Introduction to Budget Sheet
1 A budget sheet is a record of planned and actual financial transactions for a government department or organization.
2 It provides a snapshot of income, expenditure, and budget utilization.
3 It ensures financial discipline and proper allocation of funds.
4 Key components include Budget Head/Sub-heads, Annual Budget, Expenditure, Release, Adjustments, and Transfers.
5 The budget sheet helps monitor expenditures, avoid overspending, and maintain transparency.
Budget Head / Sub-Head
1 Budget Head (B.H.) is the main category of expenditure, e.g., Salary, Office Expenses, Machinery, Public Construction.
2 Sub-Head is a detailed breakdown under a Budget Head, e.g., House Rent under Office Expenses.
3 Each B.H./Sub-head is assigned a number (B.H. No.) for easy tracking.
4 The B.H. number helps in referencing, reporting, and auditing.
Appropriation
1 Appropriation is the total amount sanctioned for a particular head or sub-head for the financial year.
2 Appropriation can be revised via budget transfer with authorization.
3 Proper appropriation ensures funds are available for planned activities without deficit.
Release of Funds
1 Funds are released periodically based on actual expenditure or anticipated needs.
2 Releases may be monthly, quarterly, or as per requirement.
3 Releases are made through bank orders or budget release orders.
4 Proper recording of releases ensures accountability and prevents misuse.
Expenditure
1 Expenditure is the actual spending recorded against each budget head/sub-head.
2 It can be classified as:
a Regular expenditure – Salary, office expenses
b Capital expenditure – Machinery, construction
c Adjustments – Transfers between heads or sub-heads
3 Expenditure must match the purpose and sanctioned budget.
Advances
1 Advances are given to officers/employees before actual expenditure.
2 Officers must submit bills or receipts for clearance.
3 Surplus or shortage from advances is adjusted in the budget sheet.
Cheques / Payments
1 Payments for expenditure or advances are made via cheque or bank transfer.
2 Deduction of taxes, provident fund (PF), or other statutory amounts must be recorded.
3 Payments should be supported by vouchers for transparency.
Security Deposits and Letters of Credit (L/C)
1 Security deposits are received from contractors/suppliers and refunded after work completion.
2 Letters of Credit may be opened for machinery/equipment purchase.
3 L/C transactions must be recorded in the budget sheet with details of release and expenditure.
Budget Transfers
1 Transfer of budget from one head/sub-head to another is allowed if approved.
2 Transfers help reallocate funds for urgent departmental requirements.
3 Budget transfers must be recorded clearly to maintain transparency.
Key Rules for Budget Sheet
1 Opening balance + Release – Expenditure = Closing balance.
2 Always record: Date, Particulars, B.H. No., Release, Expenditure, and Adjustments.
3 Maintain separate sections for: Salary, Office Expenses, Repairs & Maintenance, Machinery / Capital Expenditure, Public Construction.
4 Any surplus/shortage from previous advances must be adjusted.
5 Ensure total expenditure does not exceed total appropriation unless officially revised.
Important Questions
Q1 – Department of Education
Annual Appropriation & Expenditure
| B.H. No | Budget Head/Sub-Head | Annual Budget (Rs.) | Expenditure up to Falgun (Rs.) | Expenditure of Chaitra (Rs.) |
|---|---|---|---|---|
| 21111 | Salary | 2,40,000 | 1,50,000 | 20,000 |
| 22311 | Office Expenses | 96,000 | 60,000 | 7,000 |
| 22121 | House Rent | 1,08,000 | 72,000 | 9,000 |
| 22212 | Repair & Maintenance | 50,000 | 25,000 | 5,000 |
| 29511 | Machinery | 6,00,000 | 2,00,000 | 50,000 |
| 29611 | Public Construction | 5,00,000 | 3,00,000 | 50,000 |
| Total | 15,94,000 | 8,07,000 | 1,41,000 |
Transactions – Baishakh
1 Baishakh – Received budget release Rs. 1,41,000
7 Baishakh – Cheque Rs. 38,000 for road pavement (5% contract tax deducted)
13 Baishakh – Section Officer advance Rs. 6,000 cleared, bill Rs. 5,000, surplus adjusted
24 Baishakh – Budget transfer Rs. 5,000 from House Rent → Repair & Maintenance
30 Baishakh – Salary Rs. 45,000 distributed (PF 10,000 + IT 2,000 deducted)
31 Baishakh – Opened L/C Rs. 40,000 for printing machine
Solution – Budget Sheet
| Budget Head/Sub-Head | B.H. No | Appropriation | Release up to Chaitra | Release of Baishakh | Release up to Baishakh | Particulars | Expenditure/Payment | Remarks |
|---|---|---|---|---|---|---|---|---|
| Salary | 21111 | 2,40,000 | 1,50,000 | 1,41,000 | 2,91,000 | Salary distributed | 45,000 | PF 10,000 + IT 2,000 deducted |
| Office Expenses | 22311 | 96,000 | 60,000 | 0 | 60,000 | Advance cleared | 5,000 | Surplus adjusted |
| House Rent | 22121 | 1,08,000 | 72,000 | 0 | 72,000 | Budget transfer | 5,000 | Transferred to Repair & Maintenance |
| Repair & Maintenance | 22212 | 50,000 | 25,000 | 5,000 | 30,000 | Transfer from House Rent | 5,000 | Adjustment |
| Machinery | 29511 | 6,00,000 | 2,00,000 | 0 | 2,00,000 | Opened L/C | 40,000 | Korea Trading Company |
| Public Construction | 29611 | 5,00,000 | 3,00,000 | 0 | 3,00,000 | Road pavement | 38,000 | Contract tax deducted |
| Total | 15,94,000 | 8,07,000 | 1,46,000 | 9,53,000 | Total expenditure Baishakh | 1,33,000 |
Q2 – Department of Health
Annual Appropriation & Expenditure
| B.H. No | Budget Head/Sub-Head | Annual Budget (Rs.) | Expenditure up to Falgun (Rs.) | Expenditure of Chaitra (Rs.) |
|---|---|---|---|---|
| 21121 | Salary | 3,00,000 | 2,00,000 | 25,000 |
| 22321 | Medical Supplies | 1,20,000 | 80,000 | 10,000 |
| 22222 | Repair & Maintenance | 60,000 | 35,000 | 5,000 |
| 29521 | Equipment | 4,00,000 | 1,50,000 | 25,000 |
| 29621 | Hospital Construction | 6,00,000 | 4,00,000 | 50,000 |
| Total | 14,80,000 | 7,65,000 | 1,15,000 |
Transactions – Baishakh
2 Baishakh – Budget release Rs. 1,15,000
5 Baishakh – Cheque Rs. 60,000 for hospital construction (5% contract tax deducted)
10 Baishakh – Advance Rs. 10,000 cleared, bill Rs. 15,000, surplus Rs. 5,000 adjusted
20 Baishakh – Budget transfer Rs. 5,000 from Repair & Maintenance → Equipment
28 Baishakh – Salary Rs. 50,000 distributed (PF 8,000 + IT 2,000 deducted)
Solution – Budget Sheet
| Budget Head/Sub-Head | B.H. No | Appropriation | Release up to Falgun | Release of Baishakh | Release up to Baishakh | Particulars | Expenditure/Payment | Remarks |
|---|---|---|---|---|---|---|---|---|
| Salary | 21121 | 3,00,000 | 2,00,000 | 25,000 | 2,25,000 | Salary distributed | 50,000 | PF 8,000 + IT 2,000 deducted |
| Medical Supplies | 22321 | 1,20,000 | 80,000 | 0 | 80,000 | Advance cleared | 10,000 | Surplus Rs. 5,000 adjusted |
| Repair & Maintenance | 22222 | 60,000 | 35,000 | (5,000) | 30,000 | Budget transfer | 0 | Transferred to Equipment |
| Equipment | 29521 | 4,00,000 | 1,50,000 | 5,000 | 1,55,000 | Budget transfer | 25,000 | Adjustment |
| Hospital Construction | 29621 | 6,00,000 | 4,00,000 | 0 | 4,00,000 | Construction cheque | 60,000 | Contract tax deducted |
| Total | 14,80,000 | 7,65,000 | 25,000 | 7,90,000 | Total expenditure Baishakh | 1,45,000 |
Q3 – District Health Office, Palpa
Annual Appropriation & Expenditure up to Shrawan
| B.H. No | Budget Head/Sub-Head | Annual Budget (Rs.) | Expenditure up to Shrawan (Rs.) |
|---|---|---|---|
| 21111 | Salary | 2,40,000 | 20,000 |
| 22311 | Office Expenses | 96,000 | 6,000 |
| 22121 | House Rent | 1,44,000 | 12,000 |
| 29311 | Furniture | 2,00,000 | 10,000 |
| 29511 | Machinery | 4,00,000 | 50,000 |
| Total | 10,80,000 | 98,000 |
Transactions – Bhadra
3 Bhadra – Received bank order Rs. 98,000
5 Bhadra – Cheque Rs. 5,000 for office materials
16 Bhadra – Advance Rs. 20,000 to Section Officer for machinery
29 Bhadra – Salary Rs. 19,800 distributed (PF 3,600 + IT 500 deducted)
30 Bhadra – Machinery bill Rs. 20,000, advance cleared
Solution – Budget Sheet (summarized)
| Budget Head/Sub-Head | B.H. No | Appropriation | Release up to Shrawan | Release of Bhadra | Release up to Bhadra | Particulars | Expenditure | Remarks |
|---|---|---|---|---|---|---|---|---|
| Salary | 21111 | 2,40,000 | 20,000 | 19,800 | 39,800 | Salary distributed | 19,800 | PF 3,600 + IT 500 deducted |
| Office Expenses | 22311 | 96,000 | 6,000 | 5,000 | 11,000 | Office materials | 5,000 | – |
| House Rent | 22121 | 1,44,000 | 12,000 | 0 | 12,000 | – | 0 | – |
| Furniture | 29311 | 2,00,000 | 10,000 | 0 | 10,000 | – | 0 | – |
| Machinery | 29511 | 4,00,000 | 50,000 | 20,000 | 70,000 | Machinery purchase | 20,000 | Advance cleared |
| Total | 10,80,000 | 98,000 | 44,800 | 1,42,800 | Total expenditure Bhadra | 44,800 | – |
Q4
Post the following information and transactions into the budget sheet of Department of Education:
| B.H. No | Budget Head / Sub-Head | Annual Budget (Rs.) | Expenditure up to Falgun (Rs.) | Expenditure of Chaitra (Rs.) |
|---|---|---|---|---|
| 21111 | Salary | 2,40,000 | 1,50,000 | 20,000 |
| 22311 | Office related expenses | 96,000 | 60,000 | 7,000 |
| 22121 | House rent | 1,08,000 | 72,000 | 9,000 |
| 22212 | Repair and maintenance | 50,000 | 25,000 | 5,000 |
| 29511 | Machinery | 6,00,000 | 2,00,000 | 50,000 |
| 29611 | Public construction | 5,00,000 | 3,00,000 | 50,000 |
| Total | 15,94,000 | 8,07,000 | 1,41,000 |
Transactions for Baishakh
1 Baishakh – Received a bank order and budget release order of Rs. 1,41,000 for expenditure of last month.
7 Baishakh – Issued a cheque of Rs. 38,000 in favour of the contractor for road pavement after deducting 5% contract tax.
13 Baishakh – Section Officer Mr. Shrestha submitted the bill for Rs. 5,000 after purchasing office supplies; his advance of Rs. 6,000 cleared after submitting bank voucher for surplus.
24 Baishakh – Budget of Rs. 5,000 transferred from head rent to repair and maintenance.
30 Baishakh – Issued a cheque of Rs. 45,000 for salary distribution after deducting Rs. 10,000 for PF and Rs. 2,000 for income tax; deducted amounts deposited to concerned office same day.
31 Baishakh – Opened L/C in the name of Korea Trading Company for purchase of printing machine Rs. 40,000.
Solution – Budget Sheet
| Budget Head/Sub-Head | B.H. No | Appropriation for the Year | Release up to Chaitra | Release of Baishakh | Release up to Baishakh | Particulars / Transactions | Expenditure / Payment | Remarks |
|---|---|---|---|---|---|---|---|---|
| Salary | 21111 | 2,40,000 | 1,50,000 | 1,41,000 | 2,91,000 | Salary distributed | 45,000 | PF 10,000 + IT 2,000 deducted |
| Office Expenses | 22311 | 96,000 | 60,000 | 0 | 60,000 | Section Officer advance cleared | 5,000 | Surplus adjusted |
| House Rent | 22121 | 1,08,000 | 72,000 | 0 | 72,000 | Budget transfer | 5,000 | Transferred to Repair & Maintenance |
| Repair & Maintenance | 22212 | 50,000 | 25,000 | 5,000 | 30,000 | Budget transfer from House Rent | 5,000 | Adjustment |
| Machinery | 29511 | 6,00,000 | 2,00,000 | 0 | 2,00,000 | Opened L/C | 40,000 | Korea Trading Company |
| Public Construction | 29611 | 5,00,000 | 3,00,000 | 0 | 3,00,000 | Road pavement | 38,000 | Contract tax deducted |
| Total | 15,94,000 | 8,07,000 | 1,46,000 | 9,53,000 | Total expenditure Baishakh | 1,33,000 |
Q5
Post the following for Department of Health:
| B.H. No | Budget Head / Sub-Head | Annual Budget (Rs.) | Expenditure up to Falgun (Rs.) | Expenditure of Chaitra (Rs.) |
|---|---|---|---|---|
| 21121 | Salary | 3,00,000 | 2,00,000 | 25,000 |
| 22321 | Medical supplies | 1,20,000 | 80,000 | 10,000 |
| 22222 | Repair and maintenance | 60,000 | 35,000 | 5,000 |
| 29521 | Equipment | 4,00,000 | 1,50,000 | 25,000 |
| 29621 | Hospital construction | 6,00,000 | 4,00,000 | 50,000 |
| Total | 14,80,000 | 7,65,000 | 1,15,000 |
Transactions for Baishakh
2 Baishakh – Received budget release order Rs. 1,15,000.
5 Baishakh – Issued cheque Rs. 60,000 for hospital construction after deducting 5% contract tax.
10 Baishakh – Section Officer purchased medical supplies Rs. 15,000; advance cleared Rs. 10,000, surplus Rs. 5,000 adjusted.
20 Baishakh – Budget of Rs. 5,000 transferred from repair & maintenance to equipment.
28 Baishakh – Salary distributed Rs. 50,000 after deductions for PF Rs. 8,000 and IT Rs. 2,000.
Solution – Budget Sheet
| Budget Head/Sub-Head | B.H. No | Appropriation for the Year | Release up to Chaitra | Release of Baishakh | Release up to Baishakh | Particulars / Transactions | Expenditure / Payment | Remarks |
|---|---|---|---|---|---|---|---|---|
| Salary | 21121 | 3,00,000 | 2,00,000 | 25,000 | 2,25,000 | Salary distributed | 50,000 | PF 8,000 + IT 2,000 deducted |
| Medical Supplies | 22321 | 1,20,000 | 80,000 | 0 | 80,000 | Advance cleared | 10,000 | Surplus Rs. 5,000 adjusted |
| Repair & Maintenance | 22222 | 60,000 | 35,000 | (5,000) | 30,000 | Budget transfer | 0 | Transferred to Equipment |
| Equipment | 29521 | 4,00,000 | 1,50,000 | 5,000 | 1,55,000 | Budget transfer | 25,000 | Adjustment |
| Hospital Construction | 29621 | 6,00,000 | 4,00,000 | 0 | 4,00,000 | Construction cheque issued | 60,000 | Contract tax deducted |
| Total | 14,80,000 | 7,65,000 | 25,000 | 7,90,000 | Total expenditure Baishakh | 1,45,000 |