Regional Accounts

7/30/2019 Regional Accounts

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GOVERNMENT OF HARYANA


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Publication No.Website- esaharyana.gov.in

GOVERNMENT OF HARYANA

ECONOMIC AND FUNCTIONAL


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PREFACE

Economic and Functional Classification of the Budgets of Municipal

Committees/Councils/Corporation in Haryana is an attempt to recast the State

Municipal transactions in order to assess the economic and functional significance of

these transactions. Economic Classification groups together the items of receipts andexpenditure by their economic character such as consumption expenditure, capital

formation, transfer payments etc. whereas the Functional Classification groups them

according to the particular purpose or function they perform such as education,

medical and public health, economic services etc. The present report covers the

classification of Municipal Budgets for the years 2007 -2008, 2008-2009 and 2009-2010. The main findings of the report are given in chapter-III of this report.

It is hoped that the analysis presented herein will be found useful by

the administrators, planners and research scholars engaged in the study of Municipal

Budgets.

This report has been prepared by Shri Sandeep Grewal, Research


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CONTENTS

Sr.No. Chapter Page(s)

I Introduction 1

II Set of Accounts Economic Classification 2-8

III Main Findings-Economic Classification 9-15

IV Notes on the Accounts, their Derivation and Rational 16-19

V Reconciliation: Income and Expenditure 20-21

VI Principles of Functional Classification 22-29

VII Functional Classification Scheme 30-31

VIII Notes on Functional Categories 32-33

IX G h 34


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1

CHAPTER-1

INTRODUCTION

The budget of a municipal committee/council/corporation presents

detailed information about its revenue and expenditure and other financialtransactions during the financial year in terms of various departments and purposes

but it does not clearly explain the economic significance of various items of revenue

and expenditure as these items are not recorded separately therein. Therefore, from

the study of budget documents (G-1 Form), as they are, it is not possible to have a

clear idea of consumption expenditure, capital formation, current receipts etc. of amunicipal committee/ council/corporation. The accounts shown in the budget are,

therefore, required to be reclassified and regrouped into meaningful economic

categories for understanding the real economic impact of the budgetary transactions

of a municipal committee/ council/ corporation.

Thus, in the present brochure, viz., Economic and Functional


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2

CHAPTER-II

THE SET OF ACCOUNTS

The following five accounts containing the reclassified data of all

the Municipal Committees/Councils/Corporation in Haryana for the years 2007-2008,

2008-2009 and 2009-2010 are presented in this chapter:-

Account-I Transactions in Commodities and Services and Transfers: Current

Account of Administrative Departments of Municipal

Committees/ Councils/Corporation.

Account-II Transactions in Commodities and Services and Transfers: Current

Account of Departmental Commercial Undertakings of Municipal

Committees/ Councils/Corporation.

Account-III Transactions in Commodities and Services and Transfers: Capital

f d i i i d l


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3

ACCOUNT-I

Transactions in Commodities and Services and Transfers: Current

Account of Administrative Departments of Municipal Committees/Councils/Corporation in Haryana

(Rs. in Lakhs)

Sr. Expenditure 2007-08 2008-09 2009-10 Sr. Revenue 2007-08 2008-09 2009-10

No. No

1 2 3 4 5 6 7 8 9 10

1. Consumption Expenditure 31319 30128 36533 4.Tax Revenue@ 20364 21500 14758

1.1 Wages & Salaries 16372 18021 27000 4.1Taxes on Income 11 21 196

1.2 Net Purchase of 14947 12107 9533 (a) Profession or Trade Tax 11 21 113Commodities & Services

(a) Purchase of Commodities 5094 5050 5418 (b) Servant Tax - - 83

(b) Servant Tax - - -(b) Repairs and Maintenance 11898 8155 6126 4.2 Taxes on Commodities & Services 3959 2200 4952(c) Less Sale of Commodities 2045 1098 2011 (a) Octroi 18 11 -

2. Transfer Payments 112 200 1320 (b) Water Tax - - -

2.1 Interest 110 191 1108 (c) Terminal Tax 243 230 271

2.2 Grants 2 9 212 (d) Taxes on Vehicles 704 700 7702.3 Other Current Transfers - - (e) Taxes on Animals (including 51 33 17

Fee for registration of do

3. Savings on Current Account 10791 28624 47493 (f) Fee for Vehicle Licences 247 561 346

(g) Licence Fee for Job Porters - - 87-

(h) Dangerous & Offensive Trade,635 596 1025

341 635Licence Fees and for Letting offFire Works

(i) Tolls on Vehicles & Animals 21 43 6

21


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(j) Local Rate - - --

4

1 2 3 4 5 6 7 8 9 10

(k) Income from Public Safety 2040 1102 419and Convenience

4.3 Taxes on Properties & Capital 16394 19279 11621

Transactions

(a) Taxes on Buildings and Land 8310 6914 5937(b)Income from Municipal 8084 12365 5684

Properties

5. Administrative Receipts 112 98 125

6. Revenue Grants and 4987 9059 46892Contributions

7. Other Income from 593 614 1748

(a) Profit Transferred from (-)416 (-)333 (-)441

Departmental CommercialUndertakings (Account-II)

(b) Income from Investment 20 205 689

(c) Interest Receipts 989 742 1500

8. Miscellaneous Receipts 16166 27681 21823

Total 42222 58952 85346 Total 42222 58952 85346

@ Includes income from municipal properties.


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5

ACCOUNT-II

Transactions in Commodities and Services and Transfers: Current


Committees /Councils /Corporation in Haryana.(Rs. in Lakhs)

Sr. Expenditure 2007-08 2008-09 2009-10 Sr. Revenue 2007-08 2008-09 2009-10

No. No.

1 2 3 4 5 6 7 8 9 10

1. Wages and Salaries 1371 1483 1558 6.Gross Sale Proceeds 981 1160 1385

2. Commodities & Services 7 5 132 a)Electricity - - -

3. Repairs & Maintenance 18 1 134 b)Transpor - - -

4. Interest 1 4 2 c) Water Supply 981 1160 1385

(Sale of water)

5. Profit Transferred to (-)416 (-)333 (-)441

Current Account

Total 981 1160 1385 Total 981 1160 1385


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6

ACCOUNT-IIITransactions in Commodities and Services and Transfers: Capital Account of Administrative

Departments and Departmental Commercial Undertakings of Municipal Committees/Councils/Corporation in Haryana

(Rs. in Lakhs)

Sr. Disbursement 2007-08 2008-09 2009-10 Sr. Revenue 2007-08 2008-09 2009-10

No. No.

1 2 3 4 5 6 7 8 9

10

1. Capital Formation 17758 29044 32133 5. Savings on Current 10791 28624 47493

A. Administrative Departments 14068 24166 29491 Account

1.1 Buildings & Other 13703 23873 29091 6. Capital Transfers 10658 13919 10791Construction

1.2 Machinery & Equipment 365 293 400 6.1 Capital Grants, 9074 11579 8637

Contributions & Recoveries

B Departmental Commercial 3690 4878 2642 6.2 Suspense Account 1584 2340 2154

Undertakings

1.1 Buildings and Other 3689 4877 2624

Construction

1.2 Machinery and Equipment 1 1 18

2. Increase in Inventories 1891 1971 6761

(Suspense Account)

3. Capital Transfers - -4. Balance: Surplus/Deficit on 1800 11528 19390

all Transactions in

Commodities and Transfers.


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Total 21449 42543 58284 Total 21449 42543 58284

7

ACCOUNT-IVChanges in Financial Assets and Liabilities: Capital Account of

Municipal Committees/Councils/Corporation in Haryana

(Rs.in Lakhs)

Sr.No. Outgoings 2007-08 2008-09 2009-10 Sr.No. Incomings 2007-08 2008-09 2009-10

1 2 3 4 5 6 7 8 9 10

1. Repayment of Loan 39 172 938 4. Loans and 605 2753 207

and Advances Advances

2. Unearmarked Investment 164 97 116

3. Balance: Net 4022 494 (-) 847

Increase in FinancialAssets and Liabilities

Total 605 2753 207 Total 605 2753 207


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8

ACCOUNT-V

Cash and Capital Reconciliation Account of Municipal Committees/Councils/Corporation in Haryana

(Rs. in Lakhs)

Sr. Outgoings 2007-08 2008-09 2009-10 Sr. Incomings 2007-08 2008-09 2009-10

No. No.

1 2 3 4 5 6 7 8 9 10

1. Increase in Cash 2202 14012 18543 1. Surplus in al 1800 11528 19390

Balance Transactions in

Commodities &

Services andTransfers (Bala-

ncing Item of

Account-III)

2. Net Increase in 402 2484 (-)847

Financial Assets/

Liabilities

(Balancing Item

of Account-IV)

Total 2202 14012 18543 Total 2202 14012 18543


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9

CHAPTER-IIIMAIN FINDINGS

The main findings emerging from the economic classification of

municipal budgets are depicted below:-

Total Expenditure as per Economic Classification :- The total expenditure (as per

economic classification) of the municipal committees/councils/corporation in Haryana

(excluding operating expenses of Departmental Commercial Undertakings) was Rs.

77801 lakhs during 2009-10 as compared to Rs.61612 lakhs during 2008-09 and Rs.

51283 lakhs during 2007-08 registering an increase of 26.88 percent in 2009-10 over

2008-09 whereas it increased by 20.14percent in 2008-09 over 2007-08.The municipal

committees/councils/corporation incurred expenditure mainly on wages and salaries of

municipal staff, construction of roads, pavement and maintenance of streets and

drainage works. The allocation by types of expenditure is given in table-3.1.

Table 3.1: Total Expenditure by Municipal Committees/Councils/Corporation

(Rs. in Lakhs)

Sr. Item 2007-08 2008-09 2009-10

No. (Accounts) (Account) (Account)


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10

3.1(a) Final Outlays:-Final outlays represent direct demand for consumption

expenditure, capital formation etc. of the Municipal Committees/Councils/Corporation.

Final outlays constitute the major expenditure i.e. 96.95 percent in 2009-10 as against

99.24 percent in 2008-09 and 99.39 percent in 2007-08. Of the final outlay of Rs.75427

lakhs incurred during the year 2009-10, Rs. 36533 lakhs or 48.44 percent constituted

consumption expenditure as against Rs.30128 lakhs or 48.90 percent during 2008-09

and Rs.31319 lakhs or 61.08 percent during 2007-08.

3.1(b) Capital Formation:

The expenditure incurred on capital formation during 2009-10 formed 42.60

percent of the total expenditure as against 37.14 per cent during 2008-2009 and 34.62

percent during 2007-2008. Capital formation was to the tune of Rs. 32133 lakhs in 2009-

10 as compared to Rs. 29044 lakhs in 2008-2009 showing an increase by 10.64

percent 2009-10 over 2008-09 where as an increased of 63.55 percent in 2008-09 over

2007-08.

3.1( c) Transfer Payments, Financial Investments and Loans

Th di f R 2374 l kh f i 3 05 f h l


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3.2 Financial Assistance for Capital FormationIn addition to the capital formation directly undertaken, the assistance

was also provided to the rest of the economy for capital formation.The details of

amount spent for this purpose for the years under review are given in table-3.2.

Table 3.2 Total Financial Assistance for Capital Formation

(Rs. in Lakhs)

Sr. Item 2007-08 2008-09 2009-10

1 2 3 4 5

1. Loans for Capital Formation - -

2. Unearmarked Investments 164 97 116

(Vide item 2 of Account IV)

Total Financial Assistance 164 97 116

for Capital Formation111

3.3 Capital Formation Out of Budgetary Resources

The details of total investment for capital formation by Municipal

Committees/Councils/Corporation out of budgetary resources are indicated in table-3.3.

Table-3.3: Capital Formation Out of Budgetary Resources of the Municipal

Committees/Councils/Corporation.

(Rs. in lakhs)


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3.4 Current Receipts:In assessing the economic implications of municipal expenditure, it is

necessary to examine the resources from which they are financed. The

municipal committees/ councils/ corporation derive income mainly from

taxes on buildings and land and income from municipal properties. The

State Govt. also gives grants and loans to municipal committees/

councils/corporation for development works and for salary of the

municipal staff. For proper assessment of economic implications of

municipal expenditure, their sources of income havebeen grouped under

significant economic heads in table-3.4.

Table 3.4 Current Receipts of Municipal Committees/Councils/Corporation

(Rs.in Lakhs)

Sr.No. Item 2007-2008 2008-09 2009-10

1 2 3 4 5

1. Tax Revenue (vide item 4 of Account-I) 20364 21500 14758

(48.23) (36.47) (17.29)

2. Other Income 593 614 1748

(Vide item 7 of Account-I) (1.40) (1.04) (2.05)


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133.5 Current Outgoings:-

The Current Outgoings which Consists of Consumption Expenditure and

Transfer Payments were Rs.31431 lakhs during the year 2007-2008, Rs. 30328,lakhs

during 2008-2009 and Rs. 37853 lakhs during 2009-2010. This shows an decrease by

3.51 percent during 2008-2009 over 2007-2008 and an increase of 24.81 percent during

2009-2010 over 2008-2009. Consumption Expenditure constitutes the major portion of

the Current outgoings. Its contribution to total Current Outgoing were 99.64 percent,

99.34 percent and 96.51 percent respectively during the above periods whereas the

contribution of Transfer Payments to total Current Outgoings during the above periods

were only 0.36 percent, 0.66 percent and 3.49 percent respectively. The details are given

in the following table No.3.5:-

Table 3.5:Current Outgoings of Municipal Committees/Councils/Corporation

(Rs. in Lakhs)

Sr.No. Item 2007-08 2008-09 2009-10

1 2 3 4 5


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3.6 Gross Savings: Gross savings comprise savings of the municipal administration

i.e. the surplus of municipal current receipts over municipal current expenditure.

3.6(a) Income Surplus/Deficit:

The income surplus/deficit of Municipal Committees/Councils/ Corporation is measured

by the excess of investment over net saving and is shown in table-3.6(a).Table 3.6(a): Income Surplus/Deficit of the Municipal Committees/Councils/

Corporation.

(Rs. in Lakhs)

Sr.No. Item 2007-08 2008-09 2009-10

1 2 3 4 5

1. Savings by the Municipal Committees/ 10791 28624 47493Councils/Corporation

(Vide item 3 of Account-1)

2. Investment/Capital Formation 17758 29044 32133

by the Municipal Committees/

Councils/Corporation

(Vide item 1 of Account-III)

Income Surplus/Deficit of the Municipal (-) 6967 (-) 420 15360


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3.7 Net Profit of Departmental Commercial Undertakings: The net profit of

departmental Commercial Undertakings i.e. the excess of gross receipts over operating

expenses exhibits the financial result of the working of these undertakings. This is taken

as profit and taken to current account of Municipal Committees/Councils/Corporation

and add to their savings. The derivations of the net profit is shown in a table given

below:-

Table 3.7: Net Profit of Departmental Commercial Undertakings of Municipal

Committees/Councils/Corporation

(Rs. in Lakhs)

Sr.No. Item 2007-08 2008-09 2009-10

1 2 3 4 51. Gross Receipts 981 1160 1385

(Vide item 6 of Account-II)

2. Operating Expenses 1397 1493 1826

(Vide item 1, 2, 3 and 4 of Account-II)

Net Profit (1-2) (-) 416 (-) 333 (-) 441


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CHAPTER-IV

NOTES ON THE ACCOUNTS, THEIR DERIVATION AND RATIONAL

Account 1: Transactions in Commodities and Services and Transfers : Current

Account of Municipal Committees/Councils/Corporation :This account deals with the current revenue and expenditure of all the

Municipal Committees/Councils/Corporation in the State. All departments other than

those listed under Account-II in the chapter are considered as administrative for the

purpose of this classification. The current expenditure of administrative departments

consist of the final outlays of Municipal Committees/Councils/Corporation on current

account which represents consumption. The final outlays are made up of purchases of

commodities and services and wages and salaries payments. Besides final outlays,

Municipal Committees/Councils/Corporation make transfer payments, i.e. grants,

scholarships, prizes etc. to the rest of the economy which add indirectly to the disposable

income of the community. To meet the current expenditure, Municipal


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of hired buildings, machinery and equipment, 50 per cent lump-sum miscellaneous

unclassified charges and other items for current operation.

17

Item No.2Transfer Payments:- Transfer payments include grants, scholarships,

stipends, prizes and awards etc.

Item No. 3 Savings on Current Account: The balancing item on the Current Account

of the Municipal Committees/Councils/Corporation represent the saving of this sector,

i.e. surplus of current receipts over current expenditure.

Item No. 4 Tax Revenue: This is classified into taxes on income, taxes on commodities

and services and taxes on properties, and capital transactions. Taxes on income include

tax on profession or trade. Taxes on commodities and services consist of octroi, terminal

tax, water tax, taxes on vehicles and animals and income under the head of public safety

and convenience which include lighting, fire, fee for services of fire brigade etc. Taxes

on properties and capital transactions comprise taxes on buildings, land and income

from municipal properties (rent of land and buildings, dak bungalows, gardens, road side

trees and tehbazari fees).


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Account- II : Transactions in Commodities and Services and Transfers: Current


Committees/Councils/Corporation :

The Departmental Commercial Undertakings briefly be defined as

agencies producing goods and services that are not provided free of charge. The

essential characteristics distinguishing these departments from other administrative

departments are that they charge for what they provide according to use and are thus

able to meet a part or most of their costs from their sale proceeds. In this study

electricity, transport and water supply have been classified as Departmental Commercial

Undertakings.

The expenditure side of the Departmental Commercial Undertakings spell

out the current expenditure into wages and salaries, commodities and services, repairs

and maintenance, interest, provision for depreciation and profit which is transferred to

Administrative Departments. Repairs and maintenance expenditure is shown separately

because of the importance of such expenditure of the efficient working of commercial

enterprises.


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Item 1.1 Buildings and Other Constructions:- This item includes all expenditure on

works of buildings and reservoirs, construction of roads and pavement of streets.

Item 1.2 Machinery and Equipment: Machinery and Equipment include expenditure

incurred on the purchase of tools and plants by the Municipal Committees/ Councils/

Corporation of the State.

Item 2 Increase in Inventories:- This item represents increase or decrease in work

stores and stock of goods etc. Suspense Account is included under the head Work

Stores .

Receipts on Capital Account:- Receipts available for capital formation consists of

gross savings on Current Account brought over from Account-I and capital grants,

contributions and recoveries from the State Government and other institutions.

Account-IV: Changes in Financial Assets and Liabilities: Capital Account of

Municipal Committees/Councils/Corporation in the State.

This account which shows the changes in the financial assets and

liabilities of the Municipal Committees/Councils/Corporation in the State is concerned


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CHAPTER V

RECONCILIATION

In this chapter an attempt has been made to reconcile the figures relating

to total income and expenditure of Municipal Committees/ Councils/ Corporation with

the revenue and expenditure as worked out by the economic classification scheme.

5.1 Reconciliation : Income The various adjustments in the Economic Classification to

arrive at the income as given in the Municipal Budgets for the years under review

are spelt on in detail in the table no. 5.1.

Table 5.1 Income: Reconciliation of Municipal Committees/Councils/Corporation

Budgets:(Rs. in Lakhs)

Sr.No. Revenue 2007-08 2008-09 2009-10

1 2 3 4 5

1. Total Income of the Municipal 56927 78215 100181

Committees/ Councils/Corporation

LESS:

2. Sale of Commodities and Services treated as 2045 1098 2011

d d i f i di


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5.2 Reconciliation Expenditure: The various adjustments in the Economic

Classification to arrive at the expenditure as given in the Municipal Budgets for the

years under review are spelt on in detail in the table No. 5.2.

Table 5.2: Expenditure: Reconciliation of Municipal Committees/Councils/

Corporation Budgets

(Rs. in Lakhs)

Sr.No. Expenditure (Revenue & Capital) 2007-08 2008-09 2009-10

1 2 3 4 5

1. Total Expenditure of Municipal 54725 64203 81638


LESS:

2. Sale of Commodities and Services 2045 1098 2011

Y Treated as deduction of Consumption

Expenditure

3. Operating Expenses of Departmental 1397 1493 1826

Commercial Undertakings

Total Adjustments (-) 3442 (-) 2591 (-) 3837

Expenditure as shown in the Economic 51283 61612 77801

Classification


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CHAPTER-VI

PRINCIPLES OF FUNCTIONAL CLASSIFICATION

Economic classification groups the primary items of expenditure by their

economic character while functional classification groups them according to the

particular purpose they serve. It is designed to show how expenditure is divided into

different types of services provided. It gives information about public expenditure

devoted to a particular service or group of services, say education, health or housing and

community services etc.

The functional classification excludes current expenditure on goods and

services of Departmental Commercial Undertakings. These enterprises produce goods

and services that are sold largely out -side the public sector. Their current expenditure

on goods and services is an intermediate expenditure which represents cost of

production and net expenditure on final goods and services. It may also be noted that the

functional classification is not applied to receipts except to those which may be

considered as offsets to expenditure on goods and services included in this type of

classification such as proceeds from sale of goods and services.


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Economic and Functional Classification have been combined into a

single two way cross-classification by significant economic and functional categories. It

relates to expenditure for the year 2007-2008 (Accounts), 2008-2009 (Accounts) and

2009-10(Accounts). The Table 6.1, 6.2 and 6.3 splits up horizontally the expenditure on

each service for the years under review into significant economic categories. The broad

divisions of economic classification are current and capital expenditure while that of

functional classification are general public services, defence, education, medical and

public health, social security, welfare services, housing and community services,

cultural, recreational and religious services, economic services and other purposes. From

this, it is very easy to see the nature of expenditure on each group of services. For

example, it can be seen how much is spent on goods and services, on capital formation

or for promoting education, health and water supply etc.


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TABLE: 6.1Economic and Functional Classification of Budgetary Expenditure of

Municipal Committees/Councils/Corporation 2007-2008 (Accounts)

(Rs in Lakhs)Current Expenditure

Wages Purchase Repairs Total Less NetConsum- Interest Grants Total

No. Name of and of Goods & Main- 3+4+5 Out ption CurrentHead Salaries and tenance side Expen- Expen-

Services Sales diture diture1 2 3 4 5 6 7 8 9 10 11

1. General Public 3040 468 87 3595 2045 1550 51 - 1601

services

2. Defence - - - - - - - - -

3. Education 38 8- 46 - 46 - - 46

4. Medical & 9848 1004244 11096 - 11096 2 - 11098

Public Health

5. Social Security - - - - - - - - -

and Welfare Services

6. Housing & 2416 3528 11471 17415 - 17415 57 - 17472

Community

Services


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TABLE : 6.1 (Concld.)

Economic and Functional Classification of Budgetary Expenditure

Of Municipal Committees/Councils/Corporation 2007-2008 (Accounts)(Rs. in Lakhs)

Capital Expenditure

. Loans .Sr. Name of Head Buildings Machinery Increase in For For Unear Total Grand

No & Other and Equip- inven- Capital Current marked Capi- Total*Constru- ments teries Forma- Consu- Invest- tal

Ction (Suspe- tion mption ment Expe-nse nditu-

Account) re

1 2 12 13 14 15 16 17 18 19

1. General Public 563 - - - 33 164 760 2361

Services

2. Defence - - - - - - - -

3. Education 1 - - - - - 1 47

4. Medical & Public 2841 136 - - 4 - 2981 14079

Health

5. Social Security and - - - - - - - -

Welfare Services


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TABLE: 6.2

Economic & Functional Classification of Budgetary Expenditure

of Municipal Committees/Councils/Corporation 2008-2009(Accounts)

(Rs. in Lakhs)Current Expenditure

Sr. Name of Wages Purchase Repairs Total Less Consum- Interest Grants Total

No. Head and of Goods & Main- 3+4+5 Out ption Current

Salaries and tenance side Expen- Expen-Services Sarvices Sales diture diture

1 2 3 4 5 6 7 8 9 10 11

1. General Public 3192 468 102 3762 1098 2664 187 9 2860

2. Defence - - - - - - - - -

3. Education 15 1 - 16 - 16 - - 16

4. Medical & Public 10886 1238 279 12403 - 12403 1 - 12404

Health

5. Social Security & - - - - - - - - -

Welfare Services

6. Housing and 2809 3224 7574 13607 - 13607 3 - 13610Community

Services

7.Cultural,Recreational 100 11 42 153 - 153 - - 153


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TABLE: 6.2 (Concld)

Economic and Functional Classification of Budgetary Expenditure

of Municipal Committees/Councils/Corporation 2008-2009 (Accounts)

(Rs. in Lakhs)

Capital Expenditure

. Loans .Sr. Name of Head Buildings Machinery Increase For For Unear- Total Grand

No & Other and Equip- in inven- Capital Current marked Capi- Total*Constru- ments teries Forma- Consu- Invest- tal

ction (suspe- tion mption ment Expe-nse nditu-

account) re

1 2 12 13 14 15 16 17 18 19

1. General Public 634 - - - 59 97 790 3650

Services

2. Defence - - - - - - - -

3. Education- - - - - - - - 16

4. Medical & Public 3236 60 - - 50 - 3346 15750

Health

4. Social Security and - - - - - - - -

Welfare Services


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TABLE: 6.3

Economic & Functional Classification of Budgetary Expenditureof Municipal Committees/Councils/Corporation 2009-2010 (Accounts)

(Rs. in Lakhs)Current Expenditure

Sr. Name of Wages Purchase Repairs Total Less Consum- Interest Grants TotalNo. Head and of Goods &Main- 3+4+5 Out ption Current

Salaries and tenance side Expen- Expen-Services Sale diture diture

1 2 3 4 5 6 7 8 9 10 11

1. General Public 6581 570 46 7197 2011 5186 74 - 5260

Services2. Defence - - - - - - - - -

3. Education 6 - - 6 - 6 - - 6

4. Medical & Public 15271 1254 43 16568 - 16568 - - 16568

Health

5. Social Security & - - - - - - - - -

Welfare Services

6. Housing and 3836 3511 5925 13272 - 13272 957 - 14229

Community Services

7. Cultural,Recreational 110 11 12 133 - 133 - - 133

and Religious Services

8.Economic Services 1196 72 100 1368 - 1368 77 212 1657


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TABLE : 6.3 (Concld.)

Economic & Functional Classification of Budgetary Expenditureof Municipal Committees/Councils/Corporation 2009-2010 (Accounts)

(Rs. in Lakhs)

Capital Expenditure

. Loans .

Sr. Name of Buildings Machinery Increase in For For Unear Total GrandNo Head & Other and Equip- inven- Capital Current marked Capi- Total*

Constru- ments teries Forma- Consu- Invest- tal

Ction (Suspense tion mption ment Expen-Account) diture

1 2 12 13 14 15 16 17 18 19

1. General Public 1183 - - - 854 116 2153 7413

Services

2. Defence - - - - - - - -

3. Education - - - - - - - 6

4. Medical & Public 3402 76 - - 93 - 3571 20139

Health

5. Social Security & - - - - - - - -

Welfare Services

6. Housing and 23990 217 6761 - 77 31045 45274


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CHAPTER-VII

DETAILED FUNCTIONAL CLASSIFICATION SCHEME

This chapter presents a detailed scheme for the functional classification

of Municipal Committees/Councils/Corporation budgetary expenditure. The principles

of the scheme have already been discussed in the previous chapter.

The detailed scheme which is presented in the following pages is put forward as an

illustration of the classification of Municipal Committees/ Councils/Corporation

expenditure by purpose. It can be further expanded by introducing more

programmes/activities under the main category of expenditure.

7.1: Functional Classification - Distribution of Expenditure

The Functional classification of Municipal Committees/ Councils/

Corporation budgetary expenditure for the year, 2007-2008, 2008-2009 and 2009-10 is

given in table No. 7.1.

Table 7.1 : Functional Classification Distribution of Expenditure of Municipal


(Rs.in Lakhs)

Sr.No. Head 2007-08 2008-09 2009-10

(Account) (Account) (Account)


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7.2: Developmental & Non-Developmental Expenditure

. Developmental and non-developmental expenditure of all municipalCommittees/Councils/Corporation comes to Rs.77801 Lakhs in 2009-2010 as compared

to Rs. 61612 lakhs in 2008-2009 and Rs.51283 lakhs in 2007-2008. Developmental

expenditure has been dominating in the years under reference with a major share of

95.40 percent of total expenditure during 2007-2008 as compared to 94.07 percent in

2008-2009 and 90.47 percent in 2009-2010 which is a good sign of developmentalactivities at urban local bodies level. Non-developmental expenditure during 2008-2009

was Rs.3650 lakhs (5.92 percent) as compared to Rs. 2361 lakhs (4.60 percent) during

2007-2008 and Rs7413 lakhs (9.53 percent) during 2009-2010. Table 7.2 gives

information regarding expenditure according to major heads and their percentages under

developmental and non-developmental categories:-Table: - 7.2 Developmental and Non-Developmental Expenditure of Municipal


(Rs. in lakhs)

Sr.No. Heads 2007-08 2008-09 2009-10

1 2 3 4 5

A. Developmental Expenditure 48922 57962 70388


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CHAPTER-VIII

NOTES ON FUNCTIONAL CATEGORIES

1. General Public Services :- It includes remuneration of Head of Municipal

Committees/Councils/Corporation, Executive Officer, Secretary and their supporting

staff. It also covers expenditure incurred on collection of taxes on land and buildings,

taxes on vehicles, animals, dogs, advertisement tax, tax on entry of goods into local

areas, rents on municipal lands and building fee, building application fee, composition

fee and other taxes and duties on commodities and services.

2. Defence:- No expenditure is incurred at local bodies level under this functional

head. The activities relating to this head come under the Centre and State Governments.

3. Education:- This head relates to expenditure incurred on general regulation and

promotion of school systems, management and support to primary schools, secondary

schools and colleges, technical training institutions such as craft schools, sewing

schools, anganwari centers. It includes scholarships and grants to individuals for

education and training purposes. Subsidiary services such as transportation of school

children, school meals and other ancillary services designed to promote and facilitate


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6. Housing and Community Services:- This head includes expenditure on

promotion of activities and facilities in respect of housing and capital expenditure in

connection with housing. It covers expenditure for provisions, assistance or support of

housing and slum improvement activities. It also includes, street lighting, street

watering and fire brigade services, construction of public toilets and urinals,

rehri/rickshaw stands, municipal booths and shops, octroi barriers and pavement of

streets and drains. Disbursement of loans to employees such as safai sewaks and other

low income category of people for purchase and construction of houses.

7. Cultural, Recreational and Religious Services:- It includes expenditure for

upkeep of facilities such as land scaping and development of parks, dak bungalows and

sarais, public libraries, play-grounds, athletic fields, swimming pools, hostels and other

lodging places which are not operated on a commercial basis. Expenditure for religious

purposes and contributions to religious organisations.

8. Economic Services:-

(a) Agriculture, Forestry, Fishing and Hunting:- It includes expenditure incurred on

plantation or road side trees, bushing and plant protection measures. Expenditure on


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1388

1250 4

548

4443

13758

13313

21203

19663

24972

24430

26890

24996 30

144

293

70

40673

34931

51643

47296 5

6927

54724

78215

64203

0

10000

20000

30000

40000

50000

60000

70000

80000

1976-77 1986-87 1996-97 2001-

2002

2002-

2003

2003-

2004

2004-

2005

2005-

2006

2006-

2007

2007-

2008

2008-

2009

INCOME AND EXPENDITURE OF MUNICIPAL

COMMITTEES/COUNCILS/CORPORATIONS IN HARYANA

(In Lakhs)

Income Expenditure

Documents

Regional Accounts