Para 3.16.17 — MSO (Audit)
Original Rule Text
3.16.17 Under Article 150 of the Constitution, the form in which the accounts of the Union and of the States shall be kept is to be prescribed by the President on the advice of the Comptroller and Auditor General. This function is exercised, on behalf of the President of India, by the Controller General of Accounts, Ministry of Finance (Department of Expenditure). The forms of accounts of the Union, State and Union Territory Governments are devised keeping in view the provisions of various Articles of the Constitution and Sections of the Government of Union Territories Act, 1963. The List of Major and Minor Heads of Account of Central and States-Receipts and Disbursements maintained by the Controller General of Accounts, on the advice of the Comptroller and Auditor General, prescribes the pattern of classification of the transactions of Government pertaining to the Consolidated Fund, the Contingency Fund and the Public Account. On the advice of the Comptroller and Auditor General, the Central Government has also issued the 'Form of Accounts of the Union and States (Basic) Rules'. These Rules provide inter alia for the issue of subsidiary instructions relating to the content and manner of maintenance of accounts by the Ministry of Finance on the advice of Comptroller and Auditor General. The rules and directions issued under Article 150 of the Constitution regulate the classification of all financial transactions. The incidence of charge is also regulated by the directions issued under this Article. The Comptroller and Auditor General in his capacity as auditor of the accounts of Government is responsible for securing that entry of financial transactions in the accounts conforms to such forms, rules and directions.
- Notes:
(i) The functions of the Central Government under Article 150 of the Constitution in so far as these relate to the opening of sub-heads and detailed heads of account under various major and minor heads of account in the accounts of the State and Union Territory Governments have been delegated by the President under Article 258/239
(i) to the State Government/Administrator of the Union Territory Government concerned. The power to tender advice to the State/Union Territory Government in this matter has similarly been delegated to the Accountant General (A&E) concerned by the Comptroller and Auditor General in terms of Section 21 of the Act.
(ii) Forms of accounts relating to Railways, Posts and Telecommunications and Defence Departments are determined by the departmental authorities within such range and such aspects as may be prescribed by the Controller General of Accounts on the advice of the Comptroller and Auditor General. Similar delegations as in
What This Means
Under Article 150 of the Constitution, the President prescribes the form in which government accounts are kept, acting on the advice of the Comptroller and Auditor General (CAG). This function is exercised by the Controller General of Accounts (CGA) in the Ministry of Finance. The CGA maintains the official List of Major and Minor Heads of Account and issues the 'Form of Accounts (Basic) Rules,' which together define how all government transactions across the Consolidated Fund, Contingency Fund, and Public Account are classified and recorded.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Article 150 vests the President with power to prescribe account forms, on CAG's advice
- 2The Controller General of Accounts (CGA) exercises this function on behalf of the President
- 3The List of Major and Minor Heads of Account prescribes the classification pattern
- 4The 'Form of Accounts (Basic) Rules' govern content and maintenance of accounts
- 5State/UT Governments have delegated power to open sub-heads and detailed heads for their own accounts
Practical Example
A newly created Department of Space Technology wants to open new sub-heads under its accounts to track expenditure on satellite launches separately. The State Accountant General advises the State Government on appropriate sub-heads, exercising the power delegated by the CAG under Section 21 of the Act, ensuring the new heads conform to the prescribed classification pattern.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who advises State Governments on opening new sub-heads of account?▼
Do Railways, Posts, Telecom and Defence follow the same rules for account forms?▼
What is the CAG's role in ensuring correct classification?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.