Page 278 - Account 10

1. Introduction
Budget Sheet is one of the important books of account maintained by each Government
office under New Accounting System in Nepal. The main purpose of the New Accounting
System is to confine the government expenditures within the budgetary limit. For the
attainment of this purpose, information regarding annual appropriation, budget release
and expenditures to date related with each budget head is a must. Thus, a general ledger
on which the budget head is prepared by each office to see the total expenditure and
the condition of budget on each head for its effective control is known as budget sheet.
It is prepared in the form of statement by mentioning the annual appropriation, budget
release and the regular expenditures on each head and sub-head respectively. Thus, a
budget sheet may be defined as a budget ledger maintained by containing all heads of
budget expenditure in a columnar form to provide the necessary details regarding annual
appropriation, regular and additional budget releases and the regular expenditure on
each head of budget under operating level accounting so as to make effective control over
the budget of the government.
It is maintained in the form, prescribed under AGF No. 8. It has 8 main heads and 79
sub-heads. It has main three parts. It is prepared with the help of journal vouchers.

Key Point Budget sheet is a budget ledger prepared in the form of statement by
mentioning the annual appropriation, budget release and the regular
expenditure on each head and sub-head respectively.

2. Objectives of Budget Sheet

Budget Sheet, also, termed as budget ledger, is a main subsidiary book of operating
level offices, maintained to achieve an effective budgetary control. It is very important for
the operating level office. Objectives of budget sheet are given below.
i. To avail information about the annual appropriation of budget in total and under
each budget head and sub-head so, as to confine the expenditure within the budgetary
limit.
ii. To provide information about the budget releases and the expenditures upto date
under each head and sub-head.
iii. To provide information about the surplus and shortage of budget amount under
different heads and sub-heads so as to manage it by budget transfer or sometimes by
getting additional or supplementary budget release.
iv. To give information about the condition of budget on each head of expenditure at
the close of each month and in this way, at the last of each fiscal year to have effective
control over the budget expenditure.
v. To provide necessary financial information for the preparation of statement and
reports.
vi. To control the misappropriation of the public funds.
vii. To provide data about the balance of budget under each budget heads.

278 Aakar’s Office Practice and Accountancy - 10 Budget Sheet 279