Rule 27 — GAR
Original Rule Text
27. Classification of expenditure as "Charged" or as "Voted"
Expenditure which under: the provisions of the Constitution is subject to the vote of the Legislature shall be shown in the accounts separately from expenditure which i "Charged" (on the Consolidated Fund of India or of a State or Union Territory Government. The expression "Charged" or "Voted" shall be appended to the heads concerned to distinguish the two categories of expenditure.
What This Means
Rule 27 deals with a constitutionally required distinction in government accounts: the difference between 'Charged' expenditure and 'Voted' expenditure. Every sum of money that the government spends must be shown under one of these two labels in the accounts.
'Voted' expenditure is money that Parliament (or a State Legislature) must approve through the annual vote on Demands for Grants. The legislature debates and votes on these amounts. 'Charged' expenditure, on the other hand, is constitutionally mandated spending that does not require a parliamentary vote — it is paid out of the Consolidated Fund as a matter of right. Examples of charged expenditure include the salary of the President, the salaries of judges of the Supreme Court and High Courts, debt servicing (interest and repayment of loans), and the salary of the Comptroller and Auditor General. These amounts cannot be reduced or refused by Parliament though they can be discussed.
The practical requirement of this rule is simple but mandatory: wherever expenditure is charged rather than voted, the words 'Charged' or 'Voted' must be appended to the relevant head of account in every account record, every budget document, and every appropriation. This labelling makes it immediately clear which amounts are within Parliament's direct control and which are constitutional obligations that must be met regardless of the vote.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1'Charged' expenditure is constitutionally mandated and does not require a legislative vote; 'Voted' expenditure must be approved through Parliament's annual vote on Demands for Grants.
- 2The Constitution requires these two categories to be shown separately in all accounts.
- 3Examples of charged expenditure: President's salary, judges' salaries, debt servicing charges, CAG's salary.
- 4The words 'Charged' or 'Voted' must be appended to the head of account to distinguish the two categories in all records.
- 5Charged expenditure can be discussed but not voted down by Parliament; it is met automatically from the Consolidated Fund.
- 6This distinction applies to both the Consolidated Fund of India and of each State/Union Territory.
Practical Example
The Accountant General's office is compiling the annual accounts for a State. While reviewing expenditure under the head for Administration of Justice (covering the High Court), the accounts compiler notes two types of entries: salaries of High Court judges (which are charged to the Consolidated Fund under Article 112/202 of the Constitution) and salaries of subordinate court staff (which are voted). The compiler correctly marks the judges' salary entries with the label 'Charged' and the subordinate staff entries with the label 'Voted'. When the State's Finance Accounts are submitted to the legislature, this distinction is preserved. During budget discussions, MLAs can debate the subordinate staff salaries but cannot propose cuts to the judges' salaries — those are constitutionally protected charged expenditures.
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.