Para 16.10 — MSO (A&E)
Original Rule Text
16.10 In respect of grants given by Central Government to State Governments, the following procedure is to be followed in regard to submission of utilisation certificates:-
(a) Utilisation certificates need not be furnished by the Ministries/Departments of the Central Government.
(b) Where the expenditure out of the Central grants is incurred by the State Government direct, utilisation certificates will not be required to be furnished by them.
(c) Where such expenditure is incurred by the State Government through local bodies or private institutions, utilisation certificates should be furnished by the State Governments concerned.
utilised by the grantee. In the case of conditional grants a formal utilisation certificate about the proper utilisation of the grant from the administrative, technical and financial point of view should be furnished to the Accountant General (A&E) by the sanctioning authority.
# REGISTER OF GRANTS-IN-AID
What This Means
For Central Government grants to State Governments, utilisation certificates (UCs) follow specific rules: Central Ministries do not need to furnish UCs, State Governments spending directly also do not need UCs, but if the State spends through local bodies or private institutions then the State Government must furnish UCs. For conditional grants, a formal utilisation certificate covering administrative, technical, and financial propriety must be submitted by the sanctioning authority to the AG (A&E).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Central Ministries/Departments: no UC required
- 2State Government direct expenditure: no UC required
- 3State Government spending through local bodies/private institutions: UC required from State Government
- 4Conditional grants require formal UC covering administrative, technical, and financial aspects
- 5UC is submitted to the AG (A&E) by the sanctioning authority
Practical Example
The Central Government gives a Rs. 2 crore conditional grant to a State Government for mid-day meals. The State implements it through district panchayats (local bodies). Since the expenditure flows through local bodies, the State Government must furnish a utilisation certificate to the AG (A&E) confirming the grant was spent on mid-day meals as sanctioned, with administrative, technical, and financial certification.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why are UCs not required when State Governments spend directly?▼
Who provides the UC for conditional grants?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.