Rule 68 — GAR

68.(1) Contributions made by the Central or the State Government to district boards, Municipalities, etc. or vice versa should be debited as expenditure or shown as receipts (as the case may be) under the head of account most closely connected with the object for which the contributions are made. Thus, a grant for the construction of a school should be debited to "2202—General Education", grant for construction of a drainage system to "2205—Water Supply and Sanitation" and a grant for the construction of a road to "3054—Roads and Bridges" and grant given for general purposes, such as grant to make good a deficit or a compensation for revenue resumed, shall be classified under "3604—Compensation and Assignments to Local Bodies and Panchayati Raj Institutions". NOTE 1 :—If the financial assistance given by the Central or State Government to a local body does not take the

form of a grant of cash, but of expenditure in the Public Works Department equivalent to the whole or part of the cost of a work constructed by that department on behalf of the local body concerned, the contribution thus made should be debited as expenditure under the detailed head 'Contributions' below the relevant minor/major head corresponding to the programme/function closely connected with the object of the assistance. NOTE 2 :—Contribution paid by a local body or private party with the express object of meeting the whole or a part of the cost of construction by the Public Works Department of a specific work which is eventually to be the property of Government should be credited as revenue receipt of the Government relevant to the function/Programme closely connected with the object for which the contribution is made. (2) Article 282 of the Constitution provides that the Union or a State may make any grants for any public purpose, not withstanding that the purpose is not one with respect to which Parliament or the Legislature of the State, as the case may be, may make laws. The word 'Grant' used here should be taken to mean not merely 'Grant-in-aid' but also other direct expenditure. Classification of transactions under "Civil Advances"