With the issue of these rules, the provisions of. Accounts Code Vol. 1& Form of. Accounts of the Union and States Basic) Rules are hereby repealed.
# APPENDIX I
- (See Rule3)
Articles of the Constitution and sections of the Union Territories Act, 1963 relevant to the form of Accounts.
(a) In regard to Consolidated Fund, Public Account and: Contingency Fund of India and of the States; andi in regard to Consolidated and Contingency Funds of Union Territory Governments, the relevant articles/Sections are reproduced below:-
Article 266. (1) Subject to the provisions of article 267 and to the provisions of this Chapter (i.e. Chapter Io of Part XII of the Constitution) with respect to the: assignment of the whole or part of the net proceeds of certain taxes and duties to States, all revenues received by the Government of India, all loans raised by that Government by the issue of treasury bills, loans or ways and: means advances and all moneys received by the Government in repayment of loans shall form one consolidated fund to be entitled "the Consolidated Fund of India", and all revenues received by the Government of a State, all loans raised by: that Government by the issue of treasury bills, loans or ways: andi means advances and: all moneys received by that Government in repayment of loans shall form one consolidated fund to be entitled "the Consolidated Fund of the State".
(2) All other public moneys received by or on behalf of the Government of India or the Government of a State shall be credited to the public account of India or the public: account of the State, as the case may be.
(3) No moneys out of the Consolidated Fund of India or the Consolidated Fund of a State shall be appropriated except in accordance with law and: for the purposes and: in the manner provided in this Constitution.
Article 267. (1) "Parliament may by law establish a Contingency Fund in the nature of an imprest to be entitled "the Contingency Fund of India" into which shall be paid from time to time such sums as may be determined by such law, and the said Fund shall be placed at the disposal of the President to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by Parliament by law under: article 115 or article 116.
(2) The Legislature of a State may by law establish a Contingency Fund in the nature of an imprest to be entitled "the Contingency Fund of the State" into which shall be paid from time to time such sums as may be determined by such law, and the said Fund: shall be placed at the disposal of the Governor of the State to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by the Legislature of the State by law under article 205 or article 206'.
What This Means
Rule 75 is the repeal provision of the Government Accounting Rules, 1990. It states that with the issue of GAR 1990, the provisions of the Accounts Code Volume I and the 'Form of Accounts of the Union and States (Basic) Rules' are repealed. This was the formal legislative act that replaced the old accounts framework with the current GAR 1990.
The GAR 1990 was issued under the authority of the President of India in exercise of powers conferred by Article 150 of the Constitution, which empowers the President, on the advice of the CAG, to prescribe the form in which accounts of the Union and States shall be kept. The repeal provision ensures there is no ambiguity about which rules govern — only GAR 1990 applies from the date of its issuance.
Appendix I (which follows Rule 75) reproduces the key constitutional provisions and statutory sections relevant to the form of accounts — specifically Articles 266, 267, 283 of the Constitution, and relevant sections of the Union Territories Act, 1963. These provisions establish the Consolidated Fund, Contingency Fund, and Public Account framework, and the rules for custody and withdrawal of moneys. Appendix I serves as a constitutional reference point for practitioners who need to understand the legal basis of the accounts framework they work within.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
1Rule 75 formally repeals the Accounts Code Volume I and the 'Form of Accounts of the Union and States (Basic) Rules.'
2GAR 1990 is issued under Article 150 of the Constitution (President, on CAG's advice, prescribes form of accounts).
3From the date of issuance of GAR 1990, only GAR applies — the old Accounts Code Vol. I is no longer operative.
4Appendix I (following Rule 75) reproduces Articles 266, 267, 283 and relevant UT Act sections — the constitutional foundations.
5Article 266: Consolidated Fund structure. Article 267: Contingency Fund. Article 283: Custody and withdrawal rules.
6These constitutional provisions underpin all the substantive accounting rules in GAR 1990.
Practical Example
When a new IAS officer joins a district collectorate and is confronted with an accounts question, they may initially look for guidance in old printed manuals or codes — some of which pre-date 1990. If they encounter the 'Accounts Code Volume I,' they must be aware that this code was repealed by Rule 75 of GAR 1990. Any provision in the old Accounts Code that conflicts with GAR 1990 is overridden. The GAR 1990 is the operative law. Similarly, if a court case or audit objection involves an accounts question from before 1990, the old Accounts Code Vol. I would have applied to transactions of that period. But for all current transactions, only GAR 1990 governs. The constitutional provisions in Appendix I (Article 266 on the Consolidated Fund, Article 267 on the Contingency Fund) remind the officer why government money cannot simply be moved or spent without legislative appropriation — the entire GAR framework enforces these constitutional imperatives.
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.
Section 47.(1) "As from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, all revenues received in a Union Territory by the Government of India or the. Administrator of the Union Territory in relation to any: matter with respect to which the Legislative Assembly of the Union Territory has power to make laws, and: all grants made and all loans advanced to the Union Territory from the Consolidated Fund of India and all moneys received by the Union Territory in repayment of loans shall form one Consolidated Fund to be entitled "the Consolidated Fund of the Union Territory".
(2) No moneys out of the Consolidated Fund of a Union Territory shall be appropriated except in accordance with, and for the purposes and in the manner provided in this Act..
Section 48. (I) "There shall be established a Contingency Fond in: the nature of an imprest to be
entitled "the Contingency Fund of the Union Territory" into which shall be paid from and out of the Consolidated Fund of the Union Territory such sums as may, from time to time, be determined by law made by the Legislative. Assembly of the Union Territory; and the said Fund shall be held by the Administrator to enable advances to be made by him out of such Fund.
(2) No advances shall be made out of the Contingency Fund of the Union Territory except for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by the Legislative Assembly of the Union Territory under appropriations made by law'.
(b) In regard to custody etc. of Consolidated Fund, Contingency Fund and: moneys credited to the Public Account the relevant provisions of Articles/Sections are:-
Article 283. (1) "The custody of the Consolidated Fund of India and the Contingency Fund of India, the payment of moneys into: such Funds, the withdrawal of moneys therefrom, the custody of public money other than those credited to such Funds received by or on behalf of the Government of India, their payment into the public account of India and the withdrawal of moneys from such account and: all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by Parliament, and until provision in that behalf is so made, shall be regulated by: rules made: by the President.
(2) The custody of the Consolidated Fund of a State: and: the Contingency Fund of a: Slate, the payment of moneys into: such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of the State, their payment into the public account of the State and: the withdrawal of moneys from such account and: all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by the Legislature of the State, and, until provision in that behalf is so made, shall be regulated by rules made by the Governor of the: State'.
Section 47. (3) The custody of the Consolidated Fund of: a Union Territory, the payment of moneys into such Fund, the withdrawal of moneys therefrom and all other matters connected with or ancillary to: those matters shall be regulated by rules made by the. Administrator with the approval of the President..
Section 48. (3) "The. Administrator may make rules regulating all matters connected with or ancillary to the custody of, the payment of moneys into, and the withdrawal of moneys from, the Contingency Fund of the Union Territory.
regard to Annual Financial Statement the relevant provisions of. Articles/Sections are: :
Article 112. (1) The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that: year, in this Part referred to as: the' "annual financial statement".
(2) The estimates of expenditure embodied in the annual financial statement shall show separately-
(a) the: sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of India; and
(b) the: sums required to meet other expenditure proposed to be made from the Consolidated Fund of India, and shall distinguish expenditure on revenue: account from other expenditure.
(3) The following expenditure shall be expenditure charged on the Consolidated Fund of India:-
(a) the emoluments and allowances of the President: and other expenditure
relating to his office;
(b) the: salaries and allowances of the Chairman and the Deputy Chairman of the Council of States and the: Speaker and: the Deputy Speaker of the House of the People;
(c) debt charges for which the Government of India is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and: the service and redemption of debt;
(d) 0) the salaries, allowances and pensions payable to or in respect of Judges of the Supreme Court;
(i) the pensions payable to or in respect of Judges of the Federal Court;
(ii) the pensions payable to or in respect of Judges of any High Court which exercises jurisdiction in relation to any area included in the territory of India or which at any: time before the commencement of this Constitution exercised jurisdiction in relation to any area included in a Governor's Province of the Dominion of India;
(e) the: salary, allowances and pension payable to or in respect of the Comptroller and. Auditor General of India;
( any sums required to satisfy any: judgement, decree or award of any court or arbitral tribunal;
(g) any: other expenditure declared by this Constitution or by Parliament by law to be: so charged.
Article 202. (1) "The Governor shall in respect of every financial year cause: to be laid before the House or Houses of the Legislature of the State a: statement of the estimated receipts and expenditure of the: State for that year, in this Part referred to as the "annual financial statement, shall show separately:-
(2) The estimates of expenditure embodied in the annual financial statement shall show separately-
(a) the sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of the: State; and
(b) the: sums required to meet other expenditure proposed to be made from the Consolidated Fund of the: State;
and shall distinguish expenditure on revenue: account from other expenditure.
(3) The: following expenditure shall be expenditure charged on the Consolidated Fund of each State-
(a) the emoluments and allowances of the Governor and other expenditure relating to his office;
(b) the salaries and allowances of the Speaker and the Deputy Speaker of the Legislative. Assembly and, in the case of a: State having a Legislative Council, also of the Chairman and the Deputy Chairman of the Legislative Council;
(c) debt charges for which the State is liable including interest, sinking fund charges and redemption charges, and other expenditure relating to the raising of loans and the service and redemption of debt;
(d) expenditure in respect of the: salaries and allowances of Judges of any High Court;
(e) any: sums required to satisfy any judgement, decree or award of any court or arbitral tribunal; (D any other expenditure declared by this Constitution, or by the Legislature of the State by law, to be so charged..
Section 27. (1) "The Administrator of each Union Territory shall in respect of every financial year cause to be laid before the Legislative Assembly of the Union Territory, with the previous approval of the President, a statement of the estimated receipts and expenditure of the Union Territory for that year, in this Part referred to as the "annual financial statement".
(2) The estimates of expenditure embodied in the annual financial statement shall show separately-
(a) the: sums required to meet expenditure described by this Act: as expenditure charged upon: the Consolidated Funds of the Union Territory, and
(b) the: sums required to meet other expenditure proposed to be made from the Consolidated Fund of the Union Territory;
and shall distinguish expenditure on revenue account from other expenditure.
(3) The following expenditure shall be expenditure charged on the Consolidated Fund of each Union Territory:-
(a) the emoluments and allowances of the Administrator: and other expenditure relating to his office as determined by the President by general or special order,
(b) the charges payable in respect of loans advanced to the Union Territory from the Consolidated Fund of India including interest, sinking fund charges and redemption charges, and other expenditure connected therewith:
(c) the salaries and allowances of the: Speaker and the Deputy Speaker of the Legislative. Assembly;
(d) expenditure in respect of the: salaries and allowances of a Judicial Commissioner;
(e) any: sums required to satisfy any judgement, decree or award of any court or arbitral tribunal; ( expenditure incurred by the Administrator in the discharge of his responsibility; (9) any other expenditure declared by the Constitution or by law made by Parliament or by the Legislative Assembly of the Union Territory to be so charged'.
(d) In regard to Appropriation bills the relevant provisions of Articles/Sections are:-
Article 114. (1) 'As: soon as may be after the grants under: article 113 have been made by the House of the People, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of India of all moneys required to meet-
(a) the grants so made by the House of the People; and
(b) the expenditure charged on the Consolidated Fund of India but not exceeding in: any: case the amount: shown in the Statement previously laid before Parliament.
(2) No amendment shall be proposed to any such Bill in either House of Parliament which will have the effect of varying the amount or altering the destination of any: grant so made or varying the amount of any: expenditure charged on the Consolidated Fund of India, and the decision of the person presiding as to: whether : in amendment is inadmissible under this clause shall be final.
(3) Subject to the provisions of articles 115. and 116, no money: shall be withdrawn forn the Consolidated Fund of India except under appropriation made by law passed in accordance with the provisions of this article'.
Article 204. (1) 'As soon as may be after the grants under article 203 have been made by the Assembly, there shall be introduced a Bill to provide for the appropriation out of the Consolidated Fund of the State of all moneys required to meet-
(a) the grants: so made by the Assembly: and
(b) the expenditure charged on the Consolidated Fund of the State but not exceeding in any case the amount shown in the: statement previously laid before the House or Houses.
(2) No amendment shall be proposed to any: such bill in the Houses or either House of the Legislature of the: State which will have: the effect of varying the amount or altering the destination of any grant: so made or of varying the: amount of any expenditure charged on the Consolidated Fund of the State, and the decision of the person presiding as to whether an amendment is inadmissible under this clause shall be final.
(3) Subject to the provisions of articles 205 and. 206, no money shall be withdrawn from the Consolidated Fund of the State except under: appropriation made by law passed in accordance with the provisions of this article'.
Section 29, (1) "As soon as may be after the grants under Section 28 have been made by the Assembly, there shall be introduced a Bill to provide for the approprattion out of the Consolidated Fund of the Union Territory of all moneys required to meet-
(a) the grants: so made by: the Assembly, and
(b) the expenditure charged on the Consolidated Fund of the Union Territory but not exceeding in any case the amount shown in the statement previously laid before the Assembly.
(2) No: amendment shall be proposed to any: such Bill in the Legislative Assembly which will have the effect of varying the amount or altering the destination of any: grant so made or of varying the amount of any expenditure charged on the Consolidated Fund of the Union Territory and the decision of the person presiding as to whether: an amendment is inadmissible under this sub-section shall be final.
(3) Subject to the other provisions of this Act, no money shall be withdrawn from the Consolidated Fund of the Union Territory except under appropriation made by law passed in accordance with the provisions of this section'.
(e) In regard to supplementary, additional or excess grants the relevant provisions of Articles/Sections are:-
Article 115. (1) The President shall-
(a) ff the amount authorised by any law made in accordance with the provisions of article 114 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a needi has arisen during the current financial year: for: supplementary or additional expenditure upon some new service not contemplated in the annual financial statement for that: year, or
(b) ff any money has been spent on any: service during a financial year in excess oft the amount granted fort that: service and for that: year,
cause to be laid before both the Houses of Parliament another statement showing the estimated amount of that expenditure or cause to be presented to the House of the People a demand for such excess, as the case may be.
(2) The provisions of articles 112, 113: and 114 shall have effect in relation to any: such statement and expenditure or demand and also to: any law to be made authorising the appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or the grant in respect of such demand as they have effect in relation to the: annual financial statement and the expenditure mentioned therein or to a demand for a grant and: the law: to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure or grant.
Article 205, (1) The Governor: shall-
(a) ff the: amount authorised by any law made in accordance with the provisions of article 204 to be expended for a particular service for the: current financial year is found to be insufficient for the purposes of that year or when a need: has arisen during the current financial year for supplementary or additional expenditure upon some new service not contemplated in the: annual financial statement for that year, or
(b) f any: money has been spent on any: service during a financial year in excess of the amount granted for that: service and for that year
cause to be laid before the House or the Houses of the Legislature of the State another statement showing the estimated amount of that expenditure or cause to be presented. to the Legislative Assembly of the State a demand for: such excess, as the case may be.
(2) The provisions of articles 202, 203: and: 204 shall have effect in relation to any: such statement and expenditure or demand and also to: any law to be made authorising the appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or the grant in respect of: such demand as they have effect in relation to the annual financial statement and the expenditure mentioned therein or to: a demand for a grant: and: the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of the State to meet such expenditure or grant'.
(a) ifthe amount authorised by: any law made: in accordance with the provisions of section 29 to be expended for a particular service for the current financial year is found to be insufficient for the purposes of that year or when a needi has arisen during the current financial year for supplementary or additional expenditure upon some new: service not contemplated in the annual financial statement for that year, or
(b) ff any money has been spent on any: service during a financial year in excess of the amount granted for that: service and for that year,
cause to be laid before: the Legislative Assembly of the Union Territory, with the previous approval of the President, another statement showing the estimated amount of that expenditure or cause to be presented to the Legislative Assembly of the Union Territory with such previous approval a demand for: such excess, as the case may: be.
(2) The provisions of sections 27, 28: and: 29: shall have effect in relation to any such statement and expenditure or demand and: also to any: law: to be made authorising the appropriation of moneys out of the Consolidated Fund of the Union Territory to meet such expenditure or the grant in respect of: such demand as they have effect in relation to the: annual financial statement and the expenditure mentioned therein or to a demand for a grant and: the law to be made for the authorisation of appropriation of money out of the Consolidated Fund: of the Union Territory to meet: such expenditure or grant.
(0 In regard to votes on: account, votes of credit: and: exceptional grants the relevant provisions of Articles/Sections are:-
Article 116. (1) "Notwihhttanding anything in the foregoing provisions of this Chapter, the House of the People: shall have power-
(a) to make any grant in advance in respect of the estimated expenditure for: a part of any: financial year pending the completion of the procedure prescribed in article 113 for the voting of such grant had: the passing of the law in accordance with the provisions of article 114 in relation to that expenditure;
(b) to make a grant for meeting an unexpected demand upon the resources of India when on account of the magnitude or the indefinite character of the service the demand cannot be stated with the details ordinarily given in an. annual financial statement;
(c) to make an exceptional grant which forms no part of the current: service of any: financial year;
and Parliament shall have power: to authorise by law the: withdrawal of moneys from the Consolidated Fund of India fort the purposes for which the: said grants: are: made.
(2) The provisions of articles 113 and 114 shall have effect in relation to the making of any grant under clause (1): and: to any law to be made under that clause as they have effect in relation to the making grant with regard to any expenditure mentioned in the annual financial statement and the law to be made for the authorisation of appropriation of moneys out of the Consolidated Fund of India to meet such expenditure'.
Article 206. (1) Notwithstanding anything in the foregoing provisions of this Chapter, the Legislative Assembly of a State: shall have power-
(a) to make any grant in advance in respect of the estimated expenditure for a part of any financial year pending the completion of the procedure prescribed in
article 203 fort the voting of such grant and: the passing of the law in according with the provisions of article 204 in relation to that expenditure;
(b) to make a grant for meeting an unexpected demand upon the resources of the State when on account of the magnitude or thei indefinite character of the service the demand cannot be stated with the details ordinariyy given in an annual financial statement;
(c) to make: an exceptional grant which forms no part of the current service of any: financial year;
Legislature of the State shall have power to authorise by law the withdrawal of moneys Consolidated Fund of the: State for: the purposes for which the: said grants are made.
(2) The provisions of articles 203 and: 204 shall have effect in relation to the making of any grant under clause (1): and to any law to be made under that clause as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement and: the law to be made: for the authorisation of: appropriation of moneys out of the Consolidated Fund of the State to meet: such expenditure'.
Section 31. (1) "Nttitthttanding anything in the foregoing provisions of this part, the Legislative Assembly of a Union' Territory shall have power to make any grant in advance in respect of the estimated expenditure for: a part of any: financial year pending the completion of the procedure prescribed in section 28 for the voting of such grant and the passing of the lawi in accordance with the: provisions of section 29 in relation to that expenditure and the Legislative Assembly shall have power to authorise by law the withdrawal of moneys from the Consolidated Fund of the Union Territory fort the purposes for which the said grant is made.
(2) The provisions of sections 28 and: 29 shall have effect in relation to the making of any grant under sub-section (1) or to any law to be made under: that: sub-section as they have effect in relation to the making of a grant with regard to any expenditure mentioned in the annual financial statement and the law to be made: for the authorisation of appropriation of moneys out of the Consolidated Fund of the Union: Territory to meet such expenditure'.
# APPENDIX 2
(See
Note under rule3)
Organisation of the Controller General of Accounts