Budget Manual 2022 — Interactive Study Notes

Budget Manual of the Government of India

The authoritative procedural rule-book for the entire Union Budget cycle — from the Budget Circular to the closing of accounts. Anchored in the Constitution (Articles 112–117, 265–267, 280), the FRBM Act 2003, the GFR 2017 and the DFPR 1978, this revised (2nd) edition reflects the advanced budget date (1 February), the merger of the Rail Budget, the removal of the Plan/Non-Plan distinction and the paperless, digital Budget. These notes cover the Foundations (glossary & constitutional provisions) and all seven chapters.

FND · FOUNDATIONS

Glossary & Constitutional Provisions on the Budget

The Budget, in one line

Although the word "Budget" never appears in the Constitution, Article 112 requires the President to lay before both Houses, for every financial year, a statement of the Government's estimated receipts and expenditure — the Annual Financial Statement (AFS). The Budget is prepared on a cash basis as a statement of estimated receipts and expenditure framed in line with fiscal policy.

F.1

The three Funds that hold all public money

Article 266(1)

Consolidated Fund of India

Holds all revenues, all loans raised, and all money received in repayment of loans. Nothing can be withdrawn except by an appropriation made by law. Withdrawals need Parliament's vote (except charged items).

Article 267

Contingency Fund of India

An imprest at the President's disposal for unforeseen expenditure pending Parliament's authorisation. Set up under the Contingency Fund of India Act, 1950; advances are recouped after Parliament approves them via Supplementary Demands.

Article 266(2)

Public Account of India

Holds all other public money received by Government (provident funds, deposits, remittances). Disbursements are not subject to Parliament's vote as they are not issued out of the Consolidated Fund.

F.2

Core budget vocabulary

Statements, estimates & the actuals

AFSAnnual Financial Statement — the document under Article 112; "the Budget".
BEBudget Estimates — detailed estimates of receipts and expenditure for a financial year.
RERevised Estimates — a mid-year re-estimate of probable receipts/expenditure for the current year, framed from transactions already recorded plus those anticipated for the rest of the year. Not voted by Parliament.
ACTUALSAccounts / Actuals — the receipts and disbursements of the year (1 April–31 March) as finally recorded in the accounting authority's books, audited by C&AG. Provisional Accounts are the unaudited accounts compiled by CGA.
DEPT ESTDepartmental Estimate — a department's estimate of income & expenditure submitted by the estimating officer to the Finance Ministry.

Voted vs Charged expenditure — the single distinction that decides whether Parliament gets to vote on a provision at all.

Aspect	Voted expenditure	Charged expenditure
Parliament's role	Submitted to the vote of the Lok Sabha; may be assented to, reduced or refused.	Not submitted to the vote — the House may discuss it, but cannot vote on it.
How it is shown	Listed as a Demand for Grant.	Shown as an Appropriation (Charged Appropriation), not a Demand.
Underlying nature	Discretionary expenditure that Parliament authorises afresh each year.	Obligatory charges the Constitution places directly on the Consolidated Fund (e.g. debt charges, salaries of the President, judges and the C&AG).

Appropriation & the key officers

APPROPAppropriation — the amount authorised by Parliament for expenditure; where a head needs no vote it appears as an "Appropriation" rather than a "Demand".
CGAController General of Accounts — the principal Accounts Adviser to the Government; prepares a monthly critical analysis for the Finance Minister and the Appropriation & Union Finance Accounts.
COControlling Officer (Budget) controls expenditure/revenue collection; a Disbursing Officer draws bills and makes payments on Government's behalf.
FAFinancial Adviser — appointed in a Ministry to handle financial advice, budget/accounts and expenditure control on behalf of the Finance Ministry.

F.3

Grants, primary units & "new service" terms

The grant family

SUPPSupplementary Demands for Grants — further expenditure needed in a year over the authorised appropriation; may be token, technical or cash.
EXCESSExcess Grant — expenditure incurred over and above the original/supplementary grant, requiring regularisation by an excess grant from Parliament under Article 115.
VoAVote on Account — a grant made in advance for part of the new financial year, pending completion of voting of Demands and passing of the Appropriation Act.
RE-APPReappropriation — transfer, by a competent authority, of savings from one unit of appropriation to meet additional expenditure under another unit within the same section of the grant/charged appropriation.
PRIMPrimary unit of appropriation (Rule 8, DFPR) — the lowest unit of classification denoting the object of expenditure.

New Service vs New Instrument of Service — both trigger prior approval of Parliament under Article 115(1)(a); the difference is whether the activity itself is new.

Aspect	New Service (NS)	New Instrument of Service (NIS)
What it is	Expenditure from a new policy decision not previously brought to Parliament's notice.	Relatively large expenditure from the expansion of an existing activity.
Typical trigger	A new activity, scheme or a new form of investment.	Significant scaling-up of something Parliament already approved.

A related term

OUTCOMEOutcome Budget — annual document reflecting the purposes/objectives of funds, cost of programmes, and a quantitative projection of the work/services under each programme.

F.4

The financial Articles of the Constitution

Article	What it provides
112	Annual Financial Statement — President lays the estimated receipts & expenditure; distinguishes charged from voted, and revenue from capital.
113	Procedure on estimates — charged estimates are not voted (only discussed); voted estimates go as Demands for Grants which the Lok Sabha may assent to, refuse, or reduce. No demand without the President's recommendation.
114	Appropriation Bills — after demands are passed, an Appropriation Bill authorises withdrawal from the Consolidated Fund. No money is withdrawn except under appropriation made by law.
115	Supplementary, Additional or Excess Grants.
116	Vote on Account, Vote of Credit & Exceptional Grant.
117	Special provisions as to Financial Bills — need the President's recommendation; cannot be introduced in the Rajya Sabha.
109 / 110	Money Bills — special procedure (109) and definition (110). A Money Bill is introduced only in the Lok Sabha; the Speaker's certificate is final; the Rajya Sabha returns it within 14 days with recommendations the Lok Sabha may accept or reject.
265	No tax shall be levied or collected except by authority of law.
266 / 267	Consolidated Fund & Public Account (266); Contingency Fund (267).
150 / 151	Form of accounts as the President prescribes on C&AG's advice (150); audit reports of C&AG laid before each House (151).

F.5

Finance Commission, grants & borrowing

Articles 275, 280, 281, 292

280Finance Commission — constituted by the President within two years of commencement and thereafter every fifth year (or earlier), to recommend the distribution of tax proceeds between Union and States, the principles for grants-in-aid, and measures to augment State Consolidated Funds for Panchayats and Municipalities.
275Grants from the Union to certain States — charged on the Consolidated Fund of India as grants-in-aid to States in need; made after considering the Finance Commission's recommendations.
281Recommendations of the Finance Commission — laid before each House with an explanatory memorandum on the action taken.
292Borrowing by the Government of India — the Union's executive power extends to borrowing on the security of the Consolidated Fund within limits fixed by Parliament.

Self-test

Foundations Quiz — funds, terms & the Constitution

Eight questions on the glossary and constitutional provisions. Pick an answer to lock it; the explanation appears below.

Score 0 / 0

⚡ Foundations — Quick Recap

Concept	Key Fact
Budget in the Constitution	Word absent; Article 112 mandates the Annual Financial Statement
Consolidated Fund	Article 266(1); withdrawal only by appropriation made by law
Contingency Fund	Article 267; an imprest; 1950 Act; for unforeseen expenditure
Public Account	Article 266(2); disbursements not voted
Revised Estimates	Mid-year re-estimate; not voted by Parliament
Excess Grant	Regularised under Article 115
New Service / NIS	New policy decision vs expansion of existing activity (Art 115(1)(a))
Money Bill	Art 110; Speaker's certificate final; RS returns in 14 days
Finance Commission	Article 280; every 5th year
Form of accounts / audit	Article 150 (form) & 151 (audit reports)

CH 1 · INTRODUCTION

Introduction to the Budget

Budget & the financial year (1.1)

The Constitution does not use the word "Budget", but Article 112 requires the President to lay before both Houses — the Lok Sabha and the Rajya Sabha — a statement of estimated receipts and expenditure for every financial year: the Annual Financial Statement. India's financial year runs 1 April to 31 March, introduced in 1867 (earlier it was 1 May–30 April, changed on the L.K. Jha Committee's recommendation). The Union Budget is presented on 1 February (or another suitable date) by the Finance Minister.

§ 1.2

Salient features of the Union Budget

Budget preparation is an iterative process between the Ministry of Finance and the line Ministries/Departments, commencing when the Budget Division issues the Budget Circular.

Cash

Cash basis

Whatever is expected to be actually received or paid under proper sanction in the year (including arrears) is budgeted in that year.

Lapse

Rule of Lapse

Appropriations granted by Parliament expire at year-end; unspent funds lapse and are not carried over.

Real

Realistic estimation

Each Demand must carry realistic estimates of the year's actual requirement.

Gross / Net

Gross & net basis

Generally departments may not net receipts against expenditure; net budgeting applies to some Grants (e.g. Railways, Posts).

Form

Form follows accounts

The estimate form must match Government accounts, since performance is judged from those accounts.

Dept

Departmental basis

Each department frames its own estimates; generally one Demand per Ministry/Department (large ones may get more).

§ 1.3

Scope — the Budget covers three years

YEAR −1

Actuals

Final recorded receipts & expenditure of the year preceding the current year.

CURRENT YEAR

Revised Estimates

Mid-year re-estimate of probable receipts & expenditure for the running year.

YEAR +1

Budget Estimates

Detailed estimates for the ensuing financial year — the year being voted.

The AFS presents these under the three Funds (Consolidated, Contingency, Public Account) and distinguishes the Revenue from the Capital account (Article 112). Receipts are classified into tax, non-tax, and capital (debt & non-debt) receipts.

Two FRBM-mandated statements widen this scope (1.3.6): the Macro-Economic Framework Statement and the Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement (under the FRBM Act, 2003) add an assessment of growth prospects, rolling targets for fiscal indicators, and the Government's strategic fiscal priorities for the ensuing year.

§ 1.4

The Budget documents (A–M)

Besides the Finance Minister's Budget Speech, the documents fall into mandated ones and explanatory ones. Documents A, B, C are mandated by Articles 112, 113 and 110(a) respectively; D(i) & D(ii) by the FRBM Act, 2003. The rest (E–M) are explanatory.

#	Document	Note
A	Annual Financial Statement	Article 112; Statement I (CFI), IA (Charged), II (Contingency Fund), III (Public Account).
B	Demands for Grants	Article 113; one DG generally per Ministry/Department; shown by Major Heads, split charged/voted & revenue/capital.
C	Finance Bill	Article 110(1)(a); a Money Bill detailing taxation; accompanied by an explanatory Memorandum.
D	FRBM Statements	(i) Macro-Economic Framework Statement; (ii) Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement.
E	Expenditure Budget	Also called Statement of Budget Estimates (SBE); net basis on Revenue/Capital.
F	Receipts Budget	Part A (receipts) & Part B (asset & liability statements).
G–H	Expenditure Profile · Budget at a Glance	Profile (formerly Exp. Budget Vol-I, recast after Plan/Non-Plan merger); Budget at a Glance shows deficits.
I–M	Memo, OOMF, Key Features, Implementation, Key to Budget	Output-Outcome Monitoring Framework for CS/CSS schemes with outlay ≥ ₹500 crore; implementation status updated to the first week of January.

Umbrella 1

Centre's Expenditure

(a) Establishment expenditure of the Centre; (b) Central Sector Schemes; (c) Other Central Expenditure, including CPSEs and Autonomous Bodies.

Umbrella 2

Transfers to States / UTs

(a) Centrally Sponsored Schemes; (b) Finance Commission Transfers; (c) Other Transfers to States.

The Budget at a Glance then draws on this to show the Central Government's revenue deficit, gross primary deficit and gross fiscal deficit.

§ 1.5

Detailed Demands for Grants (DDG)

The Detailed Demands for Grants are prepared by Ministries/Departments from the provisions in the Demands for Grants, and laid on the Table of the Lok Sabha after the Budget presentation but before discussion on the Demands begins. They show the break-up by objects of expenditure for provisions of ₹1 lakh or more individually, followed by recoveries taken in reduction of expenditure, with totals shown Major-Head and Section-wise (Total / Charged / Voted provision).

§ 1.6

Merger of the Rail Budget with the General Budget

1924 → 2016

Separate Railway Budget

Began in 1924 and continued after independence as a convention, not a constitutional requirement.

FY 2017-18

Merged with the General Budget

Railway appropriations folded into the main Appropriation Bill; capital-at-charge wiped off.

RESULT

16 Demands → 1

Railways now operate a single Demand for Grant, down from 16.

The Railways nonetheless retain their distinct entity as a departmentally-run commercial undertaking, with functional autonomy and delegated powers, and continue to receive Gross Budgetary Support for part of their capital expenditure.

Self-test

Chapter 1 Quiz — introduction, features & documents

Eight questions from Chapter 1. Pick an answer to lock it; the explanation appears below.

Score 0 / 0

⚡ Chapter 1 — Quick Recap

Concept	Key Fact
Financial year	1 Apr – 31 Mar; introduced 1867 (L.K. Jha Committee)
Presentation date	1 February (or other suitable date)
Preparation	Iterative MoF <-> line Ministries; starts with the Budget Circular
Accounting basis	Cash basis; Rule of Lapse
Net budgeting	Allowed for Railways, Posts etc.
Three years shown	BE (current+ensuing) · RE (current) · Actuals (prev.)
Mandated documents	AFS (112) · DG (113) · Finance Bill (110(a)) · FRBM stmts
OOMF threshold	CS/CSS schemes with outlay ≥ ₹500 crore
DDG object-head cut-off	Provisions ₹1 lakh or more
Rail Budget merger	FY 2017-18; DGs cut 16 → 1

CH 2 · ROLES

Roles & Responsibilities of the Stakeholders

Who does what (2.1)

The Government formulates the Budget; Parliament approves it and enforces accountability of the Executive. Parliamentary control over the public purse rests on Articles 265, 266, 112 and 114 — no tax without authority of law, no expenditure without legislative authorisation, and the AFS laid before Parliament each year.

Approvals before presentation (2.2–2.4)

11 AMBudget is presented at 11:00 am on 1 February (or another date). The President's approval for presentation is obtained by the Secretary-General, Lok Sabha Secretariat, after the Speaker agrees the date.
PRESSummary for the President seeks recommendation under Article 117(1) & 117(3) for the Finance Bill (with Art 274) and Appropriation Bill; approved by FM and PM before the President's approval.
CABSummary for the Cabinet — the FM briefs the Cabinet on proposals and the Finance Bill immediately before presentation; the Budget is presented right after.
ELECTIn a General Election year, the Budget may be presented twice — first for a Vote on Account, later for the full year.

§ 2.5–2.6

Presentation & General Discussion

The Speech & the debate

SPEECHThe Budget Speech is largely a policy document; the Budget is laid on the Table of the Rajya Sabha after the Speech. No discussion takes place on the day of presentation.
5 COPIESFive copies of the FM's speech are provided to the Secretary-General, Lok Sabha as soon as the FM starts reading.
GDGeneral Discussion — the House may discuss the Budget as a whole or any question of principle, but no motion is moved and the Budget is not voted after it. The FM has a right of reply.
NOTESOfficers not below Under Secretary rank cover the discussions and prepare "Notes"/"Gist of Points" for the FM the same day.

§ 2.7–2.8

Cut-Motions & the Guillotine

Re. 1

Disapproval of Policy Cut

"That the amount of the demand be reduced to Re. 1" — represents disapproval of the policy underlying the demand; discussion confined to the specified policy; member may advocate an alternative.

Specified ₹

Economy Cut

"That the amount be reduced by a specified amount" — to effect economy; may be a lump-sum reduction or omission/reduction of an item.

Rs. 100

Token Cut

"That the amount be reduced by Rs. 100" — to ventilate a specific grievance within the Government of India's responsibility; discussion limited to that grievance.

Guillotine (2.8)

On the last day of discussion on Demands, the Speaker puts all outstanding Demands to the vote at once — the "Guillotine" — bringing debate to an end within a fixed time, so several Demands are voted without discussion. Cut Motions already moved are put to vote and negated; the Ministry of Parliamentary Affairs ensures concerned Ministers are present.

§ 2.9–2.11

Appropriation Bill, Finance Bill & Vote on Account

The two Bills and the interim grant

APPAppropriation Bill (Art 114) — introduced after Demands are voted, to authorise withdrawal from the Consolidated Fund. Passed by the Lok Sabha, then transmitted to the Rajya Sabha for consideration & return.
FINFinance Bill — a Money Bill introduced with the President's recommendation under Art 117(1) immediately after the AFS; considered after the Appropriation Bill passes. It is a Secret Bill (copies not circulated two days in advance).
75 DAYSUnder the Provisional Collection of Taxes Act, 1931, the Finance Bill must be passed and assented within 75 days of introduction; customs/excise changes take effect immediately and stay in force for 75 days or till enactment, whichever is earlier.
VoAVote on Account (Art 116) — keeps Government functioning pending the final Budget vote; treated as a formal affair passed by the Lok Sabha. After the advanced budget cycle, it is used in election years when an interim Budget is presented.

§ 2.12–2.16

The Executive — MoF, Budget Division & Ministries

Inside the Finance Ministry

BUDGET DIVThe Budget Division (Dept. of Economic Affairs) prepares the Union Budget; headed by Joint Secretary / Additional Secretary (Budget). Its functions flow from the Allocation of Business Rules, 1961 (ways & means, market borrowing, public debt, NSSF, Contingency Fund, Finance Commission, etc.).
SCRUTINYIts primary task is scrutiny of receipt & expenditure estimates item by item, adopting figures, communicating them to Ministries, and assessing the consolidated position with competent-authority approval.
DoEDepartment of Expenditure — financial rules & DFPR, sanctions beyond delegated powers, staffing review, government accounting principles, and administering Finance Commission grants (revenue deficit, Calamity Relief, local-body, etc.).
CAAThe Secretary of each Ministry is the Chief Accounting Authority, responsible for revenue collection and expenditure control, discharged via the Financial Adviser and the Chief Controller of Accounts.

§ 2.17–2.19

Financial Advisers, CGA & NITI Aayog

Financial Adviser (Redefined Charter, 1 June 2006)

ROLEActs on behalf of the MoF for matters outside the Ministry's delegated powers; responsible for Budget formulation, FRBM tasks, expenditure & cash management, scheme appraisal/monitoring/evaluation, and proposal screening.
CHECKSEnsures the Budget schedule is met; scrutinises proposals for correctness of classification, full coverage and reasonableness; screens Supplementary Demands; submits the SBE with 18 copies.
NS/NISEnsures the New Service/New Instrument of Service statement is included; ensures classification matches the List of Major & Minor Heads of Accounts.

2.18

Controller General of Accounts

Maintains a technically sound accounting system; prepares a monthly analytical report for the FM; prepares annual Appropriation Accounts & Union Finance Accounts; maintains line-item accounts of the three Funds. Its submission of these accounts to Parliament completes the budget cycle.

2.19–2.21

NITI Aayog, FC & RBI

NITI Aayog (1 Jan 2015, replacing the Planning Commission) is the Government's think-tank and finalises the OOMF. The Finance Commission fixes the States' share. The RBI, as banker to Government, manages the public debt and securities.

§ 2.22–2.23

C&AG & Parliamentary financial control

C&AG (Article 151)

The audited Appropriation & Finance Accounts, with the C&AG's reports, are submitted to the President under Article 151 and laid before Parliament. The C&AG verifies (i) that money disbursed was legally available and applied to the right service and conforms to the governing authority, and (ii) that revenue assessment, collection and allocation were proper. It may also audit grants/loans and other bodies under the 1971 Act.

Estimates

Rule 310, LS. Reports economies & efficiency, suggests alternative policies and the form of estimates; may examine estimates throughout the year.

PAC

Rule 308, LS. Examines Appropriation Accounts & C&AG reports — money legally available, conforming to authority, re-appropriations in order; takes up excess expenditure.

CPU

Committee on Public Undertakings — examines accounts/reports of State corporations and trading/manufacturing schemes.

DRSCs

Full system from 1993; consider Demands & Bills (Rule 270, RS), but their report on Demands cannot suggest cut motions.

Self-test

Chapter 2 Quiz — Parliament, Bills & the Executive

Eight questions from Chapter 2. Pick an answer to lock it; the explanation appears below.

Score 0 / 0

⚡ Chapter 2 — Quick Recap

Concept	Key Fact
Parliamentary control	Articles 265, 266, 112, 114
Presentation	11 am, 1 Feb; laid in RS after the Speech; no discussion that day
President's recommendation	Article 117(1) & 117(3) (Finance & Appropriation Bills)
Cut Motions	Policy (Re. 1) · Economy (specified) · Token (Rs. 100)
Guillotine	All outstanding Demands voted at once on the last day
Finance Bill deadline	75 days (Provisional Collection of Taxes Act, 1931)
Budget Division	DEA; headed by JS/AS (Budget); AoBR 1961
Chief Accounting Authority	Secretary of each Ministry
FA Charter	Redefined 1 June 2006; SBE in 18 copies
CGA	Monthly report to FM; Appropriation & Finance Accounts; completes cycle
NITI Aayog	1 Jan 2015; finalises OOMF
Financial Committees	EC (Rule 310) · PAC (Rule 308) · CPU; DRSCs from 1993

CH 3 · PROCESS

The Budget Process

When it all happens (3.1–3.5)

Although the Budget is presented on 1 February, preparation begins in mid-August of the previous year and runs to the end of March. The Budget Division frames a comprehensive Schedule of activities and roles. The process has two halves — the administrative process (preparing documents with stakeholders) and the legislative process (passage by Parliament). It begins with the Budget Circular, normally issued in September, giving instructions, formats and statements for framing RE (current year) and BE (ensuing year).

§ 3.6–3.8

Estimates of Receipts

How receipts are classified

REVENUERevenue Receipts = Tax Revenue + Non-Tax Revenue. Non-tax revenue has three components: interest (from States/UTs & others), dividends (PSUs, RBI, banks & insurers), and other NTR.
CAPITALCapital Receipts = debt receipts (borrowing) + non-debt receipts (disinvestment, loan repayments & other receipts).
TAXEstimates of central taxes/duties & cesses are furnished by Department of Revenue — the TRU (CBIC) for indirect taxes and TPL Division (CBDT) for direct taxes; tax rates and growth assumptions drive direct-tax estimates.
INTERESTInterest receipt estimates are prepared by the Chief Controllers of Accounts against loans outstanding in their books (after the FA's approval); NIL information must still be submitted in writing.
DISINVESTDisinvestment of equity & dividend receipts are furnished by DIPAM; bonus-share receipts classify under Major Head 4000 - Miscellaneous Capital Receipts.

Furnished by the Chief Controllers of Accounts and UT Accounts Officers in the Budget Circular form. Group Insurance Scheme estimates are not included by Ministries (furnished centrally). Railways, Defence (Finance Division) and Telecommunications furnish their Public Account transactions in their Cash Requirement Estimates. Ideally there should be no net debit/credit in a year in Public Account transactions, except with full justification.

§ 3.9

Estimates of Expenditure — general guidelines

Discipline in framing expenditure estimates

MID-OCTPre-Budget discussions commence around mid-October, chaired by Secretary (Expenditure), to fix net budgetary ceilings; estimates must conform to the MTEF Statement.
PRUNEMinistries first review the existing Expenditure Budget to prioritise and identify schemes that can be eliminated, reduced or merged; discontinued schemes must not appear in RE or the next BE.
SCRUTINYNo provision normally without pre-Budget scrutiny/appraisal of a project/scheme.
₹100 crThe PAC requires savings of ₹100 crore and above in a Grant to be explained; surrender of savings should be minimised.
VACANTNo establishment provision for posts vacant for one year or more; provision for vacant posts is made cautiously.

§ 3.10

SBE & the six categories of expenditure

Statement of Budget Estimates — rules

3 LEVELSSchemes are depicted to a maximum of three levels: (a) Umbrella Schemes; (b) Schemes; (c) Sub-Schemes.
2 TYPESAll schemes are categorised as either Centrally Sponsored Schemes or Central Sector Schemes (including provision for North East & Sikkim).
SUBSchemes with an EAP component or funding from a Public Account Fund show separate sub-scheme lines: Gross Budgetary Support, EAP Component, Amount met from Fund.
NER HEADS'Transfers to'/'amount met from' a reserve fund are not made from NER Major Heads 2552 / 4552 / 6552 (which only disclose transitory provisions re-appropriated later to functional heads).

Establishment Expenditure of the Centre — salaries, wages, office & administrative expenses, etc.
Central Sector Schemes — entirely funded & implemented by the Centre or its agencies.
Other Central Expenditure — CPSEs, autonomous bodies, interest payments, debt repayment, contributions to international organisations.
Centrally Sponsored Schemes — implemented by States/UTs with an approved sharing pattern; central share routed through State treasuries (except DBT).
Finance Commission Transfers — appear only in the "Transfers to States" Demand under the Department of Expenditure.
Other Transfers to States — e.g. NDRF, assistance under proviso (i) to Article 275(1).

Information for pre-Budget discussions (3.10.4–3.10.5)

COMMITBudget for all committed and continuing expenditure first, before new schemes; take account of latest actuals, prior-year actuals, re-appropriations and pending arrears.
UCFurnish unspent balances and pending Utilization Certificates (State-wise/scheme-wise) as on 31 March / 30 June / 30 September for bodies receiving over ₹1 crore grant/loan.
USER FEEDetail measures to increase user charges and efforts to recover Non-Tax revenue arrears; CPSU dividends per DIPAM's policy (OM 27.05.2016).

§ 3.12–3.17

NER & Sikkim, Pensions & SC/ST sub-components

Earmarking & the composite Pensions demand

10%All Ministries (unless exempted by DoNER) must spend 10% of Gross Budget Support from CS/CSS allocations on the North Eastern Region & Sikkim; provisions go under Major Heads 2552 / 4552 / 6552 for eventual re-appropriation.
PENSIONSThe composite Demand 'Pensions' is administered by the Central Pension Accounting Office (CPAO), Department of Expenditure; the CPAO consolidates pensionary estimates.
SCSP/TASPSC Sub-Plan (Minor Head 789) & Tribal Area Sub-Plan (Minor Head 796) — obligated Ministries keep the required percentage per NITI Aayog guidelines; nodal Ministries are Social Justice & Empowerment (SCSP) and Tribal Affairs (TASP); allocation not less than previous year's BE.

§ 3.16–3.18

Detailed Demands & FRBM disclosure statements

DDG information must exactly match the Demands for Grants; classification follows the List of Major & Minor Heads of Accounts, and the DDG is entered in UBIS and fed to PFMS for incurring expenditure. The schedules attach at these thresholds:

₹25 L+

Schedule of broad non-scheme expenditure.

₹5 cr+

Statement of individual works/projects.

₹5 L / ₹10 L

Grants-in-aid to private bodies — recurring / non-recurring.

₹10 L / yr

Source-of-funds disclosure for bodies receiving above this.

FRBM disclosure statements (Rules, 2004)

FOURDisclosure statements: (i) Guarantees given by Government; (ii) Tax Revenues raised but not realised; (iii) Arrears of Non-Tax Revenues; (iv) Asset Register.
6 CLASSGuarantees are classified into six classes (GFR 2017); a revised Government Guarantee Policy, 2022 was published in May 2022.
₹500 crWhere Non-Tax revenue arrears exceed ₹500 crore, reasons must be explained; values shown in crore of rupees (e.g. ₹0.40 crore, not lakhs).

Self-test

Chapter 3 Quiz — process, receipts & SBE

Eight questions from Chapter 3. Pick an answer to lock it; the explanation appears below.

Score 0 / 0

⚡ Chapter 3 — Quick Recap

Concept	Key Fact
Process window	Starts mid-August; Budget Circular in September
Receipts split	Revenue (Tax + Non-Tax) · Capital (debt + non-debt)
Non-tax revenue	Interest · Dividends · Other NTR
Tax estimates	TRU (CBIC) & TPL (CBDT), Dept. of Revenue
Disinvestment estimates	By DIPAM; bonus shares MH 4000
Pre-Budget meetings	Mid-October, chaired by Secretary (Expenditure)
PAC savings threshold	₹100 crore & above explained
SBE levels	3: Umbrella / Scheme / Sub-Scheme
Six categories	Centre's: estt, CS schemes, other; Transfers: CSS, FC, other
NER earmarking	10% of GBS; MH 2552/4552/6552
SCSP / TASP heads	Minor Head 789 / 796
FRBM disclosures	Guarantees · Tax not realised · NTR arrears · Asset Register

CH 4 · FINALIZATION

Budget Finalization

Three watchwords (4.1)

Through the whole preparation — from the Budget Circular onwards — the Budget Division maintains secrecy, accuracy and timeliness. Manually generated statements get an additional level of check. A Budget Activity Schedule circulates the tentative timelines; since 2021-22 the Budget has been brought out in digital (paperless) mode, sent by e-mail to the Lok Sabha & Rajya Sabha Secretariats after the FM's Speech.

§ 4.3

Scrutiny of the SBE & UBIS

From approved ceilings to the final SBE

CEILINGSAfter pre-Budget meetings, approved ceilings (Revenue & Capital separately) are communicated; Financial Advisers prepare the SBE (Final) and forward it to the Budget Division.
UBISThe Union Budget Information System (UBIS) — an online software — handles submission, processing and finalisation of the SBE and other documents. Since BE 2017-18, expenditure is classified into the six broad categories.
TYPEExpenditure Type codes: Voted (E), Charged (C), Recovery (Y), Receipt (R). Each Demand worksheet (D + demand number, e.g. D10) is both input and final output for SBE & Demands.
TRAININGThe NIC of the Ministry of Finance conducts comprehensive training for Ministry/Department staff on the SBE and its format.

§ 4.4

Preparing the Budget documents

Document-by-document checks

SPEECHFor the FM's Speech, all Departments provide inputs; the Budget Division checks facts/figures referred to in other documents.
KEYKey to Budget Documents is submitted for approval in the first week of January.
DEMANDSThe Demands Section verifies the correctness of the Demand number, Ministry nomenclature and Heads of Accounts (from the LMMHA), and tallies DG summary with individual DGs; it also prepares the New Service/NIS statement.
EXPExpenditure Budget figures come from the SBE in UBIS, net of recoveries; expenditure from dedicated Public Account reserve funds is shown as negative recoveries.
AFSAFS is generated from UBIS; actuals come from CGA. Two FRBM Fiscal Policy Statements accompany the Budget.

Direct & Indirect tax estimates are furnished by the Department of Revenue (CBDT & CBIC) by 7 January. States' share is computed from the shareable pool per the Finance Commission's percentage after deducting cost of collection. Non-Tax Revenue estimates are approved by the designated Director by end-December and consolidated for the Secretary (DEA) by the first week of January. Trend statements (Annex 1&2) give actuals for 8 preceding years; the Liability/Asset statement (Part B) shows actuals from 1950-51 and four preceding years.

§ 4.5

Budget Press & lock-in arrangements

Secrecy at the printing stage

PRESSThe Finance Ministry has its own press to print all Budget papers; entry is restricted in the months before presentation.
LOCK-INPress employees, staff and officers are locked-in for the last few days to ensure foolproof secrecy. Construction/maintenance around the Budget Press must finish by 30 November.
IBSecurity for the entire Budget period is arranged by the Intelligence Bureau in consultation with the Budget Division; it screens all associated officers/staff.

§ 4.6

Outcome Budget / Output-Outcome Monitoring Framework

STEP 1

Outlay

The amount provided for a scheme/project in the Budget.

STEP 2

Output

The direct, measurable product of programme activities, often in physical units.

STEP 3

Outcome

The collective results or qualitative improvements from delivering the services.

Since 2017-18 the OOMF covers major CS & CSS schemes with outlay ≥ ₹500 crore. Ministries submit it to NITI Aayog (English & Hindi), which finalises it and forwards it to DoE (PFC-II); DoE reviews the targets with DMEO and sends the final document to the Budget Division.

§ 4.7

Budget in Parliament — the legislative paperwork

Letters, Bill numbers & the recess work

BILL NOThe Demands Section obtains the Bill Number for the Finance Bill from the Ministry of Law & Justice. The first Finance Bill of the year gets no number ("Finance Bill, Year"); a second carries a number ("Finance (No. 2) Bill, Year"). The same applies to the Appropriation Bill.
800During recess, the Demand Section prepares the List of Demands for Grants in the Budget Press — 800 copies for the Lok Sabha before the 2nd session after recess.
VETTINGThe draft Appropriation Bill (with Statement & Objects/Reasons) goes to the Leg-I Section, Ministry of Law & Justice for vetting; the Bill is introduced, passed by Lok Sabha, sent to Rajya Sabha, then the President's Assent is obtained and the Act published in the Gazette by the Minto Road Government Press.
PRES RULEFor a State/UT under President's Rule, the powers of the State legislature are exercised by Parliament; the MHA sends Budget proposals (Articles 202, 239, 239A); a similar laying/passing/assent exercise follows.

Self-test

Chapter 4 Quiz — finalization, UBIS & the Press

Seven questions from Chapter 4. Pick an answer to lock it; the explanation appears below.

Score 0 / 0

⚡ Chapter 4 — Quick Recap

Concept	Key Fact
Three watchwords	Secrecy, accuracy, timeliness
Paperless Budget	From 2021-22; e-mailed to LS/RS after the Speech
UBIS	Online system for SBE & documents; six-category classification
Expenditure Type codes	Voted E · Charged C · Recovery Y · Receipt R
Tax estimates due	7 January (CBDT & CBIC)
Key to Budget docs	Approved first week of January
Trend statements	Actuals for 8 preceding years
Press readiness	Works finish by 30 November; staff locked-in; IB security
OOMF threshold	CS/CSS schemes ≥ ₹500 crore; finalised by NITI Aayog
Finance Bill number	First = no number; from Ministry of Law & Justice
List of Demands copies	800 copies for Lok Sabha
State under President's Rule	Proposals via MHA; Articles 202, 239, 239A

CH 5 · EXECUTION

Budget Execution

From grant to spending (5.1–5.3)

After the Appropriation Bill is passed, the Ministry of Finance communicates the grants to Ministries/Departments, which distribute them to subordinate formations and the Pay & Accounts Officers. Control of expenditure runs through the Heads of Departments, Controlling Officers and Disbursing Officers, who ensure expenditure is for the approved purpose, within the sums allotted, under competent sanction, and with due prudence.

The cardinal limits on spending (5.3)

YEARA Grant/Appropriation covers only charges paid during its financial year; no charge can be authorised after the year expires.
CEILINGNo expenditure may exceed the total grant authorised by Parliament except via a supplementary grant or an advance from the Contingency Fund.
SANCTIONNo expenditure/liability without sanction by general or special orders of Government or a delegated authority; comply with the GFR and DFPR.

§ 5.4–5.5

Cash management & Revised Estimates

Modified Cash Management System (from 1 April 2006)

EVENAims for greater evenness in budgeted expenditure, to reduce the rush of expenditure in the last quarter/month, reduce parking of funds, monitor the expenditure pattern, and plan the Indicative Market Borrowing Calendar.
RERevised Estimates arise after the mid-year review; they are not voted and do not themselves authorise expenditure — additional projections need Parliament's approval (NS/NIS) or a re-appropriation order under the DFPR.

§ 5.6

Re-appropriations & New Service / NIS

Rule 10, DFPR — when re-appropriation is barred

NO-1To meet expenditure not sanctioned by a competent authority.
NO-2From charged appropriations to voted expenditure or vice-versa.
NO-3From one Grant/Appropriation to another.
NO-4To meet expenditure on a New Service / New Instrument of Service.
EAPNo re-appropriation from EAP savings to non-EAP purposes, nor from 'Salaries' savings to 'Non-Salaries'.

Delegated powers & finance-ministry consent

₹5 crPower to augment provisions via re-appropriation below ₹5 crore is delegated to administrative Ministries; full powers exist within the same section for 'Salaries', 'Wages', 'Pensionary Charges', 'Medical Expenses' and 'Rent, Rates & Taxes'.
NSNew Service = expenditure from a policy decision not earlier before Parliament (Art 115(1)(a)); New Instrument of Service = large expenditure from important expansion of an existing activity. Financial limits are in the OM dated 25.05.2006.
CONSENTWithout the Finance Ministry's prior consent, no re-appropriation from/to Secret Service expenditure, nor to augment 'Salaries/Wages/Office Expenses/Other Charges' taken together for the whole Grant. NS/NIS limits apply only to voted expenditure (not charged).
GFR 4A re-appropriation application is supported by Form GFR 4; reasons for saving/excess of ₹1 lakh or over must be stated, with a copy to the Accounts Officer.

§ 5.7

Supplementary Demands for Grants

Cash

Cash Supplementary

Over and above the original provision — enhances the allocation when no savings exist. Impacts the fiscal/revenue deficit; obtained as a last resort with the specific approval of Secretary (Expenditure).

Technical

Technical Supplementary

Transfers savings between the 4 sections of a Demand (Revenue-Voted, Revenue-Charged, Capital-Voted, Capital-Charged), or moves a scheme between Demands, or covers waivers/write-offs and matching receipts.

₹0.01 cr

Token Supplementary

A token of ₹0.01 crore obtained when NS/NIS limits require Parliament's approval to re-appropriate savings within the same section. Does not alter the revenue/fiscal deficit.

Ministries explore economy & rationalisation, the possibility of meeting needs by Token/Technical Supplementary, and matching savings from other schemes; no new schemes (except Budget announcements) mid-year; only for schemes approved by the competent authority and limited to the relevant financial year, after enforcing austerity cuts. Excess expenditure attracting NS/NIS may be allowed by FAs only on the specific approval of Secretary (Expenditure) that funds will come via the next Supplementary batch (GFR 61 & 69, Appendix 10).

§ 5.8–5.10

Excess Grants & surrender of savings

Excess & surrenders

EXCESSIf total expenditure exceeds the original + supplementary grant, the excess requires regularisation by an Excess Grant from Parliament under Article 115.
SURRENDERMinistries surrender anticipated savings to the Finance Ministry by the prescribed dates before the close of the year, so they can be reallocated; no savings held in reserve for possible future excesses.
RUSHA rush of expenditure in the closing months is a breach of financial propriety and must be avoided.

§ 5.11–5.12

Chief Accounting Authority & devolution of taxes

Duties of the Chief Accounting Authority (the Secretary)

ACCTResponsible & accountable for the Ministry's financial management; ensures funds are used for their intended purpose and resources are used effectively, efficiently, economically and transparently.
PACAppears before the PAC and other Committees; reviews and monitors programme/project performance against objectives.
PROCUREEnsures the Ministry follows fair, transparent, competitive, cost-effective procurement, collects all money due, and avoids unauthorised/irregular/wasteful expenditure.

Devolution of shareable taxes (Articles 270 & 279)

270Article 270 — Union taxes/duties (except those in Arts 268, 269, 269A, surcharge under 271, and cesses) are levied & collected by the GoI and distributed between Union and States.
279Article 279 empowers the C&AG to ascertain & certify the "Net Proceeds" (proceeds reduced by cost of collection).
MONTHLYDevolution is monthly, by tax-wise/State-wise sanctions through UBIS, paid via PFMS/RBI; releases are based on estimates, subject to final adjustment per the C&AG certificate.
10thFrom FY 2022-23, the date of devolution is the 10th of each month (earlier the 20th); total shareable receipts are distributed in 14 instalments.

Self-test

Chapter 5 Quiz — control, re-appropriation & supplementaries

Eight questions from Chapter 5. Pick an answer to lock it; the explanation appears below.

Score 0 / 0

⚡ Chapter 5 — Quick Recap

Concept	Key Fact
Exceeding a grant	Only via supplementary grant or Contingency Fund advance
Cash management	Modified CMS from 1 Apr 2006; curb last-quarter rush
Revised Estimates	Not voted; no authority to spend by itself
Re-appropriation bar	No charged↔voted; no grant-to-grant; no NS/NIS (Rule 10 DFPR)
Delegated re-app.	Augment below ₹5 crore within same section
Re-app. form	Form GFR 4; reasons for ₹1 lakh+ saving/excess
Cash Supplementary	Enhances allocation; impacts deficit; Secretary (Exp.) approval
Token Supplementary	₹0.01 crore; no change to deficit
4 sections of a Demand	Revenue/Capital × Voted/Charged
Excess Grant	Regularised under Article 115
Devolution	10th of each month (FY 2022-23); 14 instalments
Net Proceeds certified by	C&AG (Articles 270 & 279)

CH 6 · REVIEW

Budget Review

Closing the accountability loop

Review happens through several channels: the FRBM statements and half-yearly review, the OOMF, monitoring & evaluation by DMEO, mid-term evaluation of schemes, Internal Audit, C&AG audit, and scrutiny by the Public Accounts Committee.

§ 6.1

Reviews under the FRBM Act & MTEF

With AFS & Demands

MTFP + FPS

The Medium-Term Fiscal Policy Statement and the Fiscal Policy Strategy Statement, laid each year with the Budget.

With AFS & Demands

Macro-Economic Framework

Assesses growth prospects and the macro-economic setting underlying the Budget.

Next session

MTEF Statement

Laid in the session immediately following; sets three-year rolling targets for prescribed indicators, with assumptions and risks, to support fiscal consolidation.

Separately, under Section 7(1) the Government lays a half-yearly review of receipt and expenditure trends in the Monsoon and Winter sessions.

§ 6.2–6.4

OOMF, DMEO & mid-term evaluation

Monitoring & Evaluation machinery

OOMFOutcome Budget has been part of the process since 2006-07; from 2017-18 outputs/outcomes are presented in a consolidated document, in measurable terms, covering CS & CSS schemes with outlay ≥ ₹500 crore.
DMEOThe Development Monitoring and Evaluation Office (DMEO) — the apex M&E office — was established on 18 September 2015 as an attached office of NITI Aayog, merging the erstwhile Program Evaluation Office and Independent Evaluation Office; it has functional autonomy with separate budget & manpower.
3PARTYFor continuation, DoE insists on third-party independent evaluation of schemes (OM dated 08.12.2020). The Cabinet Secretary (Dec 2002) had advised all Ministries to evaluate ongoing schemes.

§ 6.5–6.6

Internal Audit & the C&AG audit

Internal Audit (under the Chief Controllers of Accounts)

UNITEach Ministry has a special Internal Audit unit under the direct control of the Financial Adviser; important findings go to the Secretary for corrective action.
SCOPEPer the Revised Charter, the Chief Controllers of Accounts carry out: scheme appraisal/monitoring/evaluation; assessment of internal controls & financial systems; risk identification (including Outcome Budget risks); a value-for-money review of service delivery; and an effective monitoring system for mid-course corrections.

The C&AG conducts not only accounting and compliance audit but also evaluation of end results — economy, efficiency and effectiveness. It audits Union Government Finance & Appropriation Accounts and submits its report under Article 151, and is entrusted with auditing compliance with the FRBM Act & Rules. The PAC selects subjects for consideration based on the C&AG's report.

§ 6.7

The Public Accounts Committee in review

The PAC is constituted each year to examine the appropriation of the sums granted. It satisfies itself that money disbursed was legally available and applied, that expenditure conforms to authority, that every re-appropriation followed the rules, and that spending stayed within the scope of the Demand — examining the circumstances of any spending more or less than sanctioned.

GOVT

Action-Taken Note

Government acts on the PAC's recommendations and submits ATNs.

PAC

Action-Taken Report

The PAC presents its report on the action taken.

GOVT

Action-Taken Statement

Government files a final statement, generally laid before the House without further examination.

Self-test

Chapter 6 Quiz — FRBM review, DMEO & audit

Seven questions from Chapter 6. Pick an answer to lock it; the explanation appears below.

Score 0 / 0

⚡ Chapter 6 — Quick Recap

Concept	Key Fact
FRBM statements	MTFP+FPS & Macro-Economic Framework (Section 3)
MTEF	3-year rolling targets; laid the session after fiscal policy stmts
Half-yearly review	Section 7(1); Monsoon & Winter sessions
Outcome Budget since	2006-07; consolidated outputs/outcomes from 2017-18
DMEO	Established 18 Sep 2015; attached to NITI Aayog; PEO + IEO merged
Scheme continuation	DoE insists on third-party independent evaluation
Internal Audit	Under the Financial Adviser; via Chief Controllers of Accounts
C&AG	Audit report under Article 151; audits FRBM compliance
PAC subject selection	Based on the C&AG report
Action-Taken cycle	ATN → ATR → Action-Taken Statement

CH 7 · ACCOUNTS

Structure of Government Accounts

Three categories (7.1)

In line with constitutional requirements, Government accounts are kept in three parts — Part I: Consolidated Fund, Part II: Contingency Fund, and Part III: Public Account. Budgeting and accounting classification follow a common pattern.

Consolidated Fund of India — Part I (7.2)

Under Article 266(1), it holds all revenues, loans raised (treasury bills, loans, Ways & Means advances) and money received in repayment of loans. It has two divisions:

REVENUERevenue Account — proceeds of taxation and other receipts classed as revenue, and the expenditure met from them.
CAPITALCapital Account — expenditure to increase concrete durable assets or reduce recurring liabilities, plus capital receipts. Its sections: Receipt heads (capital receipts not set off against capital expenditure), Expenditure heads, and 'Public Debt' & 'Loans & Advances' (internal/external debt and recoveries). For budgeting, the Revenue–Capital distinction is crucial.

§ 7.3

Contingency Fund of India — Part II

An imprest for the unforeseen (Article 267)

IMPRESTPlaced at the President's disposal for unforeseen expenditure pending Parliament's authorisation; established under the Contingency Fund of India Act, 1950, with Rules framed under Section 4.
CORPUSThe corpus is created by debit to the Consolidated Fund; on regularisation by Parliament's vote, the advance is recouped to the corpus by debit to the Consolidated Fund and re-booked there as revenue/capital.
1 HEADIn accounts, the Contingency Fund has a single Major Head for all its transactions.

§ 7.4

Public Account — Part III

Shows transactions in Debt (other than Part I), 'Deposits', 'Advances', 'Remittances' and 'Suspense'. These funds remain merged in the Central Government's cash balance with the RBI until paid out or adjusted (e.g. Reserve Funds, inter-Government transactions); the net funds are available to finance Government expenditure. Transactions are grouped by sectors/sub-sectors, then Major Heads.

§ 7.5

Union Government Accounts & the three account types

Who prepares them and when

FORMAccounts of the Union & States are kept in the form the President prescribes on the C&AG's advice (Article 150).
6 MONTHSPrepared by the CGA, certified by the C&AG, submitted to the President preferably within six months of the close of the financial year, and laid before each House.
MONTHLYMonthly & Annual Accounts — consolidated by CGA; the Monthly Account analyses expenditure, revenue, borrowings & deficit on a net basis.
FINANCEFinance Accounts — Part I (summarised statements) & Part II (detailed); similar to the AFS, receipts net of refunds and expenditure net of recoveries; no fiscal adjustments.
APPROPAppropriation Accounts — compare expenditure (voted & charged) with the grants/appropriations in the Appropriation Acts; prepared on a gross basis, without adjustments.

§ 7.6

Features of the accounting system

Cash basis & commercial exceptions

CASHAccounts are kept on a cash basis; all appropriations lapse at the year's close; only actual receipts/payments are taken in, with no accrued liabilities or income.
MINORUniform classification up to the Minor Head level enables financial comparisons between Union and State Governments.
COMMPurely/largely commercial departments keep accounts on a commercial basis (modified accrual) as subsidiary accounts; for major commercial departments (Railways, Posts) detailed capital & revenue accounts are prepared separately.
ANNUALSince Budgets are annual, governmental transactions are finalised in accounts on an annual basis.

§ 7.7–7.8

Classification — the six-tier structure

Tier	Digits	Denotes
Major Head	4	Function
Sub-Major Head	2	Sub-Function
Minor Head	3	Programme
Sub-Head	2	Scheme
Detailed Head	2	Sub-Scheme
Object Head	2	Object / Primary unit of appropriation

Classification has closer reference to functions, programmes and activities and the object of revenue/expenditure than to the department. The List of Major & Minor Heads is maintained by the CGA (Dept. of Expenditure), which opens new heads on the C&AG's advice under powers flowing from Article 150. Normally a new head is opened only where budget provision is available (for re-appropriation) or obtained through a Supplementary Demand; Supplementary Demands are for additionality / New Service — not for opening new heads, which can be operated only after the budget is obtained.

Self-test

Chapter 7 Quiz — the three funds & classification

Eight questions from Chapter 7. Pick an answer to lock it; the explanation appears below.

Score 0 / 0

⚡ Chapter 7 — Quick Recap

Concept	Key Fact
Three parts	Consolidated Fund · Contingency Fund · Public Account
Consolidated Fund	Art 266(1); Revenue + Capital accounts
Capital Account heads	Receipt, Expenditure, Public Debt, Loans & Advances
Contingency Fund	Art 267; imprest; single Major Head; 1950 Act
Public Account	Art 266(2); Debt/Deposits/Advances/Remittances/Suspense
Accounts prepared by	CGA, certified by C&AG; within 6 months
Finance Accounts	Net of refunds/recoveries; no fiscal adjustments
Appropriation Accounts	Gross basis; compare expenditure vs grants
Accounting basis	Cash basis; uniform to Minor Head level
Commercial depts	Modified accrual (Railways, Posts)
Six tiers	Major(4)/Sub-Major(2)/Minor(3)/Sub(2)/Detailed(2)/Object(2)
New heads	Rule 79 GFR; CGA on C&AG advice (Art 150)