Understanding Demands for Grants in Indian Railway Budgeting

welcome to this 97th uh June weekly meeting today's topic it is the demands for Grants very important topic for all

the participants of all the Departments we'll discuss very briefly and I'm going to restrict the session

only for demands for Grant not primary units not planets and any other thing okay please

conent see first of all we disc discuss what is demand what is

Grant see what is demand demand is a request to the parliament for Grant of funds once that request that is a budget

estimates are sanctioned by the parliament are passed by the Parliament that is a vote for the grant then

whatever amount is granted is called Grant so that is called demands for Grants demands are requested by the

government government means it is a executive to legislature legislature here means Parliament once Parliament is

passed and authorizes the government to utilize the funds appropriate from the Consolidated fund of India that is the

reason the bill which was muted to the parliament for passing is called appropriation bill

please not down appropriation bill that's why at the end of the year also we are submitted to the parliament

appropriation accounts that is the reporting back to the Parliament that means the amount which was granted by

the parliament has spended and the differen is between actual and Grant it is all in the form of the appropriation

accounts presented to the Parliament at the end of the year it is called appropriation accounts and in the

beginning the appropriation bill is authorized to incur the expenditure from the Consolidated fund of India is called

that is appropriation bill so so briefly it is called demands for Grants now how many demands you have and

what are the why this demands are nothing but a broad divisions okay yeah please check and the main object of

this session is to remember the demands as easily as possible because all of you know we have S2 demands 1 to

16 1 to 16 demands is there S2 demands why we call S2 demands because from 2017 and 18 onwards the our all 16 demands

are merged with single demand that is called 85 for current year all of you know okay so that's why we called this

16 demands are called Earth demands or we can call it as numerical numbers numerical

numbers because why this is still we are relevant for our topic means because yeah in the allocation or classification

of of Revenue expenditure still we are using the the demand numbers only not this 85 that is the

important so the S2 demands they are not placed they not placed in a jig jug order they are placed in a systematic

order systematic order as per their activity or as per the importance in the Indian Railway

not like jig ja if you check the demand number for retirement benefits they not placed under demand number one and at

the same time they not placed relable demand as 14 they in a systematic way we will discuss the systematic way of the

all the demands one by one prior to that we are to broadly classified as Revenue demand as for 1 to

15 15 and this is the single demand it is the per capital that is

16 so it is better we have to check what is revenue expenditure what is capital expenditure please remember Revenue

expenditure very simple daytoday expenditure every day this is expenditure is in C that that is a

maintenance repairs day today this is a onetime expenditure simple onetime expenditure

suppose if you purchase four-wheeler you need not purchase again four-wheeler in the next

month or next year so but if you purchase Provisions petrol or school fees or uh uh some

diary products again you have to purchase frequently either every day or every week or every five days or every

month so that is nothing but Revenue means recurring recurring

expenditure capital is non recurring are Revenue recurring regular or we can call it is

routine so R for Revenue R for recurring R for regular or for routin if you check in the Indian railways our day-to-day

expenditure what is day-to-day expenditure this PO repairs of the repairs and maintenance of the Railway

assets Administration expenditure that is GM office or DRM office or pcme office or pce office or

PFA office expenditure or operational expenditure that is nothing but every day we consume

assume this traction power electricity or diesel for running the trains locco pilot salary guard salary these are all

revenue expenditure for coming to Capital all of you know that is purchase of Rolling Stock construction of new

track or uh purchase of Machinery construction of buildings all our purchase of land this is all capital

expenditure Okay so this Revenue it is a 15 segments Capital it is only single segment

okay now this is already we discussed capital expenditure means acquiring improve or improving per permanent

assets not meant for resale please remember suppose a Furniture a automobile show they're purchasing cars

that is for them it is a revenue expenditure because it is for for resale but here we purchased Rolling Stock or

missinary not for resale so that is a onetime expenditure capital expenditure already I told Revenue expenditure is a

routine regular day to-day expend okay and here now we'll discuss this

session it is only Revenue demands 15 demands so Revenue demands please check again we

will further divided into three broad categories three broad categories one

broad category it is the entire India entire Indian railways this is a joural

Railways this is again Indian railways as a war so what is Indian railways first

one and two we'll discuss in detail and Jal Railways 3 to 14 and Indian again broadly demand

number 15 so if you segregate the first two and last one demand the in between the total number of Demands

12 the total number of Demands 12 because 99% of stop are working in the joural railways so we have to focus more

on the joural railways working expenses that is called Ordinary working

expenses if you check finance code two finance code two is deals with only 3 to

14 not one and two not 15 for them a separate allocation structure or classification internally circulated to

the CT a and R board so this finance code volume two only deals with the demand numbers 3 to 14 so if you

count demand number 3 to 14 it is a total number of Demands under ordinary working expenses it is 12

demands okay yeah Sunil G any urgent only please unmute otherwise I will check queries in the last please tell me

Sunil G yeah yeah coost is my voice is okay yes sir yeah please check with me

any inconsistency whether uh presentation or voice okay so now we go to

next so first we'll check with the demand number one starting so it is a we can term it that a super boss why

because it is the aex body maintaining or controlling entire Railway operations in Indian times Railway board so the

entire expenditure of the rail b or Railway board including members uh additional members or principal

executive directors or directors or staff or office assistant enti r b or R board expenditure it is charged to

demand number one okay so we can call it as super boss and

now coming to already I told this first category it is one and two that is relable control so second demand it is

the miscellaneous expenditure General please check here the word is very very important expenditure means it is a

government accounts if you check demand number 12 it is the commercial accounts that's why

the demand number 12 name is the miscellaneous working expenses expenses is different

expenditure is different so here expenditure it is the comping the government accounts so here what are the

items comes under miscellaneous expenditure General rrbs Railway recruitment boards whereas

RC's comes under Journal D and audit centralized training institutes that is irm

Sitara iret ner survey expenditure rdso expenditure National real Museum expenditure any

institution on pan India the is a covering all Railways not pertain to any jonal

Railway all comes under demand number two miscellaneous expenditure General so with this the first part is

over one and two is now we'll come to very important ordinary working expenses 3 to

14 that is very [Music] important yeah see again this is a big

segment ordinary working expenses so it is not digested in one go so that is the reason again the see this division is

not divided by me it is the by finance code volume two what is the first division

Administration second division repairs and maintenance third division operating

expenses one minute operating expenses fourth

division there is no common name others so for better understanding I put one pneumonic word this is the I love

Mom kids that means if you check first group it is a only one demand I stands for L stands for four demands please

check 1 + 4 plus Mom three letters three

demands and next others it is not common group it is all other than these three groups there is no common name please

remember here KS four letters 4 digs so Total 1 + 4 5 5 + 3 8 8 + 4 12 demands so if the question ask in the

examination how many a demands are in the ordinary working expenses the answer is deand

12 and it is easy to remember suppose if the question ask for repair and maintenance of the any Railway assets it

should be in the second group 4 5 6 7 only if the question comes for operational

expenses it is a 8910 now we'll discuss one by one in detail

okay already we discussed the super boss who is super boss Railway board crb members all others so who is local boss

local boss it is the GM office GM and in joural raway or DRM in the division or Branch officers or pH ODS H

ODS all comes under Administration so the name is general superintendence and

services here what is the important for this Administration that is a superintendence and services there is a

two different items is there please check here and is there so what is the two

divisions please listen carefully the services it is a accounts

personal and stores these three are comes under Services

segment so these three departments have no separate demand whether it is the headquarters or field unit please

remember suppose a person Branch stop working in the uh diesel locco shed or coach repair shop so is there is no

separate demand so we have only demand number three whereas

others that is superintendence other departments other than Services suppose engineering civil engineering is there

if the civil engineering officer is working in the headquarters it is comes under demand number

three same civil engineering officer suppose deputy chief engineer as long as he's working in the GM office is Char

salary goes to demand number three the same Deputy CE is transferred and posted as the deputy CE engineering

Workshop not in headquarters engineering Workshop then demand number four that is the simp so that is the

important division between superintendent and services Services means whether it is the headquarters or

divisions or open Line wherever it is working suppose divisional accountant he may work in the open line

or stores department stores Department staff they may work in DRM office or GM office or depos scattered all over the

Indian railways but all the three Department staff only demand number three but for other departments it is

the the place of posting is important whether it is a civil engineering mechanical electrical S&T

traffic if they are working in the headquarter the salary go to demand number three if

they are not working in the headquarters that is a GM or DRM office their salary will go to other demands we'll discuss

what are the departs that is the only we have to remember in the demand number three and

another important thing you have to remember we have minor heads total nine minor heads are there minor heads total

nine so there is no scope for the security department Medical Department cing

department claim department under demand number three what are the MS we will discuss later because we have

100 200 300 because earlier the revenue classification is only 7 digit so there

is no scope for the, minor head up to 9 900 so if you check 100 it is a general Administration that is GM or DRM office

200 Finance or accounts 300 personal 400 stores 500 civil engineering 600 mechanical 700 electrical 800 s& 900

traffic so there is no room for the cering Department Medical Department Security Department so

these four four departments it is a exception not Commander demand number three though the CMD chief medical

director or chief security commissioner principal Chief security commissioner or chief claims officer though they are

working in the GM office their salary not come under demand number three remember

okay with this the first part is over the demand number three that is called Administration

what is Administration General superintendence and services now we'll come to second

part second part it is called what is common name repairs and maintenance so what is repairs and

maintenance so repairs and maintenance is nothing but repairs and maintenance of the all Railway

assets all Trailway assets see before putting into operation for the long Journeys they have to be in the fit

condition there the fit conditions for that we have to keep them always fit by attending repairs or

maintenance so what are the railway assets we have we'll discuss one by one so if you

check the first important asset is the track track as well as works works means

buildings Bridges all other civil engineering assets so we can say this is

the entire demand it is for only civil engineering

department but please remember it is the maintenance and repairs not for construction of new track

please message me suppose if I am ask the construction of new track the chargeable to demand number what is the

demand number please message me 16 very good very good yes yes so

construction of De track it is the demand number 16 maintenance it is the

four maintenance of track or maintenance of works that is the buildings official building

stations are bridges roads everything okay and after the track and buildings the next important asset is the Rolling

Stock the next important asset to maintain is the Rolling Stock because to run the Train the track is base

important the next important thing is required rolling stock again this Rolling Stock we can divide broadly into

two categories that is the locomotive and cnw the first part is locomotive second

part is the cnw so locomotive means whether it is a diesel

locomotive or electric locomotive or even steel loc steam locomotive that is Heritage Locus all it

is a demand number one here please remember this mainl electric multiple unit that emu or W is not comes

under as Motive Power it is treated as coach and wagon okay yeah here please remember

again purchase of any new locomotive it is a cost under please message me in the chat box suppose purchase of new

locomotive yes exactly it is the demand number 16 this is only for maintenance that is the

diesel Locos shed maintenance of the diesel Locos electric Locos after locomotive then it is the

time for the cnw very popular that is for carriages and wagons here also please remember purchase of

any new coach any new wagon it is demand number 16 here it is the repairs and mainten

that means all wagon workshops or ioh po coaching Depot wagon Depot or wagon

workshops all expenditure it is the demand number six and if you check the last

one now four is track five is Loco six is cnw and seven it is the to make maintain all the installations we

require plant and missionary is very very important plant and

equipment so any repairs and maintenance of this plant and Equipment it is charged to demand number

seven and if you check 1979 our finance code 2 is started finance code 2 present Edition

it is the 1917 before 1979 there was no separate demand for this repairs and maintenance of plant

and equipment that means repairs and maintenance of plant and equipment connected with the carriages and box it

is charged to six or carry connected with track charged to four but later they realized this is also a big

segment requiring a separate demand separate category so they created one separate demand for only

plant and Equipment this is we can call it as general demand why because plant and

equipment is required for each and every Department even this wall clocks two wheelers

four-wheelers or any almaras any furniture all it is treated as the F plant and Equipment all departments it

is involved if you check four is it is a civil engineering five prant it is mechanical

and electrical and six also mechanical and electrical most of the but this is the general

demand so we covered the first part Administration second part repairment maintenance now we are coming to

operating expenses why we are maintained all these things to run

that our Rolling Stock for operational purposes see how systematically the demands are

placed in an order first policy is important that's why the super BS div number one next miscellaneous all other

institutions CT and coming to this 3 to4 the first is local boss Administration that GM and DRM

offices then first repairs and maintenance is very very important when you start for long

journey when you go for picnic or any long journey first you will check our vehicle should be fit for the long

drive check and should so that's why this rep maintenance is important so our TRS also Jour it is

thousands and thousands kilometers so the operational part coming third

group so here you can remember very easily to remember these three demands because the first important

person is locopilot to run the Train the first important person to remember locco pilot second

important person it is the guard or train manager and third important thing it is

the F so locco pilot R manager F these three are very very important essential for

running of the TR operating expenses now we'll discuss one by one what is exact description of demand number eight what

is the exact description of demand number n what is the exact description of 10

okay so this is the local pilot salary also included demand number eight so if you check the common name please check

the common name for demand number four repairs and maintenance common name for demand number five repairs and

maintenance repairs and maintenance repairs and maintenance that means this is the group all common name it is the

repairs and maintenance of the track repac maintenance of Loco repac maintenance of cnw repac Maintenance of

the L machine like that these three demands also 8 9 10 it is the prefix is the operating

expenses operating expenses is the prefix for the eight 9 and 10 this is the group so what is the

demand number eight if you check maintenance part we have two demands for Rolling Stock this five is M Power Six

is the cnw but for operational purpose both entire Rolling Stock it is the only one demand and along with Rolling Stock

it is the equipment that means it together five six 7 three demands it is the

repairs and maintenance it is connected with the operational part comes under demand

number eight what is five M Power Six wagons seven equipment that includes this S&T equipment so all

three together for operating part it is comes under demand number eight what is demand number eight

description operating expenses Rolling Stock equipment equipment here signaling

equipment so whether it is including locco pilot salary or assistant loc pilot

salary here the traic portion will not come under here only the stock connected with

the Rolling Stock that is the locco pilot assistant locco pilot signaling stop all except this prop

stop then next one already I told the first important person is the local pilot

driver the next important person is the guard or train manager so the demand number nine it is the operating expenses

traffic like demand number four is entirely for civil engineering department this demand is 99% it is the

traffic department traffic means it is the please check commercial and

operating both comeand traffic if you check the IRS the Civil group a service that is

called irts Indian Railway Traffic Service prior to this irms so please check here station Master

Guard ticket checking staff booking clerk tte including the control room stop

working in the divisions because they are meant for the operation of the TRS there also comes under demand number

nine operating expenses traffic and the last demand under this operating expenses is the fuel simp

operating expenses fuel whether it is the coal or hsd diesel or traction only for running the track

not for maintenance of the assets suppose if you consumption this diesel for the maintenance of any asset

Machinery it is not comes under demand number 10 please remember it is only for operational

purpose suppose if you pay the electricity bill for the uh DRM office or GM office it is not comes demand

number 10 it is only for operational purpose that means payments to State electricity boards or distributed

companies for traction or this diesel consumption everything normally this 10 and nine are

the single largest demand previously the demand number 10 now because of this irfc lease charges

the demand number n also is exceeded the demand number 10 anyway we going to check the February 1 it is the budget

presentation uh this hardly uh 2 weeks so with this the third segment also is

completed third segment also is completed operating expenses so now we are covered

Administration 4567 repairs and maintenance operating expenses now we'll concentrate this last for demands 11 12

13 14 okay see if you check the railway

Administration the railway this planning this demands very systematically it is all operational

part Railway part for operation of the TRS this is 3 to 10 is very very

important but this is not connected to the operation of TRS not connected to the operation of

TRS so there is no common name also so after end of the Duty after end of the duty whether it is

a GM or DRM or senior section engineer or ssoa or accounts Clerk or office assistant everyone they wants to

now care for their s themselves as well as family now it is there turn to the

Family Care Family welfare so that is the reason the ra board meticulously planned the demand number 11 after

completion of this 3 to 10 please check so what is the 10 it is the stop welfare on

amenities stop well fa and amenities if you check the expenditure incur for the railway schools hospitals or sta canteen

or Recreation clubs Railway institutes including children education events everything this is only for stop not for

Railways stop welfare and amenities and if you check classifying any household expend teacher will put

one column lost column as miscellaneous why because for certain Small Things We cannot put separate columns separate

demands if it is goes on it may goes beyond 20 or 30 demands also if you put for each and every Activity one separate

demand so that is the reason they created demand number 12 for the all other miscellaneous activi is please

message me what are the items not covered so far in the demand number 3 to 11 some miscellaneous topics

miscellaneous items activities please message me if you able to yes very good yes security good answer s

medical s cing yeah medical please remember medical it is comes under part of sta

welfare not misin please remember medical it is part of sta welfare not

miscellaneous okay yeah yes scattering security yes claims very good yes training training also very

good yes RPF medical is not come yes cash award very good cash award yeah audit it is comes

under demand number two yeah very good very good very good good good good yes excretia claims

compensation or any fire accident loss anything please check so the demand number 12 is the miscellaneous working

expenses you can remember this demand very easily how the demand number two is the railway

board miscellaneous expenditure General demand number one is Railway board demand number two is the miscellaneous

expenditure of all entire Indian Railway activties that is rdso rrb ner CTA if you check this is

joural Railways it is the demand number 12 very easy to remember two and 12 two and

12 two is miscellaneous expenditure 12 is the miscellaneous working expenses if you check the

CTI is demand number two and joural JTA joural training institutes

one okay very easy and security already I told that nine minor heads are there so there is no room for the 10th and

11th minor heads so that is the reason security yes it is comes under demand number 12 even though the principal

Chief security commissioner working in the GM office or divisional security commissioner working in the DRM office

their salaries comes under demand number 12 just because of they are working in the gmr DRM office their salary not goes

to demand number three please remember understood and this chief medical

director principal chief medical director salary also comes under demand number 11 not demand number three

hope no doubts any doubts please not down on piece of paper we'll discuss at the end of seven session yes cash Awards

training yeah har please unmute if urgent only yeah please tell

me yeah please ask your quy okay right yeah

and the last but one or last phase of the our rway emplo it is the retirement so whether it is a Provident

fund pension and other retirement benefits that is the dcrg leave encashment see leave

encashment during the service it charge to respective demands only leave en cment at the end of the service it is

the retirement is called to demand number 13 dcrg commutation of pension

pension all it is the demand number 13 L but and 14 is the appropriation to

various funds the first important is the drf pension fund and Development Fund

Capital fund rsf safety fund Rel safety fund R Debt Service

fund liability Reserve Debt Service fund or liability Reserve fund all funds appropriation

to yeah please unmit chintu thank you sir yeah please tell me sir kindly repeat once of demand number

12 as misscellaneous yeah thanks sir thanks thanks a lot okay yeah demand number 12 is the

nothing but miscellaneous those not covered under

demand number 3 to1 whatever items not covered under 3 to 11 miscellaneous activities if you

divide your household expenses you may put the main categories the provisions school fees or transport expenses

medical expenses entertainment some major categories and last to put a small

category is the miscellaneous Petty expenses like that for Railways also these are all small

activities security hospitality Hospitality what is Hospitality inauguration of the vat

inauguration of just Rec just now you check the video inauguration of chapali terminal or

cering see the C is stop so demand number 11 part but cering it is for passengers so

12 and training training means joural raway training institutes are super Training Center all training activities

all India wide it is the demand number two but Journal wise it is or losses accident is happened we are

paying excretia or claims some baggage was lost by the passenger we are paying com claims so all claims compensation

losses Hospitality expenses cash Awards any expenditure which is not accounted under demand number 3 to 11 it is comes

Under 12 okay so 13 it is already discussed all retirement benefits that means you can check 1 to 12 it is the

during service 1 to 12 but 13 yeah 3 to 12 but 13 it is only for after retirement not

during the service okay and 14 it is a single demand for the all

funds whether it is a capital fund drf pension fund liability Reserve fund or Debt Service fund say raway safety fund

Development Fund any fund appropriation to funds next this

is yeah this 14 it is not uh written please check this is the part

three 4 5 6 7 8 9 10 and 11 12 13 14 okay and here this is not required for

now because the merger of budget it is happened in the 2017 and 18 after that no need to pay dividend to

the Ministry of Finance but it is still in the books that's all officially not deleted this demand number but it there

is no relevance okay but this is not only dividends payable to the general

revenues sometimes the railways has taken loans from the central government for

completion of the DF Development Fund other some other works so that repayment of the loan also it is comes under

demand number 15 dividends to General relevance and repayment of the loans so it is in the books and 16 all of you

know that is the capital that is the assets construction replacement and purchase

all yeah please wait I will unmute to each and everyone so this is

the overall if you check so here what what are the numbers normally we are confused so many numbers

that is the demand number plan head source of Finance primary unit so first to check

this Revenue classification these two numbers are very very important demand numbers 1 to 16 and primary units also

two numbers this not much important this is nothing but minor head

subed detail head and in the capital it is a nothing but it is the source of Finance the first two digits that is the

20 for Capital 21 for drf 25 for Capital fund like this these numbers are important for Capital but primary units

are same but here the first third and fourth digit it is called

planets planets also very very important that means if you check the demand

number two digits plan head two digits primary unit two digits and source of

Finance two digits so sometimes don't confuse because the planet it is the 11 new lines at the same time demand number

11 is the stop Ware and if you check primary unit 11 OT expenses understood so don't confuse or

if you check source of Finance this 20 is the or 21 is

the drf 21 is drf source of Finance same if in case of Planet 21 it is the Rolling

Stock Program but there is no demand 21 so don't confuse the demands are separate planets

are separate and primary unit are separate primary unit also revenue and capital

and source of Finance the first two digits in the capital that is also supp demand number one and two please

check major head 31 and 3 to 14 major

head 32 Indian railways working expenses commercial

lines and demand number 15 is you can remember five and five 35 but not

important on demand number 16 it is the called Y2 another

important major Heads This is the XY Z Revenue receipts

this is the ordinary working expenses 3 to 14 and demand number

16 please remember the major head very very easy to remember 1 2

32 52 for commercial lines all three Together commercial

lines if you add one number 13 33 53 it is for strategic lines so this is the XY Z all of you

know X means coaching endings y means Goods endings Z is Sunday endings all together it is called Revenue reist it

is the one2 major head this is all called major

head very important major head strategic L not much important so this is very easy

one2 32 pi2 these three are very

important now we check the sub major heads it is the only for 3 to 14 3 to 14 only submeasures comes

because if you check this is the big major head 32 3 to 14 so we have to discuss only sub measor

heads 3 to 14 not for one two not for this 3

4 5 6 7 8 9

10 11 12 13 14 see this is nothing but sub measure head starting with 1 to

12 so this is the sub measure head it is the starting 1 2 3 4 5 6 7 8 9 up to

one that means what is the simple rule minus 2 if you minus 2 from the the demand number it becomes sub major head

please listen and last slide it is the abstract abstract so this is also 3 to

14 please remember so please start with a because it is the before

computerization we used to index the demand numbers a b CDE now it is not in use but in the still examinations they

may ask what is the demand number three abstract so I told now this is only comes to for 3 to 14 ordinary working

expenses not for others whether it is a sub measure head or OBS so it is just start with a to last number but skip the

I why skipping I means because if you write I 110 it becomes 1110 so that's why they skipped the I

during those days pre computerization now please check the demand number three is

a four is B in case the question asked in the exam please write one draft rough notes and prepare this table like that

and you please select the what is the correct abstract number for the correct demand number so please write serially

skipping only I so 3 is a four is B 6 is d 7 is e 8 is

y 9 is G 10 is H here 11 actually should come

I but we have to skip I so put J skip

I that is important so next continue 12 K A B C D E F G H I skipped J K L M 13

L 14 M okay after M this 12 demand and 13 demand is having two OBS so what is the

after m n n for suspense and after introduction of this NPS in the 2004 January 1 the government

contribution to The NPS staff it is a budget under abstract W because after y w so this demand number 12 and 13 only

another abstract K and N L and so that means it is the a to M

except I