Para 2.2.15 — MSO (Audit)
Original Rule Text
2.2.15 Audit against provision of funds should be directed primarily towards ascertaining that the moneys expended have been applied to the services and purposes for which the Grants and Appropriation Act passed under Article 114 or 204 of the Constitution or Section 29 of the Government of Union Territories Act, 1963, were intended and that the expenditure against each Grant or Appropriation does not exceed the amount included in that Schedule.
# Notes:
(i) The term “Grant” as used in this paragraph and elsewhere in this Manual represents sums voted by the Parliament/Legislature.
(ii) The term 'Appropriation' as used in this paragraph and elsewhere in this Manual represents sums required to meet ‘Charged’ expenditure as specified in the Schedule to an Appropriation Act passed under Article 114 or 204 of the Constitution or Section 29 of the Government of Union Territories Act, 1963.
What This Means
Audit of expenditure against provisions of funds has two main checks: first, that money was spent only on the services and purposes for which the Grant or Appropriation was intended as specified in the Appropriation Act; and second, that spending did not exceed the amount authorized in that Grant or Appropriation. The term 'Grant' refers to sums voted by the Legislature, while 'Appropriation' refers to sums required for 'Charged' expenditure specified in the Appropriation Act.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Money must be spent only on the approved services and purposes
- 2Expenditure must not exceed the authorized Grant or Appropriation amount
- 3'Grant' = voted sums; 'Appropriation' = charged expenditure sums
- 4Authority comes from the Appropriation Act under Article 114/204 or Section 29 of UT Act
Practical Example
A Grant of Rs 200 crore is authorized for 'Elementary Education' in the state budget. If the Education Department uses Rs 15 crore from this Grant to build a sports stadium (not an elementary education purpose), the AG will flag it as expenditure not within the scope of the Grant. Similarly, if total spending reaches Rs 210 crore (exceeding the Rs 200 crore authorized), the excess of Rs 10 crore is flagged as unauthorized expenditure.
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 a Grant and an Appropriation?▼
What happens if expenditure exceeds the Grant?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.