BUDGET SHEET

Budget sheet is a statement of annual appropriations maintained under New System of accounting of Government of Nepal. It is a tool designed to limit the financial activities within the budgetary constraints. Budget sheet records the annual appropriation of budget, budget release and expenditure incurred under different budget heads.

Importance of Budget Sheet:

1. Provides information of budget

Budget sheet reveals the annual appropriation of budget, budget release and budget expenditures under each budget heads and sub-heads. It shows the balance in respective budget heads after adjusting the expenditures incurred to date.

1. Control of budget

Budget sheet helps in confining the expenses within the budgetary limits. The monthly preparation of budget sheet and submission to central level facilitates to have control over budget. The variations in budget, if any are immediately identified and corrective actions can be taken accordingly.

1. Supports financial administration

Budget sheet reflects the details and balance of different budget head which allows consistent monitoring of budget constraints. Financial authorities can thus make sound financial decisions based on this information.

1. Convenience in preparing statements

Government offices and their expenditure must be transparent. Budget sheet provides data related to expenditure, which aids in preparation of expenditure report. Also monthly advance expenditure report allows the authority to forecast future expenses.

Specimen of a budget sheet as specified in AGF No. 8.

AGF No. 8 defines the specimen for Budget Sheet. It has divided the budget in 3 parts:

1. Annual Appropriation Section

This section shows the annual budget appropriation to an operating level under different budget heads. It reflects the supplementary budget release and any alteration of amount allocated under various budget heads. Similarly, amount of inter-head and inter-office transfer of budget is also assigned to this section.

1. Budget Release Section

Budget release section shows the monthly budget release including initial and additional imprest fund released. The amounts of budget released and received are entered into appropriate columns of budget sheet by preparing journal vouchers. This part is closed at the end of every fiscal year by depositing the surplus amount, if any, into Freeze Account or Consolidated Fund Account.

1. Budget Expenditure Section

This part shows the budget expenditures in their corresponding budget heads. Expenditures made through petty cash fund are also recorded in this section. All advance transactions and their clearance are entered in this section. All entries in this part are made through journal vouchers. Budget expenditure section is closed very month by adding all expenditures of respective budget heads and expenditures till the previous month.

Parts of budget sheet:

The parts of budget sheet are briefly discussed below:

1. Annual Appropriation Section

This section shows the annual budget appropriation to an operating level under different budget heads. It reflects the supplementary budget release and any alteration of amount allocated under various budget heads. Similarly, amount of inter-head and inter-office transfer of budget is also assigned to this section.

1. Budget Release Section

Budget release section shows the monthly budget release including initial and additional imprest fund released. The amounts of budget released and received are entered into appropriate columns of budget sheet by preparing journal vouchers. This part is closed at the end of every fiscal year by depositing the surplus amount, if any, into Freeze Account or Consolidated Fund Account.

1. Budget Expenditure Section

This part shows the budget expenditures in their corresponding budget heads. Expenditures made through petty cash fund are also recorded in this section. All advance transactions and their clearance are entered in this section. All entries in this part are made through journal vouchers. Budget expenditure section is closed very month by adding all expenditures of respective budget heads and expenditures till the previous month.