Rule 38 — GAR
Original Rule Text
38. Criteria for writes-off of balances from Debt. Deposit, Suspense and Remittances Heads closed to balance and classification thereof in accounts
Ordinarily, all amounts due to Government which are found to bei irrecoverable shall be written-off from the Debt head of account concerned to an expenditure head as a loss to Government. Similarly, any balance due by Government remaining unclaimed for such time as may be prescribed by Government shall be credited as revenue of the Government concerned by debit to the Debt or Deposit head concerned.. Amounts outstanding due to book-keeping errors under heads which close to balance shall be written-off to "8680-Miscellaneous Government Account-Write off from heads of account closing to balance". With the specific approval of the Comptroller and Auditor General in all cases where the compilation of account is his responsibility and in cases where the: accounts have been departmentalised or separated from Audit, with the specific approval of the Controller General of Accounts; provided that the Comptroller and. Auditor General and: the Controller General of Accounts may delegate the power to appropriate Accounts authorities to such extent and subject to such conditions as may be decided by: them.
Where iti is not possible to establish that unreconciled balances/diffesdiffferences under heads of account which close to balance are either due to book-keeping errors or involve loss/ receipts, the balances/differences may be written-off to "8680 Miscellaneous Government Account - Writes-off from heads of account closing to balance", with the: approval of the Comptroller: and Auditor General of India after obtaining concurrence of the Governmett concerned in all cases where the compilation of account is his responsibility and in cases, where the accounts have been departmentalised or separated from. Audit, of the Controller General of Accounts after concurrence of the Chief. Accounting Authority concerned is obtained.
Such unreconciled balances or differences between the ledger balances and those of as per: the relevant subsidiary registers or Broad-sheets, under any detailed/sub--etailed heads of account relating to any Debt, Deposit, Suspense and Remittance heads in the State Accounts, as per the list of Major & Minor Heads of Account, not exceeding Rs. 1000-- in each case in any financial year, may be written-off by an. Accountant General to the head "8680 Miscellaneous Government. Account - Write-off from heads of account closing to balance" subject to the following conditions:-
( The: amounts of unreconciled balances or differences are continuing for a period of over five: years, in the year in which iti is proposed to be written-off.
(i) The Accountant General has satisfied himself that a dead end has been reached in resolving the differences and
What This Means
Rule 38 establishes a comprehensive framework for writing off balances from Debt, Deposit, Suspense, and Remittance heads — these are the 'balance-carrying' heads in government accounts (sometimes called 'heads closing to balance') that are meant to cancel out over time, as opposed to receipt and expenditure heads that are cleared each year. When amounts remain outstanding under these heads for long periods and cannot be recovered, accounted for, or explained, they must be formally written off rather than accumulating indefinitely.
The rule covers three distinct situations. First, when amounts due to Government (under a Debt head) are found to be genuinely irrecoverable — such as a loan that will never be repaid — they must be written off to an expenditure head as a loss to Government. Second, when the Government owes money to someone (a Deposit liability) but the claim remains unclaimed for a prescribed period, that amount is credited to Government revenue, treating the unclaimed deposit as forfeit. Third, when balances exist under heads that should close to nil but do not — due to book-keeping errors, unreconciled differences, or unexplained variances — they are written off to a clearing head called '8680 — Miscellaneous Government Account — Write-off from heads of account closing to balance'.
All write-offs require specific approval — either from the CAG (where compilation of accounts is his responsibility) or from the Controller General of Accounts (where accounts are departmentalised). This authority can be delegated to appropriate accounts officers, subject to conditions. There are also small-amount provisions: for unreconciled balances/differences not exceeding Rs. 1,000 in each case (under any Debt, Deposit, Suspense, or Remittance detailed head in State Accounts) that have persisted for over five years, the Accountant General may write them off to head 8680, subject to three conditions: the AG is satisfied that resolution has hit a dead end, the balance has been outstanding over five years, and the State Government has concurred.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Irrecoverable amounts due to Government under Debt heads must be written off to an expenditure head as a government loss.
- 2Unclaimed balances due by Government (Deposit liabilities) that remain outstanding beyond the prescribed period are credited to Government revenue.
- 3Book-keeping errors and unreconciled balances under heads closing to balance are written off to '8680 — Miscellaneous Government Account — Write-off from heads closing to balance'.
- 4All write-offs require specific approval from the CAG (where accounts are under his compilation) or the CGA (where accounts are departmentalised) — this authority can be delegated.
- 5For unresolved balances/differences up to Rs. 1,000 per case outstanding for over 5 years in State Accounts, the Accountant General may write off to head 8680, subject to State Government concurrence and AG's satisfaction.
- 6Write-offs to head 8680 apply where it is not possible to establish whether the balance is a book-keeping error or a genuine loss/receipt.
Practical Example
The Office of the Accountant General (A&E), Rajasthan, during its annual accounts review, identifies three types of outstanding balances requiring write-off action.
First, under a Debt head, there is a Rs. 18 lakh loan advanced to a defunct cooperative society in 1998 that has been declared irrecoverable by a competent court. Under Rule 38, this is written off to an expenditure head ('8680' is not used here; it goes to a revenue expenditure head as a loss to Government) after obtaining specific approval from the CAG, since these accounts are under his compilation.
Second, in a Deposits head, several security deposits totalling Rs. 3.2 lakh have remained unclaimed for 25 years (well beyond the prescribed period). These are treated as Government revenue and credited to the relevant receipt head, clearing the Deposit head.
Third, the Suspense head '8658 — Suspense Accounts' has 47 line items, each under Rs. 1,000 (totalling Rs. 22,000) that have remained unreconciled for over 7 years. The AG is satisfied that further reconciliation is futile. With the State Government's concurrence, the AG writes off all 47 items to head '8680 — Miscellaneous Government Account — Write-off from heads closing to balance', clearing the long-pending suspense balances.
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.