Para 12.4.4 — CAM

12.4.4 Statement No. 4 (IGAS-1) Guarantees Given by the Union Governments

12.4.4.1 Government gives guarantees on behalf of various PSUs, Banks and other institutions for repayment of their borrowings and payment of interest thereon, repayment of their share capital and payment of minimum dividend, and payment against supplies of materials and equipment on credit basis, etc. These guarantees constitute Government’s contingent liabilities that have to be discharged from the CFI in case of any default by the beneficiaries of such guarantees. As per requirements of the FRBM Rules, a new format for disclosing guarantees given by the Government has been introduced in the Finance Accounts for the year starting from 2004-05. This statement is prepared in crores of Rupees upto two decimals. At the outset, the purposes for which Government stands guarantee are stated. The maximum amount of guarantee for which Government had entered into agreements and sums guaranteed outstanding at the end of the year are mentioned in crores of Rupees. The Ministry/ Department-wise details of guarantees under 6 different classes are given.

12.4.4.2 The information is provided in two parts: (1) Class wise information on guarantees given by the Union Government and (2) Guarantees given by Government: Disclosure requirements (IGAS-I) which is further furnished in two parts:

(a) Sector wise Disclosures in respect of guarantees given by the Union Government and

(b) Additional Disclosures in respect of guarantees given by the Union Government. The Sector wise disclosures contain information in respect of Guarantees under the following 8 Sectors:

1 Power 2 Co-operative 3 Irrigation 4 Road & Transport 5 State financial Corporations 6 Urban Development and Housing 7 Other Infrastructure 8 Any Other

12.4.5 Statement No. 5-Summary of Balances: Under the Indian Government Accounts bookkeeping system, the amounts booked under Receipts and Expenditure heads in Revenue and Capital Account and those under major heads `7810 Inter- State Settlement’,`7999- Appropriation to the Contingency Fund’ and `8680 Miscellaneous Government Account’, are closed to a head with the nomenclature `Government Account’. The balances under this head represent the cumulative result of all such transactions. The closing cash balance at the end of the year can be worked out and proved by adding the balances under ‘Government Account’ and those under Debt, Deposit, Suspense and Remittance heads and the Contingency Fund. This statement is prepared in thousands of Rupees and has three parts, showing the balances at the end of the year under various sectors of account, with the total debit balances being equal to the credit balances. The other information available in this statement, in brief, is as follows: -

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1Statement No. 4 (IGAS-1) discloses all government guarantees — the contingent liabilities of the Union
• 2Covers 6 classes of guarantees across 8 sectors (Power, Cooperative, Irrigation, Road & Transport, etc.)
• 3Shows maximum guarantee amounts and outstanding balances, Ministry/Department-wise
• 4Format introduced from 2004-05 per FRBM Rules requirements
• 5Statement No. 5 proves closing cash balance by adding Government Account balance to DDSR and Contingency Fund balances

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.