Rule 108 — GFR

Rule 108 Adjustments with State Governments. Subject to the relevant provision of the Constitution or of law made by Parliament or any orders issued thereunder, adjustments in respect of financial transactions with State Governments shall, unless otherwise provided for, be made in such manner, and to such extent as may be mutually agreed upon between the Central Government and the State Government concerned. However, adjustments with State Government in respect of the matters mentioned below shall be regulated by the rules contained in Appendix-5 to the Government Accounting Rules, 1990. The rules are based on reciprocal arrangements made with the State Governments and are, therefore, binding on all of them: -

(i) Pay and Allowances, other than Leave Salaries.

(ii) Leave Salaries.

(iii) Pensions.

(iv) Expenditure involved in Audit and keeping Accounts.

(v) Cost of Police functions on Railways including the cost of protecting Railway Bridges.

(vi) Cost of Forest Surveys carried out by the Survey of India, and Forest maps prepared by that Department.

(vii) Leave Salary and Pension Contributions recovered in respect of Government servants lent on Foreign Service