Finance Department- Budget Budget Estimates 2020-21 Comprehensive instructions

GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

for the preparation of Budget Estimates and submission on-line - Issued.

FINANCE (BUDGET-ID DEPARTMENT

G.O.Ms.No.155

Dated: 11.12.2019

Read the following:

ORDER:

According to Para 13.19.1 of A.P. Budget Manual, the Heads of Departments and

other Estimating Officers should prepare their estimates for both receipts & expenditure in

duplicate & send one copy direct to the Finance Department, and the other to the

Administrative Departments of the Secretariat concerned. The Heads of Departments &

other Estimating Officers have to prepare and submit the Budget Estimates for FY 2020-

21, as per Para 13.19.1 of A.P. Budget Manual and as per the instructions given in this

order.

revenue & capital expenditure should be shown separately in the budget. It is, therefore,

incumbent, on the State to continue revenue capital classification and the same shall be

followed by all the Heads of Departments & other Estimating Officers

Revenue & Capital Classification - Article 202 of the Constitution requires that

categorizing government expenditure service-wise into (1) General Services (2) Social

services & (3) Economic services. This classification is useful for economic analysis & to

determine how these transactions intfluence behaviour of other sectors of the economy as a

whole. This would continue in the current exercise.

EconomicClassification Economic Classification of budget is used for

function of the government for which the expenditure is incurred & the activitices on which

the expenditure is incurred. It comprises seven tiers with hierarchy of Major, Sub-

Major, Minor, Group Sub-Head, Sub Head, Detailed Head &Sub Detailed Head. It forms

a two dimensional classification where the expenditure is classified into object heads for

each functional head. This would continue too in the current exercise

Functional classification (detailed heads for grants)- This signifies broadly the

are guided by short, medium & long term objectives. Ycarly, sectoral priorities and

allocations shall also accordingly be set. Based on the allocations, the Departments shall

set a rolling outcome /output frame work.The Finance Department will compile

&consolidate the medium term fiscal targets & MTEF statements. It also will prepare an

additional statement indicating demand-wise revenue & capital expenditure targets for the

Strategy -The focus would be on top-down budgeting where the resource priorities