Unless there is something repugnant in the subject or context, the terms defined in this Chapter are used in this Manual in the sense here explained:

(1) 'Accounts' or 'actual' of a year. - are the amounts of receipts and disbursements for the financial year beginning on April 1 and ending on March 31 following, as finally recorded in the Accounting authority’s (Accountant General) books.

(2) 'Administrative approval' of a scheme, proposal or work. - is the formal acceptance thereof by the competent authority for the purpose of incurring expenditure thereon as and when funds permit.

(3) 'Annual financial statement' or Budget - See para. 2 of Chapter I.

(4) 'Appropriation' - means the amount authorised for expenditure under a major or minor head or sub - head or other unit of appropriation or part of that amount placed at the disposal of a disbursing officer. (The word is also technically used in connection with the provision made in respect of 'charged' expenditure).

(5) 'Appropriation Accounts' - are the accounts prepared by the Comptroller and Auditor-General for each grant or appropriation in which is indicated the amount of the grant sanctioned and the amount spent under each level of head of account given in budget literature and on the grant as a whole. Important variations in the expenditure and allotments, whether voted or charged, are briefly explained therein.

(6) 'Assembly' - means the Legislative Assembly, Uttar Pradesh.

(7) 'Budget' - See para. 2 of Chapter I.

(8) 'Budget estimates' - are the detailed estimates of receipts and expenditure of a financial year.

(9) 'Charged Appropriation' - means sums required to meet charged expenditure as specified in the schedule to an Appropriation Act passed under Article 204 of the Constitution, during the financial year concerned, on the services and purposes covered by the 'Charged Appropriation.' It does not include provisions for voted expenditure.

(10) 'Charged expenditure' or 'Charged on the Consolidated Fund' - means such expenditure as is not to be submitted to the vote of the Legislative Assembly under the provisions of the Constitution.

A list of items the expenditure on which is charged on the Consolidated Fund of the State is given below. Sums relating to 'Charged' expenditure are usually printed in Italics in the Detailed Estimates and Grants:

  • (i) The emoluments and allowances of the Governor and other expenditure relating to his office.
  • (ii) The salaries and allowances of the Speaker and the Deputy Speaker of the Legislative Assembly and the Chairman and the Deputy Chairman of the Legislative Council.
  • (iii) Debt charges for which the State is liable, including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt.
  • (iv) Expenditure in respect of the salaries and allowances of the Judges of the High Court.
  • (v) Any sums required to satisfy any judgement, decree or award of any court or arbitral tribunal.
  • (vi) Any expenditure declared by the Constitution or by the Legislature of the State by law to be so charged.
  • (vii) The administrative expenses of the High Court including all Salaries, allowances and pensions payable to or in respect of the officers and servants of the Court.
  • (viii) Adjustments in respect of expenses of Courts or Commissions and pensions under Article 290 of the Constitution.
  • (ix) The expenses of the State Public Service Commission. including any salaries, allowances and pensions payable to or in respect of the members and the staff of the Commission.
  • [See Article 202(3), 229(3) and 322 of the Constitution.]

(11) 'Consolidated Fund of the State' - See para 3 of Chapter I.

(12) 'Constitution' - means the Constitution of India.

(13) 'Contingency Fund' - See para 3 of Chapter I.

(14) 'Controlling Officer (budget)’ - means the authority made responsible for the control of expenditure and receipt for any head of account and specially authorised by Administrative Department & Finance Department to release the budget.

Note :- List of controlling officer is printed in volume - V of budget literature with each grant .

14 (I) ‘Controller Finance’ - Means officer of the Finance and Accounts Service posted under controlling officer or any other officer entrusted to supervise the work of Budget & Account in absence of Finance & Accounts Service officer to release the budget, to maintain the register of budget allotment, to advise the controlling officer in financial matters, pre-audit of time-bared claim, scrutiny of provident fund(final payment to the extent of 90% [Ninety percent]), internal audit etc.

(15) 'Council' - means the Legislative Council, Uttar Pradesh.

(16) 'Departmental Estimate' - is an estimate of income and ordinary expenditure of a department in respect of any year submitted by the head of a department or other estimating officer to the Finance Department as the material on which to base its estimates.

(17) 'Detailed head' - See para. 6 of Chapter I.

(18) 'Disbursing Officer'. - Every Government servant who draws money for disbursement on bills from the treasury is a disbursing officer.

(19) 'Estimating Officer' - means a departmental officer responsible for preparing a departmental estimate.

(20) 'Excess Grant' - See Section IV of Chapter XIV.

(21) 'Head of Department' - means an officer declared as such by Government. (A list of Heads of Departments is given in Financial Handbook, Volume I and in the Annexure to Chapter II of Financial Handbook, Volume V, Part I).

21(I) : Integrated Financial Advisor (IFA) : means an officer appointed by Government in different sector/department to look after the matters related to budget, accounts, expenditure control, audit etc. for and on behalf of Finance Department.

(22) 'Legislature' - means the Legislature of the Uttar Pradesh, consisting of the Legislative Assembly and the Legislative Council.

(23) 'Major heads'

See para. 6 of Chapter I.

(24) 'Minor heads'

(25) 'Modified Appropriation' - means the sum allotted to any unit of appropriation as it stands on any particular date after it has been modified by re-appropriation or by supplementary or additional grant or grants sanctioned by competent authority.

(26) 'New Expenditure' - See Chapter VIII.

(27) 'Primary unit of appropriation' - See para 6 of Chapter I. The primary units of appropriation are variable according to the administrative convenience and as such the exact units will appear every year in the budget literature "Detailed Estimates and Grants".

(28) 'Public Accounts Committee' (or 'Committee on Public Accounts') - is a Committee constituted by the Legislative Assembly for the examination of the reports of the Comptroller and Auditor General of India relating to the appropriation accounts of the State, the annual financial accounts of the State or such other accounts or financial matters as are laid before it or which the Committee deems necessary to scrutinise. (See Chapter XVI).

(29) 'Re - appropriation' - means the transfer, by a competent authority, of savings from one unit of appropriation to meet additional expenditure under another unit within the same grant or charged appropriation. (See Section II of Chapter XIV).

(30) 'Recurring charge' - is a charge, which involves a liability beyond the financial year in which it is originally sanctioned.

(31) 'Revised estimate' - is an estimate of the probable receipts or expenditure for a financial year, framed in the course of that year, with reference to the transactions already recorded and anticipation for the remainder of the year in the light of the orders already issued or contemplated to be issued or any other relevant facts.

(32) 'Secondary units of appropriation' - are sub-division of the appropriation for a primary unit and where definitely prescribed by the Finance Department, appear in the accounts maintained by the Disbursing Officer and Accountant General (Under primary unit "06 other allowances" the secondary units of appropriation are house rent allowance, city compensatory allowance, vehicle allowance, high altitude allowance etc.).

(33) 'Schedule of new expenditure' - is a statement of items of new expenditure proposed for inclusion in the budget for the ensuing year. (See Chapter VIII).

(34) 'Standing sanctions' - relate to revenues based on existing laws, rules and orders and expenditure incurred by virtue of existing laws, rules and orders.

(35) 'Sub-heads' - See para 6 of Chapter I.

(36) 'Sub-major heads' - See para 6 of Chapter I.

(37) 'Supplementary statement of expenditure' - means the statement to be laid before the Legislature under Article 205(1)(a) of the Constitution showing the estimated amount of further expenditure necessary in respect of a financial year over and above the expenditure authorised in the annual financial statement for that year. The demand for a supplementary grant may be token or substantive. (See Section III of Chapter XIV).

(38) 'Technical sanction' - is the approval to the detailed designs, plans, specifications and quantities by the competent Engineer authority, which is required to be given to any work (other than petty works, petty repairs, and other repairs for which a lump sum provision has been sanctioned by the Competent Authority ) before its commencement.

(39) Vote on Account' - means a grant made in advance by the Legislative Assembly, in pursuance of Article 206(I)(a) the Constitution, in respect of the estimated expenditure for a part of new financial year, pending the completion of the procedure relating to the voting of the demand for grants and the passing of the Appropriation Act. The annual financial statement is generally presented to the Legislature in the month of February and normally the general discussion thereon in both the Houses, the voting of the demands for grants by the Legislative Assembly and the passing of the Appropriation Act are expected to be completed before the end of March, so as to make available the grants and appropriations for the ensuing year right from the commencement of the year. But circumstances may sometimes arise in which this may not be possible. On such occasions demands for advance grants in respect of the estimated expenditure for a part of the year may be presented.

(40)'Vote of Credit' - See Article 206 of the Constitution reproduced in Appendix A.

(41) 'Votable' / 'Voted' expenditure - means expenditure which is subject to the vote of the Legislative Assembly. It is to be distinguished from 'charged' expenditure.

Payments which have to be made initially by the State Governments in satisfaction of court decrees or arbitral awards in cases of dispute arising out of the acquisition of buildings and properties by the States for the purposes of the Union Government are to be charged on the Consolidated Fund of the State concerned. Subsequent re-imbursement by the central government is merely an inter-governmental adjustment. (Government of India, Ministry of Finance (Department of Economic Affairs) letter no. F2(43)-59, dated September 12,1959