Budget is a document, which sets forth the general policy and programme of the management for the year in financial terms. It is an important evaluation instrument because it fixes in writing concrete goals to be achieved during the year. It enable the organization to exercise an analytical and methodical control of business operations by means of comprehensive and pre-determined financial estimates viz-a-vis physical targets in minute details.
Budget estimates as complied in the Head Office are laid down before the Board of Directors. The budget estimates consist of sever parts and show actuals of the previous year, approved estimates for the current year, revised estimates for the current year and proposed budget estimates for the next year. The column for revised estimates shows that actual for the first 4 months of the current year and estimated receipts and expenditure for the remaining period of the year. Seven parts of the budget estimates are as follows :-
I) Capital Budget.
II) Revenue Budget.
III) Deposits and Various Funds.
IV) Creditors’ Deposits and other Misc. Creditors.
V) Advances, Deposits, Grants, Stores Account., Workshops Suspense Account, Sundry Debtors and other Accounts.
VII) Appropriation of Net Profit.
The budget is also accompanied with a Summary of proposals, Cash Flow Statement, Statement showing the position of Depreciation Reserve Fund, Statement showing the position of Motor Transport Reserve Fund, Statement of Liabilities, projected Profit land Loss Account and Explanation for Variation in Estimates of Revenue Receipts and Revenue Expenditure over the previous year. (Details are appended in Chapter-VII of the “HRTC Accounts Manual”.
The Heads of Offices of the Corporation sent their revised estimates for the current year and budget estimates for the ensuing year on or before the 31st October every year. The budget estimates for any year are laid before the Corporation on or before the 15th January and are forwarded to the State Government after these are passed by the Corporation on or before 31st January. The budget as approved by the Board of Directors constitutes the budget of the Corporation for the ensuing financial year.
As soon as the budget is approved and passed by the Board of Directors and State Govt., the allocation of the grant with capital /revenue expenditure is made to each Head of Office by the 15th of April. The Heads of Offices are responsible to see that expenditure is incurred according to the budget grant and that he grant is fully utilized and that too well in time and is not allowed to lapse. Every expenditure requires sanction of the competent authority. All the Heads of Offices use to send monthly “Revenue Expenditure Statement” to the Corporate Office. In practical, the allocation of funds in HRTC to each Head of Office is done through issuance of drawing limits from Corporate Office on monthly basis subject to provisions made in the budget estimates. So far as additional expenditure is concerned, the case is processed at Corporate Office level and after according sanction of the competent authority, the concerned Head of Office is accordingly authorized to incur any additional amount on any item.