Page 279 - Account 10

Importance of Budget Sheet
The major importance of budget sheet are as follows:
1. It gives detailed information about annual appropriation of budget under different
budget heads and sub heads.
2. It gives information about budget release upto the month in different budget heads.
3. It provides the information of budget expenditure under budget heads upto the
month.
4. It controls the manipulation of public fund.
5. It helps to make financial plans, policies and decisions by providing the actual
information.
6. It facilitates for internal as well as external audits.
7. It controls the budget expenditure because it does not allow for making expenditures
beyond the limitations of budget.
8. It helps to find out the balance of budget under each heads and subheads at the end
of each months.

3. Specimen of Budget Sheet
The specimen of Budget Sheet, AGF No. 8. is given in the end of this chapter.

4. Parts of Budget Sheet

Budget Sheet, AGF No. 8 has the following three parts:
i. Annual Appropriation of Budget
ii. Budget Release
iii. Budget Expenditure
i. Annual Appropriation of Budget
It is the first part of budget sheet. The total amount of budget approved for a fiscal
year and their allocation under the different heads and sub-heads are shown here.
Supplementary budget release, inter-office and inter-head budget transfer, if any, are also
recorded in this part. To cross the limit and transfer the annual budget from one heads
to another, permission should be taken from the central level office or concerned office.
While transfer the budget, amount being transferred from one head is shown inside a
bracket and the same amount is recorded outside the bracket in the related head and
sub-head. If supplementary budget is received, amount should be written in concerned
heads and sub-heads. This part provides information about the allocation of budget or
maximum limit of amount of expenditures under each head and sub-head for a fiscal year
and also in total for the office. The total annual appropriation is equal to the total of the
annual appropriation under each head. Journal Voucher is not prepared for the annual
appropriation of budget.

ii. Budget Release
It is the second part of budget sheet. It shows the total amount of budget release
received out of annual appropriation from the central level till the date of its preparation.
According to the prevailing system of budget release, it records the amount received
under preliminary and additional revolving fund, budget releases against the expenditure

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