RAILWAY BUDGET (Short Note)
Budget is a statement of the estimated annual receipts and expenditure both on capital as well as revenue transactions of an organization. It is a process of planning and reviewing the activities of an organization. Railways being a Govt. of India department, receipts and payments of the system were use to be merged in the General Budget of the Govt. of India. As a result of the recommendations of the “ACWORTH COMMITTEE” during 1920-21, it was decided to separate the finances of Railways from General Finances with the objects of securing stability for General revenues and to strengthen the Railways finances. This is generally known as “Separation Convention of 1924”. Since then the Railway Budget is submitted in advance of the General budget.
In terms of article 112 of the Constitution of India, the budget is presented to both the Houses of parliament viz. Lok sabha and Rajya sabha.
The expenditure on Railways may be either voted or charged. The expenditure covered under the former category requires the approval of parliament. But in respect of charged expenditure the sanction of the President of India is conveyed without being submitted for the vote of Parliament. The items of expenditures that are covered under this category are as under: - i) Interest, sinking fund charges and redemption charges on loan and debts. ii) Salary, allowances and pension payable to or in respect of Comptroller and Auditor General Of India. iii) Any sum required satisfying any judgment, decree or award of any court or arbitration tribunal. iv) Any other expenditure declared by the constitution of India or by Parliament by law to be so charged.