Finance

Your window to the world of Indian Railways

FUNCTIONS OF ACCOUNTS DEPARTMENT

Historical Background

There were 33 separate Railway administrations (4 by Govt., 5 by Indian states & 24 run by Private Companies) headed by an ICSofficer who was assisted by 1 Secretary, 3 Deputy Secretaries, 4 Under secretaries & 4 Assistant Secretaries and the Accounting and auditing was being done by the Accountant General of the Public Works Department. It was increasingly felt that the Railway Finances should be separated from the General Finances as though the Railway demands were only 2 out of some 100 demands of the General Finances and any fluctuations in the railway demands caused violent fluctuations in the General Finances.

The most important land mark in the history of the financial administration on Railways in India was the appointment of the Financial Commissioner for Railways in April, 1923 with the sanction of the Secretary of State for India, as part of the scheme of re-organization of the Railway Board as recommended by the Acworth Committee (1921). The declared object of this appointment was to secure, firstly, economy in the expenditure of public moneys, and secondly, the coordination of financial policy of IR with the general financial policy of the Government of India. This was followed by the Separation Convention of 1924 by which Railway finances were separated from the General Finances of the Government of India.

The Financial Commissioner is the professional head of the Railway's Financial Organization and represents the Government of India, Ministry of Finance on the Railway Board. In his capacity as ex-officio Secretary to the Government of India in the Ministry of Railways in financial matters, he is vested with full powers of the Government of India to sanction Railway expenditure subject to the general control of the Finance Minister. This arrangement is intended to ensure that financial control over operations of the Railway Department is exercised from within the Organisation by an officer who shares with the Members and the Chairman, Railway Board the managerial responsibility as a senior partner in the common enterprise of efficient and economic working of the Railway undertaking. In the event of a difference of opinion between the Financial Commissioner and other Members & the Chairman of the Railway Board, the former has the right to refer the matter to the Finance Minister. The Financial Commissioner is assisted by Additional Member Finance and Additional Member Budget and Advisor Accounting reform and Advisor Finance Commercial Establishment.  The various directorates of Finance at Railway Board deal with Accounts matters, Accounting reforms, Finance, Finance (Budget), Finance (Commercial, Establishment), Pay Commission, Statistics and Economics.  These are headed by various Executive Directors belonging to the Indian Railway Accounts Service.

Financial Results

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