Para 10.15 — MSO (A&E)
Original Rule Text
10.15 Regarding debt redemption Scheme, it should be seen that the conditions of the scheme are scrupulously observed, that is, the annual debits against revenue under the scheme are calculated strictly in accordance with the approved programme, the appropriations for reduction or avoidance of debt are applied to the objects for which the money has been set aside and that liquidation of debt proceeds at the rate and on the lines prescribed.
- INVESTMENTS
What This Means
For debt redemption schemes, the Accountant General must verify that all conditions are being strictly followed. This includes checking that annual debits against revenue match the approved repayment programme, that funds set aside for debt reduction are used only for that purpose, and that the actual debt liquidation proceeds at the rate and manner prescribed in the scheme.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Annual debits must match the approved debt redemption programme exactly
- 2Appropriations for debt reduction must be used only for that purpose, not diverted
- 3Actual debt liquidation must proceed at the prescribed rate and on prescribed lines
- 4AG must ensure scrupulous observance of all scheme conditions
Practical Example
A State has a debt redemption scheme requiring Rs. 100 crore annual contribution from revenue towards repayment of market loans. The AG reviews the budget and expenditure records and finds that only Rs. 75 crore was debited in the current year, and Rs. 15 crore of the sinking fund was used for a different purpose. The AG raises both issues: the shortfall in annual contribution and the diversion of sinking fund money.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What should the AG check in a debt redemption scheme?▼
Can sinking fund money be used for other government purposes?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.