Rule 52 — GAR
Original Rule Text
52. The rules contained in this Chapter indicate the manner of classification of recoveries' of expenditure in Government accounts.
The term 'recovery' is used in this chapter in a limited sense to denote repayment of or payment by another department of the same Government or by: another Government or by: a non-Government party (including public sector undertakings, autonomous bodies and private persons and bodies to a Government Department) which initially incurred the charge and classified iti in the: accounts as final expenditure by debit to revenue or capital heads of accounts. Recoveries towards establishment charges, tools and plants, fees for procurement or inspection of stores, or both etc. effected at: percentage rates or otherwise, are some examples.
Classification of Recoveries made from non-Goverrneent parties and other Governments including Government outside India
What This Means
Rule 52 opens Chapter 5 of GAR 1990, which deals with how recoveries of expenditure are classified in government accounts. This rule defines what the word 'recovery' means in this specific context, and this definition is narrower and more precise than its everyday usage.
In the context of Chapter 5, a 'recovery' means a repayment — or a payment made by another party — of an amount that was first recorded as final expenditure (as a debit to a revenue or capital head) by the department that originally incurred the cost. Examples include recovery of establishment charges (office expenses, salaries of staff deployed on a work), recovery of tool and plant charges, and recovery of fees for procurement or inspection of stores.
The parties making the recovery can be another department of the same Government, another Government, or a non-government party (including public sector undertakings, autonomous bodies, and private persons). What is essential is that the original expenditure was classified as final expenditure — not held under a suspense or advance head. Chapter 5 then goes on to specify (in Rules 53–56) how these recoveries should be classified depending on who makes the payment and what the original expenditure was.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Rule 52 defines 'recovery' for the purposes of Chapter 5: it is a repayment of amounts originally debited as final expenditure to revenue or capital heads.
- 2Recovery can come from: another department of the same Government, another Government, or a non-government party.
- 3Examples of recoveries: establishment charges, tools and plant charges, procurement/inspection fees recovered at percentage rates.
- 4Only amounts originally classified as 'final expenditure' qualify. Amounts held under suspense or advance heads are not covered by this chapter.
- 5Chapter 5 (Rules 52–56) governs only this specific type of recovery. Other types of receipts are governed by other rules.
- 6The chapter heading also indicates that Rules 53 and 54 distinguish between recoveries from non-government parties and recoveries between departments of the same Government.
Practical Example
The Roads Division of the Public Works Department constructs a road connecting a private industrial estate to the state highway. The total expenditure — Rs. 85 lakhs — is debited under '5054-Capital Outlay on Roads and Bridges.' The industrial estate company had agreed to pay 40% of the construction cost. When the company later pays Rs. 34 lakhs to the government, this is a 'recovery' within the meaning of Rule 52: it is a repayment by a non-government party of expenditure that was originally classified as final expenditure under a capital head. Chapter 5 (specifically Rule 53) determines how this Rs. 34 lakh recovery must be classified — whether it goes to a receipt head or reduces the capital expenditure.
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.