Scribd Logo
Upload

Welcome to Scribd!

  • 986 views

    Appropriations & Re-Appropriation

    Uploaded by

    Fareha Riaz
    The document outlines the Central Public Works Account Code and provides details on: (1) Appropriations and re-appropriations which represent allotments of funds for specified expenditures that must be authorized and have funding provided. (2) The main divisions of government accounts which are the Consolidated Fund, Contingency Fund, and Public Account. (3) The classification system for transactions with the major head as the main unit classified by function, sub-function, and economic nature. (4) The major heads generally used in Public Works Departments for different types of projects and functions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Appropriations & Re-Appropriation

    Uploaded by

    Fareha Riaz
    986 views6 pages
    The document outlines the Central Public Works Account Code and provides details on: (1) Appropriations and re-appropriations which represent allotments of funds for specified expenditures that must be authorized and have funding provided. (2) The main divisions of government accounts which are the Consolidated Fund, Contingency Fund, and Public Account. (3) The classification system for transactions with the major head as the main unit classified by function, sub-function, and economic nature. (4) The major heads generally used in Public Works Departments for different types of projects and functions.

    Original Description:

    Imp doc

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document outlines the Central Public Works Account Code and provides details on: (1) Appropriations and re-appropriations which represent allotments of funds for specified expenditures that must be authorized and have funding provided. (2) The main divisions of government accounts which are the Consolidated Fund, Contingency Fund, and Public Account. (3) The classification system for transactions with the major head as the main unit classified by function, sub-function, and economic nature. (4) The major heads generally used in Public Works Departments for different types of projects and functions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    986 views6 pages

    Appropriations & Re-Appropriation

    Uploaded by

    Fareha Riaz
    The document outlines the Central Public Works Account Code and provides details on: (1) Appropriations and re-appropriations which represent allotments of funds for specified expenditures that must be authorized and have funding provided. (2) The main divisions of government accounts which are the Consolidated Fund, Contingency Fund, and Public Account. (3) The classification system for transactions with the major head as the main unit classified by function, sub-function, and economic nature. (4) The major heads generally used in Public Works Departments for different types of projects and functions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

    Central Public Works Account Code

    Appropriations and Re-Appropriation  

    Appropriation or re-appropriation ​represents the allotment of a particular sum of money to


    meet expenditure on a specified job

    Expenditure can only be incurred on a work :-

    (i) If sanction of competent authority has been obtained authorising the expenditure.

    (ii) If funds to cover the charges during the year have been provided by competent authority.

    (iii) If the expenditure conforms to the relevant provisions of the Constitution and to the financial
    rules, regulations and orders issued by the competent authority

    ❖ For purposes of financial control, the grant allotted to each major head of account is divided
    into primary units of appropriation

    Form of Accounts – Main Divisions of Accounts


    Central Public Works Account Code

    Part - I Consolidated Fund

    These sections are divided into ​Sectors​ such as “​General Services”, “Social Services”,
    “Economic Services​” etc​. under which specific functions or services are grouped which are
    represented by Major Head. ​Each sector is denoted by a letter of alphabet

    Note​: Consolidated Fund of India or State - ​Article 266(1)

    Consolidated Fund of UT - ​Section 47 of UT Act,1963


    Central Public Works Account Code

    Part II Contingency Fund

    There is​ single Major Head (8000)​ to record the transactions

    Note​: Contingency Fund of India - ​Article 267(1)

    Contingency Fund of State - ​Article 267(2)

    Contingency Fund of UT - ​Section 48 of UT Act, 1963

    Part III Public Account

    Record the transactions relating to Debt (other than those including in Part I), “Reserve Funds”,
    “Deposits”, “Advances”, “Remittances” and “Suspense” and Cash Balances

    the transactions shall be grouped into Sectors and Sub-Sectors, which shall be further
    sub-divided into Major Heads of Account. The Sectors / Sub-Sectors shall be distinguished by
    letters of the Alphabet.

    Note: Public Account of India or State - ​Article 266(2)

    There is​ no separate Public Account for UT Govt​, so transactions of UT are booked

    in the Public Account of Centre Govt.

    Allotment of Code to each Major Head

    First Digit Head

    0 or 1 Revenue Receipt
    2 or 3 Revenue Expenditure
    4 or 5 Capital Expenditure(​Exception: 4000- Capital Receipt​)
    6 or 7 Loan & Advances
    8 Public Account (​Exception: 8000 -Contingency Fund​)
    Central Public Works Account Code

    Adding 2 to the first digit of the Revenue Receipt will give the Code Number for Revenue
    Expenditure, adding another 2 - the Capital Expenditure and another 2 - Loans and Advances

    e.g. 0401 represents the Receipt Head for Crop Husbandry.

    2401 represents the Receipt Expenditure Head for Crop Husbandry.

    4401 represents the Capital Outlay on Crop Husbandry.

    6401 represents Loans for Crop Husbandry.

    Such a pattern is however, not relevant for those departments which are not operating Capital /
    Loan Head of accounts ​e.g. Department of Supply

    Classification of transactions in Government Account ​:-

    Main unit of classification in accounts shall be the ​Major Head

    ​Major Head(4)​ - functions


    Sub-Major Head(2) ​- sub-function
    Minor Head(3)​ - programmes
    Sub Head(2)​ - scheme/activities
    Detailed Head(2)​ - sub scheme
    Object Head(2)​ - primary unit of appropriation(economic nature of expenditure)
    (Rule 8 of the Delegation of Financial Power Rules, 1978)

    Note​: detailed classification of account heads in Government Accounts (LMMHA) and the order
    in which the Major / Sub-major and Minor heads shall appear are prescribed by ​President
    ​ on the advice of the CAG
    However, ​on the behalf of President​, this is done by ​CGA on the advice of CAG
    Central Public Works Account Code

    ❖ In the ​PWD​, following Major Heads are generally operated


    ● For Buildings ---- Non-residential(0059) , Residential(0216)
    ● For Roads & Bridges (1054)
    ● For General Function Buildings ( edu - 4202 , medical - 4210 etc)
    ● For Irrigation (0701)
    ● For Water Supply & Sanitation (0215)

    Grants for Expenditure Abroad


    ● average rate of exchange ​abolished​ ​w.e.f. 1.4.1974
    ● Therefore, estimates for departmental payments abroad are required to be
    budgeted by composite rate of exchange notified by the Ministry of Finance
    ● In cases of instances of gain or loss on foreign exchange are recorded by
    Revenue Division in​ 0075/2075

    Re-appropriation of Funds
    ● Rule 10​ of Delegation of Financial Power Rules, 1978
    ● All cases of re-appropriation involving savings of ​more than Rs. 10 lakhs ​for the
    plan heads relating to a Ministry / Department as a whole are referred to the
    Ministry of Finance
    ● Divisional Officer should keep a constant watch over the progress of expenditure
    ● HOD​ and ​PAO​ shall be jointly responsible for the monthly reconciliation of the
    figures given in the accounts maintained by the HOD with those appearing in the
    Accounts Officer’s books.
    ● However, initial responsibility to reconcile accounts rests with ​PAO
    Note:​ there are​ 4 types of liabilities​ in PWD---
    (i) those outstanding in the suspense account, relating to contractors and labourers, in
    the accounts of works
    (ii) those outstanding in any of the regular suspense accounts of the division
    Central Public Works Account Code

    (iii) outstanding debts adjustable by book transfer


    (iv) matured claims of contractors, suppliers, etc. awaiting settlement and all unmatured
    claims, the recurring or non-recurring likely to fall due for settlement before close of the
    year.

    You might also like