Para 7.1 — MSO (A&E)
Original Rule Text
7.1 In the case of moneys received to be held as deposits with Government, the Accountant General should satisfy himself that these moneys can properly be credited to the Public Account of the State by virtue of a statutory provision or of general or special orders of Government. It should also be seen that no item is credited as a deposit in the accounts of a Government which could be credited as a revenue receipt or in reduction of ordinary expenditure of that Government. In respect of repayment of deposits, the Accountant General should examine that there are proper vouchers in support of the amount repaid and should check each repayment against the original receipt eigher individually or against the total credit in a particular account in order to see that repayments do not exceed the amount originally received and credited to Government. It is also the function of the Accountant General to see that balances in deposit accounts are correctly carried over from year to year, that the balance at the close of the year in each account is acknowledged as correct by the person or body concerned, where necessary and practicable and that any deposits remaining unclaimed for such period as may be prescribed by Government in this behalf are duly credited as revenue receipts of Government.
What This Means
When money is received by the government to be held as a deposit (not as revenue), the AG must verify that it can legitimately be credited to the Public Account under a law, general order, or special government order. The AG must ensure deposits are not misclassified — revenue should not be parked as deposits, nor should expenditure refunds. For repayments, proper vouchers are required, and repayments must not exceed original receipts. Year-end balances must be correctly carried over, acknowledged by the depositor where feasible, and unclaimed deposits must be transferred to revenue after the prescribed period.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Deposits must have statutory or government order backing to be credited to the Public Account
- 2Revenue receipts must not be misclassified as deposits
- 3Repayments must be supported by proper vouchers and cannot exceed original deposits
- 4Year-end balances must be correctly carried over and acknowledged by depositors where practicable
- 5Unclaimed deposits are credited as government revenue after the prescribed lapse period
Practical Example
A contractor deposits Rs. 5 lakh as security deposit for a road construction contract. The AG verifies that the PWD rules authorize accepting security deposits (statutory backing). Three years later, the contract is completed and the contractor claims refund. The AG checks the original receipt, verifies the proper voucher, confirms Rs. 5 lakh does not exceed what was deposited, and authorizes refund. Had the contractor not claimed the deposit within 3 years of contract completion, the unclaimed amount would have been credited to government revenue.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the difference between the Public Account and the Consolidated Fund?▼
Why must the AG ensure revenue is not parked as deposits?▼
What happens to unclaimed deposits?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.