IV

 CHAPTER IV 

PREPARATION OF THE BUDGET-II 
DEFINITIONS OF PART II SCHEMES 

32. It has already been mentioned in paragraph 13 that Part II Estimates are the estimates of schemes involving new expenditure or abandonment of existing revenue. There are, however, certain exceptions to the general rule embodied in this definition. Also, a new scheme included in the budget estimates of the current year may, in certain circumstances, be treated as a Part II scheme again next year. 

PART II SCHEMES IDENTIFIED 

33. Additions to cadres of services or posts.—Proposals involving additions to the cadres of services or the number of posts of a particular kind, either permanently or as a temporary measure, should be treated as part II Schemes, except in the following cases:— 

(a) Addition to the cadres of subordinate services or the number of non-gazetted posts, either as a temporary measure or permanently, to deal with normal increase in work, as per existing standards, or the revision of pay scales in a department, provided the additional cost does not exceed Rs. 2,500 per annum. 

Note:—If a work-charged establishment is replaced by temporary or permanent staff, such proposals need not be treated as Part II schemes provided the extra cost per annum on account of leave and pension charges does not exceed Rs. 2,500. 

  (b) Temporary additions to cadres purely for temporary work e.g., revision of departmental manuals, which is expected so last a few months and to cost only a small amount. 

  (c) Temporary additions to cadres of services and temporary additional posts in the Public Works Department to supplement the quasi-permanent and permanent cadres for the execution of original works in progress and minor works for which special temporary establishments have not been employed, provided the additional cost does not exceed Rs. 2,500 per annum. 

  (d) Additions, to cadres of services or additional posts, the cost of which is recovered in full, together with leave and pension contributions, or a part of the cost of which is recovered, leaving only a trivial amount to be debited to State revenues. 

(e) Continuance of existing temporary posts. 

(f) Permanent retention of establishment which was sanctioned on a temporary basis in the first instance. 

🆀 Which one of the following should be included in the Part II estimate? 

(A) Salary and allowances of permanent staff 

(B) Proposal for additions to cadre of services or posts 

(C) Travel expenses of existing staff 

(D) Rent Rates and Taxes

Correct Answer:-Option:(B)

🆀  In the preparation of budget which item is not treated as Part II Schemes ? 

(A) Purchase of new machinery 

(B) Purchase of livestock 

(C) Provision for renewal of worn out machinery 

(D) Purchase of furniture on large scale

Correct Answer:-Option:(C)

34.Contingencies.—The purchase of new machinery, plant or other dead stock and the purchase of livestock or furniture on a large scale should be treated as Part II schemes, while provision for renewal or replacement of worn-out or otherwise unserviceable machinery, tools and plant, and other dead stock or of deceased live-stock should be made in Part I of the estimates. 

🆀  Proposals for the replacement of worn-out machinery should be included: 

(A) In Part I estimate 

(B) In Part II estimate 

(C) Either in Part I or Part II estimate 

(D) Supplementary grant for the year

Correct Answer:-Option:(A) 

35. Grants-in-aid-Recurring.—Proposals for increased provision for the expansion of existing services, eg., grants-in-aid to schools newly admitted to aid or increased grants-in-aid due to the opening of higher classes in existing schools should be treated as Part II schemes. 

36.Grants-in-aid-Non-recurring.—Besides grants for new works, grants for works in progress or completed works would also come under Part II, if no part of the grant was actually disbursed in a past year and is likely to be disbursed in the current year. 

37. Loans.—Proposals in respect of loans to local bodies for new works or to any person or body for an entirely new object should be treated as Part II schemes. 

🆀 As which schemes, should the proposals in respect of loans to local bodies for new works, be treated? 

(A) Part II 

(B) Part I 

(C) Part III 

(D) New Service

Correct Answer:-Option:(A)

38. Works.—All new works (including extensions and improvements), the cost of which is estimated as more than Rs. 10,000, should be treated as Part II schemes. 

PRE-BUDGET SCRUTINY OF PART II SCHEMES 

39. All new schemes, whether Plan or Non-plan, proposed for the first time for inclusion in the budget estimates should normally have undergone a pre-budget scrutiny. The formulation and examination of new schemes should, therefore, be started sufficiently early,

so that at the time of preparation of the Budget, Government may have a stockpile of fully-processed schemes to choose from, keeping in view the availability of resources. Provision under Part II should be proposed only for such new works as have been administratively approved by Government or other competent authority. Such approval could be accorded on the basis of a rough estimate of cost and such line sketches and description of the work as will give a general idea of the proposed work, its location, etc. Proposals in respect of loans or grants to local bodies for new works will not, however be considered, unless detailed plans and estimates have been sanctioned by the competent authority, and their necessity is established. In the case of major projects which normally take more than a year to complete, administrative approval may be accorded for the entire work at one time, so that provision could be made according to a phased programme. In the case of ‘Plan’ projects, such phasing will depend on the Plan allocation for each year. 

PART II SCHEMES PROVIDED FOR, 
BUT NOT INTRODUCED,TO BE TREATED AS 
PART II AGAIN NEXT YEAR

40. When a Part II scheme included in the budget estimate of a year, and approved by the Legislature is not likely to be introduced that year, it should again be treated as a part II scheme, if brought forward in the budget estimates of a subsequent year. For this purpose, a scheme will be regarded as having been introduced during a year, if Government are committed during the course of the year to incur some expenditure thereon, though no expenditure may actually be incurred during that year. For instance, placing an order for a plant or machinery or entering into a contract for the execution of a certain work would constitute a commitment to incur expenditure. 

PART II SCHEMES TO BE ACCOMPANIED BY ESTIMATES 
OF LOSS OF REVENUE OR ADDITIONAL EXPENDITURE 

41. Every Part II scheme should be accompanied by an estimate of the loss of revenue or the additional expenditure involved. Besides, in the case of expenditure, details such as the Demand for Grant and the major/sub major, minor, sub and detailed heads of account should also be furnished, so as to facilitate incorporation of the provision along with that under Part I, if the scheme is finally accepted by Government. In the case of a proposal like opening five new schools, the expenditure in respect of each school should be estimated separately, so that, in case Government sanction the opening of only three of the five new schools, there may not be any difficulty in separating the amounts to be added on therefor under Part I. The ultimate cost of each scheme, as also the cost during the budget year, both recurring and non-recurring, should also be given. 

42. In estimating the cost during the budget year, the Head of the Department should carefully consider when the scheme is likely to be introduced. The time required for preliminaries after the budget documents and the Government’s orders are received, which depends largely on the nature of each scheme, should be given due allowance. A new office cannot be opened until the necessary staff is posted, a building rented, and the necessary furniture and equipment are provided, while the opening of anew school must, in any case, wait till the commencement of the school year. In respect of new works, according technical sanction to estimates drawing up of contract documents, selection of a contractor after inviting tenders, and execution of an agreement with selected contractor are some of the essential preliminaries, for which time should be allowed. Acquisition of land usually takes considerable time; when land has to be acquired before a work can be started, adequate time should be allowed for completion of the land acquisition proceedings. Factors which affect the progress of work in particular localities, such as seasonal rains, agricultural operations resulting in scarcity of labour, etc., should also be taken into account, 

🆀 In estimating the cost during the year, the......... should carefully consider when the scheme is likely to be introduced. 

(A) Head of Department 

(B) Head of Office 

(C) Estimating Officer

(D) Government 

Correct Answer:-Option:(A)

LAST DATE FOR SUBMISSION OF 
PART II SCHEMES 

43. No Part II scheme will be considered for inclusion in the next year’s budget, unless it is received in the Administrative Department before the 1st of October every year or such other date as may be prescribed by the Finance Department from time to time. Every effort should, however, be made by the Heads of Departments to submit schemes long before the prescribed date, without reserving them for a consolidated report at the time of submission of the budget estimates, so as to avoid rush of work during the last few days. 

🆀 The last date by which the Head of Department should submit a consolidated list of all Part II schemes proposed by him to Government in the Administrative Department is 

(A) Not later than 1st September every year 

(B) Not later than1st December every year 

(C) Not later than 15th October every year 

(D) Not later than 1st October every year or such other dates as may be prescribed by the Finance Department

Correct Answer:-Option:(D) 

44. The Head of each Department should also submit to Government in the Administrative Department, not latter than the 1st of October every year or such other date as may be prescribed by the Finance Department from time to time, a consolidated list of all the Part II schemes proposed by him, arranged in the order of urgency, showing the “ultimate cost” and “the cost during the budget year” of each scheme, split into ‘non-recurring’ and ‘recurring’ charges. 

SCRUTINY OF PART II SCHEMES BY 
THE ADMINISTRATIVE DEPARTMENT

45(1) Every Part II scheme will, on receipt, be first examined by the Administrative Department concerned. The Department should scrutinise the proposals carefully, bearing in mind the possibility of underestimation of the financial implications and administrative difficulties just for the sake of getting a scheme have been worked out faithfully and accurately. It will be the responsibility of the Secretary to Government to fix responsibility, if, later on, wide deviation is noticed from the original proposals and estimates. If, after a thorough examination, the Administrative Department decides to recommend the scheme for implementation during the budget year, it will be sent to the Finance Department. 

🆀Every Part II scheme will, on receipt, be first examined by :

(A) Administrative Department concerned 

B) Finance Department 

(C) Law Department 

(D) Revenue Department

Correct Answer:-Option:(A)

  (2) While proposing Part II schemes in respect of works, the Administrative Department should also indicate the order of priority, so as to enable the Finance Department to select the schemes to be provided for in the ensuing year’s budget. Where works included in the previous or current year’s budget have neither been started nor proposed for inclusion in the estimates of the budget year, the justification for proposing new ones should be fully established. 

  (3) The Administrative Department should also compile annually a list of new schemes proposed to be undertaken by local bodies with assistance from Government in the form of loans and grants. It should be in two parts—one for schemes to be financed entirely from loans, and the other for schemes to be financed partly from loans and partly from grants. The schemes should be arranged in the order of priority. No scheme should be included in the list, unless the local body’s ability to repay the loan has been established. 

SCRUTINY OF PART II BY THE FINANCE DEPARTMENT

46. The Finance Department is empowered to examine and advise on all Part II schemes and to exclude from the budget estimates any scheme which has not been duly examined by the Administrative Department. No Part II scheme will be considered for inclusion in the next year’s budget, unless it is received by the finance Department before the 1st November of a year or such other date as may be prescribed by the Department from time to time. The Department may decline to consider a scheme, even if received in time, if, on examination, further information or details are found essential to give in advise. 

🆀 In Part II schemes to be included in the Budget, the power to exclude any scheme not duly examined by the Administrative department rest with the : 

(A) Secretary to Government of the concerned Department 

(B) Chief Secretary 

(C) Chief Minister 

(D) Finance Department

Correct Answer:-Option:(D) 

 🆀 ..............is empowered to examine and advise on all Part II Schemes.

 (A) The Finance Department 

(B) The Administrative Department 

(C) The General Administration Department

 (D) None of the above

Correct Answer:-Option: (A)