Para 2.2.18 — MSO (Audit)
Original Rule Text
2.2.18 The Accountant General has to satisfy himself that the expenditure which is being audited falls within the scope of a Grant or an Appropriation Act and that it is within that Grant or Appropriation. Expenditure in excess of a Grant or Appropriation as well as expenditure not falling within its scope or intention as specified in the Schedule to an Appropriation Act, unless regularised by an appropriation Act as laid down in Article 115 or 205 of the Constitution or Section 30 of the Government of Union Territories Act, 1963, should be treated as unauthorised expenditure within the meaning of Article 114 (3) or 204 (3) of the Constitution or Section 29(3) of the Government of Union Territories Act, 1963, as the case may be.
Note: The terms 'Accountant General' used in this paragraph and elsewhere in this volume and 'Accountant General (Audit)' denote and include, unless the context otherwise requires, the Director General of Audit/Principal Director of Audit, Central Revenues, the Principal Director of Audit, Economic and Service Ministries, or the Principal Director of Commercial Audit concerned, as the case may be, in respect of audit of the accounts of the Union and the establishments thereunder including Government Companies and Corporations, and the Accountant General entrusted with audit functions in respect of a State or Union Territory having a Legislative Assembly and the establishments thereunder.
What This Means
The Accountant General must verify that all expenditure being audited falls within the scope of an approved Grant or Appropriation Act, and that total spending does not exceed the authorized amount. Any expenditure in excess of the Grant, or expenditure that falls outside its intended scope, is treated as unauthorized unless it is subsequently regularized through an Appropriation Act under Article 115 (Union) or Article 205 (States) of the Constitution.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1AG must verify expenditure falls within scope of the Grant/Appropriation Act
- 2Expenditure must not exceed the authorized amount
- 3Excess or out-of-scope expenditure is treated as unauthorized
- 4Can be regularized through excess/supplementary Appropriation Act under Article 115/205
- 5'Accountant General' includes Director General of Audit and Principal Directors as applicable
Practical Example
The Grant for 'Police' in a state was Rs 3,000 crore. By year-end, actual expenditure was Rs 3,150 crore -- an excess of Rs 150 crore. The AG flags this excess in the Appropriation Accounts. The state government must then get this excess regularized by the Legislature through an Appropriation Act under Article 205 of the Constitution, failing which it remains 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 unauthorized expenditure?▼
How is unauthorized expenditure regularized?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.