Rule 24 — GAR
Original Rule Text
# 24. Sectors and Sub-sectors of Accounts
(a) Within each of the Divisions and sections of the Consolidated Fund referred to in rule 23, the transactions shall be grouped into Sectors such as, "General Services", "Social Services", "cconomic Services", under which specific functions or services shall be grouped. The Sectors shall be sub-divided into Major Heads of Account, in some cases the Sectors are, in addition, sub-divided into sub-sectors before their division into Major Heads of. Account. Each Sector in a section shall be distinguished by a letter of the Alphabet.
(b In Parti IH Contingency Fund, there shall be a single Major Head and all the transactions met out of the Contingency Fund shall be recorded under it.
(c) In the case of Part III- Public Account, the transactions shall be grouped into sectors and sub-sectors, which shall be further sub-divided into Major Heads of. Account. The Sectors/Sub-Sectors shall be distinguished by letters of the alphabet.
What This Means
Rule 24 describes how the broad parts and sections established in Rule 23 are further sub-divided into Sectors, Sub-sectors, and ultimately Major Heads of Account. This hierarchical classification system is how every government transaction is given a specific address in the accounts — from the broad sector (General Services, Social Services, Economic Services) down to the specific head identifying the precise nature of the transaction.
Within the Consolidated Fund, transactions are grouped into Sectors such as 'General Services' (law and order, defence, general administration), 'Social Services' (education, health, water supply), and 'Economic Services' (agriculture, industry, transport). Each Sector is identified by an alphabet letter. Within each Sector, there may be further Sub-sectors before the transactions are divided into specific Major Heads of Account (four-digit numbers).
The Contingency Fund has a single Major Head — all Contingency Fund transactions are recorded there. In the Public Account (Part III), transactions are similarly grouped into Sectors and Sub-sectors which are then sub-divided into Major Heads. This three-level hierarchy (Part → Division/Sector → Major Head) is the foundation of the Indian Government Accounting Classification, and everything from budget estimates to appropriation accounts follows this structure.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Within Consolidated Fund sections, transactions are grouped into Sectors such as General Services, Social Services, and Economic Services.
- 2Each Sector is identified by a letter of the alphabet.
- 3Some Sectors are further sub-divided into Sub-sectors before reaching Major Heads of Account.
- 4Major Heads of Account are the fundamental unit of classification — they are four-digit numbers.
- 5The Contingency Fund has only one Major Head; all Contingency Fund transactions are under it.
- 6Public Account transactions are also grouped into Sectors and Sub-sectors, then Major Heads.
- 7This hierarchical classification — Part, Division, Sector, Sub-sector, Major Head — forms the backbone of the Indian Government Accounts classification system.
Practical Example
Consider a salary payment to a government teacher in a Central University. This would be classified as: Part I (Consolidated Fund) → Division I (Revenue) → Section: Expenditure heads (Revenue Account) → Sector B: Social Services → Sub-sector: (b) Education → Major Head 2202 (General Education) → Minor Head → Sub-head → Detailed Head (Salaries). Each level of the classification hierarchy narrows down the precise nature of the expenditure.
For the Contingency Fund, if the President advances money to meet urgent flood relief expenditure when Parliament is not in session, this is classified under the single Major Head for Contingency Fund transactions. There is no need to sub-categorize it by service or type of expenditure for the Contingency Fund itself — the detailed classification happens when the supplementary demand is later voted by Parliament and the advance is recouped.
For a government employee's court-ordered attachment deposit in the Public Account (Part III), this falls under Part III → Sector: Small Savings, PF etc. → appropriate Major Head for Deposits.
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.