Para 3.16.25 — MSO (Audit)
Original Rule Text
3.16.25 Expenditure on account of reparation of damage caused by extraordinary calamities such as flood, fire, earthquake, enemy action, etc. should be charged to Capital account or to Revenue account or divided between them in such a way as may be determined by Government according to the circumstance of each case.
What This Means
When extraordinary calamities like floods, fires, earthquakes, or enemy action cause damage, the cost of repairs can be charged to Capital account, Revenue account, or split between both. The government decides the allocation based on the specific circumstances of each case. There is no fixed formula; the nature and scale of the damage determine the appropriate treatment.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Calamity repair costs may be charged to Capital, Revenue, or divided between both
- 2The government determines the allocation case by case based on circumstances
- 3Covers extraordinary events: floods, fires, earthquakes, enemy action
- 4No single fixed rule applies to all calamity expenditure
Practical Example
A devastating flood destroys a government bridge and damages several office buildings. The government decides that rebuilding the bridge (a permanent asset requiring complete reconstruction) will be charged to Capital, while the repairs to office buildings (restoration to original condition) will be charged to Revenue. The decision is documented and the audit office verifies the classification is reasonable given the circumstances.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the government have complete discretion in classifying calamity expenditure?▼
Would reconstruction of a completely destroyed asset be capital or revenue?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.