CHAPTER 7
STRUCTURE
OF
GOVERNMENT ACCOUNTS
7.1 One of the most distinctive features of the system of Government Accounts in India is the minute elaboration with which the Financial transactions of Government under both receipts and payments, are differentiated and classified.
Principles of Classification
7.2 The conventional pattern of classification ran along
organizational lines and consisted mainly in the listing of receipts by various
types of taxes and the statement of expenditures by reference to the department
in which it occurred than to its objects or grounds. With the phenomenal growth
and diversity in the functions of Government involving huge outlays, accounts
acquired a new dimensions and the necessity for a more meaningful classification
of transactions for presentation of Government operations in terms of
functions, programmes and activities was acutely felt. A team (Mukherjee
Committee) set up by the Government of India went into this question and made
recommendations for reforming the structure of budget and accounts. The
important objectives sought to be achieved by these reforms were:
(a) to have a uniform classification for the
budget, accounts and plan;
(b) present the objectives and purposes of
Government expenditure clearly in terms of functions, programmes and
activities;
(c) amplification of the accounting
classification to provide for new functions and programmes in a more meaningful
manner;
(d) to bring together under the appropriate
functional (major), programme (minor) and activity (sub-head) heads, all
expenditures on that function, programme scheme or activity as the case may be,
irrespective of the organization administering the function, programme, scheme
or activity;
(e) to help the management with timely accounts data
for monitoring and analysis of expenditure on programmes and activities and
also to secure itemized control over expenditure; and
(f) to facilitate introduction of performance
budgeting.
7.3 The recommendations of this team were
accepted by the Government of India and the Comptroller and Auditor General of
India, with the approval of the President, prescribed revised classification of
Government transactions which were given effect to from 1974-75, by the Union,
State and Union Territory Governments.
Form of Accounts- Main Division of Accounts
7.4 Government accounts are kept in the following
three parts:
In Part-I,
namely the Consolidated Fund of accounts, there are two main divisions, namely:
(i) Revenue consisting of sections for ‘Receipt
heads (Revenue Account)’ and ‘Expenditure Heads (Revenue Account)’.
(ii) Capital, Public Debt, Loans consisting of
sections for ‘Receipt heads (Capital Account)’, Expenditure Heads (Capital
Account)’ and ‘Public Debt’, ‘Loans’, and ‘Advances’.
The first
division comprises the section Receipt heads (Revenue Account) dealing with the
proceeds of taxation and other receipts classed as revenue and the section
‘Expenditure heads (Revenue Account)’ dealing with expenditure met there from.
The second
division comprises the following sections:
(a) The Section ‘Receipt heads (Capital
Account)’ which deals with receipts of a Capital nature which cannot be applied
as a set off to Capital Expenditure.
(b) The Section ‘Expenditure heads (Capital
Account)’ which deals with expenditure met usually from borrowed funds with the
object either of increasing concrete assets of a material and permanent
character or of reducing recurring liabilities. It also includes receipts of a
Capital nature intended to be applied as set off to Capital expenditure.
(c) The Sections ‘Public Debt’ and ‘Loans and
Advances’, which comprise of loans raised and their re-payments by Government
such as, Internal Debt, External Debt of the Central Government, and Loans and
Advances made by Governments and their recoveries, transactions relating to
‘Appropriation to Contingency Fund’ and ‘Inter-State Settlement’.
In Part II,
namely Contingency Fund, of the Accounts are recorded the transactions
connected with the Contingency Fund set up by the Government of India or of a
State or Union Territory Government under Article 267 of the Constitution/
Section 48 of the Union Territories Act, 1963.
In Part
III, namely Public Account, of the Accounts, the transactions relating to Debt
(other than those included in Part I), ‘Deposits’, ‘Advances’, ‘Remittances’
and ‘Suspense’ are recorded. The transactions under Debt, Deposit and Advances
in this part are such in respect of which Government incurs a liability to
repay the moneys received or has a claim to recover the amounts paid, together
with the repayments of the former (Debt and Deposits) and the recoveries of the
latter (Advances), The transactions relating to ‘Remittances’ and ‘Suspense’ in
this Part embrace all merely adjusting heads under which shall appear such
transactions as remittances of cash between treasuries and currency chests and
transfers between different accounting circles. The initial debits or credits
to these heads will be cleared eventually by corresponding receipts or payments
either within the same circle of account or in another account circle.
Sectors and Sub-sectors of Accounts
7.5 (a) Within each of the Divisions and sections of the Consolidated
Fund referred to in Para 6.4, the transactions are grouped into sectors such
as, “General Services”, “Social and Community Services”, “Economic Services”,
under which specific functions or services shall be grouped. The Sectors are
sub-divided into Major Heads of Accounts; in some cases the Sectors are, in
addition, sub-divided into sub-sectors before their division into Major Heads
of Accounts, Each Sector in a section will be distinguished by a letter of the
Alphabet.
(b) In Part II-Contingency Fund, there is a single Major Head and all the transactions met out of the Contingency Fund will be recorded under it.
(c) In the case of Part-III- Public Account, the transactions are grouped into sectors and sub-sectors which will be further sub-divided into Major Heads of Account. The Sectors /Sub-sectors will be distinguished by letters of the alphabet.
(b) In Part II-Contingency Fund, there is a single Major Head and all the transactions met out of the Contingency Fund will be recorded under it.
(c) In the case of Part-III- Public Account, the transactions are grouped into sectors and sub-sectors which will be further sub-divided into Major Heads of Account. The Sectors /Sub-sectors will be distinguished by letters of the alphabet.
Major, Minor and Detailed Heads
അക്കൗണ്ടുകളുടെ വർഗ്ഗീകരണത്തിന്റെ
പ്രധാന യൂണിറ്റ് മൈനര് ഹെഡുകാളായി വിഭജിച്ചിരിക്കുന്ന മേജര് ഹെഡുകളാണ്
. അവയിൽ ഓരോന്നിനും
നിരവധി സബോർഡിനേറ്റ് ഹെഡുകളുണ്ട്, അവ സാധാരണയായി
സബ് ഹെഡ്സ് എന്നറിയപ്പെടുന്നു. ഈ സബ്ബ്
ഹെഡുകളെ ഡീറ്റെയ്ല്ഡ് ഹെഡുകളായി തിരിച്ചിരിക്കുന്നു. ചില സമയങ്ങളില് മേജര് ഹെഡുകളെ മൈനര് ഹെഡുകളായി തിരിക്കുന്നതിനുമുമ്പ് സബ്ബ് മേജര് ഹെഡുകളായി വിഭജിക്കാറുണ്ട്.
(b) Major Heads of account falling within the Consolidated Fund generally correspond to ‘Functions’ of Government such as different services like ‘Agriculture’ ‘Defence’ provided by Government , while minor heads subordinate to them identify the programme undertaken to achieve the objectives of the function represented by the major head. A programme may consist of a number of schemes or activities and these generally, correspond to sub-heads below the minor head represented by the programme. In certain cases, especially in regard to non-developmental expenditure or expenditure of an administrative nature, the sub-heads may denote the components of a programme, such as Organizations or the different Wings of Administration.
🔲. All Govts
follow the same code up to.............. level
(A) Major
Head
(B) Minor
Head
(C)
Object Head
(D)
Detailed Head
Note 1-
Note 1-
Note 2-With effect from 1st January 1982 and in the case of Jammu and Kashmir, Maharashtra, Manipur and Sikkim from 15th January 1982, State Governments have been entrusted with their consent, in the terms of clause (1) of Article 258 of the Constitution, the functions of the Central Government under Article 150 of the Constitution in so far as such functions relate to the opening of sub-heads of accounts under the various Major and Minor Heads of Accounts in the State concerned, subject to the following conditions:(i) Orders issued by a State Government for opening sub-heads and detailed heads are consistent with the directions issued by the Central Government from time to time.(ii) No sums shall be paid by the Central Government to the State Government concerned in respect of any extra costs of Administration incurred by the State in connection with the exercise of the functions so entrusted.
With effect form 1st April 1987 the President in terms of clause (1) of Article 239 of the Constitution, has directed the Administrators of the Union Territories of Arunachal Pradesh, Daman and Diu, and Pondicherry, subject to his control, also to discharge the functions of the Central Government under Article 150 of the Constitution in so far as such functions relate to the opening of sub-heads and detailed heads of account under the various Major and Minor heads of account within their respective territories subject to the following conditions:
(i) the said discharge of functions shall be subject to the forms prescribed by the President under Article 150; and
(ii) No sums shall be paid by the Central Government to the Union Territory concerned in respect of any extra cost of administration incurred in connection with the said discharge of functions.
Codification of heads of Accounts
7.7 From April 1, 1987, a revised coding pattern
has been introduced keeping in view the emerging requirements and providing for
computer based Financial Information Systems. In the revised pattern,
ഉയർന്നുവരുന്ന ആവശ്യകതകൾ കണക്കിലെടുത്ത് കമ്പ്യൂട്ടർ അധിഷ്ഠിത സാമ്പത്തിക വിവര സംവിധാനങ്ങൾ നൽകിക്കൊണ്ട് ഒരു പുതുക്കിയ കോഡിംഗ് പാറ്റേൺ അവതരിപ്പിച്ചു. പുതുക്കിയ പാറ്റേണിൽ
a four
digit Arabic numerical code has been assigned to the Major Heads in this list,f ollowed by
a 2-digit code for the relevant sub-major heads, and further
followed by a 3-digit code for the minor heads.
The codification pattern for
the major heads has been designed in such a way that the last three digits out
of the four digits represent the same function in the four sections
viz.
Receipt Heads (Revenue Section),Expenditure Heads (Revenue Section),Expenditure Heads (Capital Section) and ‘Loans and Advances’
except in a few
cases where more than one function has been grouped together (as sub major
heads) under a single Major head
പ്രധാന തലങ്ങൾക്കായുള്ള കോഡിഫിക്കേഷൻ പാറ്റേൺ രൂപകൽപ്പന ചെയ്തിരിക്കുന്നത് നാല് അക്കങ്ങളിൽ അവസാന മൂന്ന് അക്കങ്ങൾ നാല് വിഭാഗങ്ങളിലെ ഒരേ പ്രവർത്തനത്തെ പ്രതിനിധീകരിക്കുന്ന രീതിയിലാണ്, ഒരൊറ്റ മേജർ ഹെഡിന് കീഴിൽ ഒന്നിൽ കൂടുതൽ ഫംഗ്ഷനുകൾ (സബ് മേജർ ഹെഡുകളായി) ഗ്രൂപ്പുചെയ്തിരിക്കുന്ന ചില സന്ദർഭങ്ങളിൽ ഒഴികെ.
This is illustrated by the following examples: -
Function
|
Major head code in the section for
|
||||
Receipt Heads Revenue
Account
|
Expenditure Heads Revenue
Account
|
Expenditure Heads Capital
Account
|
Loans & Advances
|
||
1.
|
Medical & Public Health
|
0210
|
2210
|
4210
|
6210
|
2.
|
Shipping
|
1052
|
3052
|
5052
|
7052
|
It may also
be observed that in the coding pattern, the 1st digit in the major heads under ‘Receipt Heads’
(Revenue Account) is either 0 or 1, and the first digit for corresponding major
heads for the same function in the Sections Expenditure Heads (Revenue Account)
‘Expenditure Heads’ (Capital Account), and ‘Loans and Advances’ are derived by
adding the number 2 to the first digit in the Major Heads in the ‘Receipt Head’
(Revenue Section).
The
sub-major heads have a two digit code 01, 02…..etc., while the minor heads have
a three digit code 001, 002….etc. The coding pattern for minor heads has been
designed in such a way that in respect of certain minor heads having a common
nomenclature under various major-sub-heads, as far as possible, the same
standard three digit code is adopted, a few illustrative cases are given below.
While opening any new minor head, these principles should be kept in view. In
order that the rectory of Account heads maintained in the budget Division and
Controller General of Accounts organization in the Ministry of Finance, Govt.
of India, may not get disturbed, the computer cells of these two organizations
should be consulted before any new code is allotted or an existing code (at
whatever level) is altered.
Standard 3 digit code
|
Common nomenclature
|
001
|
Direction and Administration
|
003
|
Training
|
004
|
Research
|
005
|
Investigation
|
010
|
Minimum needs Programme
|
050
|
Land
|
051
|
Construction
|
052
|
Machinery and Equipment
|
150
|
Assistance to I.C.A.R.
|
190
|
Assistance to Public Sector and Other undertakings,
|
798
|
International Cooperation
|
799
|
Suspense
|
800
|
Other Receipts, Other Deposits, Other Loans, Other
Grants. Other Expenditure etc.
|
🔲.
Capital major head corresponding to expenditure head 2210 is:
(A) 6210
(B) 4210
(C) 8010
(D) 0010
🔲. Three
digit code is allotted to a:
(A)
Object head
(B)
Detailed Head
(C) Minor
head
(D) Major
head
Classification of expenditure as ‘Charged’ or as ‘Voted’
കൺസോളിഡേറ്റഡ് ഫണ്ടിന്റെ
അല്ലെങ്കിൽ ഒരു സംസ്ഥാന അല്ലെങ്കിൽ കേന്ദ്രഭരണ പ്രദേശത്തിന്റെ ‘ചാർജ്ജ്’
ചെയ്യുന്ന ചെലവിൽ നിന്ന് ഭരണഘടനയുടെ
വ്യവസ്ഥകൾ പ്രകാരം നിയമസഭയുടെ വോട്ടിന്
വിധേയമായ ചെലവ് അക്കൗണ്ടുകളിൽ പ്രത്യേകം
കാണിക്കും.ചെലവുകളുടെ രണ്ട് വിഭാഗങ്ങളെ വേർതിരിച്ചറിയാൻ ബന്ധപ്പെട്ട ചാർജുകൾക്ക് ‘ചാർജ്ജ്’ അല്ലെങ്കിൽ ‘വോട്ട്’ എന്ന പ്രയോഗം കൂട്ടിച്ചേർക്കപ്പെടും.
Classification of transactions in accounts
7.9 (1)
Under Article 150 of the Constitution, the accounts of the Union and of
the States shall be kept in such form as the President may on the advice of the
Comptroller and Auditor General, prescribe. The word Form used in Article 150
has a comprehensive 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.
(2) The estimates of receipts and expenditure
framed by Government or in any order of Appropriation shall indicate provisions,
ordinarily against heads opened in conformity with these rules. Where there is
divergence, the corresponding receipt or expenditure shall be brought to
account under the appropriate major head or minor head or other unit of
classification as determined by the President on the advice of the Comptroller
and Auditor General.
Basis of classification
7.10 As a general rule, the classification of transactions in Government accounts, shall have closer reference to the function, programme and activity of the government and the object of the revenue or expenditure, rather than the department in which the revenue or expenditure occurs. This principle is, however, subject to such exceptions as may be authorized specially in any individual case or class of cases e.g. receipts representing ‘Interest’ are shown under “0049- Interest Receipts”and expenditure on the maintenance and repairs of the non-Residential buildings under the administrative control of the Public Works Department are shown under the major head “2059- Public Works” irrespective of the functions to which they relate.
ഒരു പൊതുനിയമം എന്ന നിലയിൽ, സർക്കാർ അക്കൗണ്ടുകളിലെ ഇടപാടുകളുടെ വർഗ്ഗീകരണത്തിന്, സർക്കാരിൻറെ പ്രവർത്തനം, പ്രോഗ്രാം, പ്രവർത്തനം, വരുമാനം അല്ലെങ്കിൽ ചെലവ് എന്നിവയുടെ വകുപ്പിനേക്കാൾ, സർക്കാരിൻറെ പ്രവർത്തനം, പ്രോഗ്രാം, പ്രവർത്തനം, വരുമാനം അല്ലെങ്കിൽ ചെലവ് എന്നിവയുടെ വസ്തുവിനെ അടുത്തറിയാൻ കഴിയും. എന്നിരുന്നാലും, ഈ തത്ത്വം ഏതെങ്കിലും വ്യക്തിഗത കേസുകളിലോ കേസുകളുടെ ക്ലാസിലോ പ്രത്യേകമായി അംഗീകാരം ലഭിച്ചേക്കാവുന്ന അത്തരം ഒഴിവാക്കലുകൾക്ക് വിധേയമാണ്, ഉദാ. 'പലിശ'യെ പ്രതിനിധീകരിക്കുന്ന രസീതുകൾ “0049- പലിശ രസീതുകൾ” പ്രകാരം കാണിക്കുകയും പൊതുമരാമത്ത് വകുപ്പിന്റെ ഭരണപരമായ നിയന്ത്രണത്തിലുള്ള നോൺ റെസിഡൻഷ്യൽ കെട്ടിടങ്ങളുടെ അറ്റകുറ്റപ്പണികൾക്കും അറ്റകുറ്റപ്പണികൾക്കുമുള്ള ചെലവുകൾ “2059- പൊതുമരാമത്ത്” എന്ന പ്രധാന തലക്കെട്ടിൽ കാണിച്ചിരിക്കുന്നു. അവയുമായി ബന്ധപ്പെട്ട പ്രവർത്തനങ്ങൾ.
Criteria
for determining whether expenditure should be classified under heads of Capital
Section or Revenue Section of the Consolidated Fund
7.11 (1) Expenditure of a capital nature to be classified in the
Capital Section shall broadly be defined as expenditure incurred with the object
either of increasing concrete assets of a material and permanent character or
of reducing recurring liabilities.
Note-
Expenditure on a temporary asset or expenditure on Grants-in-aid to local
bodies or institutions (for purpose of creating assets which will belong to
these local bodies r institutions) cannot ordinarily be classified as capital
expenditure, and shall not except in cases specifically authorized by the
President on the advice of Comptroller and Auditor General be debited to a
capital head of account.
(2) Expenditure of a Capital nature shall be
distinguished from Revenue expenditure both in the Budget Estimates and in
Government Accounts.
Note-Capital
expenditure is generally met from receipts of a capital, debt, deposit or
banking character as distinguished from ordinary revenues derived from taxes,
duties, fees fines and similar items of current income including extra-ordinary
receipts. It is open to the Government to meet capital expenditure from
ordinary revenues provided there are sufficient revenue resources to cover this
liability.
(3) Expenditure of a Capital nature as defined
above shall not be classed as Capital expenditure in the Government accounts
unless the classification has been expressly authorized by general or special
orders of Government.
🔲.
Capital expenditure is incurred with the object of:
(A) For
repair and maintenance of building
(B) For
repaying loans and advances
(C) For
increasing concrete assets or reducing recurring liabilities
(D) None
of these
Allocation between capital and revenue expenditure on a capital scheme
7.12 (1) The allocation between capital and revenue expenditure on a
Capital Scheme for which separate capital and revenue accounts are to be kept
shall be determined in accordance with such general or special orders as may be
prescribed by the Government on the advice of the Comptroller and Auditor
General.
(2) The following are the main principles
governing the allocation of expenditure on a Capital Scheme between Capital and
Revenue accounts:
(a) Capital account should bear all charges for
the first construction and equipment of a project as well as charges for
intermediate maintenance of the work while not yet opened for service. It would
also bear charges for such further additions and improvements as may be
sanctioned under rules are by competent authority.
(b) Subject to (c) below, revenue account should
bear all subsequent charges for maintenance and all working expenses. These
embrace all expenditure on the working and upkeep of the project and also on
such renewals and replacements and such additions, improvements or extensions
as prescribed by Government.
(c) In the case of works of renewal and
replacement which partake both of a capital and revenue nature, the allocation
of expenditure should be regulated by the broad principle that revenue should
pay or provide a fund for the adequate replacement of all wastage or
depreciation of property originally provided out of capital grants and that
only the cost of genuine improvements, whether determined by prescribed rules
or formulae or under special orders of Government, should be debited to Capital
account. Where under special orders of Government, a depreciation or Renewals
Reserve Fund is established for renewing assets of any commercial department or
undertaking, the distribution of expenditure on renewals, and replacements
between Capital account and the Fund should be so regulated as to guard against
over capitalization on the one hand and excessive withdrawals from the Fund on
the other.
(d) Expenditure on account of reparation of
damage caused by extraordinary calamities such as flood, fire, earthquake,
enemy action, should be charged to Capital account or to Revenue account or
divided between them in such a way as may be determined by Government according
to the circumstance of each case.
(e) Capital receipts in so far as they relate to
expenditure previously debited to Capital heads, accruing during the process of
construction of a project, should be utilized in reduction of capital
expenditure. Thereafter, their treatment in the accounts will depend on
circumstances, but except under a special rule or order of Government, they
should not be credited to the revenue account of the department or undertaking.
1. How many Major Heads are there under Part II-Contingency Fund?
(A) 2
(B) 3
(C) 6
(D) 1
2 Which among the following is NOT the responsibility of Commercial Audit Organization of Indian Audit and Accounts Department The Organization is responsible for:
(A) Audit of transactions of Government Companies/Corporation which finds final expression in an Annual Audit Report bringing out selected topics of interest relating to them
(B) In-depth performance appraisals of selected Companies/ Corporations; each such appraisal takes the form of a separate Audit Report
(C) Preparation of a report on systems deficiencies reported by Chartered Accountants on the basis of directions by the Comptroller and Auditor General
(D) Authorizing pay and allowances of officers and staff of public sector undertakings