P.M.

Soman
AO, RTTC, Trivandrum

Types of Budget
Two types of budget
Revenue Budget
Capital Budget

Importance & Meaning

Budgeting is the process of creating a
plan to spend your money.
Its a tool to help you prioritize your
spending and manage your money
Planning and monitoring your budget
will help you identify wasteful
expenditures and achieve your
financial goals

 Classified as Capital or Revenue based

on the nature of activities
Capital budget relates to Capital
nature of expenditure, ie., for
construction/acquisition of asset
Revenue budget relates to Revenue
/Recurring nature of expenditure

REVENUE BUDGET
Due date of RE/BE to Corporate Office 15th
September
Revised Estimate(RE) (for current financial
year)- Actual expenditure upto August(5
months) and anticipated expenditure from
September to March(7 months)
Budget Estmate(BE) Anticipated Expenditure
for the ensuing financial year(12 months)

Guidelines for
preparation
Figures should be in thousands of
rupees in Working Expenses and lakhs
of rupees in revenue income
Should be object wise
Should be realistic
Additional Allotment if any should be
shown separately

 Economy measures for controlling the

expenditure should be kept in mind
while preparing the RE/BE
Estimates of License Fees/Spectrum
charges should be shown separately
Pension contribution and Leave salary
contribution should be calculated as per
provisions of FRs

 No additional Fund for OTA

No honorarium for general purpose.
Honorarium only for setting up of
question papers, valuation of answer
papers, Membership verification
duty, Departmental enquiries etc.

Revenue Receipts
The estimates of Revenue are worked
out on the basis of number of
telephone lines, WLL lines and CMTS
working as well as proposed to be
given and by applying average
Revenue per such line.

Capital Budget
Circles have to send component wise
demand of capital outlay is to be sent
to Corporate Office Planning branch
in the month of October
Planning branches will consolidate the
demand and send to Budget section
for allotment of funds

Capital Works
Programme
Capital works programme shall be compiled
only for works costing Rs.20 crores and
above
The proposals for RE and BE have to be
finalized in consultation with the Planning
Cell of the Circle/Unit and closely
scrutinized by the Internal Financial
Advisor in order to ensure realistic
provision of funds. IFA has to issue a
certificate in this regard.

Cash Budget
Two important tools used in financial
planning and cash projections
1. Cash Flow Statement( based on
historical/ past data)
2. Cash Budget

Guidelines for cash

drawal
Budget allotments are taken as base for
determining of cash drawls
Taking the trend of past recoveries, an
amount equivalent to 60% of gross pay and
allowances is taken as net pay and
allowances for disbursement in cash

 Expenditure under Working Expenses

other than salaries and wages will be
restricted to proportionate periodical
allotment unless specified for unusual
demand.
Twelve Percent of telephone revenue
realization based on targets communicated
will be authorized for drawals towards
service tax payment.

 Authorisation under Payment of

Loans and Advances including HBA
will be restricted to budget
allotment to each circle/unit.

Control over
expenditure
DDOs are not authorized to incur
expenditure out of the revenue
collected.
Revenue collected is transferred to
BSNL CO on day to day basis
For operational purpose, cash is
authorized by BSNL CO periodically

Economy Measures
10% CUT ON THE BUDGETARY
ALLOCATION FOR SEMINARS AND
CONFERENCES SHALL BE EFFECTED
Holding of
exhibitions/seminars/conferences abroad is
strongly discouraged except in the case of
exhibitions for trade promotion.

 Complete ban on holding of meetings and

conferences at five star hotels.
No travel on government account by air will
take place by first class. Travel by economy
class only, irrespective of the entitlement.

 Where travel is unavoidable, it will be

ensured that officers of the appropriate
level dealing with the subject are
sponsored
The size of delegation and the duration of
visit will be kept to the absolute minimum.

 Proposals for participation in study tours,

workshops/conferences/seminars/present
ation of papers abroad at government cost
will not be entertained except those that
are fully funded by sponsoring agencies.

Expenditure
Management
5-10% cut in Non-Plan Expenditure
No increase in the budgetary allocations
under the heads of non plan expenditure,
will be allowed at RE Stage , except under
very extra-ordinary and compelling
circumstances.

Fleet Card Program

For cashless purchase of diesel/petrol
from IOC/BPCL/HPCL
Effected through smart card system( Xtra
Power)
W.e.f. 1.10.2009
Card fee Rs.100/- and validity three years
from the date of issue
Master card with DDO and user card with
concerned SDE/Unit for purchase of fuel

Questions

Fill in the blanks

1. There are mainly following two types of budget in

BSNL: (a)__________________________________(b)
________________________________ (Capital
Budget, Revenue Budget)
2. In REBE statement for Working Expenses, the figures
should be shown in _________________ of rupees.
(thousands)
3. Capital Works Programme shall be compiled only for
works costing Rs. __________________ and above. (20
crs. And above)

 4. Under economy measures, holding of exhibitions in

abroad is strongly discouragd except in case of exhibition
for ______________. (trade promotion)
5. As a part of expenditure control BSNL has introduced
cash less purchase of __________________________
through Fleet Card. (petrol/diesel)
6. Fleet/Smart Card fee will be Rs. __________ per
card and validity of the card is for _________ years
from the date of issue. (100,3)

 7. In REBE statement Revised Estimate is for ____________

financial year and Budget Estimate for _____________
financial year. (current, ensuing)

State True or False.

1. Cash Flow statement is based on historical (past) data. (True)
2. Budget allotment are taken as base for determining cash
drawal. (True)

 3. Drawing & Disbursing Officers (DDOs) are authorised to

incure expenditure out of the revenue collected. (False)
4. Any cash payments made through Imprest/Temporary
Advance towards purchase of fuel after 1-10-2009 are to
be disallowed by DDOs (True)
5. Under Fleet card scheme, the Pay & Accounts Officer of
each SSA will hold the master card & will arrrange to issue
user card to their intending units. (True)

 6. Planning for activities of a recurring nature is

covered by Capital budget. (False)

 Thank You