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 Kbout this project

ã This project is not extracted or copied from
any existing project.
ã Information in this are collected by me
personally after visiting the concerned officials
and doing my project under hem for a month.
ã I have provided the brief information in this
project of the entire ͚Budget Planning͛
process.
ã The actual process is very tedious and will run
into pages if described.
ã The information is taken from various sources
which includes people and books.
ã These information is true to my knowledge.
ã However, any error if discovered is regretted.

ã Klso, the photos of Railways put in slides are

taken by me with my own camera out of a
deep interest towards INDIKN RKILWK
.
 sffective Planning
ã sffective planning is essential to any
organisation.
ã It leads to proper allocation of resources and
proper framing of decisions on time.
ã Planning should be done systematically and it
is not a day͛s job.
ã It should be done for the future based on
previous facts and information.
 Planning in Indian Railways
ã Indian Railways is a very big organisation
concerning several departments and
manpower.
ã It is world͛s largest employer and is spread
across the length & breadth of the country.
ã Planning and decision making is very crucial in
Indian Railways.
ã Knd for this planning proper allocation of
funds and resources are required.
ã Knd this allocations comes under ͚Budget
Planning͛ of Indian Railways.
ã These things are planned over a great period
of time involving many engineers, senior level
managers etc.
ã This budget is presented in the Indian
parliament every year as ͚Railway Budget͛ by
the railway minister on February 28th.
 History of Railways In India
ã Railways was first started in India in Kpril 1853
during the British rule in India.
ã The first train ran between Boribunder (now
Mumbai) to Thana (now Thane).
ã Nearly 50 years after 1853, there were 33
separate railway administrations operating
over 41,000 kilometers.
ã Of these, 4 were worked by GoI and 5 by
erstwhile Indian states and remaining 24 by
various railway companies.
ã The non-governmental railways were operated
under varying degrees of government
supervision.
ã Their regulation & control were vested in
railways branch of Public Works Department
(PWD).
ã The department was head by an officer of
Indian civil service who was a member of
viceroy & governor general executive͛s
council.
ã He was assisted y one secretary, 3 deputy
secretaries, 4 under secretaries and 4 assistant
secretaries.
ã The entire circle was divided into 7 circles.
ã K team of consulting engineers & one
government examiner of accounts was posted
to each of these 7 circles.

ir Thomas Robertson͛s report
ã In October͛1901,
ir Thomas Robertson, C.V.O
was appointed as special commissioner for
Indian Railways to report on the
administration & working of Indian Railways.
ã
ir Thomas recommended setting up of a
Railway Board consisting of a president or
chief commissioner & 2 other commissioners .
ã
ir Thomas said all of these people should
have high practical knowledge about the
working of railway matters.
ã He also insisted that the board should be
assisted by a secretary, a chief inspector of
Railways, the necessary number of ordinary
inspectors & the requisite number of
government auditors.
ã This lead to abolishing Railway Branch under
PWD and setting up of a Railway Board.
 The Railway Board
ã The board assumed office in March͛1905.
ã It was being directly responsible to GoI in
department of Commerce & Industry.
ã It comprised of an examiner of accounts later
redesignated as ͚Railway Kccounts Officer͛
amongst other staff.
 The Kctworth Committee
ã It was a major landmark in Railway finance.
ã It aimed at separating Railway finance from
the general finances of the government.
ã 20th
eptember͛1924: Resolution passed for a
separate RKILWK BUDGsT and this was
known as ͚
eparation convention͛.
ã Hence Railway Budget came into existence
separately.
ã The Railway Budget is presented on both
houses of the parliament.
ã It is presented ahead of the general budget.
ã The railway budget includes presentation of
receipts and expenditure of railways.
 The Consolidated Fund of India
(CFI)
ã Kll receipts of Railways gets credited to the
CFI.
ã No money can be withdrawn from the CFI
without exercising the procedure laid down in
the constitution.
ã sven the railway staff salary cannot be taken
from CFI unless the procedure is exercised.
ã Withdrawals from the CFI is allowed only once
the President of India signs.
 Procedure for withdrawals
ã The estimate of expenditures is to be
presented in the parliament in the form of
͚Demand for grants͛.
ã The railway budget totally involves 16
demands which deals with various expenses.
ã The parliament then discusses each demand
with the members who have the right to
propose motions.
ã Kfter discussing, each demand is voted & passed.
ã Kfter this the request for total money to be
appropriated from the CFI is made to meet the
railway expenses.
ã This is presented in the parliament in the form of
Kppropriation Bill.
ã Once this bill is passed and signed by the
President of India, it becomes the Kct.
ã Only after this, the withdrawal is possible from
the CFI for the F. .
ã That is why it is necessary to complete the
parliamentary procedures before 31st of March.
 Planning & work for Budget
ã Budget work is done after realising all the
needs.
ã sach railway zone will have its own needs right
from a small to a very big project.
ã Indian Railways has 16 zones under it.
ã
o Budget planning is a huge task indeed in
Railways!
 Planning procedure
ã The need or requirement of a ͚work͛ is
realised by the Field Officer.
ã He may realise this through passenger͛s
complaints/suggestions or through the
maintenance engineers or by himself.
ã Maintenance engineers are present at every
100 kms. across the length & breadth of the
country.
ã Based on their observations & requirements
of passengers, they communicate the need to
the Field officer.
ã The Field officer then analyses the work.
ã Based on the nature of the work and the
amount involved, he may himself sanction it.
ã If the amount is high, then it is forwarded to
the D.R.M or the G.M.

ã %&
&


 
  
ã %'
'  
ã If the amount is exceeds Rs. 5 crores, then the
details of the ͚work͛ will be sent to the Railway
Board for approval.
ã If it exceeds, Rs. 50 crores, it will be sent to
the Planning Commission for approval.

ã In Indian Railways, planning starts in advance

by 2 years i.e. for the 2012-13 budget,
planning is done right from 2010-11.
ã
o, like this all the Railways zones decide
about their need and get the ͚need͛ or ͚work͛
approved.
ã
ometimes, the Railway Board may not
sanction some work and send it back to the
respective zone.
ã If the zonal railway feels that the work is of
utmost importance, then it will request the
Board to sanction it after providing more
details about it.

chedule of planning
'( &



1. Prior approval of the board. 30th June

2. Ceiling advised Kpril

3. Preliminary works program
eptember

4. Work͛s program- Kdvisor͛s meeting November-December

5. Full board meeting December-January

6. Budget presentation 28th February

 Bibliography
ã This project is done by me after collecting all
the necessary information by myself during
my ͚summer project͛ with Western Railways.
ã I was guided by certain officials from Western
Railways and I͛m thankful to them.