Para 3.16.18 — MSO

3.16.18 The principle of classification of transactions in Government Accounts is that there is a closer reference to the function, programme, scheme or activity to which the transaction (receipt or payment) relates, rather than the department in which the expenditure or receipt occurs. Thus, the cost of construction of a hospital is classified under the major head “4210-Capital outlay on Medical and Public Health” and not under the head of account of the Public Works Department in which the expenditure on construction of the hospital is actually incurred. Similarly, interest on loans given by different departments is credited to the major head “0049-Interest Receipts” irrespective of the departments in which the interest is realised. Refunds of Revenue are taken in reduction of receipts under the concerned Receipt Head.