Rule 25 — GAR
Original Rule Text
25. Allotment of Code: to each Major Head and range of Code Numbers
A four digit Code has been allotted to the Major Head, the first digit indicating whether the Major Head is a Receipts Head or Revenue Expenditure Head, or Capital Expenditure Head or Loans and Advances. Head or it pertains to Public Account, if the first digit is "0' or "1, the Head of Account will represent Revenue Receipt; 2' or 3' will represent Revenue Expenditure; 4' or 5' Capital Expenditure; 6' or 7' Loans and Advances Head; 4400 for Capital Receipt) and '8' will represent Contingency Fund: and Public Account- (8000 for Contingency Fund).
Adding 2 to the first digit of the Revenue Receipt will give the Code Number allotted to corresponding Revenue Expenditure Head; adding another. 2-the Capital Expenditure Head and another: 2- the Loans and Advances Head of Accounts; e.g-
0401 represents the Receipt Head: for Crop Husbandry
2401 represents the Revenue Expenditure Head for Crop Husbandry
4401 represents the Capital Outlay on Crop Husbandry
6401 represents Loans for Crop Husbandry.
Such a pattern is however, not relevant fort those departments which are not operating Capital/Loan Head of accounts e.g. Department of Supply. In a few cases, however, where receiptexpendituree is not heavy, certain Major Heads have been combined under: and single number, the Major Heads: themselves forming sub-major heads under that number.
The range of code numbers allotted under the scheme of codification is shown below:-
Part I- Consolidated Fund Major Head Code: Nos. Section I Receipt Heads Revenue Account) 0020-1999 Expenditure Heads (Revenue Account) 2011-3999 Section II - Receipt Head (Capital Account) 4000 Expenditure Heads (Capital Account) 4046-5999 Section III Public Debt, Loans & Advances 6001-7999 Part II - Contingency Fund 8000 Part llI - Public Account 8001-8995
What This Means
Rule 25 establishes a four-digit coding system for every Major Head of Account in government finances. The first digit of this code immediately tells you what category the money belongs to: digits 0 or 1 mean it is a Revenue Receipt (money coming into government), digits 2 or 3 mean Revenue Expenditure (day-to-day spending), digits 4 or 5 mean Capital Expenditure (investment in assets), digits 6 or 7 mean Loans and Advances, and digit 8 covers the Contingency Fund and Public Account.
There is an elegant arithmetic logic built into this system. If you take the code for a Revenue Receipt head and add 2 to the first digit, you get the corresponding Revenue Expenditure head. Add another 2 and you get the Capital Expenditure head. Add yet another 2 and you get the Loans and Advances head. For example, code 0401 is receipts for Crop Husbandry, 2401 is revenue spending on Crop Husbandry, 4401 is capital investment in Crop Husbandry, and 6401 is loans for Crop Husbandry. This pattern makes it easy to trace all financial activity related to a single government function across different account types.
The full range of code numbers is divided into three parts: Part I covers the Consolidated Fund (codes 0020 to 7999 across receipts, expenditure, and loans), Part II covers the Contingency Fund (code 8000), and Part III covers the Public Account (codes 8001 to 8995). Departments that do not operate Capital or Loan accounts — such as the Department of Supply — will simply not have codes in those ranges. Where revenue or expenditure of a particular type is not heavy enough to warrant a separate Major Head, two related functions may be combined under a single number.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Every Major Head of Account carries a four-digit code; the first digit identifies the broad category (receipts, revenue expenditure, capital, loans, public account).
- 2First digit 0 or 1 = Revenue Receipt; 2 or 3 = Revenue Expenditure; 4 or 5 = Capital Expenditure; 6 or 7 = Loans and Advances; 8 = Contingency Fund and Public Account.
- 3Adding 2 to the first digit of a Receipt head gives the matching Expenditure head for the same function — a built-in cross-reference mechanism.
- 4Code ranges: Consolidated Fund (0020–7999), Contingency Fund (8000), Public Account (8001–8995).
- 5The pattern of linked codes applies only to departments that operate all four types of accounts; departments operating only revenue accounts use only the 0/1 and 2/3 range.
- 6Where activity under a function is light, two Major Heads may be merged, with the original heads becoming Sub-Major Heads.
Practical Example
A PAO (Pay and Accounts Officer) in the Ministry of Agriculture is verifying a quarterly accounts compilation. She receives a bill coded to head 4401 and needs to confirm it relates to capital investment in Crop Husbandry. She applies Rule 25: the first digit is 4, which falls in the 4–5 range for Capital Expenditure. Subtracting 4 from 4401 and working backwards, she confirms that 0401 is the receipt head and 2401 is the revenue expenditure head for the same function — all correctly linked. Later in the same compilation, a junior accountant presents an entry coded to 3110, claiming it is revenue expenditure. The PAO notes that 3 as a first digit is indeed in the revenue expenditure range (2–3), so the broad category is correct. However, she also checks that the specific code 3110 exists in the current List of Major and Minor Heads before accepting the entry, as the rule requires strict adherence to prescribed classifications.
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.