Rule 45 — GFR 2017
Original Rule Text
Rule 45
Receipt
Estimates.
The
detailed
estimates of receipts shall be prepared by
the estimating authorities separately for
each Major Head of Account in the
prescribed form. For each Major Head,
the estimating authority shall give the
break-up of the Minor/Subhead/ Detailed
wise estimate along with actuals of the
past three years. While doing the head
wise classification, it may be ensured that
item wise break-up of all major items of
tax and non-tax revenues are clearly
identified and depicted in the receipt
estimates. This is required to highlight all
individual items of significance. Any
major
variation
in
estimates
with
reference to past actuals or/and Budget
Estimates shall be supported by cogent
reasons. The accounting heads under
which major tax and non-tax revenues
are collected shall be prescribed by the
administrative Ministry in consultation
with the Budget Division in the Finance
Ministry.
Rule46
Non-Tax Revenues. While the tax
revenues, non- debt capital receipts
including disinvestments and borrowings
are managed by the various Departments
of the Ministry of Finance, the non-tax
revenues are collected through all
Ministries/Departments
and
What This Means
This rule explains how government departments should plan and estimate the money they expect to receive. Essentially, every department that collects revenue, whether it's from taxes, fees, or other sources, must create a detailed forecast of these earnings. This forecast isn't just a single number; it needs to be broken down into very specific categories, much like how a household budget details income from salary, rent, or investments.
To make these estimates accurate and transparent, departments must also show how much revenue they actually collected in the past three years for comparison. If their current estimate is significantly different from what they collected previously or what they originally budgeted, they must provide clear and strong reasons for these variations. This ensures accountability and helps the government understand the financial outlook better. The rule also clarifies that while the Ministry of Finance handles major tax revenues, all other government ministries and departments are responsible for collecting various non-tax revenues, which are a crucial part of the government's overall income.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Government departments must prepare detailed estimates of all expected revenue.
- 2These estimates need to be categorized meticulously under specific accounting heads.
- 3Departments must include actual revenue figures from the past three years for comparison.
- 4Significant differences between current estimates and past actuals or budget estimates require clear justifications.
- 5All major items of tax and non-tax revenues must be clearly identified in the estimates.
- 6While the Ministry of Finance manages tax revenues, all ministries and departments are responsible for collecting non-tax revenues.
Practical Example
Imagine the Ministry of Health and Family Welfare is preparing its annual receipt estimates. Under the "Major Head 0210 - Medical and Public Health," they need to estimate revenue from various sources. For instance, they might have a "Minor Head 001 - Fees and Fines" which includes revenue from hospital user charges, diagnostic fees, and penalties for health regulation violations.
Following Rule 45, the Ministry's finance division, led by an Assistant Financial Advisor, Ms. Priya Sharma, would prepare a detailed breakdown. For "Diagnostic Fees," they would estimate Rs. 50 crores for the upcoming year. They would also show the actual collections for the past three years: Rs. 40 crores (Year 1), Rs. 42 crores (Year 2), and Rs. 45 crores (Year 3). Since their estimate of Rs. 50 crores shows a significant increase from previous years, Ms. Sharma must provide a cogent reason, such as "Anticipated increase due to the opening of two new super-specialty wings in government hospitals and a revised fee structure implemented from October of the current year." This detailed approach ensures transparency and accountability in revenue forecasting.
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.