Rule 17 — GAR
Original Rule Text
17. Authorities responsible for: the preparation of Annual Accounts of the Central Government, State and Union Territories Governments.
(1) The annual accounts (including Appropriation. Accounts) of the Central Government and of each State, Union Territory Government shall bej prepared in the form prescribed by the President on the advice of the Comptroller and. Auditor General of India under. Article 150 of the Constitution of India. These Accounts shall be submitted to the respective State/Union Territory Legislature, and to Parliament on or before such dates as may be determined with the concurrence of the Government concerned.
(2) Annual Accounts (including Appropriation Accounts) in respect of State Governments, and Union Territory Governments with Legislature are prepared by the concerned. Accountant General and: submitted to the Comptroller and Auditor General of India for approval and transmission to the Governor of the State, Administrator of the Union Territory Government concerned, along with his report thereon in terms of Article 151 (2) of the Constitution/Section 49 of Union Territories Act, 1963 and Section 11 of the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 for being laid before the Legislature.
(3) Appropriation Accounts of Central Ministries (other than Ministry of Railways) and of Central Civil Departments shall be prepared by the respective Ministries and Departments under the guidance and supervision of the Controller General of Accounts, and signed by their Chief Accounting Authority, Union Government Appropriation Accounts (Civil) required to be submitted to Parliament, shall be prepared by the Controller General of Accounts by condensing and consolidating the: aforesaid Appropriation Accounts. Appropriation Accounts pertaining to Departments of Posts, Telecommunications, Railways and Defence shall be prepared and: signed by the Secretaries to the Department of Posts, Department of Telecommunications, Financial Commissioner, Railway Board and Secretary (Defence Finance) respectively.
(4) Annual accounts of the Government of India as a whole (including transactions of Departments of Posts, Telecommunications, Defence, Railways. Union Territory Administration and transactions under Public Account of India, Accounts of Union Territory Governments with Legislatures showing under the respective heads the annual receipts and disbursement for the purpose of the Union, shall be prepared by the Controller General of Accounts.
(5) The. Accounts mentioned in Sub-rules (3) and (4) above, shall be prepared by the respective authorities on dates mutually agreed upon with the Comptroller and Auditor General of India in the form prescribed by the President on the advice of the Comptroller and. Auditor General and sent to the latter for recording his certificate. The certified annual accounts and the Reports relating to the accounts shall be submitted by the Comptroller and Auditor General to the President in accordance with the provisions of Section 11 of the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 and clause (1) of Article 151 of the Constitution of India.
What This Means
Rule 17 assigns formal responsibility for preparing Annual Accounts to specific authorities at the Central, State, and Union Territory level. This is the rule that creates clear institutional accountability for the annual financial statements that go to Parliament and State Legislatures. Importantly, annual accounts are not just a narrative report — they are formal documents prepared in prescribed forms, certified by the CAG, and constitutionally required to be laid before the legislature.
For State Governments and UT Governments with Legislatures, the Accountant General prepares the accounts and submits them to the CAG, who approves and forwards them to the Governor/Administrator along with his report. For Central Government civil ministries, Appropriation Accounts are prepared by the respective ministries under the CGA's guidance, signed by the Chief Accounting Authority (the Secretary), and consolidated by the CGA. For Railway, Posts, Telecom, and Defence, their respective financial heads sign the appropriation accounts.
The overarching Annual Accounts of the Government of India as a whole — incorporating all departments, all funds, and all UT transactions — are prepared by the CGA and certified by the CAG before submission to the President under Section 11 of the CAG (DPC) Act 1971.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Annual Accounts including Appropriation Accounts must be prepared in forms prescribed by the President on CAG's advice under Article 150.
- 2For States and UTs with Legislatures: the Accountant General prepares and submits to CAG, who certifies and transmits to Governor/Administrator with his report.
- 3For Central civil ministries: ministries prepare their Appropriation Accounts under CGA's guidance; the ministry Secretary (Chief Accounting Authority) signs them.
- 4The CGA consolidates all Central Civil Appropriation Accounts and prepares the Union Government Appropriation Accounts (Civil) for Parliament.
- 5Posts, Telecom, Railways, and Defence prepare and sign their own appropriation accounts through their respective Secretaries/Financial Commissioners.
- 6The CGA prepares the Annual Accounts of the Government of India as a whole, which includes all departments and all UT transactions.
- 7Certified accounts and CAG's reports are submitted to the President under Section 11 of CAG (DPC) Act 1971 and Article 151.
Practical Example
At the end of the financial year 2024-25, the Ministry of Health and Family Welfare must prepare its Appropriation Account showing how it used the Rs. 89,000 crore appropriated by Parliament. The Joint Secretary (Finance) in the ministry, working under the CGA's guidelines, compiles the account from PAO data. The Secretary, Ministry of Health (as Chief Accounting Authority), signs the document. This ministry-level Appropriation Account is sent to the CGA, who condenses and consolidates it with accounts from all other civil ministries to produce the Union Government Appropriation Accounts (Civil).
For the Railways, the Financial Commissioner, Railway Board signs the Railway Appropriation Account. For Defence, the Secretary (Defence Finance) signs. These are not consolidated into the Civil Appropriation Accounts — they are separate documents. All certified accounts and the CAG's Reports are ultimately submitted to the President, who causes them to be laid before Parliament, completing the constitutional accountability cycle.
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.