Rule 14 — GAR
Original Rule Text
14. Broad outlines of the accounts - feeder-network and system of accounts of the Central Government and Union Territory Administrations.
The broad outlines are as follows:-
(a) All receipts in India on behalf of the Central Government (other than those of Union Territory Administrations which are having the treasury system) shall be paid into the bank. Drawals in India on behalf of the Central Government from the bank shall be made by cheques drawn thereon. These shall be: accounted for by the bank as receipts and payments on behalf of the concerned Ministry and/or Department of the Central Government. In support of receipt and payment transactions at the bank, daily receipt and payment scrolls supported respectively by challans and paid cheques shall be: sent by the bank to the Accounts Officer of the Ministry or Department concerned.
(b) At present, some miscellaneous receipt and payment transactions (viz. payment of interest, repayment of principal on discharge of Central Government Securities and pensions including pensions to freedom-fighters): take place at State treasuries. Such transactions shall be accounted for by the treasuries in the State Section of Treasury accounts under the head "PAO Suspense - Transactions adjustable by PAO Ministry/ Department of below the major head' '8658 Suspense Accounts' for necessary cash settlement by the State Accountant General with the concerned Pay: and Accounts Office. Befer Correction Sinl
Note: 1: In respect of payments pertaining to Central Government: Securities, Principal Accounts Office, Department of Economic Affairs, New Delhi will bear the debits.
Note: 2: In respect of Central (Civil) Pensions including High Court Judges and Freedom Fighters, the debits will be raised against the PAOI in the Central Pension Accounting Office.
(c) Officers of the Civil Ministries, Departments of the Central Government (including drawing and disbursing officers with cheque drawing powers) who are allowed to pay their receipts in the Consolidated Fund or the Public Account or withdraw moneys in lump for expenditure therefrom or from the Contingency Fund, shall submit detailed "accounts' of their transactions to their respective Accounts Officers. Some specified Departmental Officers (e.g. CPWD Divisions, Forest Divisions) may: be required to render to the Account Officers compiled accounts with suitable abstracts of their transactions classified under prescribed heads of accounts.
NOTE:- The: accounts' referred to in this clause do not relate to the accounts maintained by Government: servants in respect of expenditure incurred from permanent advance (i.e. cash imprests).
What This Means
Rule 14 provides a comprehensive overview of how Central Government accounts are fed from multiple sources — the 'feeder network' — and how they flow through to the final consolidated accounts. Understanding this flow is essential for any officer involved in central government accounting, whether as a drawing officer, accounts officer, or auditor.
At the primary level, all Central Government receipts are deposited in the banking system (RBI/SBI), and payments are made by cheques. The bank sends daily scrolls with challans and paid cheques to the concerned PAO. The PAO compiles monthly accounts from these bank scrolls and from accounts submitted by departmental officers. The PAO's monthly compiled account is sent to the Principal Accounts Office (Pr.AO) of the ministry, which then prepares the ministry's consolidated account.
At the apex level, the CGA collects monthly compiled accounts from all Pr.AOs (civil ministries), State Accountants General (for Union Territory transactions), and UT separated accounts organisations, and prepares the Consolidated Account of Central Civil transactions. A copy goes to the Ministry of Finance (DEA) monthly. Railway, Postal, Telecom, and Defence departments have their own separate consolidation paths — they consolidate within their own accounting systems before submitting to their respective boards/CGA.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1All Central Government receipts are deposited in the bank; payments are made by cheques on the bank.
- 2Banks send daily scrolls (with challans for receipts and paid cheques for payments) to the concerned PAO.
- 3Some miscellaneous transactions (securities, pensions) still go through State treasuries under PAO Suspense head.
- 4PAOs compile Classified and Consolidated Abstracts from bank scrolls and departmental accounts.
- 5Principal Accounts Offices consolidate accounts from all their PAOs and send monthly compiled accounts to the CGA.
- 6The CGA prepares the Consolidated Account of Central Civil transactions from accounts received from Pr.AOs, AGs, and UT accounts organisations.
- 7Railways, Posts, Telecom, and Defence consolidate their own accounts separately before submitting to the CGA.
Practical Example
Consider the Ministry of Science and Technology. It has three Pay and Accounts Offices (one each for DST, DSIR, and DBT). Each PAO receives daily bank scrolls, processes departmental officers' accounts, and compiles a monthly classified abstract. At month-end, each PAO sends its monthly compiled account to the Principal Accounts Office, Ministry of Science and Technology. The Pr.AO consolidates all three PAOs' accounts into a single ministry-level account and sends it to the CGA.
The CGA receives similar accounts from all other civil ministries, from State AGs for UT transactions, and from UT accounts offices. By the time the CGA has compiled all these accounts, it has a complete picture of all Central Civil receipts and disbursements — which it reconciles against RBI's CAS Nagpur balance statement. A copy of the monthly Civil account is sent to the Ministry of Finance (DEA) for the Finance Ministry's own monitoring.
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.