Para 3.16.33 — MSO (Audit)
Original Rule Text
3.16.33 Discussions of the allocation of expenditure between capital and revenue, and of the legitimacy of financing expenditure from funds outside the Revenue Account often involve difficult questions of policy. An Accountant General would, therefore, be well advised to consult the Comptroller and Auditor General in cases of doubt before objecting to any Government action in this regard.
What This Means
Questions about how to split expenditure between capital and revenue, and whether it is legitimate to fund certain expenditure from outside the Revenue Account, often involve complex policy decisions. Because of this complexity, an Accountant General should consult the CAG before raising objections to any government action on these matters, rather than acting unilaterally.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Capital-revenue allocation often involves difficult policy questions
- 2Accountant Generals should consult the CAG before objecting to government decisions
- 3Unilateral objections by the AG are discouraged on these matters
- 4The CAG provides guidance to ensure consistency in handling such cases
Practical Example
An Accountant General finds that a state government has financed a large social housing scheme from borrowings and classified it outside the Revenue Account. While the AG believes the scheme's recurring maintenance component should have been charged to revenue, the issue involves policy judgement. Rather than issuing an objection directly, the AG writes to the CAG seeking guidance on the appropriate classification and approach.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why should the AG consult the CAG rather than objecting independently?▼
Does this mean audit is powerless on classification questions?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.