Day 6 – Session: 3 (b)

1. Day 6 – Session: 3 (b) Session Title: Preparation and usefulness of (i) “Accounts at a Glance” and (i) “Combined Finance and Revenue Accounts” RTI, Nagpur

2. Session Overview In this session we will discuss about the usefulness of (i) “Accounts at a Glance” and (ii) “Combined Finance and Revenue Accounts” RTI, Nagpur

3. Learning Objective • By the end of the session, we will be enlightened with the usefulness of (i) “Accounts at a Glance” and (ii) “Combined Finance and Revenue Accounts”. • The session will begin with discussion on preparation of each chapter of the ‘Accounts at a Glance’ and sources of data required for the preparation thereof. Thereafter, the usefulness of the “Combined Finance and Revenue Accounts” will be dealt with. RTI, Nagpur

4. Part I – Accounts at a Glance RTI, Nagpur

5. What is Accounts at a Glance ? ‘Accounts at a Glance’ is an important additional document to the Government from the C & A G, which provides a broad overview of Governmental activities, a macro analysis based on comparison between (i) the Financial Statement (Budget) of the Government and (ii) the Finance Accounts and Appropriation Accounts prepared and presented by the C & AG to the State Legislature. RTI, Nagpur

6. Components of Accounts at a Glance The document is presented in 3 chapters: Chapter I :an overview on the principles of Government Accounting, Forms and Divisions in which the Government Accounts are maintained. It discloses the status of the presentation of Annual Accounts and Audit Reports to the Legislature. Data for various information are taken from the Chapter II – Highlights of Accounts. RTI, Nagpur

7. Chapter II :projects the Highlights of Accounts. It is the main linkage and data provider for all other Chapters of the document. This Chapter brings out the following additional information also: (i)Revenue Disbursements, Capital Disbursements, Plan Disbursements and Non-Plan Disbursements. (ii) Sectoral distribution of expenditure and its percentage to total revenue expenditure. (iii) 5 years TREND OF EXPENDITURE of selected sectors. (iv) DEBTS AND LIABILITIES. (v) INVESTMENTS AND RETURNS. (vi) LOANS AND ADVANCES BY THE STATE GOVERNMENT. (vii) RUSH OF EXPENDITURE (viii) RECONCILIATION OF ACCOUNTS (ix) SUBMISSION OF ACCOUNTS BY TREASURIES RTI, Nagpur

8. Chapter III : TRENDS IN GOVERNMENT REVENUE AND EXPENDITURE(5 years). This chapter further deals with: (i) LIABILITIES of the State Government (ii) STATE PROVIDENT FUNDincluding interest. (iii) GUARANTEES given by the State Government. (iv) WAYS AND MEANS ADVANCES, GENERAL CASH BALANCES, and CONTINGENCY FUND RTI, Nagpur

9. Part II - Combined Finance and Revenue Accounts RTI, Nagpur

10. Combined Finance & Revenue Accounts (Union & the States) - An Overview Courtesy : Paper on “Overview of Combined Finance and Revenue Accounts (Union & the States)” by Shri M.C. Singhi, IES published in Indian Journal of Public Audit & Accountability, Institute of Public Auditors of India, New Delhi (April 2006 issue). RTI, Nagpur

11. What is CFA? A user desired Annual Report showing the recognition of physical assets; actual liabilities on pension and ongoing programmes; tax expenditure; budgetary outcomes; measures of deficit; performance indicators and disaggregated information preferably according to programme and region along with timeliness of their presentation. RTI, Nagpur

12. Broad architecture of government’s financial information RTI, Nagpur

13. Balance Sheet of the Core Government The Liabilities of the government include its internal debt, external debt, small saving and provident funds, reserve funds and other deposits. The Assets of the government include its capital expenditure on creation of economic and social infrastructure and its loans & advances. Table (on next page) shows Assets & Liabilities and the Statement of Balances (as on 31 March 2000). It facilitates an analysis of assets & liabilities of the Union and States. RTI, Nagpur

14. Assets and Liabilities and the Statement of Balances (Position as on 31 March 2000) (Rs. in crore) RTI, Nagpur

15. Total and Per Capita Assets, ratio of Assets to Liabilities and Revenue Receipt (Inter-State variations) RTI, Nagpur

16. Total and Per Capita Assets, ratio of Assets to Liabilities and Revenue Receipt ( contd…) RTI, Nagpur

17. Summary of Annual Accounts Shows the states ability to raise resources - both taxes and user charges from its various services, expenditure and cost of delivery of services, allocative priorities of its disbursement, revenue and fiscal deficit (or fiscal imbalances) and net annual increase in its liabilities, etc. RTI, Nagpur

18. Revenue Receipts • Revenue receipts of a government are composed of the receipts from the entities own taxes; receipts from entities’ sovereign functions, financial intermediation and user charges; devolution of taxes collected by the Union and transferred to the States and grants-in-aid. RTI, Nagpur

19. Application of Resources – Revenue Expenditure • The Union and the States raise resources to perform their sovereign functions, maintain their existing network of delivery of social and economic services, extend the network of these services through capital expenditure and investments and discharge their debt servicing obligations. • Over 85% of the combined expenditure of the Union and States was in the nature of current or revenue expenditure, primarily to maintain the existing level of social economic services network and for their sovereign functions. RTI, Nagpur

20. Total gross revenue expenditure of the Union and States as Rs.5763 billion in 1999-2000 as shown in the table below: RTI, Nagpur