CHAPTER II

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 'actuals' 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 Accountant General's 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. (see paragraph 316 of Financial Handbook, Volume VI)

(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 under 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 of the State' - 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 also 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) 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.

(vi) Any sums required to satisfy any judgement, decree or award of any court or arbitral tribunal. *

(vii) Adjustments in respect of certain expenses and pensions under Article 290 of the Constitution.

(viii) 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.

(ix) Any other expenditure declared by the Constitution or by the Legislature of the State by law, to be so charged.

[See Articles 202(3), 229(3), 290 and 322 of the Constitution.]

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

(12) 'Controlling Officer’ - means the authority made responsible for the control of expenditure and receipt for any head of account.

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

(13) ‘Controller Finance’ - means officer of the Finance and Accounts Service posted under controlling officer or in absence of Finance & Accounts Service officer, any other officer entrusted to supervise the work of Budget & Account; to release the budget, maintain the register of budget allotment, advise the controlling officer / Head of Department in financial matters, pre-audit of time-barred claims, internal audit, etc.

(See Chapter XVIII A of Financial Hand Book Volume V Part I)

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

(15) 'Corporation' - means a body corporate legally authorised to act as a single person.

(16) ‘Demand for Grant’ – is a proposal made to the Legislative Assembly on the recommendations of the Governor, for appropriation of sums out of the Consolidated Fund of the State for expenditure on particular service other than that charged.

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

(18) 'Disbursing Officer' - Every Government servant who draws money for disbursement on bills from the treasury is a disbursing officer, except that a gazetted Government servant who is not the head of an office and who draws only his own pay and allowances from the treasury is not included in this term.

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

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

(21) 'Finance Department' - means the Finance Department of the Government of Uttar Pradesh.

(22) 'Fiscal Deficit' - the excess of total disbursements from the Consolidated Fund of the State (excluding repayment of debt) over total receipts into the Fund excluding the debt receipts during a financial year.

(23) 'Government' - means the Government of Uttar Pradesh.

(24) 'Governor' - means the Governor of Uttar Pradesh.

(25) '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).

(26) 'Legislature' - means the Legislature of Uttar Pradesh.

(27) '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.

(28) ‘Primary deficit’ - The Primary deficit is the fiscal deficit excluding interest payments the government makes on its borrowings. It is the basic deficit figure.

(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) 'Revenue Deficit' - means the difference between revenue expenditure and revenue receipts.

(32) '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.

(33) ‘Sinking Fund’ - A fund created for the redemption of a liability or with the object of replacing an asset by setting aside a sum periodically so as to produce the required amount at the appropriate time.

Provision for amortisation of open market loans is governed by the terms of notification of each loan. It is generally obligatory for the government, under the terms of the prospectus, to provide for a Sinking Fund (Depreciation) from current revenues to be utilised for purchasing the securities of the loan for cancellation. The annual contribution to the Sinking Fund (Depreciation) is calculated at a certain percentage of the nominal value of the loan concerned. A Sinking Fund may also be created for the amortisation of the Government of India loans repayable in one instalment.

 (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) 'Standard Object' – Standard object represents nature and form of expenditure. These are the primary units of appropriation. These are denoted by a two digit code.

(36) 'State' - means the State of Uttar Pradesh.

(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 Engineering 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. (see paragraph 318 of Financial Handbook, Volume VI)

(39) ‘Token Demand’ – Token Demand is a demand made to the Legislative Assembly for a nominal sum either to secure advance approval to the incurring of expenditure on a scheme, details of which are yet to be finalized or to bring new expenditure to the notice of Legislative Assembly when funds to meet it are available by re-appropriation within the grant.

(40) 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 any 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.

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

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