Para 2.2.16 — MSO (Audit)
Original Rule Text
2.2.16 Each Grant or Appropriation specified in the Schedule to an Appropriation Act is a single total sum appropriated to the services and purposes set out in it. The particulars of a Grant or Appropriation in that Schedule are, however, based on the detailed estimates drawn up for the information of the Legislature. Accordingly, the departmental heads and the controlling officers reallocate the duly approved grants or appropriations of
their respective departments among different drawing and disbursing units of the departments in proportion to the detailed sub-head wise estimates initially proposed by them. The various sub-heads and items in these estimates denote broadly the services and purposes for which the Grant or Appropriation is made and the expenditure should be recorded against such heads and items as may be relevant.
Note: While the initial responsibility for the preparation of the Budget Estimates of 'Voted' and 'Charged' expenditure rests with the Executive, the Audit Officer has to see that the classification indicated in the estimates conforms to the provisions of the Constitution and is also in accordance with the forms of accounts of receipts and expenditure prescribed by the President on the advice of the Comptroller and Auditor General. The Audit Officer may also keep in view any regulation laying down the general principles of Government accounting made by the Comptroller and Auditor General under Section 23 of the Act governing his duties, powers and conditions of service. He may also make suggestions that may serve to promote clarity in accounts for better appreciation by the Legislature.
What This Means
Each Grant or Appropriation is a single total sum, but it is internally broken down into sub-heads and items based on detailed estimates presented to the Legislature. Departments then distribute the approved amounts among their field offices proportional to the detailed estimates. Expenditure should be recorded against the relevant heads and items. The Audit Officer must ensure that budget classification follows constitutional provisions and the accounting forms prescribed by the President on CAG's advice.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Each Grant/Appropriation is a single total sum with detailed sub-head breakdowns
- 2Departments reallocate approved grants among field offices based on detailed estimates
- 3Expenditure must be recorded against correct heads and items
- 4Audit ensures budget classification conforms to the Constitution
- 5Audit Officer may suggest improvements for clarity in accounts
Practical Example
The Health Department receives a Grant of Rs 500 crore with sub-heads for salaries (Rs 200 crore), medicines (Rs 150 crore), and equipment (Rs 150 crore). The department distributes these allocations to its 30 district offices. During audit, the AG checks that a District Medical Officer correctly recorded a drug purchase under the 'medicines' sub-head and not under 'equipment', ensuring proper classification for legislative transparency.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who is responsible for distributing grants to field offices?▼
Can auditors suggest changes to how the budget is classified?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.