New Budget Head along with Budget Head (New Government Accounting System)

Head of Budget Expenditure

For proper control over the expenditures and to make the recording clear and accurate, Government has classified expenditures into different budget heads. Inorder to keep record of financial transactions, the government office should follow the folliwng classified budget heads of expenditures.

The budget heads, the code number and sub-classification of expenditures are as follows: (only important heads are mentioned here)

BudgetHead No	Budget Head	Particular of expenditures
21111	Salary	It includes the following expenses: Salary, employee provident fund, pension, annual grade increase, insurance premium and incentive reward offered to authorities and employee for their services Wages and remuneration paid to workers during a project or a temporarty workers. Amount related to reserve house leave, sick leave, exchange leave and festival expense of employees.
21112	Local Allowance	It includes the amount of local allowance for working in specified remote area.
21113	Dearness Allowance	It includes the dearness allowance expenses payable to aurthorities and employees in accordance of decision of Gocernment of Nepal.
21114	Field Allowance	It includes the field allowance expenses payable to employees in accordance of the Government of Nepal.
21119	Other Allowance	It includes the allowances except local allowance as specified by Government of Nepal such as: meetingallowance, foreign allowance, maternity, overtime allowance and allowance to other assistants for working in festivals such as Dashain, Tihar, etc..
21121	Dresses	It includes dress allowance to employee and other (like police, army, hospital staff, post man, and other government employee) for dress, boot, cap, shoes and dress allowance for working mountainous region.
21122	Food Materials	It includes payment in cash to authorities and employees (like ploce, army, and other civil servant) for food and provision.
21123	Medical treatment expenses	It includes the expenses provided to authorities and employees for health insurance fee, medical treatment expenses and transportation cost for the same and caretaker expenses as well as other expenses
22111	Water and Electricity	It includes charges for using water, electricity and drainage and also such installation charges.
22112	Communication Charge	It includes the expenses on telephone, telegram, trunk call, telex, internet charges, website expense, fax expenses and such communictionrelated expenses. It also includes expenses for letter, parcel ticket, registration; return receipt, courier charges etc.
22122	House Rent	It includes rent paid for building, godown and land occupied by such assets taken on rent for government official use. However rent paid for public construction is included in the concerned heading of capital expenditure and land rent is included in code no. 28111.
22211	Other Rent	It includes rent paid for vechiles, nachinery and equipment and other capital assets acquired on rent for government official use. However, rent paid for public construction is included in the concern capital expenditure heading.
22211	Fuel	It includes fuel, lubricant etc expenses on vechiles used for government official work. However, fuel expenses incurred for carriage of estimated cost of construction materials is included in the concerned budget heading.
22212	Operation, Repai and Maintenance	It includes material and wages expenses incured for repair and maintenance of machinery and other capital assets used regularly in office. The expense on spare parts that increase the life of machines must be included in the concerned capital assets heading. For eg; Expenses on battery and wages needed for repair and maintenance. But where as, expenses made for replacement of parts should be included in the concerned capital expenses heading.
22213	Insurance	It includes insurance expenses for completed public property such as road, bridge, canal, electricity house and machinery equipment etc and insurance premium of vechiles and third party liability property should be included in the concerned cpaital expenses heading.
22311	Office RelatedExpenses	It includes the following expenses: Publication expense of government notice, aution and contract related information. Bank service charge, compensation and other related service expenses. The cost for regular use of office such as paper, envelope, form, record file, stapler, punching machine and materials required for them and office related stationery such as pen. ink, pencil, etc. Office materials having durablility of less than one year, and small supporting materials required for security related machines, other office materials that cost less than two thousand which last for 1 year. Printing expenses required for office. Magazine and book related expenses. Carriage charge of materials for government use.
22312	Feeding for Livestock	Expenses paid for feeding materials to birds and animals
22313	Books and Material Expenses	It includes expenses for free distributions of books, games and educational materials for public schools and books purchased for public library.
22314	Fuel-other use	It includes expenses for kerosene gas, coal, wood, other fuel and all types of battery used for administrative work. But the expenses paid for battery used for vechiles should be entered in budget heaad no. 22212.
22321	Maintenance cost ofPublic property	It includes regular repair, maintenance and paintings expenses of built public properties such as road, bridge, cannel, powerhouse, building etc.
22411	Service and consultancyExpenses	It includes the following expenes: expenses related to remuneration for study, research, consultation, advisory, etc. other than capital formation or related to capital information. Expenses for software renewal and other service fees.
22412	Other service Fee	It includes the payment made for office security, cleaning, gardening, correspondence, agriculture promotion, primary health service, driving, telephone, fax, computer, photocopy machines operation and maintenance services charge paid on contract or on an hoc basis.
22511	Employees training	It includes expenses for organization of training, seminar, workshop of government employees for the development of their skill efficiency and daily travelling expenses of such programs.
22512	Skill Development and public awarenesstraining and seminar expenses	It includes training, operation expenses for income generation, skill development,efficiency development, awareness of the general public such as allowance of trainer, resource persons and participants, stationary, refreshment expenses, hall rent and sanctioned daily allowance and travelling expenses and program operating expenses.
22521	Production MaterialService	It includes all raw materials and other materials, labour and production overheads incurred on materials for converting them into finished products. Besides this it also include expenses for cost of postage stamps, postcards, pesticide; cost of animal, birds, fisheries, other agriculture products; and cost of maps for survey and legal works reproduction of goods, postal stamp of various scenes and and post card of national property, broucher etc. Note:Expenses made for plantation of plants are not included under this heading
22522	Other ProgramExpenses	The expenses which are not included in the other heading such as organization of fair, audio-visual program, and cost of ritual function by state operatedtemples comes under this heading.
22531	Medicine Purchase	Under this heading, expenses related to purchasing medicines and carriage charge and service provided by hospitals, primary health psots, Aurbethic hospital ect. in treatment to the patients ate included.
22611	Supervision andevaluation expenses	It includes expenses incured for supervision and evaluation, preparation of report for such work and invigilation.
22612	Travelling Expenses	It includes the following expenses: The expenses incurred for employee and his family when permanent or temporary transfered from one office to another consist of fare charge and walking allowance such as travelling expenses, airport tax, travelling insurance, and other recognized miscellaneous travelling expenses. Daily allowance paid for employee and his family for transfer in accordance of rule. The amount paid for visiting inside and outside country for government job or program implementation such as travelling expenses, daily allowance, resident expenses, leader allowance, and dress allowance for foreign visit, insurance expenses, petty and contingent expenses.
22613	Travelling exopensesof distinguishedPersonality and Team	It includes the amount paid for travelling the distinguished personality and team such as transportation fare, airport tax, travelling insurance, daily allowance, resident expenses, dress allowance for foreign visit and contingent expenses.
22614	Other TravellingExpenses	It includes the amount paid for travelling expenses to summon witness person for case of government of Nepal in court.
22711	Miscellaneous Expenses	Under this heading, the following expenses are included; Approved expenditure for entertainment like shows, refreshment, entertainment and parties. Expenditures for security. Expenditure for providing hospitality services to the guests. Miscellaneous expenditures not chargeable to other budget heads.
29111	Land Purchase	It includes all expenditures made for purchase and accumulation of land such as value, compensaton, registration fee, tax and other expenses.
29211	Building Purchase	It includes cost of building purchase and acquisition including land covered by the building, compensation and tax.
29221	Building Construction	It includes the following expenses: Office, residence building and its compound etc construction cost. Cost of addition of room, floor of existing building. Capital nature expenses made for adding life of existing building.
29311	Furniture and fixture	It includes the following expenses incurred for purchase of furniture, furnishing,and fixtures for government official use: Purchase price Expenses for carriage, insurance, tax, custom duty.
29411	Vechile	It includes the following expenses: Cost of vehicle (such as aeroplane, helicopter, jeep, motocar, bus, truck, motor cycle, scooter,cycle, tractor,cart,etc.) Cost of repairs and maintenance by changing engine of vehicle. Carriage charge, tax, custom, insureance expenses for purchasing vehicle or engine.
29511	Machinery Equipment	The following expenses are incurred under this heading: The cost of various types of heavy machinery, agriculture related machinery and tools, tractor(not used for carrying goods), transfer, factory equipments, construction related machines, communication tools, scientific equipments and goods, weight related photographic equipment, office machines such as fax, mimeograph, computer, printer, etc. Repairs and maintenance expenses by changing main part of machines. Expenses for carriage, excise duty, tax, custom duty, insurance etc of such machines. Cost of the following goods which is minimum one year durable or per unit cost should be more than Rs. 2,000 necessary for government office: - Equipments necessary for hospital. - calculator, electric meter, cheque writer, torchlight, solar, inverter, UPS, hard disk and its installaton cost, technical equipments necessary for radio and television broadcasting etc. - Security related equipment, parts used in security department. - Technical equipments such as heater, fan, telephone, etc. - Agricultire tools, veterinary related small tools, drawing, design etc. related technical equipment.
((Note: However, if per unit cost of machine is less than Rs. 2,000 its should be included in budget budget head number 22311 as official related expenses.)