Para 10.12 — MSO (A&E)
Original Rule Text
10.12 In relation to borrowings it should be seen that the proceeds of loans are properly brought to account.
What This Means
When a government raises a loan, the Accountant General must verify that the full loan proceeds are correctly recorded in the government's accounts. This is a basic but essential check to ensure no portion of the borrowed amount goes unaccounted for.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Loan proceeds must be fully and properly recorded in government accounts
- 2AG must verify that no borrowing amount is missing from the books
- 3This check applies to all types of government borrowings
Practical Example
A State Government raises Rs. 1,000 crore through a market loan. The Accountant General checks the treasury records and bank statements to confirm that the full Rs. 1,000 crore has been credited to the Consolidated Fund of the State. If only Rs. 980 crore appears in the accounts, the AG immediately investigates the discrepancy of Rs. 20 crore.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is it important to verify loan proceeds are properly accounted for?▼
Who is responsible for this verification?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.