Para 6.8 — MSO (A&E)
Original Rule Text
6.8 The amount will be recorded in the Subsidiary Loan Register prescribed above and will bear interest as though they had been advanced on the last day of the month in which the expenditure actually appeared on the Monthly Accounts.
The Accountant General should keep Government informed of the progress of outlay to enable it to watch and take notice of any tendency to exceed the amount of the loan and check it in due time as far as possible.
What This Means
When loan expenditure is conducted through PWD, the amounts recorded in the Subsidiary Loan Register are deemed to have been advanced on the last day of the month in which they appeared in the monthly accounts — this is the date from which interest begins to accrue. The AG must also keep the government informed about the progress of expenditure so that any tendency to exceed the sanctioned loan amount can be detected and checked in time.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1PWD loan expenditure bears interest from the last day of the month it appears in accounts
- 2This is a deemed date of advance for interest calculation purposes
- 3The AG must keep the government informed of expenditure progress
- 4Monitoring helps detect and prevent overshooting the sanctioned loan amount
- 5Amounts are recorded in the Subsidiary Loan Register as prescribed
Practical Example
In January, the PWD Executive Engineer's monthly account shows Rs. 3 crore expenditure on a bridge being built with loan funds for a Zila Parishad. The AG records this Rs. 3 crore in the Loan Register with a deemed advance date of January 31. Interest at the loan rate begins accruing from February 1. The AG also sends a progress report to the government showing cumulative expenditure of Rs. 28 crore against the sanctioned loan of Rs. 30 crore, flagging that only Rs. 2 crore headroom remains.
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 the last day of the month used instead of the actual dates of expenditure?▼
What happens if expenditure exceeds the sanctioned loan amount?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.