Rule 71 — General Financial Rules 2017 (amended July 2024) - Rule 71
Original Rule Text
Rule 71 Preparation and presentation of Accounts. Accounts of the Union Government shall be prepared every year showing the receipts and disbursements for the year, surplus or deficit generated during the year and changes in Government liabilities and assets. The accounts shall be prepared by Controller General of Accounts, certified by the Comptroller and Auditor General of India and along with the report of the Comptroller and Auditor General of India on these accounts, shall be submitted to the President of India, preferably within six months of close of the Financial Year, who shall cause them to be laid before each House of Parliament.
What This Means
This rule explains how the Indian government's annual financial report is put together and presented. Every year, the Union Government must prepare a detailed financial statement. This statement needs to show all the money the government received (receipts) and all the money it spent (disbursements) during that year. It also highlights whether the government had more money coming in than going out (a surplus) or the other way around (a deficit). Additionally, it must show any changes in the government's debts (liabilities) and its possessions (assets).
The Controller General of Accounts (CGA) is responsible for preparing these comprehensive accounts. Once prepared, these accounts are then checked and officially approved by the Comptroller and Auditor General of India (CAG). The CAG also writes a separate report on these accounts. Both the certified accounts and the CAG's report are then sent to the President of India. The rule suggests this should ideally happen within six months after the financial year ends. Finally, the President ensures that these financial documents are presented to both houses of Parliament for their review and consideration.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The Union Government must prepare annual accounts detailing receipts, disbursements, surplus/deficit, and changes in liabilities and assets.
- 2The Controller General of Accounts (CGA) is responsible for preparing these annual accounts.
- 3The Comptroller and Auditor General of India (CAG) certifies the accounts and provides a separate report on them.
- 4The certified accounts and the CAG's report are submitted to the President of India.
- 5This submission should preferably occur within six months of the financial year's close.
- 6The President ensures these accounts and reports are laid before both Houses of Parliament.
Practical Example
Imagine it's April 2024, just after the financial year 2023-24 has ended on March 31st. Mr. Sharma, a Senior Accounts Officer in the Ministry of Health and Family Welfare, is busy compiling all the financial data from his ministry. This includes records of grants received from the central government, funds disbursed for various health schemes like Ayushman Bharat, salaries paid, and expenditures on medical equipment. While Mr. Sharma's team handles the ministry-specific compilation, this data, along with similar data from all other ministries and departments, is ultimately consolidated by the Controller General of Accounts (CGA).
The CGA then uses this consolidated information to prepare the comprehensive annual accounts for the entire Union Government, showing total receipts (e.g., tax collections, non-tax revenue of Rs. 25 lakh crore) and total disbursements (e.g., defence spending, social welfare programs of Rs. 26 lakh crore). By September 2024, these accounts, along with the detailed audit report from the Comptroller and Auditor General of India (CAG) certifying their accuracy and commenting on financial management, are submitted to the President. The President then ensures these vital financial documents are presented to Parliament, allowing Members of Parliament to scrutinize the government's financial performance for the year.
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.