Rule 72 — General Financial Rules 2017 (amended July 2024) - Rule 72
Original Rule Text
Rule 72 Form of Accounts. By virtue of the provisions of Article 150 of the Constitution, the Accounts of the Union Government shall be kept in such form as the President may, on the advice of the Comptroller and Auditor General of India, prescribe. The Controller General of Accounts in the Ministry of Finance (Department of Expenditure) is responsible for prescribing the form of accounts of the Union and States, and to frame, or revise, rules and manuals relating thereto on behalf of the President of India in terms of Article 150 of the Constitution of India, on the advice of the Comptroller and Auditor General of India.
What This Means
This rule, titled 'Form of Accounts,' means that all financial records and accounts within the government must be kept in a specific, standardized way. It's not up to individual departments or officers to decide how they want to record financial transactions. Instead, there are official formats, templates, and systems that must be used.
The main goal is to ensure consistency, transparency, and easy auditing across all government bodies. This helps in understanding where public money is spent and ensures accountability. By following these prescribed forms, all financial data becomes comparable and understandable, making it easier to track funds and prevent misuse.
Government officers are required to strictly adhere to these established formats when recording any financial transaction, from budgeting to expenditure and revenue collection. This ensures that the financial health of the government is accurately and uniformly represented.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Government financial accounts must follow specific, prescribed formats.
- 2These formats are mandatory, not optional, for all government entities.
- 3The purpose is to ensure uniformity, transparency, and ease of audit across all departments.
- 4Officers are responsible for maintaining records strictly according to these official forms and systems.
- 5Adherence to these forms helps in accurate financial reporting and accountability.
Practical Example
Imagine the Ministry of Health is purchasing new medical equipment worth ₹50 lakhs for a district hospital. The accounts department, led by Ms. Priya Sharma, needs to record this expenditure.
Instead of creating their own spreadsheet or ledger, Ms. Sharma ensures that her team uses the standardized accounting software and specific expenditure forms mandated by the Ministry of Finance and the Comptroller and Auditor General (CAG). This ensures that the purchase details, vendor information, payment dates, and budget codes are all recorded in a consistent manner that can be easily understood and audited by external bodies, aligning with the 'Form of Accounts' rule. If they were to use a non-standard format, the transaction might be flagged during an audit for non-compliance.
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.