Rule 15 — GAR
Original Rule Text
15. Broad outlines of the accounts - feeder-network and system of accounts of State Governments and of the Union Territory Governments.
The broad outlines are indicated below:-
(a) All receipts in India on behalf of each State Government and on behalf of each Union Territory shall be: paid into its Treasury or the bank, and initial accounts of such receipts shall be maintained at the treasury, keeping in view the provisions of the next clause.
(b) Receipts realised in the Public Works, Forest and any other departments which may be authorised in: this behalf shall be paid into a treasury or the bank in lump and accounted for at the treasure merely as receipts on behalf of such departments. The detailed accounts of such receipts shall be kept by the departmental officers concerned.
(c) Payments in India on behalf of the State Governments and on behalf of the Union Territories shall ordinarily be made either at its treasury or the bank, but some departmental officers may be authorised to withdraw sums in lump from: treasury or the bank for making payments. In the former case, the initial "accounts' of payments shall be kept at the treasury, and in the latter case, such 'accounts' shall be maintained by the departmental officer concerned.
The accounts' referred to in this clause do not relate to the accounts maintained by Government servanti in: respect of expenditure incurred from permanent advances (i.e. cash imprests).
Officers of the Civil Departments who pay: their receipts into 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 respective Accountant General. Some specified Departmental Officers may be required to render to the Accountant General compiled accounts with suitable abstracts of their transactions classified under prescribed heads of accounts.
(d) At the beginning of each month, each Accountant General will receive from the treasuries under his Jurisdiction monthly accounts supported by the requisite schedules, vouchers, in respect of the transactions which took place in the treasury during the previous month. Each State or Central treasury, which renders accounts to a State: Accountant General will submit a double set of accounts, one for transactions of the State Government and the other for transactions of the Central Government.
(e) From: the: accounts furnished by treasuries and Civil Departmental Officers, referred to in clauses (b): and (c): above, Departmental Classified Abstracts will be compiled by the Civil Account Officers showing the monthly receipts and payments pertaining to each department for the whole account circle, classified under the relevant major, minor, sub and detailed heads. Separate classified abstracts will be maintained for each Department, each group of small departments or each major head or group of major heads of account not relating to any particular department or departments according to local convenience. The transactions
What This Means
Rule 15 describes the feeder network and accounting system for State and Union Territory Governments — essentially the same comprehensive overview as Rule 14 but applied to sub-national governments. At the primary level, State Government receipts are deposited in state treasuries or the banking system. Specialized departments like PWD and Forest may pay receipts in lump sums, maintaining their own detailed records while the treasury only captures the aggregate.
The compilation process moves from treasuries to the Accountant General. At the start of each month, each Accountant General receives the previous month's treasury accounts — with a critical requirement that each State treasury submits a double set: one for State transactions and one for Central transactions. From these treasury accounts plus departmental officer accounts, the AG compiles Departmental Classified Abstracts and Consolidated Abstracts.
At the top level, the AG compiles the final Abstract of Major Head Totals from which both monthly and annual accounts are prepared. A crucial reconciliation step is also required: the AG must reconcile the State Government's cash balance in its books with balances in the Treasury Cash Accounts and with CAS Nagpur's closing balance statement. This three-way reconciliation is the ultimate check on the integrity of State accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1State Government receipts go into State treasuries or the bank; specialized departments (PWD, Forest) may pay in lump sums and keep their own detailed records.
- 2Payments are made at treasuries or the bank, or departmental officers may withdraw lump sums for making payments.
- 3Each State treasury submits a double set of monthly accounts to the AG — one for State transactions, one for Central transactions.
- 4The AG compiles Departmental Classified Abstracts and Consolidated Abstracts from treasury and departmental accounts.
- 5Separate Classified Abstracts are maintained for State and Central transactions.
- 6Detail Books are maintained for Debt, Deposit, and Remittance heads to track cumulative balances.
- 7Cash balance reconciliation: AG's books vs. Treasury Cash Accounts vs. CAS Nagpur closing balance — all three must agree.
Practical Example
Consider the State Government of Odisha. At the start of April, the Accountant General of Odisha receives the treasury accounts for March from all district treasuries. Each treasury sends two sets: the 'State section' showing Odisha Government receipts and payments, and the 'Central section' showing Central Government transactions that took place at that treasury (pensions, Central police payments, etc.).
The AG's office then compiles Departmental Classified Abstracts for each major department (Health, Education, PWD, etc.), recording all March transactions by heads of account. For the PWD, the department submits its own compiled abstracts since PWD divisions maintain their own accounts. At month-end, the AG reconciles the closing cash balance in its own ledger against: (a) the aggregate of closing balances reported by all Treasury Officers, and (b) the CAS Nagpur statement for Odisha's account. All three figures must match to close the monthly accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.