Budget Manual of SPFO, 2025

SEAMEN’S PROVIDENT FUND ORGANISATION (Under The Ministry of Port, Shipping & Waterways) Government of India BUDGET MANUAL - 2025Table of Content S. No. Subject Page No. 1. Budget 1 2. SPFO Background 1 3. Budget in SPFO 1 4. Extracts of the Para-46 of SPF Scheme 1966 3 5. Extract of the Para 21 of SPF Scheme 1966 3 6. Extract of the Para 22 of the SPF Scheme, 1966 4 7. Guidelines for Revised Estimate 4 8. Guidelines for Budget Estimate 5 9. Annexure 9I Budget Budget is a quantitative statement of the resources set aside for carrying out planned activities over a given period of time – usually for forthcoming financial year. It is used to control and regulate the Income & Expenditure in an Organisation. II SPFO Background The Seamen’s Provident Fund Scheme framed under the Seamen’s Provident Fund Act, 1966 (4 of 1966) was introduced retrospectively w.e.f. 1st July, 1964 to provide for the institution of a Provident Fund for all Seamen, in view of the obvious need to provide old age retirement benefit to the seamen members engaged in the Shipping industry (Merchant Navy) and their family members in the event of death. To administer the Provident Fund Scheme, the office of the Seamen’s Provident Fund Commissioner was established on the 9th July, 1966. III Budget in SPFO 1.1 The Seamen’s Provident Fund Organisation (SPFO) is required to prepare its budget every year as per the provisions of Para-49 of the Seamen’s Provident Fund Scheme, 1966. SPFO is self-financing organisation and there is no grant from the Government, therefore budget heads (Major / Minor Head) are not applicable. However, SPFO has bifurcated the expenditure under Recurring and Non-Recurring Head in the Budget Manual. 11.2 The Revised Estimate and Budget Estimate shall be placed before the Finance Committee for recommendation and then it shall be placed before the Board of Trustees (BoT), SPFO for approval as per Para-49 of SPF Scheme, 1966. Extracts of the Para-49 of SPF Scheme 1966, Budget:- (1) The Commissioner shall place before the board each year in the first fortnight of January, a budget showing separately the probable receipts from the contributions and from the levy of administrative charge and the expenditure which it proposes to incur during the following financial year. The budget approved by the Board shall be submitted for sanction to the Government within a month of its being placed before the Board. (2) The Government may make such modifications in the Budget as it considers desirable before sanctioning it. (3) The Commissioner may, at any time during the year, make budgetary re- appropriation of funds sanctioned in the budget by the Government, provided that (i) the total amount sanctioned in the budget by the Government is not exceeded; (ii) it is made only for meeting such expenses of administration as are to be met from the Administration Account as mentioned in Paragraph 46; and (iii) every re-appropriation so made shall be reported by him in the next meeting of such Board. 2IV Extracts of the Para-46 of SPF Scheme 1966, Expenses of Administration:- 1. All expenses relating to the administration of fund, including the fees and allowance of the Trustees of the Board and Salaries, leave and joining time allowances, travelling and compensatory allowance, gratuities and compassionated allowance, pensions, contributions to Provident Fund and other benefit funds instituted for the officers and employees of the Board, the cost of Audit of the accounts, legal expenses and cost of all stationery and forms incurred in respect of the Board and expenses of the Commissioner shall be met from the Administration Account of Fund. V Extract of the Para 21 of SPF Scheme 1966: - Administrative and Financial Powers of the Commissioner: (1) The Commissioner may, without reference to the Board sanction expenditure on contingencies, supplies and services and purchase of article required for administering the Fund subject to financial provision in the budget and subject to the limits upto which the Commissioner may be authorized to sanction expenditure on any single item from time to time by the Board with the Approval of the Government. 3(2) The Commissioner may also exercise such administrative and financial powers other than those specified in sub-paragraph (1) above, as may be delegated to him from time to time by the Board with the approval of the Government. (3) The Commissioner may delegate from time to time the administrative and financial powers delegated to him by the Board to any officer under his control and superintendence to the extent considered suitable by him for the administration of the scheme with the prior approval of the Government. A statement of such delegation shall be placed before the next meeting of the Board for information. VI Extract of the Para 22 of the SPF Scheme, 1966 Delegation of power by the Board (Chairman, BoT, SPFO) (1) The Board may, with the prior approval of the Government, by a resolution, empower its Chairman to sanction expenditure, subject to such limits as may be specified in the resolution, on contingencies, supplies and purchase of articles required for administering the Fund subject to financial provision in the budget, where such expenditure is beyond the limits upto which the Commissioner is authorized to sanction expenditure on any single item. (3) All sanctions of expenditure made by the Chairman in pursuance of sub-paragraph (1) shall be reported to the Board as soon as possible after the sanction of the expenditure. VII Guidelines for Revised Estimate Revised Estimate – Revised estimates are essentially given as a counter to the Budget Estimates and apply only to the current financial year. Revised estimates post their mid- 4year survey, also explain the expenses that are going to happen in the particular financial year. ii. The organisation shall conduct a mid-year survey to see how the budget estimates have been used. Based on the survey, the organisation revises the funds. The revised estimates are presented to explain how the funds will be spent in the financial year. iii. Actual revenue and spending may differ from budget estimates due to unforeseen circumstances or new priorities. These revised estimates reflect these changes. iv. A budget revision moves to organisation authority for allocations, funds, accounts, and more. The net effect is to increase organisation authority in one place while decreasing it in another. v. While furnishing the actual Revenue Expenditure upto 30th September for the purpose of Revised Budget Estimate of the current year, the expenditure towards the Budget head 'Pay and allowances of officers' and 'Establishment', the actual expenditure in respect of other budget heads shall reflect for the period from 1st April to 30th September. The actual income & expenditure of the previous year shall be the amount as reflected in the Income and Expenditure account of the SPFO. vi. In the Revised Estimate the expenditure towards actuals, accrued and anticipated shall be taken into account VIII Guidelines for Budget Estimate Budget Estimate – A budget estimate is a projection of the funds that the organisation plans to spend under various heads for the next financial year. 5ii. Anticipated Income towards Administrative Charges, Penal Damages etc., shall not be over-cast to cover the anticipated expenditure. Budget Estimate shall be accurate based on actual for the preceding 3 years and new proposals during the financial year in hand. iii. The details of the standard budget heads are mentioned in Annexure-1. 1.2 Variations in Budget Estimate for the financial year shall be fully explained and reason for increased / decreased provision shall be given in the remark column against each budget head. 1.3 The proposal towards repayable loans and advances shall be made only after proper estimate of staff eligible for loans and advances who fulfil the conditions governing such advances. 1.4 The expenditure on the vacant posts shall be calculated on the minimum of the scales of pay and related allowances ensuring that the posts are likely to be filled during the financial year. 1.5 The budget proposals shall be supported with the statement showing the financial position of the SPFO taking into accounts of Income and Expenditure under the Budget Estimate for the next financial year. 1.6 The budget proposal shall receive personal attention of the Commissioner, Administrative cum Accounts Officer, Administrative/ Assistant Accounts Officer (SPFO) for its correctness and submission in time. 61.7 In order to keep control on expenditure within the sanctioned Budget, a separate statement shall be maintained year-wise by the Administration Section allotting separate folio for each Budget Head along with the details of allotment in the Budget Estimate. Day to day expenditure incurred shall be booked in the register to arrive at the balance available. Therefore, monthly total showing the expenditure for the current month and the progressive total shall also be arrived. No expenditure shall be allowed in the absence of Budget provisions. 1.8 A specific enfacement shall be made in the Bill about the availability of the Funds in the Budget Head. Care shall be taken to ensure that the expenditure is booked only to the relevant Budget Head. As and when, the refund is received towards un-spent Advance (except repayable Loan/Advances) and where the Advance is drawn and refunded in the same financial year, necessary deduction shall be made in the total expenditure and thus revising the progressive expenditure. Entries in this statement shall be authenticated by the Deputy Superintendent and Office Superintendent as and when expenditure is incurred. 2.2 The entire exercise of preparation of budget and placing it before the Board on due date is the prime responsibility of Administrative cum Accounts Officer and Administrative / Assistant Accounts Officer and they shall also ensure through the effective monitoring and control that the expenditure is restricted within the budget provision. 2.3 The Internal Audit Party has to play a vital role in arresting the tendency on the part of the SPFO in exceeding the budget. 72.4 In the budget proposals figures representing the amount shall be rounded off to the nearest hundred rupees. 2.5 Any unforeseen expenses like visit of Parliamentary Committee, etc may be shown under the head ‘Contingent Expenses’. 8Annexure - I STANDARD BUDGET HEAD REVENUE SECTION 1. PAY AND ALLOWANCE I. Basic Pay & Grade Pay II. Dearness Allowance III. Transport Allowance IV. Salary of Contractual Worker V. House Rent Allowance VI. Medical Bills VII. Tuition Bills VIII. Ex-gratia Payment IX. Encashment of Leave X. Travelling Allowance & LTC XI. Liaison Work at Kolkata/ Honoraria XII. Pension To Retired Employees XIII. L.S & Pension Contributions XIV. House Building Advance XV. National Pension System (NPS) XVI. Modified Assured Career Progression (MACP) XVII. Arrears Payment to Staff 2. NON-RECURRING EXPENDITURE I. Non Recurring – Purchase of Licensed Software Copy - MS Windows, Tally etc, 9II. Non Recurring –Development of new Software’s III. Non Recurring -Procurement of Hardware-Computer/printer/server/scanner etc. IV. Office Internal repairing, Furniture 3. RECURRING EXPENDITURE (OTHER ALLOWANCE) I. Annual Maintenance of Software II. Payment of Krupanidhi Ltd (Rent) III. Telephones/Internet Bills/ Lease Line IV. Electricity Bill V. Postage VI. Conveyance VII. Books & Publications VIII. Newspaper & Periodicals IX. Printing & Stationery X. Rubber Stamps XI. CAG-Audit Fees/Internal Audit Fee XII. Maintenance of Machine/Computer XIII. Washing Charges XIV. Insurance of Office XV. Legal / Professional / Consultancy Charges XVI. Amenities of Staff XVII. Miscellaneous expenses XVIII. Contingent expenses XIX. Awards XX. Training XXI. Maintenance of Office Building XXII. Demat / Bank Charges XXIII. TDS & GST Charges XXIV. Digitization 10XXV. Swachh Bharat Abhiyan XXVI. Security Services Expenses XXVII. Website Development Expenses XXVIII. Bank Charges XXIX. Advertisement Expenses 4. Staff Gratuity & Pension Fund 5. Other Misc. Expenses (Contingency) I. Interest on late deposit of TDS/ GST II. Late filing fees of returns of TDS/ GST III. Income tax demands of various years 11Annexure - I BUDGET SEAMEN'S PROVIDENT FUND ORGANISATION , MUMBAI Revised Estimates for the current F.Y. __________ Budget Proposal for the next F.Y. _________ Head of Revised Estimates for current F.Y. Previous Head of Revised Estimates for current F.Y. Previous F.Y. Accounts ___________ F.Y. Accounts ___________ Revised Budget Revised Budget Estimates Proposals Estimates Proposals Remarks’ Actual Sanctioned Actuals upto Current F.Y. Next F.Y. Actual Sanctioned Actuals upto Current F.Y. Next F.Y 30th Sep____ for__________ for _______ 30th Sep_____ for__________ for__________ RECEIPTS PAYMENTS 12Details of Non-Recurring & Recurring Expenditure for current F.Y. ______ & Budget Proposal for next F.Y. _________ Previous year Head of A ccounts Revised Estimates for current F.Y. ________ & Budget Proposal for next F.Y.________ Budget Actual Sanctioned Revised Estimates Proposals for exp Current F.Y. Actuals upto For Current F.Y. Next F.Y. Remarks For ______________ 30th Sep______ For ____________ For________ i. Non-Recurring Expenditure ii. Recurring Expenditure (Other Allowance) 13