Para 4.15.4 — MSO (A&E)
Original Rule Text
4.15.4 The principles and procedure prescribed in this paragraph do not apply to transactions pertaining to Famine Relief Funds and Sinking Funds for Loans which are governed by special arrangements.
- CHAPTER 5
- GENERAL INSTRUCTIONS REGARDING PROCEDURE OF ACCOUNTING
Departments as also for the adjustment of the accounts received from them.
# (A) General -INTRODUCTORY
What This Means
The accounting principles and procedures described for Reserve Funds in the preceding paragraphs do not apply to two special categories: Famine Relief Funds and Sinking Funds for Loans. These are governed by their own separate, special arrangements due to their unique nature and purpose.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Famine Relief Funds are excluded from the standard Reserve Fund accounting procedure
- 2Sinking Funds for Loans are also excluded and have their own special arrangements
- 3Both types of funds have unique characteristics that require separate treatment
- 4The exclusion recognizes that one-size-fits-all accounting does not work for all fund types
Practical Example
A state maintains a Famine Relief Fund of Rs. 500 crore and a Sinking Fund for its market borrowings. When the state draws from the Famine Relief Fund during a drought, the accounting follows special emergency procedures — not the standard Reserve Fund method of receipt-head credit, deposit transfer, and deduct entries. Similarly, the Sinking Fund's annual contributions and investment income follow loan repayment accounting rules specific to debt management.
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 Famine Relief Funds treated differently?▼
What is a Sinking Fund for Loans?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.