Para 18.3.1 — CAM
Original Rule Text
18.3.1 Preparation of Budget Estimates and Revised Estimates
18.3.1.1 Usually Budget Division, Ministry of Finance issues Budget Circular in the first week of September seeking inputs from ministries/departments related to RE for current financial year and BE for ensuing financial year. These estimates form the basis for Pre-budget discussions which are usually held in October-November. Ministries are expected to provide realistic estimates of RE based on preceding 6 months’ expenditure and committed liabilities for next 6 months. Similarly, reasonable estimates for ensuing financial year are also to be provided based on anticipated expenditure, which forms basis for deciding BE for the next financial year.
18.3.1.2 As custodians of financial data in Ministries/Departments and in-charge of Budget Section in Ministries/Departments, Head of Accounting Organization have an important role to play in providing realistic RE and BE estimates. They should analyse last 5 years expenditure trends under different schemes, and suggest reasonable estimates for each of the schemes. The Head of Accounting Organization should show the actual expenditure figures and the analysis thereof to program managers, and prepare estimates as close to reality as possible. They should also consider Single Nodal Account (SNA) and Central Nodal Account (CNA)
balances under Centrally Sponsored Schemes (CSS) and Central Sector (CS) Schemes respectively, while projecting estimates.
18.3.1.3 After Budget discussions, Ministry of Finance communicates RE and BE ceilings to Ministries/Departments. Head of Accounting Organization should thereafter ensure that Statement of Budget Estimates (SBE) is filled up within stipulated time in Union Budget Information System (UBIS), by their budget section. This will form the basis for preparation of Expenditure Budget and Demands for Grants (DG).
18.3.1.4 At the time of entering SBE in UBIS, particular care should be taken to ensure that allocations under special categories, such as NER and SC/ST are correctly entered. Guidelines for allocations to NER and SC/ST issued by DoNER and NITI Aayog respectively from time to time must be adhered to.
18.3.1.5 All other instructions related to preparation of RE and BE, and timelines thereof, as detailed in Budget Circular should also be followed meticulously.
18.3.2 Preparation of estimates of Non-Tax Revenue (NTR) Receipts:
18.3.2.1 Non-Tax Revenue (NTR) is an important component of Revenue Receipts of Government of India. The responsibility of providing NTR estimates of Ministries/Departments to Budget Division, Ministry of Finance has been entrusted with Head of Accounting Organization i.e. Pr.CCAs/CCAs/CAs(i/c) as the case may be. Therefore, Pr.CCAs/CCAs/CAs(i/c) should carefully analyse past trends of NTR receipts (with components) and project accurate budget estimates.
What This Means
The Head of Accounting Organization (Pr. CCA/CCA/CA) plays a central role in preparing realistic Budget Estimates and Revised Estimates. They must analyze 5-year expenditure trends, consider SNA/CNA balances under CSS/CS schemes, and work with program managers to project estimates close to reality. After budget discussions, the Statement of Budget Estimates (SBE) must be entered into UBIS on time, with special care for NER and SC/ST allocations. For Non-Tax Revenue estimates, the Pr. CCA must analyze past NTR trends, ensure CPSU dividends are recovered per DIPAM policy, and reconcile NTR arrears including guarantee fee arrears.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Head of Accounting Organization must analyze 5-year expenditure trends for realistic RE and BE
- 2SNA (Single Nodal Account) and CNA (Central Nodal Account) balances must be considered while projecting CSS/CS scheme estimates
- 3SBE must be entered in UBIS within stipulated timelines; NER and SC/ST allocations need special attention
- 4NTR estimates responsibility lies with the Head of Accounting Organization — past trends and CPSU dividends must be analyzed
- 5NTR arrears including guarantee fee arrears must be reconciled as highlighted in CAG Report No. 20 of 2018
Practical Example
The Pr. CCA of the Ministry of Rural Development analyzes 5 years of MGNREGA expenditure data. She notices that 3 states consistently show high unspent SNA balances at year-end. For RE, she recommends reducing allocations to those states and redirecting to states with full utilization. For NTR, she finds Rs 25 crore in outstanding guarantee fees from two CPSUs and flags this to the Secretary for recovery before year-end. All estimates are entered into UBIS with correct NER earmarking as per DoNER guidelines.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is UBIS?▼
Why must SNA/CNA balances be considered in budget estimates?▼
What was the CAG observation on NTR arrears?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.