Government Accounting Rules, 1990

(2019-Edition)
1. The President makes the basic rules relating to form of 150 of the Constitution
accounts of the Union and States on the advice of the CAG
under Article
2. Government Accounting Rules, 1990 came into force w.e.f 1st April 1990
3. A branch of a bank as may be appointed as an agent of RBI The Reserve Bank of India
to transact Government business by
4. 'Chief Accounting Authority', means the Secretary of a Ministry or
Department
5. In the case of a Union Territory with separated accounts, Chief Secretary/Chief Commissioner.
the Chief Accounting Authority will be
6. C&AG is appointed under the Article 148 of the Constitution
7. Responsible to make the basic rules relating to form of The CGA
accounts of the Union and States on the behalf of the
President of India on the advice of the CAG is
8. The CGA is located in the Ministry of Finance under the Expenditure
Department of
9. Consolidated Fund of India or of a State, are referred to in Article 266 (1)
10. Consolidated Fund of UT is referred to in Section 47 of the UTs Act, 1963,
11. Contingency Fund of India is referred to in Article 267 (1)
12. Contingency Fund of State is referred to in Article 267 (2)
13. Contingency Fund of UTs is referred to in Section 48 of the UTs Act, 1963,
14. Public Account of India or of a State, are referred to in Article 266 (2)
15. The Schedule of the constitution that include State is First Schedule
16. The Annual accounts reflects the annual receipts and
disbursements under the respective
heads
17. The Annual accounts are prepared by the authorities authorised to maintain
the accounts
18. The Annual Accounts are certified by the The CAG
19. The reports of the CAG relating to the annual accounts a UT the Administrator
having a Legislative Assembly is submitted to
20. Reports on annual accounts is submitted to President, the Laying before the House concerned.
Governor or the Administrator, as the case may be, for
21. Subsidiary instructions that would be necessary for forms of The Central Government (Ministry of
accounts, for opening new heads of accounts or modification Finance) in consultation with the CAG
of the existing ones or instructions relating to the content
and manner of maintenance of accounts will be issued by
the
22. The Ministry of Railways, Controller General of Defence sub-heads and detailed heads of
Accounts, Director General, Posts and Secretary Department Accounts under various major and
of Telecommunications and Chairman Telecommunication minor heads of Accounts pertaining to
Commission may open their department
23. Power of opening of sub-heads and detailed heads of Accredited Audit Office (r)
Accounts under various major and minor heads of Accounts
by Railway, Defence, Post & Telecommunication may be
exercised in consultation with
24. The provision of the DPC Act under which the account of the Section 10
Union and of each State shall be compiled by the CAG
25. Provision of the DPC Act under which the CAG may be Section 10
relieved from compilation of account of the Union and of

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 each State
26. The CAG may be relieved from the responsibility of The President in consultation with the
compiling the accounts of the Union by CAG
27. The CAG may be relieved from the responsibility of The Governor with prior approval of
compiling the accounts of the State by the President and in consultation with
the CAG
GENERAL OUTLINES OF THE SYSTEM OF ACCOUNTS
28. The general banking business of the Government carried out The receipt, collection, payment and
by the RBI includes remittance of moneys on behalf of the
Government
29. Each office or branch of the RBI or bank handling separate accounts in respect of each
transactions of the Ministries, Departments of the Central Ministry and Department banking with
Government shall maintain it
30. Branch of bank render an account of the transactions to Respective PAO
31. The ministry/department transaction of which shall be Railways, Defence, Post and
classified separately from Central Transactions are Telecommunication.
32. The transactions of Railways taking place in designated bank Each Railways wise
shall be classified
33. The transactions of Defence taking place in designated bank each Controller of Defence Accounts
shall be classified
34. Detail of transactions together with the requisite challans, Daily scroll
paid cheques pertaining to each to each
Ministry/department that is submitted to PAO concerned is
35. CAS Nagpur is responsible for keeping a complete account, Telecommunications
of receipt and payments on account of the Central
Government. including inter-Governmental adjustments and
adjustments inter se of Defence, Railways and Posts—other
than
36. Transactions of UTs which are included in the balances UTs of Delhi and Andaman and
against the balance of Departmentalised Ministries Nicobars
37. Balances in respect of Union Territory Administrations dealt Central Government Account Balance
with by Accountants General and of all Union Territory
Governments with Legislature is included in the balances of
38. transactions appearing in the books of an Accounts Officer in Cheque or Bank draft
a Ministry /Department of the Central Government
(including Railway, Defence, Posts and Telecommunications)
which are adjustable in the books of an Accounts Officer of
another Ministry/Department shall be adjusted by
39. Settlement of Income Tax recoveries made from staff salary Book adjustment through Central
bills of Railways through Accounts Section, RBI Nagpur
40. Settlement of payments against supplies arranged by the
Directorate General of Supplies and Disposals in the
Department of Supply; in the Ministry of Commerce on
behalf of Railway, Defence and Posts.
41. Dividend payable in lieu of tax on Railway Passenger Fares,
by Railways to Central Revenues.
42. Loans from General Revenues to Railways and recovery of
interest on loans and advances to Railways.
43. Debts on account of supplies transactions arising in the
books of the Chief Accounts Officer, High Commission of
India, London and Indian Embassy, Washington with the
Defence, Railways and Posts which appear, initially, in the
books of the Principal Accounts Officer, Ministry of External
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 Affairs.
44. A statement of the closing balance of the Central Controller General of Accounts,
Government shall be sent each month, by the Central
Accounts Section of the Reserve Bank to the
45. States that have not so far entered into agreement with the Jammu & Kashmir and Sikkim
Reserve Bank of India for the conduct of their general
banking business by the Reserve Bank.
46. With effect from 1st February, 1978 transactions on account taken by the officers of the Reserve
of discharge value of, and periodical interest on securities of Bank of India directly against the cash
State Governments, as well as receipts on account of balance of the State Government
subscriptions against market loans floated by State concerned with the Central Accounts
Governments are Section of the RBI, Nagpur
47. The Central Accounts Section of the Reserve Bank shall Individual account for each Ministry/
maintain Department of the Central
Government.
48. the CAS, RBI, Nagpur shall send a statement of closing Monthly basis
balance of account to the concerned AG, Pr. AO of the
Ministry/Department and the AG of UTs on
49. Monthly account statement shall accompany supporting the RBI, in consultation with the CGA
details as may be prescribed by
50. In the case of transactions pertaining to the other State the AG shall make the requisite
Governments including receipt moneys, adjustments through the CAS, RBI
against the balances of the other State
Governments concerned.
51. The settlement of transactions between the State in cash or by demand drafts in
Government of Jammu and Kashmir & the State accordance with the instructions
Government of Sikkim and other States the Centre is contained in separate orders.
effected
52. Major head of Suspense Accounts is 8658
53. payments pertaining to Central Government Securities, will Pr. AO, Department of Economic
be borne by Affairs, New Delhi
54. Expenditure on account of Central (Civil) Pensions including the PAO in the Central Pension
High Court Judges and Freedom Fighters, will be borne by Accounting Office.
55. Departments required to submit compiled accounts to their CPWD and Forest.
PAO are
56. The monthly statements compiled by Pay and Accounts Classified Abstract
Officer showing receipts and payments pertaining to the
Ministry, Department or UT Administration under his
payment control is called
57. Classified abstract is prepared from accounts received from the bank and
departmental officers, and from the
book adjustments initiated in an
Accounts Office,
58. Classified abstract is classified as per Relevant major, minor, sub and
detailed heads.
59. Consolidated Abstract (i) prepared from the classified
Abstract
(ii) it shows the progressive totals
month by month under major, minor,
sub and detailed heads of accounts
will be compiled.
60. A consolidated account of the Ministry/Department or UT Concerned Pr. Accounts Office
Administration as a whole is prepared by

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61. Central transactions taking place at Central treasuries in UTs the Controller General of Accounts,
whose accounts are maintained by State AsG, each State
AsG shall, send a monthly statement to
62. The Consolidated Account of the Central (Civil) transactions The Controller General of Accounts
as a whole is prepared by the
63. The cash balance of the Central Government in the books of The statements of closing cash
the Controller General of Accounts, at the close of each balance received from the Central
month will be reconciled with Accounts Section of the Reserve Bank.
64. Till the switch over of pension payment from treasury The Principal Director of Audit
counter to Public Sector Bank is completed Central Section (Central), Kolkata and the AG (A&E)
of Account shall be maintained by the West Bengal
65. Receipts realised in the Public Works, Forest and any other merely as receipts on behalf of such
authorised departments shall be paid into a treasury or the departments
bank in lump and accounted for at the treasure as.
66. The detailed accounts of receipts realised in the Public The departmental officers concerned.
Works and Forest shall be kept by
67. The initial 'accounts' of payments in India on behalf of the Treasury
State Governments and the UTs made either at its treasury
or the bank shall be kept by
68. Initial accounts where departmental officers are authorised Department concerned
to withdraw sums in lump from treasury or the bank for
making payments shall be kept by
69. Officers of the Civil Departments who pay their receipts into their respective Accountant General
the Consolidated Fund or the Public Account or withdraw
moneys for expenditure therefrom or from the Contingency
Fund in lump will submit detailed accounts of their
transactions to
70. Each State or Central treasury, which renders accounts to a double set of accounts
State Accountant General will submit a
71. Monthly double set of accounts are meant for One for transactions of the State
Government and the other for
transactions of the Central
Government.
72. The receipt and payment of moneys on behalf of a State AG of the State in which the
outside its jurisdiction shall be arranged through the transactions take place
73. the Central Accounts Sections of the Reserve Bank of India, AsG concerned, Pr. AO of the
Nagpur shall send a statement of monthly closing balance of ministry/department concerned and
each such account to AsG of UTs
74. General Clearing House for the adjustment of all CAS, RBI Nagpur
transactions between different State Governments and
transactions between the Central and State Governments as
may be specified by the Central Government is
75. All adjustments to be made between the accounts of The AG concerned through CAS,
different State Governments as well as all payments which Nagpur
one of these Governments has to make to another shall be
advised by the
76. the CAS, RBI shall maintain a separate proforma account To keep the transactions under
styled "Departmentalised Ministries Account" to departmentalised system of Railway,
Defence, Post and Telecommunication
distinct from other Central
transactions,
77. Transactions on behalf of State Governments arising in 8658 – Suspense (Civil) - Accounts
Central treasuries shall be classified in the treasury accounts with Accountant General

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 under the head
78. Cash balances held in a State Treasury form part of the Consolidated Fund, the Contingency
Fund and the Public Account of the
State to which the Treasury belongs.
79. The treasury Rules of each State Government issued under 283 of the Constitution
article
80. All transactions on behalf of other State Governments and taken in the first instance against the
the Central Government taken place in a State Treasury shall cash balance of the State concerned.
be
81. transactions of the Central Government, including Railways / State Section under 8658 Suspense
Postal / Defence Departments at State treasuries (both
banking and non-banking), Section in which these shall be
accounted for by the treasuries is
82. All receipts in India on behalf of each State Government and Public Works, Forest and other
on behalf of each Union Territory shall be paid into its departments so authorised.
Treasury or the bank, and initial accounts of such receipts
shall be maintained at the treasury except that of
83. Officers of the Civil Departments who pay their receipts into Respective Accountant General.
the Consolidated Fund or the Public Account or withdraw
moneys for expenditure therefrom or from the Contingency
Fund in lump will submit detailed accounts of their
transactions to their
84. Major Head 8675 pertains to Deposit with the RBI
85. The final stage of compilation of Receipt and Disbursement Major Head Totals
during the year will be the preparation of the Abstract of
86. The transactions relating to Debt, Deposit and Remittance Detail Book.
heads will be collected for the whole circle of account under
each head of account from month to month in a
87. A copy of the monthly account of each State Government, The State Government concerned.
will be submitted by the AG to
88. A copy of the monthly/March Supplementary account will be a Union Territory Government, and of
rendered by the Accountant General to the Controller Central Government Civil pensions
General of Accounts relating to finally adjusted in the books
89. Accounts between different Accounts offices of the Central 16 of GAR
Government is mentioned in Rule
90. Submission of Annual Accounts to the President, the Article 151, Section 11 of the DPC Act
Governor or the Administrator of a UT as the case may be is and Section 49 of UT Act, 1963
governed by
91. Annual Accounts (including Appropriation Accounts) in AG concerned
respect of State Governments, and UT Governments with
Legislature are prepared by the
92. Appropriation Accounts of Central Civil Ministries and Respective Ministry/Department
Central Civil Departments (other than Railways, Defence, under supervision of the CGA
Post and Telecommunication) shall be prepared by
93. Appropriation Accounts of Central Civil Ministries and the Chief Accounting Authority i.e. the
Central Civil Departments (other than Railways, Defence, Secretary of concerned
Post and Telecommunication) shall be signed by Ministry/Department
94. Appropriation Accounts pertaining to Departments of Secretary to Department of
Posts/Telecommunications shall be prepared and signed by Post/Telecommunication
95. Appropriation Accounts pertaining to Railways shall be Financial Commissioner, Railway
prepared and signed by Board
96. Appropriation Accounts pertaining to Defence shall be Secretary (Defence Finance)
prepared and signed by respectively.
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97. for the purpose of submission of Appropriation Accounts of The CGA
Central Civil Ministries and Central Civil Departments, it is
consolidated by
98. Annual accounts (Finance Accounts) of the Union The CGAs
Government as a whole including Railways, Defence, Post
and Telecommunication is prepared by
99. Certification of Appropriation and Finance Accounts is done The CAG
by
100. Pro forma basis Accounts that is maintained for Located outside the general accounts
undertakings of a commercial or a quasi-commercial of government.
character is
101. Proforma accounts is maintained in addition to regular those adjusted on a liability basis,
accounts so every transaction that enters into Proforma
Accounts finds a place in the regular accounts except
102. Proforma Account shall be maintained by the Department concerned.
103. Certain pro forma accounts relating to Irrigation, Navigation, Civil Account Offices.
Embankment and Drainage Projects to be prepared by
104. Proforma Accounts relating to Government residential Civil Account Offices.
buildings are to be prepared by
105. Non-commercial or non-quasi commercial activity for which Famine Relief Fund
a proforma accounts to be maintained is
106. The form in which any pro forma accounts are prepared in Government concerned on the advice
Accounts Offices will be determined by the of the CAG
107. The accounts of Government are based on the single entry system (Cash Basis)
108. Journal, Ledger and Trial Balance Sheet are called Technical Accounts
109. The Journal and Ledger are maintained where Government banker, or remitter or borrower or
acts as a lender.
110. The various Accounts Officers under the Central Government The CGA
shall prepare Ledger and summary of balances in accordance
with the procedure prescribed by.
111. The annual summary of Balances or Trial Balance Sheet Concerned State AG
relating to transactions of the State Government is prepared (also maintains Journal & Ledger)
by
BASIC STRUCTURE OF THE FORM OF ACCOUNTS
112. The annual accounts of the Government records Financial Year (1st April to 31st March
transactions take place during of following year)
113. The Government accounts of a year may be kept open for a Carrying out certain inter-
certain period in the following year for departmental adjustments, and for
closing the accounts of several
Provident Funds and Suspense heads.
114. The transactions in Government accounts shall represent the The Central Government in
actual cash receipts and disbursements during a financial consultation with the CAG.
year with exception to such rule as prescribed by
115. All transactions of the Governments taking place in other Indian currency Rupees
countries shall brought to account finally in the Indian books
after they have been converted into
116. The parts in which accounts of Government are kept 3. Consolidated, Contingency and
Public Account.
117. The Account which a UT does not have a separate and of its Public Accounts
own and the transactions pertaining to this account shall be
booked in particular account of the Central Government.
118. The divisions to which Consolidated Fund has been divided Two Divisions. Division I- Revenue –
into Revenue receipt and Revenue
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 Expenditure
Division II- Capital Receipt, Capital
Expenditure and Public Debt, Loan and
Advances
119. The part of the Consolidated Fund that deals with the Revenue Division
proceeds of taxation and other revenue receipt and the
expenditure met therefrom is
120. Capital Account which deals with receipts of a Capital Cannot be applied as a set off to
nature which Capital Expenditure.
121. Receipts of a Capital nature intended to be applied as set Capital Expenditure part of Division II
off to Capital expenditure is accounted under of Consolidated Fund
122. Expenditures met usually from borrowed funds with the Capital Expenditure part of Division II
object of increasing concrete assets of a material and of Consolidated Fund
permanent character is accounted for under
123. Loans raised and their repayments by Government and loans The Section 'Public Debt' Loans and
and Advances made by Governments and their recoveries Advances of Division II
are accounted for in the part of consolidated Fund
124. Transactions relating to Appropriation to the ‘Contingency The Section 'Public Debt' Loans and
Funds’ and ‘Inter-State Settlement’ are recorded in part of Advances of Division II
Government Accounts
125. Deposits’, ‘Advances’, ‘Remittances’ and ‘Suspense’ are Public Accounts
recorded in which part of the Government Accounts
126. The transactions relating to 'Remittances' and 'Suspense' in merely adjusting heads under which
Public Account shall embrace all. shall appear such transactions as
remittances of cash between
treasuries and currency chests and
transfer between different accounting
circles
127. The digit addition of which to Revenue Receipt Head gives 2
corresponding revenue expenditure and further addition
gives Capital Expenditure head and so on
128. The main unit of classification in accounts shall be The Major Head
129. The classification structure of Government Accounts consist 5 (For CPWD remember it as 6)
of tiers
130. 5 tiers consist of Sector>Major Head>Minor Head>Sub-
Head>Detailed Head
131. "Crop Husbandry", 'Defence' Audit etc. denotes services Major Head (Function)
provided by the Government and is represented by
132. Undertaken to achieve the objectives of the function Programme represented by Minor
represented by the major head is Head
133. schemes or activities under a programme is represented by Sub-Head
134. Accounting head that is termed as an object classification Detailed Head
135. Accounting head meant for itemised control over Detailed Head
expenditure is
136. The detailed classification of account heads in Government LMMH (List of Major & Minor Head)
Accounts and the order in which the Major and Minor heads
shall appear in all account records shall be such as given in
137. The State Governments of J&K, Maharashtra, Manipur Sub-Head and detail heads of accounts
(01.01.1982) and Sikkim (15.01.1982) were delegated
powers for opening of
138. Opening of sub-head and detailed the functions of the 258 (1) of Indian Constitution
Central Government delegated to State Government in 239 (1) in respect of UT
terms of Article
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139. List of Major Head and Minor Head of Accounts has been The CGA on the advice of the CAG
prescribed by
140. Charged expenditure is called so because it I charged on Consolidated Fund
141. The word that is used in Article 150 has a comprehensive Form
meaning so as to include the prescription not only of the
broad form in which the accounts are to be kept but also the
basis for selecting appropriate heads under which the
transactions are to be classified is
142. The classification of transactions in Government accounts, Function/Programme/Activity
shall have closer reference to the
143. expenditure on the maintenance and repairs of the non- 2059
Residential buildings under the administrative control of the
PWD are shown under the major head
144. Major Head for Interest Receipt is 0049
145. Criteria for determining whether expenditure should be 30 of GAR 1990
classified under heads of Capital Section or Revenue
Section of the Consolidated Fund under Rule
146. expenditure on Grants-in-aid to local bodies or institutions Revenue Expenditure
for the purpose of creating assets which will belong to these
local bodies or institutions shall be classified as
147. Expenditure on a temporary asset shall be classified as Revenue Expenditure
148. An expenditure of revenue nature shall not be classified as in cases specifically authorised by the
capital expenditure except President on the CAG
149. Capital expenditure is generally met from receipts of a capital, debt, deposit or banking
character
150. Government may meet Capital expenditure from ordinary there are sufficient revenue resources
revenues provided to cover this liability.
151. Allocation between capital and revenue expenditure on a Rule 31
capital scheme
152. The rules governing allocation between capital and revenue President on the advice of the CAG
expenditure may be prescribed by the
153. All charges for the first construction and equipment of a Capital Accounts
project as well as charges for intermediate maintenance of
the work while not yet opened for service should be borne
by the
154. All charges for maintenance subsequent to opening the Revenue Accounts
project and all working expenses thereafter shall be borne
by
155. In the case of works of renewal and replacement which Both Capital and Revenue in
partake both of a capital and revenue nature, such accordance with rule extant on the
expenditure should be borne by subject.
156. Depreciation to the property is borne by Revenue Accounts
157. Expenditure on account of reparation of damage caused by Capital or Revenue or both as decided
extraordinary calamities such as flood, fire, earthquake, by the Government.
enemy action, should be charged to
158. Capital receipts in so far as they relate to expenditure In reduction of capital expenditure.
previously debited to Capital heads, accruing during the
process of construction of a project, should be accounted for
159. Capital receipts after opening of the project shall be treated Capital and shall not be taken to
as revenue account except under a
special rule or order of Government,
160. Major Head under which net gain or loss by exchange of Gain (0075) and Loss (2075)-
foreign currencies is accounted for Miscellaneous General Services on
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 account of revenue expenditure
161. Receipts on charges pertaining to more than one head of One of the head concerned but
account may be booked in the first instance under amount due to other heads should be
transferred before the close of
accounting year
162. Major Head of Land Revenue 0029
163. Major Head 2020 is Collection of Taxes on Income and
Expenditure
164. Scheduled Areas in a State has been contained in Article 244(1) of Constitution
165. Receipts and expenditure pertaining to Scheduled Areas in a Same major and minor heads under
State shall be accounted for under the which corresponding receipts and
expenditure pertaining to other areas
of the State are accounted for
166. Recoveries of overpayments whether made in cash or by reduction of expenditure under the
deduction from payment vouchers shall be accounted for as appropriate expenditure head
concerned irrespective of the year to
which such recoveries relate.
167. Receipts and expenditure of commercial departments or Gross Receipt and Expenditure
undertakings shall be accounted for under the appropriate
major and minor heads in the same way as ordinary receipts
and expenditure of Government.
168. Where a Depreciation or Renewals Reserve Fund is Both Capital account and the
established for renewing assets of any commercial Depreciation/Renewal Fund
department or undertaking, the expenditure on renewals
and replacements should be borne by
169. The procedure to be followed in rectifying misclassifications Government
in accounts shall be such as may be prescribed by
170. All amounts due to Government which are found to be written-off from the Debt head of
irrecoverable shall be account concerned to an expenditure
head as a loss to Government
171. balance due by Government remaining unclaimed for such credited as revenue of the
time as may be prescribed by Government shall be Government concerned by debit to
the Debt or Deposit head concerned.
172. Amounts outstanding due to book-keeping errors under 8680- Miscellaneous Government
heads which close to balance shall be written-off to the Account
Major Head
173. Amounts outstanding due to book-keeping errors under CAG where he is maintaining the
heads which close to balance shall be written-off with the account after concurrence of Govt. or
specific approval of the CGA in case of departmentalised
Accounts after concurrence of the CAA
concerned
174. Unreconciled balances or differences relating to any Debt, ₹ 1000/-
Deposit, Suspense and Remittance heads in the State
Accounts may be written off to 8680 by the AG of the State
up-to ₹
175. Power of the AG in above case shall be subject to Outstanding for over 5 years
AG is of opinion that dead end has
reached
Concurrence of state Govt. obtained
RECOVERY OF CHARGES FOR SERVICES RENDERED OR ARTICLES SUPPLIED BY GOVERNMENT DEPARTMENTS
176. The Government Accounting Rule that deals with Rule 40
adjustment with Government
177. No monetary claims will be resorted to for supplies made or ₹ 1000/-(Applicable to Railways,
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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 services rendered by one Government to another where the Defence & P&T also)
value of such claim does not exceed (It is given as ₹ 10000/- in GFR 2017)
178. Irrespective of the amount involved the monetary claims relating to commercial
settlement will be made in cases of departments/undertakings of a
Government
179. Adjustments of the transaction for supplies made or services Cash by means of cheque/DD and no
rendered by one Government to another are to be resorted book transfer Applicable to Railways,
through Defence & P&T also)
180. Payment for Supply made or service rendered to any foreign In advance
Government or non-government body or institution or to a
separate fund is taken
181. Relief in respect of payment for services rendered or Grant-in-aid and not through
supplies made to any foreign Government or non- remission of due.
government body or institution or to a separate fund
constituted should be given through
182. Categories to which the departments of a Government shall Two- Service and Commercial
be divided into For purposes of inter-departmental
payments
183. whether a particular department or particular activities of a The Government
department shall be regarded as commercial department or
undertaking shall be specified by

184. Charges for rendering services or supplies which fall within No charges subject to certain
the class of duties of a Service Department, exception
185. Extraction of vegetable, animal or mineral products from a Chargeable and not free of cost
forest area by other department shall be
186. Payment for convict labour shall be made supplied to the Public Works and
other departments of Government for
work other than Jail Works
187. Service Departments discharge the function (i) that are inseparable from, and form
part of the idea of Govt.-Defence,
Justice, Police, Public Health, Forest,
Medical, Education etc.
(ii) that are necessary to, and form
part of the general conduct of the
business of Government-Survey of
India, PWD, DGS&D, Printing &
Stationery
188. services rendered by a service department in the normal Departments that are inseparable
discharge of its functions shall not be regarded as service from, and form part of the idea of
rendered for the purpose of this rule pertains to Govt.
189. The Central Water Commission and the Central Electricity Where the advice tendered is based
Authority shall charge commercial departments in respect of on the data already collected by the
advice tendered or services rendered except in cases Commission or the Authority as part
of its normal functions.
Where the amount of recovery does
not exceed ₹ 100/-provided that the
work involved is not of a recurring
nature
190. Where undertakes the execution of work on behalf of other Be recoverable on percentage basis
department, the charges of account of Establishment and subject to certain exception
Tools and plant shall
191. The cost of land acquired by a Civil Department on behalf of Work or project concerned.

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 the Public Works Department shall be debited to
192. The supply of residential accommodation by one Not be held to constitute a service
department to the employees of another shall rendered.
193. When land is taken up for two or more service departments the department to which larger
conjointly, cost of land shall be debited to portion of land pertains to..

194. When land is taken up for two or more commercial all the departments on pro-rata basis
departments, cost of land shall be debited to
195. When a special officer is employed for the acquisition of land The department for which land is
of any department, the expenditure on pay, allowances etc. taken up as the cost of work or
of the Special Officer and the establishment and any project.
expenditure on contingencies shall be borne by
196. When the land is taken by a Civil Officer, not specially only special charges incurred in
employed for the work, the charges that shall be borne by connection with the acquisition of the
the department for which the land is acquired will be land, on establishment, contingencies
etc.
197. Where Defence occupies Civil non-residential building other Free of cost. No rent shall be charged.
than commercial one or vice-versa, such arrangement shall Applicable to aerodromes.
be
198. A branch of a service department performing duties Shall levy charges in respect of the
supplementary to the main function of the department and work for which it has been
intended to render particular services on payment constituted.
199. A branch of a department constituted for the subsidiary charge that other department
service of that department, but employed to render similar
service to another department, shall
200. Where payment is required to be made by one department Shall be levied.
of a Government to another for service/supply rendered
charge for supervision
CLASSIFICATION OF RECOVERIES OF EXPENDITURE IN GOVERNMENT ACCOUNTS
201. Recoveries of expenditure for services or supplies made to Receipt
non-Government parties or other Governments including
local funds and Governments outside India shall be treated
as
202. Recovery of expenditure on accounts of services rendered Reduction of Expenditure
by a Government merely as an agent of a private body shall
be treated as
203. In the case of Joint projects where the expenditure is to be abatement of charges
shared in agreed proportions and the expenditure is ab
initio incurred by one Govt. the subsequent recoveries from
other Governments against initial expenditure should be
treated as
204. As a departments Railways, Department of Posts and Commercial Departments
Department of Telecommunications are considered as
205. Between different departments of the same Government, Reduction of charges
the recoveries shall be classified as
206. Recoveries as are made by a commercial department or a Receipts
departmental commercial undertaking should be treated as
207. Recovery of expenditures in a service department shall be Appropriation Account of the year in
exhibited in the schedule of recovery to be attached to the which the recovery is effected.
208. Where a commercial department acts as an agent of another Reduction of expenditure.
department for the discharge of functions not germane to
the essential purpose of the department, the recoveries
shall be taken as
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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
209. Receipts/anticipated receipts from sale proceeds of Reduction of gross expenditure
materials, plant, etc. received from the old structure, shall
be treated as
210. Receipt under stock and suspense shall be treated as Reduction of gross expenditure
211. Receipts and recoveries on capital Accounts insofar as they in reduction of expenditure under the
represent recoveries of expenditure previously debited to a major head concerned
Capital Major head shall be taken
classification of losses in Government Accounts
212. If a claim be relinquished, the value of the claim shall not be recorded on the
expenditure side of accounts as a
specific loss.
213. If money due to Government has actually reached a Firstly Receipt and then as a loss on
Government servant and is then embezzled, stolen or lost, expenditure side
even though it may not have reached a treasury or bank, the
loss should be accounted for as
214. Government Servant with respect to loss of government Persons duly authorised to receive
money means money on behalf of Govt. whether
borne on regular est. or not
215. Loss or deficiency of Buildings, lands, stores and equipment not be classified under a separate
shall head in the accounts. though they
216. Loss or deficiency of assets such as building, land, store or should be written off from
equipment held in suspense commercial account maintained
217. Losses or deficiencies of cash in hand, whether in treasury or Be recorded under separate head
in departmental charge shall
218. The acceptance of counterfeit coin or notes shall be regarded as a loss of cash.
219. Any recovery made in the course of the year in which the Deduction from the head under which
losses are brought to account shall be shown as the loss is recorded.
220. Any recovery made against the loss after the accounts of the Receipt
year are closed shall be treated as
221. Irregular or unusual payments shall be recorded as per Ordinary/usual classification
222. Where losses are an inevitable feature of the working of a the major head of account under
particular department, which the expenditure of that
department is classified shall contain
separate descriptive heads under
which such losses shall be recorded.
Miscellaneous Rules
223. The incidence of pay, leave salaries, pension etc. charges of Mutual Agreement
Government servants as well as of certain other charges and
receipts between different Governments are governed by
224. No agreements, between two Governments governing Central Government
incidence of charges and receipts shall be executed or
modified without the concurrence of
225. The manner in which the initial and subsidiary accounts shall the President on the advice of the
be kept by the treasuries and the accounts returns to be CAG.
rendered by them to the Accounts Offices shall be such as
may be prescribed by
226. The modification in the Standard/Model form of Treasury Government in consultation with the
Accounts may be done by Accounts Officer concerned
227. Changes in the accounts returns to be rendered by the CAG
Treasuries, wherever necessary the AG will consult the.
228. In case of departmentalised system of accounts, Ministry/Department concerned in
modification in the Standard/Model form of accounts will be consultation with Pr. Accounts Officer
done concerned
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229. In case of State Government, modification in the State Government in consultation with
Standard/Model form of accounts will be done the AG
230. In respect of Central Government, Changes in detail, of Dy./Controller/Chief Controller of
accounts returns, if required, may be introduced by Accounts in consultation with CGA
Important General Orders Governing Classification
231. Where the duties of a Government servant extend to several classified as part of the scheme or
activities, programmes, functions etc. and it is not possible activity or organisation to which the
to classify ab initio his pay and allowances under the major portion of the work of the
appropriate sub-heads, the charges may be Government servant relates
232. The transit pay and allowances of a Government servant to which the government servant is
proceeding to join an office shall be borne by the office proceeding
233. In case a Government Servant is transferred on foreign Both ways (joining and returning)
service, the transit pay and allowances that shall be borne by
the foreign employer is
234. The transit pay & allowances both in respect of the forward Ministry which plans the transfer of
and return journeys of Government servant transferred to or the official.
from Missions and Offices abroad will be borne by
235. The transit pay and allowances of the officers belonging to Ministry of External Affairs or the
Indian Foreign Service Group A or B on return journey shall Ministry of Commerce and Industry
be borne by where the official reports for duty.
236. The travelling expenses of a Government servant may be travel on duty connected with an
debited to Major Head different from the Major Head to outside body or fund
which his/her pay is debited when Where necessary to show separately
cost of a special service in connection
with which the tour is undertaken
Such direction special or general
orders
237. Major Head for recording Grant given Local Bodies and 3604- Compensation and Assignments
Panchayati Raj Institutions to make good a deficit or a to LBs and PRIs
compensation for revenue resumed
238. Contributions/Grant made by the Central or the State Revenue Expenditure
Government to district boards, Municipalities, etc. or vice
versa should be debited as
239. A grant for the construction of a school should be debited to 2202
the Major Head
240. Major Head 2205 is Water Supply and Sanitation
241. The financial assistance given by the Central or State Govt. Contribution
to a local body does not take the form of a grant of cash, but
of expenditure in the PWD equivalent to the whole or part
of the cost of a work constructed by that department on
behalf of the local body concerned is called
242. Contribution paid by a local body or private party with the Revenue Receipt
express object of meeting the whole or a part of the cost of
construction by the Public Works Department of a specific
work which is eventually to be the property of Government
should be taken as
243. Article 282 pertains to Power of the Central/State Govt. to
make grant.
244. The Major Head that cover items which are from their 8550-Civil Advances
inception, debts due to Government recoverable either in
cash or by deduction from other claims of the party
concerned.
245. Pay and Allowances in respect of an assignable period, paid Salary Head
13
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 before they are due shall be debited to the
246. In case of transfer of a government servant from one Where the advance was made and
Department/Government to another, the advance of pay where the settlement/adjustment bill
and travelling allowance on transfer and their settlement was preferred respectively.
will finally be adjusted in the accounts of
247. Advance for law suits should be debited to the Functional head concerned.
248. Items of receipts and payments which cannot at once be 8658-Suspense Head temporarily.
taken to a final head of receipt or charge owing to lack of
information as to their nature or for any other reasons, may
be taken to
249. Sector L pertains to Suspense and Miscellaneous Accounts
under Public Accounts
250. A service receipt of which full particulars are not given i.e. Minor Head-Other receipt under the
Major Head is known but detailed head is not known should concerned Major Head
be taken to
251. Sale proceeds of land where the cost of the land was Concerned capital accounts as
originally debited to a capital account shall be taken as reduction of charges
252. Sale proceeds of land where the cost of the land was Revenue receipt of department
originally debited to a revenue account shall be taken as
253. Sale proceeds of governmental agricultural land shall be 0401- Crop. Husbandry Other
taken to Major Head Receipts.
254. Sale proceeds of land where no original cost was debited to Functional Major Head or 0075-
any account is sold by a Civil Agency other than PWD shall be Miscellaneous General Services—
credited to
255. Sale proceeds of land where no original cost was debited to 0059-Public Work
any account is sold by PWD shall be credited to
256. Sale proceeds of land where no original cost was debited to 0076-Army, 0077-Navy and 0078-Air
any account is sold by Defence shall be credited to Force
257. Municipal rates and taxes on a non-residential building Functional revenue Expenditure Head.
utilised for functional purposes, paid by the relevant (2202-School/College, 2210-Hospital)
departments dealing with those functions shall be debited to
258. Where the whole or a part of the tax is paid by the PWD in 2059-Public Works
administrative control of the non-residential building, the
payments may be debited to
259. Taxes on non-residential buildings occupied by Departments 2070-Other Administrative Services
other than the Defence Department, if paid by a department
nominated by Government in this behalf and not passed on
to the occupying department, should be debited to
260. Taxes on residential buildings, if payable by Government 2216-Housing
should be debited to
261. In cases where the whole or any portion of the taxes which Contingent Expenditure of the
by local rule or by custom are ordinarily leviable from the department concerned.
tenant, is paid by a department of the Government such
payments are treated shall be accounted as
262. Taxes both on residential or non-residential buildings owned Defence Service Estimates (2076-
or occupied by the Defence Department should be debited Army,2077-Navy and 2078-Air Force)
to the
263. Cost of Survey of India and other Scientific parties Survey of India-Defence, Other
accompanying a Military Expedition shall be borne by Scientific Parties- Concerned Civil
Department.
264. Where any doubt arises as to the interpretation of any of the CGA for decision on the advice of CAG
Government Accounting rules, the matter shall be referred
to
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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
265. Supplementary, Additional, Excess Grant for Union & State Union-Article 115, State-205
respectively
266. Vote on Accounts, Vote on Credit, Exceptional Grant and Article 116/206
Token Grant
267. Custody of the Consolidated Fund of India is given there in Article 283 (1)
268. Custody of the Contingency Fund of India is given there in Article 283 (1)
269. Custody of the Consolidated Fund of State is given there in Article 283 (2)
270. Custody of the Contingency Fund of State is given there in Article 283 (2)
271. The custody of the Consolidated/Contingency Fund of UT is Section 47(3) and 48(3) UT Act 1963
given there in
272. Budget is also called Annual Financial Statement.
273. Constitutional/Statutory provision regarding presentation of 112-Union, 202-States and Section
annual budget to the Houses 27(1) of UT Act, 1963
274. Classification of expenditures in Annual Financial Statement First Voted and Charged>Revenue and
Capital
275. Charged Expenditure has been dealt in Article 112 (3)
276. Procedure of budget i.e. Presentation of demand for grant Article 113-Union, State-203
277. Appropriation bill Article 114-Union, State-204
278. CAG’s responsibility for preparation of annual accounts is Section 11
given in DPC Act u/s
279. CAG has been relieved from preparing the annual accounts Section 11 of DPC Act
including summary Civil Appropriation Accounts of the union
Govt. under the provision of
280. The Central Government may after consultation with the Section 22 of DPC Act
CAG
make rules for the maintenance of accounts u/s
281. The CAG was relieved from compilation of the Union 01.04.1976 (76-77)
Government in a gradual manner starting from the year
282. The CAG may perform the duties as the sole auditor for a 20 of the DPC Acts
local body/institution under Section
283. Where the strength of GRP is determined with the approval 50:50
of the Railways, the cost of GRP will be shared between the
State Government and Railways in the ratio of
284. For calculating Railway's share of cost of GRP, Pay and all Superintendent of Police
types of allowances in respect of GRP staff including officer
and supervisory staff is admissible up-to the level of
285. In addition to pay and allowance, Railway's share of cost of Pensionary charges
GRP includes Office expenses and contingencies.
Rent of buildings occupied by GRP
staff.
286. Cost of Protection of Railway bridges under normal Concerned State Governments
condition is the responsibility of the
287. When the services of the Military or other armed forces of Railways. Else by Defence
the Union are placed at the request to the Railway
Administration, the expenditure will be borne by
288. Contributions towards leave salary and pension on Foreign The Government Servant concerned.
Service is payable by
289. When troops are required other than the maintenance of Concerned State Govt. or Department
law and order, the extra cost, if any, of supplying the of Central govt.
services required e.g. in the way of transport, equipment
etc. will be met by
290. For maintenance of law and order by Defence Services, all Central Govt.
expenditure will be borne by the
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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
291. Damages to crops or compensation payable to civilians in State Government concerned.
respect of any troops while employed in aid of civil Pensionary liability will be that of
authorities would be borne by Government of India.
292. The issue of equipment will only be made on payment and Six Months
not on loan in the case of Indents for equipment on loan are
for a period of
293. The depreciation charges in case of ordnance stores by Price Vocabulary rates plus 50%
Defence Service in assistance of Civil Authority will be divided by life of the items in use,
calculated on the basis of expressed in months
294. The depreciation charges in case of ordnance stores by Price Vocabulary rates plus 25%
Defence Service in in maintenance of law and order and aid divided by life of the items in use,
in natural calamities will be calculated on the basis of expressed in months
295. Reservists of the Indian Army employed under the Central or Military Pay and Allowance
State Governments will, when called up for periodical
military training receive their
296. Travelling allowances of Telegraph signallers accompanying Department to which tour of
Governors and other high officials on tour is debited to the Governor concerned. Pay for the
period is debited to the Telegraph
Department.
297. The pay and allowances including travelling allowances of a the Government under which he is
Government servant summoned to give evidence in his employed
official capacity in a criminal Court or in a Civil Court in a
case in which Government is a party are debited to
298. The CAG is responsible for the audit of all expenditure from Article 149 and Section 13 of DPC Act
the revenues of the Union and of the States under
299. In the case of Government Companies the recovery of the Audit is done by the CAG through his
cost of supplementary audit conducted under Section, 619 own departmental staff. Chargeable
(3) (b) of the Companies Act 1956 shall be waived in cases when professionals are hired.
where
300. Expenditure involved in keeping the accounts of a State in so Central Government
far as the responsibility for keeping such accounts remains
with the CAG under Section 10 of the C&AG's (DPC) Act
1971, is a charge of the
301. Where the local body/institution has its own auditors and Central Government
audit by the CAG is conducted in addition under DPC Act.
1971, the cost of audit by the CAG is borne by

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)