Rule 57 — GAR
Original Rule Text
57. The rules in this chapter shall regulate the manner of classification and adjustment of losses in Government accounts.
Classification of loss etc. of receipts
58.(1) Ifa claim be relinquished, the value of the claim shall not be recorded on the expenditure side of accounts as a: specific loss.
(2) If money due to Government has: actually reached a Government servant and is then embezzled, stolen or lost, even though it may not have reached a treasury or bank and entered into the Consolidated Fund or the Public. Account, it: should be entered in the: accounts as a receipt into the Consolidated Fund or the Public Account, as the case may be, and then shown on the expenditure side by: record under a separate appropriate head of account as a loss.
NOTE 1:- -The term "overmment Servant" used in: sub-rule (2) of this rulei includes persons, who, though not technically borne on: a regular Government establihhment, are duly authorised to receive money on behalf of Government.
NOTE 2:-Where losses of Public money are wholly or partially met by: non-payment of: salary or pension and the Accounts Department authorisedly applies the: unpaid amount to meet public claim, the resultant balance of the clamm alone shall be treated as a loss, the amount due being debited to the relevant head of account as if it had been drawn and used by: the: Government: servant concerned in paying the Public daim.
Buildings, lands, stores and equipment
What This Means
Rules 57 and 58 open Chapter 6, which governs the classification and adjustment of losses in government accounts. Rule 57 is the introductory rule, stating that the rules in this chapter regulate the manner of classifying and adjusting losses. Rule 58 then deals with the specific question of how losses of receipts (as opposed to losses of expenditure or assets) should be treated.
Rule 58(1) establishes that if a government claim is simply relinquished — given up, written off, or foregone — the value of that claim is NOT recorded on the expenditure side of accounts as a specific loss. The government simply stops pursuing the claim; no debit is raised in the accounts for the value foregone. This prevents the accounts from being cluttered with notional debits for amounts that were never actually received.
Rule 58(2) deals with a more serious situation: money that actually reached a government servant — was in the physical custody of an authorised government official — but was then embezzled, stolen, or lost before reaching the treasury or bank. In this case, the rule requires that the amount be shown BOTH as a receipt into the Consolidated Fund or Public Account (as though it had been properly deposited) AND as a loss on the expenditure side under a separate appropriate head of account. This 'grossing up' treatment ensures the full trail of the transaction is visible in government accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Rule 57 is the introductory rule for Chapter 6 (classification of losses in government accounts).
- 2Rule 58(1): Relinquishment of a government claim is not recorded as a specific loss in accounts — the claim is simply abandoned without an accounting debit.
- 3Rule 58(2): Money that reached a government servant but was then embezzled/stolen/lost must be shown BOTH as a receipt AND as a loss on the expenditure side.
- 4The 'government servant' includes any person duly authorised to receive money on behalf of Government, even if not on the regular establishment.
- 5Where losses are partially offset by non-payment of salary/pension, only the net balance is treated as a loss (per Note 2).
- 6The 'grossing up' requirement in Rule 58(2) ensures full transparency about embezzlement and loss even before money reaches the treasury.
Practical Example
A Tahsildar in a district collectorate collected Rs. 4.5 lakhs in land revenue over two days. Before he could deposit the money at the district treasury, it was stolen from his office. The police registered a case. Under Rule 58(2), the accounts department must now make two entries: first, a receipt entry crediting Rs. 4.5 lakhs to the Consolidated Fund as though the land revenue had been properly deposited; second, an expenditure entry debiting Rs. 4.5 lakhs to a separate head for 'Loss by Theft — Land Revenue Department.' This ensures that both the revenue collected and the loss incurred are fully reflected in government accounts, and the loss is not simply hidden by netting out the receipt. A separate Note 1 reminds us that the Tahsildar — though a duly authorised collector — is a 'government servant' for this purpose even if not on the regular IAS or revenue service establishment.
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.