Para 3.16.21 — MSO

D. Principles for Classification of Expenditure as Capital Expenditure

3.16.21 It should be borne in mind that the Comptroller and Auditor General would not demur to a decision of the Executive to meet expenditure either from current revenues or from borrowed moneys, so long as this decision is generally in conformity with the budget proposals passed by the Legislature or has otherwise received its specific approval. It is however, the duty of Audit to bring to notice occasions on which the classification of expenditure between revenue and capital or its distribution between current revenues and loan funds appears to be contrary to the dictates of sound and prudent financial administration. The principles upon which such criticism should be based are described in the following paragraphs.