Rule 63 — GAR
Original Rule Text
63. The: incidence of pay, leave salaries, pension etc. charges of Government servants as well as of certain other charges and receipts between different Governmetss are: normally governed by: arrangements made: by mutual agreements between different Governmenss and they shall form the basis of accounting of the relevant transactions. Since any modifications in such agreements could involve consequential changes in the accounting arrangements, no agreements, between two Govemnents governing incidence of charges and receipts shall be executed or modified without the concurrence of the Central Government. Detailed instructions for: the allocation and accountal of such transactions shall be issued by the Central Government from time to time.
- Treasury Accounts
What This Means
Rule 63 deals with how the financial incidence of government servants' pay, leave salaries, pension, and other charges is allocated between different governments (Central, State, and Union Territory governments) when a government servant serves under more than one government or is transferred between governments. The general principle is that these allocations are governed by mutual agreements between the governments concerned, and those agreements form the basis for accounting the relevant transactions.
The rule contains a critically important safeguard: no agreement between two governments that governs the incidence of charges and receipts can be executed or modified without the concurrence of the Central Government. This prevents bilateral state-to-state agreements from creating accounting complications that the Centre is unaware of and which could affect the overall financial system.
Detailed instructions for how such transactions are allocated and accounted for are issued by the Central Government from time to time. This gives flexibility for the system to evolve, but ensures centralised control over the underlying principles. For DDOs and Accounts Officers handling inter-governmental transfers, pay during deputation, and leave salary allocations, these instructions are the practical reference for day-to-day accounting.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Incidence of pay, leave salaries, pensions, and related charges between different governments is governed by mutual agreements.
- 2Those agreements are the basis for accounting the transactions — the agreed allocation determines which government bears the cost.
- 3No inter-governmental agreement on incidence of charges can be executed or modified without the concurrence of the Central Government.
- 4This centrally controlled approval prevents bilateral changes that could disrupt the accounting system.
- 5Detailed accounting instructions for such transactions are issued by the Central Government periodically.
- 6Applies to Central-State, Central-UT, and State-State transfers and deputation arrangements.
Practical Example
A Deputy Secretary from a State Government is deputed to the Central Government's Ministry of Finance for two years. During the deputation, his salary of Rs. 1.1 lakhs per month is paid by the Central Government. The allocation agreement — approved under Rule 63 with Central Government concurrence — specifies that the first year's pay is borne by the Central Government and the State Government reimburses the second year's pay. The accounting in the Central Government's books follows this agreement exactly: the first year is debited to the Central Government's establishment head under Finance Ministry, and the second year is first debited similarly but then recovered from the State Government and accounted for as an abatement of charges. If the State Government later proposes to modify the agreement to extend full central bearing for both years, this modification requires Central Government concurrence before it can be implemented or reflected in accounts.
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.