Rule 4 — GAR
Original Rule Text
# 4. Annual Accounts
Every year, from the accounts compiled by the authorities authorised to maintain the accounts of Central Government, State Governments and Union Territory Governments, accounts showing under the respective heads the annual receipts and disbursements for the purpose of Union of each State and of each Union Territory having a Legislative Assembly (including Appropriation Accounts) are to be prepared and got certified by the Comptroller and Auditor General of India. The reports of the Comptroller: and. Auditor General relating to these accounts: shall be submitted to the President or the Governor of a State or the Administrator of a Union Territory having a Legislative Assembly, as the case may be, who shall cause them to be laid before the Houses of Parliament, Legislatures of the States and of Union Territories respectively.
Subsidiary instructions that would be necessary for carrying into effect the provisions of these rules, and in particular, instructions for opening new heads of: accounts or modification of the existing ones or instructions relating to the content: and manner of maintenance of accounts, -will bei issued by the Central Government in the Ministry of Finance on the advice of the Comptroller and Auditor General of India, in the form of executive orders, indicating wherever necessary, the types of cases in which the advice of the Comptrolier and. Auditor General could be: assumed to have been obtained.
4. Some illustratoons of the manner in which budget head/account head should be devised in books of the recipient Government with reference to budget'account head in the central books and mentioned in the sanction etc. releasing the grantloan by the Central Government Ministries/Departments, are given in: the Annexure fort facility of understanding the modus operandi of the above procedure.
4. Indian commissioned officers of the Armed Forces in civil employment count their service as qualifying for the outfit: allowances under item
(d) of:
_A.(())_
_A.FI11)_
_RIN (1)_
provided that:
(a): their pay and: allowances are governed by the new pay: code and
(b): they are required to wear uniform while in civil employ.
The entire cost of the outfit allowance is debitable to the estimates of the Ministry (Central/Civil) /State Government under: whom the officer is employed at: the time the allowance becomes due: for payment.
What This Means
Rule 4 deals with the preparation and certification of Annual Accounts of government. Every year, the government must prepare accounts showing all annual receipts and disbursements under prescribed heads, and these must be certified by the CAG. This is the formal accountability mechanism through which Parliament and State Legislatures scrutinize how public money was actually spent versus what was appropriated.
The Annual Accounts — which include the Appropriation Accounts — are submitted to the President (for Union), Governor (for States), or Administrator (for Union Territories with legislatures), who then cause them to be laid before the respective legislatures. This constitutional requirement under Article 151 ensures public accountability and provides the basis for parliamentary financial control.
The rule also confirms that subsidiary instructions for implementing GAR provisions — such as opening new account heads or modifying existing ones — are issued by the Central Government through the Ministry of Finance, on the advice of the CAG. This prevents ad hoc account modifications and maintains the integrity of the classification system.
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 every year from accounts compiled by authorized authorities.
- 2The CAG must certify these annual accounts before they are submitted to Parliament or State/UT Legislatures.
- 3Accounts are submitted to the President (Union), Governor (State), or Administrator (UT with legislature), who cause them to be laid before the respective legislature.
- 4CAG's reports relating to these accounts are also submitted along with the accounts to the legislature.
- 5Subsidiary instructions for opening new heads of accounts or modifying existing ones are issued by the Ministry of Finance on CAG's advice.
- 6For grants/loans from Central Government to States, the recipient State's books must record these under the corresponding account head in State accounts.
Practical Example
At the end of financial year 2024-25, the CGA's office compiles the Appropriation Accounts for all civil ministries. For the Ministry of Education, the Appropriation Account shows that Parliament had approved Rs. 1,20,000 crore under 'Major Head 2202 - General Education', but the actual expenditure was Rs. 1,17,500 crore. This difference of Rs. 2,500 crore (savings) is prominently reported, and the CAG certifies this account. The certified account is submitted to the President, who causes it to be laid before both Houses of Parliament.
When the Ministry of Finance decides that a new sub-head is needed for 'Digital Infrastructure in Schools', this cannot be done informally. The ministry must approach the CGA through the established procedure, and the CGA issues a formal instruction creating the new head. This instruction is issued on the advice of the CAG, ensuring the new head fits within the constitutional accounting framework.
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.