Finance Establishme

nt

Finance function is implicit and universal in nature.

We exercise finance function, consciously or other-wise in our personal life too.

Finance function

First standard of financial propriety

Expenditure should not prima facie be more than the occasion demands and

Every Government servant should exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of the expenditure of his own money.

Finance function in Public affairs Finance acquires added significance in Government affairs because we are dealing with public money.

Accountability to the public through public representatives i.e. through the institution of Parliament.

Total Receipts

Passengers

Other Coaching

Goods

Sundry

Misc.Receipts

Subsidy

Safety Surcharge

Total Outgo

OperatingExpenses

Appropriation to DRF

Appropriation

to Pension Fund

Misc Expd

Appropriation

to RSF

OLWRDividend

Appropriation

to DF

Appropriation to

Capital Fund

65%

PassengerEarnings

Other CoachingEarnings

Goods TrafficEarnings

Sundry OtherEarnings

Misc.Receipts

Where the Rupee came from – 2009-10

Where the Rupee went - 2009-10 (as part of the total disbursements)

5%

4%

8%6%

6%

2%1%

1%

16%

15%

0%

36%

Staff Wages & Allow.

Pension Fund

Fuel

Stores

Lease Charges

Other Pus

Dividend

DRF

CF

DF

OLWR

Miscellaneous

Where the Rupee went - 2009-10 as part of working expenses

6%4% 10%

43%

18%

19%Staff

Pension

Fuel

Stores

Lease Charges

Other Pus

Finance Establishment deals mainly with …

Creation of Additional Revenue Posts; Extension of Temporary Posts; Conversion of Temporary Posts to

permanent ones;Crediting money value of posts surrendered to

Surplus Bank; Release of matching money value from Surplus

Bank for creation of revenue posts concurred inand

Finance Establishment deals with …

Creation of Work-charged Posts;Extension of Work-charged PostsSix Monthly reviews of running staff –

Drivers and Guards

Finance Establishment also concerned with …

Engagement of CMPs, Part-time lecturers etc.

Fixation of Consolidated Traveling Allow.

Manpower PlanningIR has as a well organised, well trained and very

responsive workforce, specific to the needs of the organisation.

Our staff and officers are in great demand in other departments and also the private sector.

Man power by itself is not a problem. Problem related to sector wise requirements vis-à-vis availability.

Staff Strength and Staff Cost

Year Staff (in lakhs) Average Annual wage (Rs.)

1950-51 9.14 1,263

1995-96 15.86 59,219

2004-05 14.24 1,58,140

2005-06 13.24 1,73,911

2006-07 13.97 1,73,799

2007-08 13.95 1,86,070

2008-09

Impact of Pay commission

Expenditure on staff and pension have payments increased dramatically following recommendations of successive Pay Commissions, especially the V PC and VI PC.

No room for complacency

Rightsizing IR

Since the 1990s, Railways have been trying to right-size manpower.

Staff strength brought down

from about 18 lakhs in nineties

to 13.95 lakhs in 2007-08,

by almost 4 lakhs in about 18 years

Techniques followedFilling up of only 1% as against 3% retirements

every year.Doing away with Yardsticks and NormsBringing in IRBM Outsourcing non-core activitiesIdentifying surplus posts Surrendering vacant postsRedeploying staff rendered surplusNo indents for surplus categories

Creation of revenue postsCreation of additional posts only as last resortAlternative means to be explored for creation of

posts like re-arrangement of work and duties, elimination of unnecessary work, simplification of procedures rationalization of works etc computerisation of more activities

Pre-requisites for creation of revenue posts

Every proposal for creation of additional posts, should be accompanied by statement showing the particulars of the existing

staff, the proposed staff and the increase or decrease in

each category of post. Creation of Revenue posts require matching

surrender from Surplus BankSafety & operational posts can be created on 1:1

basis; Others 3:4 in Ratio.

Sanction Powers

Revenue Posts:Gazetted - Railway BoardNon-Gazetted - G.M.

Work-charged Posts - Creation/ Extension :

Above JAG : Railway Board

Upto JAG : G.M. or lower authorities as per delegation on the Railway

Creation of Work-charged posts No consultation with Finance necessary where

funds are allotted for specific projects/objectives, with break up of establishment charges post-wise and

other charges.

Within such financial limits, Departmental Officer can exercise their discretion to sanction the expenditure without consulting Finance.

In all other cases prior finance concurrence is necessary.

Thank You