Para 4.3 — MSO (A&E)
Original Rule Text
4.3 Under Article 150 of the Constitution, the forms of the accounts of the Union and State Governments have been prescribed by the President on the advice of the Comptroller & Auditor General. The word ‘from’ used in Article 150 has a comprehensive meaning so as to include the prescription not merely of the broad form in which the accounts are to be kept, but also the basis for selecting the appropriate heads under which the transactions are to be classified.
Rules and directions under this Article regulate the classification of all financial transactions. The incidence of charges is regulated by directions issued under Article 150. The Comptroller & Auditor General by virtue of the duties vested in him by the Comptroller & Auditor General’s (D.P.C.S.) Act, 1971 is responsible for securing that entry of financial transactions in the accounts
conforms to such forms, rules and directions.
What This Means
Under Article 150 of the Constitution, the President prescribes the forms of Union and State government accounts on the CAG's advice. The word 'forms' is interpreted broadly to include not just the format of accounts but also the basis for selecting which heads of account transactions should be classified under. The CAG is responsible for ensuring all financial transactions conform to these prescribed forms, rules, and directions.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Article 150 of the Constitution empowers the President to prescribe account forms on CAG's advice
- 2The word 'forms' includes both the broad format and the detailed classification basis
- 3Rules under Article 150 regulate classification of all financial transactions
- 4The incidence of charges (who bears the cost) is also regulated by Article 150 directions
- 5The CAG ensures all entries in accounts conform to prescribed forms, rules, and directions
Practical Example
When a new government scheme like PM Kisan is launched, the classification heads (Major Head, Minor Head, Sub-Head) under which its expenditure will be recorded must conform to the forms prescribed under Article 150. The CAG's office issues directions on which head to use. If a state accounts office classifies PM Kisan payments under the wrong head, the CAG can direct correction because they are responsible for ensuring conformity with prescribed classification rules.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does Article 150 of the Constitution say?▼
Why is the broad interpretation of 'forms' important?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.