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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
Account of Departmental Commercial Undertakings 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. 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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11
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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12
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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15
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
Account of Departmental Commercial Undertakings of Municipal
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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20
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
Committees/Councils/Corporation
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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23
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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24
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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25
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
Committees/Councils/Corporation
(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
Committees/Councils/Corporation
(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