FINANCE DEPARTMENT ANNUAL REPORT 1994-95

Item

Title
FINANCE DEPARTMENT ANNUAL
REPORT 1994-95
extracted text
GOVERNMENT OF KARNATAKA

FINANCE DEPARTMENT
50 >5) g~)

59-Cro a?

ANNUAL
REPORT

1.

Commercial lax Department.......... .

2.

State Accounts Department

.......... I'"—'•''1

3.

Karnataka Government
Insurance Department

............. 22—26

4.

Treasury Department

............. 27—33

5.

Small Savings and State
Lottery Department

............. 34—40

1—15

: 1 :

/ .nual Report of the Commercial taxes
Department, For the year 1994-95
The commercial taxes Department is headed by a
commissioner who at he State level is assisted by five addl.
Commissioners and two Joint Commissioner of commercial TaxesJCCT (Investigation), and Joint Commissioner of Comercial Taxes
(Legal) in the enforcement of Karnataka Sales Tax Act, Central
Sales Tax Act and six other taxation enactments administered
by the Department. For effective and speedy collection of taxes
the state has been divided into five zones, 1) Bangalore City
Zone-I consisting of B’lore City-I and City-Ill Divisions, 2) Bangalore
City Zone-ll consisting of B’lore City-ll and IV and Bangalore
Division, 3) Davanagere zone, consisting of Davanagere and
Gulberga Divisions, 4) Mysore zone consisting of Mysore. Malnad
and Mangalore Divisions and 5) Belgaum zone consisting of
Dharwad & Belgaum Divisions. Each zone is headed by an
addl. Commissioner of Commercial Taxes.
For collection of taxes the state has been further divided
into 12 Commercial Taxes Divisions. Each Division is headed
by a Joint Commissioner of Commercial Taxes (Admn) who is
responsible for the administration of the various Acts of the
Department. Each Division has also a Joint Commissioner of
Commercial Taxes (Appeals) to deal with appeal cases tilled by
dealers Apart from these there are 6 addl. Joint Commissioners
of Commercial Taxes (appeals) one each in Mangalore. Belgaum,
Dharwad. Bangalore City Division-I, II & III

Apart from the above department has eight Intelligence
Wings, one for south Zone, North Zone, East Zone. West Zone,
Central Zone, Mysore Zone. Hubli Zone and Shimoga Zone with
headquarters at Bangalore. Belgaum, Gulbarga. Mangalore.
Davangere. Mysore. Hubli and Shimoga respectively. Each zone
is heaceo by a joint Commissioner of commercial Taxes (Int)
who is responsible for intelligence and other related activities m
his junsoiction.
There is a Joint Commissioner of Commercial Taxes (vig)

to look after the vigilance activities at Bangalore City.

The commercial Taxes Department administered the following
Acts :
1.
The Karnatai-a Sales ACt, 1957.

2.

The Central Sales Tax Act, 1956.

3.

The Karnataka Agri. Income Tax Act, 1957

4.

The Karnataka Entertainments Tax Act, 1958.

5.

The Karnataka Tax on Lusuries (Hotels and Lodging
Houses) Act, 1979.

6.

The Karnataka Tax on Professions, Traders, Callings,
and Employments Act 1932.

7.

The Mysore Betting Tax Act, 1932.

The Karnataka Tax on Entry of Goods into Local Areas
for Consumption, Use or Sale therein Act, 1979.
The target for revenue collection as per revised Budget
Estimates (proposed by the dept) under all the above Acts for
the year 1994-95 is Rs. 2914.00 crores as against this the total
collection as reported upto end of Feb.95. is Rs. 2368.45 crores
(excluding direct remittances from Forest, PWD and other Govt.
Depts) accounting, for a growth rate of 14.44% over the
corresponding period of previous year's collection of Rs. 2069.52
crores. The total revenue receipts during 94-95 (upto Feb.95)
and previous five years (Annual) are as follows:

8.

Year

Revenue
realised
(Rs. in crores)

Annual
G.R.
(%)

1989-90

1232.45

11.01

1990-91

1489.93

20.89

1991-92

1857.00

24.63

1992-93

2027.63

9.19

1993-94

2577.58

27.12

1994-95

2368.45

14.44

(uplo end of feb.95)

: 3 :

Salos Tax (KST & CST)
“he major portion of revenue of the department comes
fro
ales taxes, which account for about 88% of ail commercial
Taxe^. The total receipts from this source during 1994-95 (upto
Feb 95) and of the previous 5 years (Annual) are given below:

Revenue
realised
(Rs. in crores)

Annual
G.R.

1989-90

1081.27

9.52

1990-91

1316.92

21.79

1991-92

1653.23

1992-93

1775.79

7.41

1993-94

2277.96

28.28

1994-95

2085.44

15.54

Year

z

25.53

(upto end of Feb.95)

The revised target (proposed RE) tor collection of revenue
under sales tax tor the year 1994-95 is fixed at Rs. 2621.00
crores. The collection achieved under sales tax upto end of
Feb.95 was Rs. 2085.44 crores and accounted for a growth rate
of 15.54% over the collection of previous years corresponding

period.
Concessions and reliefs on several commodities were
announced and additional revenue mobilisation proposed about
7.20 crores under this Act in the Budget for 94-95.

The demand, collection and balance under sales tax from
1989-90 to 1994-95 are as follows:

Year

Demand
(including arrears)

Collection

Balance

1989-90

1243.74

1068.19

175.55

1990-91

1519.18

1298.09

221.09

1991-92

1919.68

1652.38

267.30

1992-93

2014.60

1758.69

255.91

1993-94

2651.44

2263.95

367.49

1994-95

2021.33

1630.12

391.21

(upto end of Dec.94
provisional)

Arrears :
Every possible effort was made by lhe department to collect
as much as the arrears under ST as poss.ble during the year
under report. Act-wise details of demand and collection on 31.3.94
and balance of tf\e old arrears as on 31.12.94 are given in
Annexure I & II respectively.
Registration :
The number of registered dealers in the State at the end
of Sept. 94 with corresponding figures for the previous two years
under KST & CST Acts were as follows :
Central Sales Tax

Karnataka Sales Tax
31.3.93

31.3.94

30.9.94

31.3.93

31.3.94

30.9.94

205426

212737

218836

115836

122029

127539

Assessments :
As on 1st April 1994, 157911 assessments cases under
KST and 96174 cases under CST were pending 195568 cases

: 5 :

under KST and 107023 cases under CST were added upto Dec
'94. The total number of assessments disposed off upto end of
Dec. 94 was 132931 under KST and 68692 cases under CST,
leaving the balance of 220548 under KST and 134505 under
CST. The details of asst, during last 5 years are given below:

Under Karnataka Sales TAx Act:

Years

No.of
No.of
assts.
assts.
pending accrued
at the
after
begin
reduction
nmg
of the yr.

Net
assts.
for
disposal

No.of
assts.
disposed

Balance

1989-90

158328

207411

365739

238628

130111

1990-91

130111

221071

351182

221289

129893

1991-92

129893

160224

290117

158746

131371

1992-93

131371

169827

301198

163151

138047

1993-94

138047

186716

324763

166852

157911

1994-95

157911

195568

353479

132931

220548

(upto end
of Dec.94)

: 6 :

Under Central Sales Tax Act :

Years

No. of
No.of
assts.
assts.
accr­
pendings
at the
ued
begin
after
ning
r eduction
of the

Net
assts.
for
disposal

No. of
assts
disposed

Balance

yr-

1989-90

89039

115164

204203

123123

81080

1990-91

81080

116359

197939

117498

80441

1991-92

80441

80506

160947

80794

80153

1992-93

80153

89734

169887

85370

84517

1993-94

84517

101058

185575

89401

96174

1994-95

96174

107023

203197

68592

134505

(upto end
of Dec. 94)

Appeals:
During the current year upto end of Dec. 94 the total
number of appeal cases under KST with JCCT and DCCT
(Appeals) in the State were 11826 of which 5495 cases were
disposed off leavihg the balance of 6331 cases.

The information relating to opening balance, disposal and
pendency of appeal cases under KST & CST Acts are given

below:

: 7 :
■ ■•'nt Commissioner of Commercial Taxes (appeals):
Cpeening
r-alanco

Receipts

KST CST

KST

CST

■.939 90 6086 1542

5=69

1422

11955

2964

1900-91 7:96 1756

5931

1459

13177

3215

1991-92 7381 1824

8417

1920

15798

3744

8033

1992-93 7765 1952

5571

1262

13336

3214

1993-94 3676 1513

3064

1299

11740

2817

* 994-95 4'63

4050

1040

8213

1953

.'var

918

Total

KST

CST

Disposal

Balance

KST

CST

KST

CST

4759

1208

7196

1756

5796

1391

7381

1824

1792

7765

1953

9690

1636

3676

1518

7577

1399

4163

918

4215

991

3993

967

(upto
end of
Dec 94)

Deputy Commissioner of Commercial Taxes (Appeals):
cceening
3aianco

Receipts

KST CST

KST

CST

KST

CST

1909 90 5723 - 241

5608

264

11331

1990-91 6057

233

4254

207

1991-92 5667

256

3726

1992 93 5049

241

•993-94 3586
•994-95 2042

Vo ar

Total

Disposal

Balance

KST

CST

KST

CST

5C5

5274

272

6057

233

10511

440

4644

184

5667

256

205

9393

461

4344

220

5049

241

2S39

119

7583

360

4002

228

3586

132

132

2511

66

6097

198

4055

112

2042

86

86

1571

32

3613

118

1280

57

2333

61

i upto end
of Dec
94)

Intelligence Activities
The Intelligence activities includes inspection/searches of
suspected dealers, test purchases, checkpost vigilance, seasonal

o

: 8 :
vigilance and acting on information received. During 93-49, 4269
shop inspection were conducted by intelligence officers, detecting
suppressed turnover of abcut Rs. 1958.06 crores involving a tax
liability of Rs. 69.23 crores. The collection of C.F. and penalties
by the officers of the Intelligence wing of the department through
shop inspections for the year 1993-94 was Rs. 80.90 lakhs.
During 1994-95 (upto end of Dec. 94) 3209 shop inspections
were conducted and detected a suppressed turnover of Rs.
1667.75 crs. involving a tax liability of Rs. 53.99 crs. The
collection of C.F. and penalties by the intelligence wing through
the shop inspections to end of Dec. 94 was Rs. 2.56 crs.
During the year 1993-94 50.94 lakhs goods vehicles were
checked and 35785 vehicles were physically verified and offences
booked in 43392 cases at sales tax checkposts. An amount of
Rs. 5.83 crores was ccilecied as penalty at checkposts. During
1994-95 upto end of December 94,»», 39.82 lakhs vehicles were
checked and 32335 vehicles were physically verified and offences
booked in 33274 cases at sales tax checkpost. An amount of
Rs. 5.97 crs. was collected as penalty at checkposts.

The Karnataka Entertainments Tax Act, 1958:

The demand, collection and balance under the Karnataka
Entertainment tax from 1989-90 are as follows :
Collection
Balance
Demand
Year
(Rs. in crores)
38.97
1.81
40.78
1989-90

1990-91

43.70

41.97

1.73

1991-92

47.44

45.70

1.74

1992-93

49.98

47.98

2.00

1993-94

54 23

52.44

1.79

1994-95

38.39

36.12

2.27

(upto end
of Dec 94

During the year 94-95 an amount of Rs. 42.61 crs. vzas collected
upto end of Feb. 95 under this Act as against the anticipated
amount of Rs. 44.00 Crs. There is decreasing trend in collection
due to introduction of slab system in payment of tax v/.e.f.27-9-94.
Details of collection under each minor Act over five years are
furnished in Annexure-lll.
The Karnataka Agri. Income Tax Act, 1957 :
The demand, collection and balance under this Act are as
follows :

(Rs.crores)
year

Demand (inclu­
ding arrears)

Collection

Balance

1989-90

20.46

15.90

4.56

1990-91

11 97

7.33

4.64

1991-92

15 76

9.20

6.56

1992-93

16.57

10.98

5.59

1993-94

15 00

9.16

5 84

1994-95

20.90

14 91

5.99

(upto end of Dec.94
Provisional)

Collection :
During 1993-94 an amount of Rs.9.01 crs. was collected.
During : 994-95 uoto end of Feb.95 an amount of Rs. 15.57 crs.
was collected unoer this Act as against the anticipated collection
of Rs. 15.CO crs. and recorded the growth rate of 111.55% over
the corresponding period of previous year's collection.

Rimnn -cin OC'OCU SPAA

:

iO

:

Assessment :
As on 1st April 1994, 7631 assessments cases were pending
and 4357 cases were added upto end of Dec.94. The total
number of assessments disposed off upto Dec.94 was 3178
leaving a balance of 8810 cases.

Karnataka Tax on professions Trades, callings and
Employments Act.1976 :
Collections :
During 1993-94 the revenue collected under this Act was
Rs.77.98 crs. During the current year upto end of Feb.95 an
amount of Rs.79.64 crs. was collected as against the anticipated
amount of Rs.95.00 crs. and accounting for a growth rate of
20.90% over the corresponding period of previous years collection.
The karanataka Tax on Luxuries (Hotels and lodging
Houses), Act - 1979 :

During 93-94 an amount of Rs. 11.65 crs. was collected.
During 94-95 an amount of Rs.15.64 crs. was collected upto
end of Feb. 95 as against the anticipated collection of Rs. 16.00
crs. and recording the growth rate of 30.55% over the collection
of previous years corresponding period. Details are given in
Annexure-lll
The Karnataka Tax on Entry of goods Into local Areas
for consumption use or sales Therein Act,l979 :

During the year 1993-94 an amount of Rs.132.68 crs. was
collected. During 1994-95 upto end of Feb.95 an amount of
Rs. 116.77 crs. was collected as against anticipated collection of
Rs.110.00 crs. there is decreasing trend in collection during the
year due to exemption of entry tax on 71 commodities.

The Mysore Betting tax Act, 1932 :
Administration of this Act was entrusted to the Commercial
taxes Department from 14-1-82. Earlier, it was administered by
the Revenue Department. During 93-94 the revenue collection
was Rs.8.98 crs. During 94-95 upto end of Feb.95 the revenue

: 11 :
collection was Rs. 12.78 crs. as against the anticipated collection
under this Act during the year is Rs.13.00 crs. and recorded
the G.R. of 30.14% over the collection ■ of previous year's
corresponding period.
Jn-House computer centre of the Department :
The Computer which was installed in the Department in
September 1984 is being used to analyse data received from
different offices of the department.
Cost of Collection of Revenue :
the revenue realised and expenditure incurred by the
department on the administration of the different Acts during the
last five years show that the revenue realisation has registered
steady increase from year to year, while the administrative
expenditure has remained at relatively low level. During 1993-94
an expenditure of Rs.31.07 crs.was incurred for collection of
taxes and administration, which works out to 1.20% of the total
collections. During the current year upto end of Oct.94 the
expenditure incurred was Rs.21.05 crs.
The relevant figures are given below :

{Rs. crores)
years

Revenue realised

Expenditure

under all acts

% of
Expendi­
ture to the
rev. realised

1989-90

1232.45

19.66

1.59

1990-91

1489.93

19.97

1.34

1991-92

1857.00

24.13

1.30

1992-93

2027.53

27.00

1.33

1993-94

2577.58

31.07

1.20

1994-95

1391.07

21.05

1.51

(uoto end of Oct.94)

Demand Collection and Balance as on 31.03.1994
(Rs.in crores)
Collection
Balance

Act

Demand

K.S.T
C.S.T
K.E.T

2247.05
404.39
54.23

1945.12
318.83
52.44

301.93
85.56
1.79

K.A.I.T

15.00

9.16

5.84

L.T

13.41

13.17

00.24

K.T.E.G

162.42

132.01

30.41

P.T

85.50

74.92

10.58

B.T

11.05

11.05

-

Total

2993.05

2556.70

436.35

ANNEXURE -II
Statement showing the details of old arrears of Taxes
under all acts as on 31.12.1994

(Rs.Crores)

1.
2.

3.

Balance of arrears as on
31.3.94
Amount collected including
reduction upto 31.12.94
(excluding current demand)
Balance of arrears as on
31.12.94 of which
a) Collectible
b) stayed by the court
c) Others

436.35

(as per DCB)

174.46

(provisional)

261.89
59.73
119.85
82.31

- - - -

Note : others incfudes the amount covered by interest free
loans, installments facilities allowed, write off proposals, incentive
scheme and insolvency proceedings etc.

ANNEXURE -III
Details of Revenue realised under Minor Acts

Karnataka Entertainments Tax Act, 1958 :

Year

Revenue Realised
(Rs. in crores)

Annual G.R
(%)

1989-30

40.75

6.62

1990-91

42.00

3.07

1991-92

48 33

15.04

1992-93

49.64

2.71

1993-94

59.32

19.50

1994-95

42.61

(-)9.30

(upto end of Feb. 1995)

Karnataka Agricultural Income Tax Act, 1957 :

1989-90

15.52

48 37

1990-91

7.23

(-J53.41

1991-92

9.07

25.45

1992-93

10.86

19.74

1993-94

•9.01

(-J17.03

1994-95

15.57

111.55

(upto end ot Feb.1995)
6952-5

: 14 :
3.

Karnataka Tax on Profession, Trades, callings
Employment Act,1976 :
24.03
1989-90
56.85
67.42
40.23
1990-91
19.04
1.991-92
47.89
61.07

and

27.52

1992-93
1993-94

77.98

27.69

1994-95

79.64

20.90

(upto end of
Feb.1995).
4.

The Karnataka Tax on Luxuries (Hotels and Lodging
Houses)Act,1979 :
Year
Annual G.R
Revenue Realised
1989-90
5.42
78.88

6.46
7.81

1992-93
1993-94

10.43

20.90
34.19

11.65
15.64

11.16
30.55

1994-95
(upto Feb95)
5.

19.19

1990-91
1991-92

The karnataka Tax on Entry of Goods into local areas
for consumption, use or safe Therein Act,1979:

56.67
65.49

19.53
15.56

1991-92

82.06

25.30

1992-93

109.84

33.85

1993-94

132.68

20.79

1994-95

116.77

{-)4.71

1989-90
1990-91

(upto Feb.95)

15 :
6.

The Mysore betting Tax Act,1932 :

1989-90

8 79

1990-91

11.60

31.97

1991-92

8 61

(-)25.78

1992-93

9.95

15.56

1993-94

8.98

(-J9.75

1994-95

12.78

30.14

(upto Feb.95)

2.45

REPORT Q? GTATJ AUCGU If J
FOR TM5 YS'-U 1994-95 ( -i-s O:* ’■■>■' TiiJ mJ v--1

r/?Pi
The dtate Accounts Department

is one

of the Major Department of Government which
works under the Administrative Control of

the Finance Department. The ■’Controller1’
53 the head of the department.
The audit
of accounts of various Local Dodies euch -3
City .lunicipal Councils, Tovn Tnniclp.nl
Councils, Mandal Ponchayaths, Command Area
Development Authorities (CADAa) Public Libra
ries, Le;;al Aid Boards, Karnataka jacondoxy
education examination Board, K.J.I.D. .1
x.b.Q. Canteens, Hindu aeligions and Charitu
ble TndiFJnent Institutions, Universities,
Urban Development Authorities, etc., have
been entrusted to the Jtate Accounts Depart­
ment under the provisions of the Acta and
.Jiles 01 these Institutions and also as per
the directions of the Govemraant received
iron time to time, Accordingly the audit of
the accounts of the Universities will ba
conducted by the Government auditors located
at the respective Universities.
The audit Of the accounts of the

local bodies and various other institution 5

in the diatrlot is being conducted by the

concerned district local audit circle and
by the head office.
per the provision of Section 150

as

of Karnataka Municipal Act 1976,

the audit

of accounts of Municipal Corporations is

being conducted by the Chief Auditors of
respective corporations,

rnment.

appointed by Gove­

They work under general supervisi­

on and guidance of the Controller,

Accounts Department.

State

There are 19 T.oo.al

Audit Circles and 8 Government auditors
offices which work under the direct control

of this department.

From 1989.90 and onwards,

the expen­

diture in Mandal Panchayaths relating to
Jawahar Rozgar Yojanas is also coming under

the audit purview of this department.
AUDIT PROG.lAl-jilE AND PROGRESS:

As per the annual programme chalked
out for 1994.95,

it is proposed to take up

the audit of 5990 institutions consisting
of 4670 years of accounts.

December 1994,

At the end of

the audit of 2352 institu­

tions of 2929 years of accounts has been
completed.

The audit of remaining institu­

tions is -under progress.

It is anticipated

to complete the audit by the end of ilarch

1995.
5S52.-4-

CCNwRCLLBR AS THE TIcJABukdR 0? CliARITABLJ

ENDOTHEKT
As per the provision of the Article
361 of K.r.C. and. also provision of the

Government order No. i?D(R)

dared 12.12.1955,

5052 BB 22-55-5

the Controller is the

Treasurer for Charitable Endowments.
dingly,

Accor­

a. sum of 1.25.95 lakhs relating to

2 59 endowments is held in the fora cl Secu­

rities.

A sum of 1.77.55 lakhs is held in

the form cf Fixed Deposit Receipts relating

to Muzarai endowments.
MAINTENANCE OF COMPULSORY DEPOSIT SCHEME:

As per the provisions of compulsory

Deposit Scheme 1974, Controller is the nomi­

nated authority for various local bodi-es
in the state.

At the end of January 1995

its. 4,26,520.00 is yer to be reimbursed. Nece­

ssary action is being taken to re-imburse
this amounr.
DEPUTATION Ur OFFIOEitS AND OFFICIALS:

The officers and officials of this

department are on deputation to various
Government Departments, local bodies and

auronomous bodies in order to mainrain the

accounts acjd also to work aa internal auditors

and Finanqfial advisers. There are 5525 posts
in this department, out of which only 651

posts are under rhe direct control of this

Rest are on deputation to various

department.

Government departments, local bodies, etc.,

e.,
i.

about 8O;3 of the staff of this depart­

ment are on deputation.
T<Aj—ilh'G r

During the year 1994.95,44 group 'A

& B' officers of this department have been de­

puted to short term training programmes condu­
cted by the Administrative Training Institute,

Mysore.

27 Accounts Superintendents working

in Public Jorks and Irrigation Departments
under vzent a short term training course "Maintainance P.rf.D. Accounts" conducted at the

Karnataka Secretariat Training Institute, Ban­

galore.
Upto the end of January 1995, about

116 officers and staff of the Department
underwent short term Training courses conduc­

ted at D.T.I.’s in different districts. Action
has been taken to conduct some more short term

Training courses for the staff during February
and March 9 5.

As the officers and officials of this
department are working in various Govern­

ment, departments and local bodies on depu­
tation, they are expected to maintain the
accounts in a more efficient manner.

Io

perform the above duty and responsibilities

a proper training scheme covering various'
Acts, Rules is absolutely necessary for the

officials of this department, both newly

recruited and in service candidates.

In

this connections, a proposal for opening of
a seperate training centre for this depart­

ment has already been submitted to the
Government for consideration.
SXrEliDITU-tE 0? fill DEr A-hT. ill'T

A budget provision of Ss.586.55 lakhs

has been provided in the budget estimates
for the year 1994.95.

Cut of this, depart­

ment has incurred an expenditure of .a. 195.30
lakhs to end of September 1994.

For the

year 1995,96 a budget estimate of k.411.00

lakhs have been submitted to the Government.
AUDIT CHARGES
As per the provisions of various Acts
and Rules of local bodies coming under the
audit purview of -this department, the audit

charges are being levied and collected.

A

sun of Rs.78.14 lakhs has been collected
during the year 1995-94, Rs. 59.18 lakhs
have been collected and credited to Govern

nent upto the end of November 1994 and a
sum of Rs. 10.00 lakhs is anticipated to be
collected to the end of March 1995.

KARNATAKA GOVERNMENT INSURANCE DEPT.,
BANGALORE - 560 001
ANNUAL REPORT FOR 1994-95

1.

LIFE INSURANCE BRANCH :

The Life Insurance Branch has issued
52185 policies for a sum assurance of
Rs. 97 crores and collected Rs.46 crores
premium
income
from
1.4.1994
to
31.12.1994.
This business is expected
to go up covering 69580 policies for a
sum assurance of about Rs 129 crores
yielding
premium
income
of
Rs.
61
crores by the end of 31.3.1995.
The
department has sanctioned Rs. 51 crores
as cash loan to 55272 policy holders
from 1.4.199- to 31.12.1994, which is
expected to go up to 68 crores by the
end of 31.03.1995.
The fund balance as
on 30.11.1994 is Rs. 591 crores, which
is estimated to reach 660 crores by
31.3.1995.
Bonus on the policies for
biennial ending on 31.03.1992 has been
declared at the rate of Rs.
86 per
thousand per annum.
The valuation work
for 1992-94 biennial ending 31.03.1994
is under progress and expected to be
completed very soon.
2.

MOTOR INSURANCE BRANCH :

The
motor branch has
insured
13798
vehicles
as
on
31.12.1994
yielding
premium income of Rs. 112 lakhs, which
is estimated to reach Rs.
150 lakhs
cover is 18397 vehicles bv the end of
31.3.1995.

3.3
The fund balance as on 31.12.1994 is Rs.
8 crores and this is expected to reach
Rs.10 crores by 31.3.1995.

3.

FAMILY BENEFIT FUND BRANCH •

This continues to be a social security
scheme for employees of local bodies and
aided Institutions. —

The details of business statistics of
these
three
branches
are
furnished
in. the enclosed proforma.
ADMINISTRATIVE POWERS

The financial powers hitherto centralised in
the Directorate have been delegated to
Divisional and District level officersThe power to issue the policies
grant
of cash loans and settling claims upto
Rs
40 thousand has been delegated to
District Insurance Officers and Deputy
Directors of the Division are exercising
Financial
powers
upto
to
Rs
50
thousand.
COMPUTERISATION
The department has purchased a computer
under Office Modernisation Scheme and is
used in preparation of salary bills for
our Bangalore Offices. Preparation of
maturity lists and preparation of master
index for insureds ledger sheets work is

14
done
with
the co operation
of
NIC.
Valuation work for 1992 94 has also been
done with the co operation of K G. C. C.
The
department
has
scheme
of
computerisation in a phased manner in
respect of ether field of activities of
this
Department .
Computerisation
of
>'otor Branch will be taken first on
priority basis .

The
work
in
the
department
progressing satisfactorily.

is

I

ST
KARHATAKA GOVBRJiMEHT IHSURANCB DBPARTXBHT: BAHGAJ,ORB-56OO01

31.
no.

Branch end Particulars

2

1

Unit

1991-92

1992-93

1993-94

3

4

5

6

1-4-94
to
31-12-94
7

19
ost

I.Life Influrance Branch

i.
2.
5.
4.

5.
6.
7.

8.

9.
10.

Number
36091
Rs.in lakhs
Hev policies Initial
39
Deposit
Now policioo outn Assuran :o Rs. in lakhs 10536
Number
Total policies in force
805687
lb. in lakhs
Total promiua) in force
50

New policies issued

Total, sum assurance
No. of claim policies

Rs.in crores

a) Maturity
b) Death

Numbor
Humber
Humber

33

34696
40

52185
48

6953
6

7963
810642

10472
813108

54

57.5
1162

9708
837812
46

84833
6

1245

127

25036

20301

3441
1446

2533
1137

2706
337j

14.99
3.11
0.73

20
4. d

50.65
591.20
ns on
30.11.94

67.5:
660

28717

998

1072

22467
2501

c) Surrender value
Amount of claims paid
a) Maturity
b) Death
c) Surrnder value
Amount of Loan Granted

20239
2575
1808

Rs.in crores 10.33
Fb.in croroa 2.84
Rs,in crores 0.83
fc.in crores 43.01

1 1 .25
3.12
0.86
48.80

16.35
3.83
0.79
65.88

Life Fund Balance

5s.in crores 376

503

577

1210

1294

151

0.97

- - .

2

1

3

4

5

6

7

0

1816J

17697
136

13798
1 12

18397
150

200

234

312

34
690

39
771

51
1027

115
340

93
273

125
364
6269

II . Motor Insurance Branch

1.
2.

Vehicles Insured
Total Premium income

5.
4.

Ho. of clalmo paid
Aaount of clalaa paid
Motor Brunch Fund Balance

5.

Numb er
9536
fa.In lakluo
135
238
Numb or
31
496

139
310
40
596

fa.In lakho 110
fa.In lakho 204
fa.In lakho 40.64

273
5040

fa.in lakho

fa.In lakho

III. Panlly Benefit Fund
Branch
1.
2.

Racolpto
Payraonto

5.

Fund Balance

129

5923

••<7
TREASURY
(Govt.

of Karnataka)

-

REPORT

ANNUAL

1994-95

Treasuries

of

Director

The

DEPARTMENT

is

Chief

the

Controlling Authority for the Treasury Department

and

the

on

him.

Department

under

the

administrative

devolves

comes

of the

functioning

efficient

Department

of

Treasuries

control

of

Finance Department in the Government.

2.1

CONSTITUTION

the

There

are

State

including

Treasury
In

addition

Bangalore

Treasuries

21

viz..

State

Huzur

the

payment

grant

in-Aid
the

Bills

City

of

limits

payment

with

disbursement

only.

With

the

of

the State.

accounts

above

of
in

(District

Treasuries

two

additional

which

Treasury,

transactions and

G-I-A

of

Treasury

mainly

unit

District.

are

also

in

Dharwad

there

with

pension

District

two District

the

in

additional

to

mainly

the

Treasuries

District

in

deal

situated

TREASURIES :

Hubli

at

at

THE

OF

Institutions

Bangalore

and

which

deals

various

total

pensions

there

are 23

Treasuries)

in

and

District

the

Urban,

the

under

are

in

charge

District

Gulbarga

and

Belgaum

of

Grades

Officers.

Treasuries

are

Treasury

officers.

Class

Jr.

The

remaining

District

the

charge

District

of

the

in

grade

of

is

stamp

Depot

the

Control

Director.

This

stamp

Depot

the

franking

of

stamp

papers

to

all

District

which

with

vendors

District

under

a

of

issue

who

the

is

of
and

Directors

There

Bangalore,

mainly

are placed

above

are

who

Scale.

at

Dy.

under

they

Dy.

the

Treasury

I

Bangalore

the

Senior

the

of

and

headquarters

divisional

the

Bangalore

Treasuries

Mysore,

of

Treasury,

Rural,

Bangalore

Treasuries
at

Huzur

State

of

respect

well

as

as

the

a

deals

Bond

Papers

the local

stamp

Treasuries

in the State :

the commencement of

3.1

At

the

number

which

179

of
are

Sub-Treasures.
a

new

opened

Taluk

full
at

were

Sub-Treasures
Banking

3

During

pledged

11

year

the

non

Banking
1994-95

Sub-Treasury

Shankaranarayana

of Dakshina Kannada

out of

190

year

are

the

1994-95

(in

has

been

Coondapur

District) and it has

been functioning w.e.f 13.01.1995.

•a;e;s aim

3.2

Considering

of

Sub-Treasuries

State

have

been

of

volume

178

sub-Treasuries

Gazetted sub-Treasury

of

transactions

of

transactions

in

the

under

the

charge

Officers.

The

volume

the

State

placed

of

of

Treasuries

in

are as follows :

VOLUME OF TRANSACTIONS

AMOUNTS

YEAR

NO. OF
CHALLANS

1993 - 94

8737A 65

135568285910

199- - 95
upto
Dec. 1994

6890305

1012A3628517

YEAR

VOUCHER

1993 - 94

8971A66

126697222179

1994 - 95
upto

7326822

1193718AA768

AMOUNTS



With

a

view

afford

to

15

publici1
re siding
Sub-Treasuries
have

the

level

to

the

varicus

of

facilities

maximum

in

established

been

Hoblies

Areas,

Rural

the

outside

at

Taluk

the

Hea d Quarters also.

3.4

The

following

are

having

Reserve

1.

Ku nd goi

4.

Shiggaon

2.

Navalgund

5.

Shiraha tti

3.

Ron

6.

Supa.

For

3.5

public,
in

the

the

currenty

converted

the

agency

chests

as

banks

the

general

have

been

restored

Banking

though

they

Treasuries

and

Government

conducting

are

Chests

of

Sub-Treasuries,

following

are

Currency

Bank

convenience

the

Tresuries

non-Banking

transactions.

1.

Z.

Mundargi

4.1

Computers

State

Huzur

preparation

Treasury

Mundgod

have

Treasury

of

has

been

in

accounts
been

3.

Kalgatagi

installed

in

the

the

year

1985

and

in

respect

of

this

totally

computerised

31
and
classified
to
the
A.G.

accounts
are
being
rendered
Nov/
with the
intension of

introducing

system

in

the

District

the

hardwares

were

supplied

w.e.f.

April

1991

and

under

Revenue

Heads

and

under

service

Heads

are

Informatic

Centres

of

the

all

the

District

Treasuries

with

enhanced

of

view

to

accounts

being

imparted

as

to

and

possible

After

reviewing

of

Treasury

upgraded

during

the

year

the

system

throughout

many

the

the

in

continue

computer

stability,

more

Pancha-

Zilla

further

been

capacities

a

computerised

with

as

have

on

National

installed

computers

With

in

computerisation

Accounts,

prepared

with

Districts.

of

progress

1996-95.

being

accounts

the

of

year

accounts

full

1996

part

functioning

the

the

during

co-ordination

in

yats

the State computer

Treasuries in

computers

accounts

of computerised

State

training

Treasury

efforts

the

are

is

personnel

likely

to

of

the

yield good results in the near future.

Consequent

6.2

system

Advance
the

of

the

on

disbursing

to

H.D.F.C.,

introduction

Government
the

House

Building

employees

through

the

Director

of

Tresuries

has

33.
of

the

number

of

loanees

as

on

Dec.

maintenance

The

13, 000

accounts
by

which

the A.G

are

fund

under

1994,

the

and

regard.

scheme

the

to

hither

were

now

this

in

are

detailed

maintained

maintained systema­

being

tically at the Directorate.

Fixing

5.

Balances

Normal

Non-Banking

to

Sub-Treasuries :
With

for

amount

of

lakhs

was

proposal

the

Normal

fixed

for

has

the

to

fix

of

Rs.15.67

funds

public

tran­

Sub-Treasuries

total

Government

Non-Banking

at

sufficient

provide

to

view

conducting

sactions

the

a

Government

year

the

Orders

the

and

Government

to

of normal

balance

1995-96

and

awaited

in

the

up

to

the

Inspections

of

year

are

Rs.11.34

1994-95

sent

amount

for

&

Balance

been

now

increased

lakhs

and

matter.

6.

Treasury Inspection :
During

end

of

22

District

Feb.

the

1995

current

year

Technical

Treasuries

(unit

of

accounts)

by

this,
the

Director

the

with

of

administration

conducted
and

from

view to streamline and to activise

a

inspections

Apart

Treasuries.

of

38

Sub-Treasuries

by

the

officers

suitable

surprise

Department,

the

of

the

of

instructions

have

been

Directorate

were

issued

to

improve the systems in the Treasuries.

Pension Disbursement : .

7.

The District Treasuries and Sub-Treasuries
are

different
cally

payment

making

and

through

postal

money

pensions

of

age

pensions,

physi­

Distitute

widow

pensions

old

Governments

handicapped

civil

of

orders

and

through the

all

these

pensioners

public sector Banks.

The

of

number

as on 31.12.1994 is 16,40,168.

8.

Budget :

The

expected

Dept.

which

1994-95

is

is

total

under

expenditure

of

the

non-plan

for

the year

i.e.

till

the end

Rs.16,90.20, 000.00

of March 1995.
(N.B : - The expenditure show)Vabove is
probable because the actual figure till
March-end
cannot
be
furnished
at
this stage).

3'4
DEPARTMENT OF SMALL SAVINGS AND

STATE LOTTERY
Annu a 1 Report_ £_£—£.____ 9 ear 1994-95
The
and

Department

Stat e

Savings,
K a ma taka

of

Savings

Small

Lottery

deals

with

Karnataka

State

Lottery

State

Employees

Sma 11

and
Group

Insurance Scheme.

SMALL SAVINGS

The

Small

Savings

scheme

has

following objectives;
1.
to
inculcate
the habit
of
thrift
and
savings among
the
people
and
to
provide
not
only
security
but
also
a
fair
return
for
their
savings.

2.
to counteract inflationary
pressures on the econ cmy and
thus help to hold the price
1 ine.
3.
to channalise the peoples
savings
into
the
developmental
programmes
of
the Country and involve them
in
the
a evelopmentai
activities of the Nation.
4.
to solve the umer.p logment
problem
in
the
Country
by

the

who
read
and
appointing
one
women)
as
u’ r it e ( including
ng s
Scherne
Savings
Nation a 1
A gents.

For
of

the

year

Karnataka

have

Small

Savings

crores

gross

As

Rs

and

Government

target

of

Rs

1800

crores

net.

the

of

collection

this,

against

1994-95,
fixed

600

Rs ' 1832.87
net

have

period

from

gross

and

Rs

1101.77

crores

been

achieved

during

the

1.4.94

financial
crores

During

31. 1.95.

to

year,

a

been

has

sum

this

current

Rs

747.07

of

received

crores

far

so

from

Government of India as long term loan.
there

are

agents

for

Small

they

have

all,

In

authorised

in

the

to

secure

Rs

325

State

and

investments

crores

of January

more

to

2 2 600

Savings
been

the

approximately

able

tune
upto

of
end

1995.

In

order

to

schemes

more

attractive

increase

the

under

than

report,

make

collection

Small

Savings

and

thereby

during

Government

of

the

year

Karnataki

•/e introduced the following schemes;
1.
In
orcer
to
augment
the
Small
Savings
col lections, a prize scheme
on
different
Small
Savings
investments
has
been
introduced
from
1.8.94.
Attractive
prizes
are
offered
to
the
prize
winners under this scheme.
2.
A special incentiveat
the rate
of 2.5% is being
offered
for
bulk
investors
investing
Rs
5
lakhs
and
above
in
one
lumpsum
in
the
three
specified
Small
Savings
securities
such
as
Indira
Vikas
Patras,
Kisan
Vikas Patras
and
National
Saving
Certificates 8th issue.
3.
A special incentive
is also offered at the rate
of
2%
for
the
investors
investing
Rs
25,000/and
above upto Rs 5
lakhs,
in
one 1 ump sum in Indira Vikas
Patra,
Kisan
Vikas
Patra,
Monthly
Income
Scheme
and
Time Deposit (3 S 5 years)
during
the
period
from
1.4.94 to 31.3.95.
4.
The Department have
also aimed to convert
1000
villages
as
"3ACHATH
VILLAGES"
and
20
Taluks

u
as "BACATH TALUKS"
5.
In
order
to
augment
the
Small
Savings
collections
especially
in
rural
areas,
arranged
-prize
competition
among
MPKBY
agents
during period
from 1.8.94 to 31.12.9*.
6.
In order to encourage
the
Postal
Officials
to
participate
effectively
in
Small
Savings
work,
special incentives are also
offered
to
Post
Offices
and
Postal
Officials
performing
Small
Savings
work
for
the period
from
1.4.94 to 31.3.95.

7.
Besides
this,
special
campaigns
have
been
arranged
to
tackle
individual
investors
especially
the
potential
agriculturists
in
rural
areas
all
over
the
State
under
the
leadership
of
Deputy
Commissioners
and
Chief
Executive
Officers
of
Zilla
Panchayaths
involving
other
departmental
officers
and
officials.

KARNATAKA STATE LOTTERY
In
for

order

the

1969.

and

trusted

the

of

has

Government

State

Lottery

scheme

is

r unn ing

it

then,

Since

profitably

most

State

the

intreduced

from

activities

developmental

State,

resource

the

augment

to

a

earned

has

lottery

name

as

in

the

scheme

entire Country.
The
a

total

from

State

net

Government

revenue

of

period from

During

1969-70 to
the

year

recei ved

63.5

Rs

crores

during

scheme

Lottery

the

has

the

1993-94.

special

1994-95,

Bumper-2,

Super

Bumper-5,

Monthly

Bumper-5,

Nandi

Bumper-26,

Krishna

Bumper-11,

Kabini-4,

Kapila

Weekly-52

and

Jubilee

Silver

year

Bumper-1

draws

are being conducted.

For

the

approximate

year

1994-95,

net

revenue

scheme is Rs 6.23 crores.

the

expected

from

this

KARNATAKA STATE EMPLOYEES GROUP

INSURANCE SCHEME

The
introduced
It

Government

State

this

scheme

1. 1.1932.

from

State

to

applies

Government

Employees

only.

p r ov id efl

insurance

nominees

of

Government

Employees

who

and

provides

in

service

payment

for

present

not

only

benefits

to

the

the

superannuation

At

scheme

The

dief!

about

are

on

fund.

savings

the

from

while

lumpsum

employ ees

retired

there

State

deceased

also

the

has

lakhs

4.81

members for this scheme.

During
of

1994,

September

has

crores
of

been

1994-95,

upto

end

sum

of

Rs

7.62

to

the

nominees

and

to

the

servants

on

a

paid

employees

deceased

retired

year

the

Government

superannuation.
During
of

September

25.24

crores

year

the

1994,

in

the

1994-95,

a

upto

balance

Insurance

end

of

Rs

Fund

and

-Afo-

and

Rs

Fund

altogether, a

total

balance

of

Rs

has

been

registered

in

2 16.39

2-, 1.63
crores
this scheme.

crores

in

the

Savings

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Printed By :
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Government Press, Bangalore

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