Para 2.14 — CAM
Original Rule Text
2.14 GENERAL INSTRUCTIONS ON CLASSIFICATION OF EXPENDITURE
2.14.1 Apart from the general principles, the main duty of the PAO in check of classifications would be to see that the expenditure is classified and recorded under the grant and the sub head under which the provision for expenditure was made in the Budget Estimates.
Note below 2.11.1 shall also be referred classification of expenditure based on object heads defined in Rule 8 of DFPR.
2.14.2 The following principles should be adopted for classifying the expenditure on departmental accounts organisation:
(a) The expenditure on a PAO, which is exclusively dealing with a separate identifiable organisation will be treated as regular expenditure of the organisation without operating separate minor heads for this purpose. For example, expenditure on PAO (Tourism) will be debited to the head '3452-Tourism-Direction and Administration'.
(b) The expenditure on all other PAOs as well as Principal Accounts Offices of all Ministries/Departments including Internal Audit Wings set up under the scheme of Departmentalisation will be classified under the minor head 'Secretariat' below the appropriate Major head viz.,'2052- Secretariat-Services' or '2251-Secretariat-Social and Community Services' or '3451-Secretariat-Economic Services', as the case may be.
2.14.3 Budget provision will also be made according to the principles set forth above. In the case of
(a) above, the provision will be included in the total provision for the organisation. In respect of (b), budget provision will be included in the Secretariat Demands for Grants of the concerned Ministries or Departments.
2.15 GENERAL CHECKS TO BE EXERCISED IN RESPECT OF BILLS SUBMITTED FOR PRE-CHECK.
2.15.1 The following checks will be exercised on all classes of bills:
(i) that bills are prepared in the prescribed form, signatures are genuine and that the bills are in original; that a brief abstract is given in the official language authorised for the purpose under the signature of the drawing officer on all vouchers prepared in any other language; that signatures, if not in the authorised script, are transliterated and that sub-vouchers contain notes of dates of payment;
(ii) that the details work up to the totals and that the totals are in words as well as in figures,
(iii) that they bear a 'pass order' signed by the DDO;
What This Means
The PAO's primary duty in checking expenditure classification is to ensure that spending is recorded under the correct grant and sub-head where the budget provision was made. Expenditure on the PAO's own office should be classified under a specific sub-head within the demand of the Ministry it serves. The paragraph also lays down principles for classifying expenditure on departmental accounting organizations, distinguishing between the cost of the PAO office itself and costs that may be shared across multiple Ministries.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1PAO must ensure expenditure is classified under the grant and sub-head where budget provision exists
- 2PAO office expenditure is classified under a specific sub-head within the Ministry's demand
- 3Classification follows both general principles and object heads defined in Rule 8 of DFPR
- 4Shared costs of accounting organizations may be apportioned across Ministries
- 5Correct classification is essential for meaningful appropriation audit and budget monitoring
Practical Example
The PAO of the Ministry of Textiles incurs expenditure on stationery, staff salaries, and office rent. The salaries and office costs of the PAO's establishment are classified under a designated sub-head like 'Payment of Accounts Offices' within the Ministry of Textiles' Demand for Grants. If the PAO also serves a newly created department under the same Ministry, the costs may need to be apportioned between the two demands based on the volume of transactions handled for each.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Under which head is a PAO's own office expenditure classified?▼
What reference should the PAO use for object head classification?▼
Can expenditure be classified under a head where no budget provision exists?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.