Para 3.4.2 — MSO (Audit)
Original Rule Text
3.4.2 The actual classification of contingent charges is determined by the orders of the Government concerned and, as a result, it may be different for different Governments. It will, however, be found that all contingencies fall into one or other of the following five categories:-
(i) Contingent charges met from a lump sum grant placed at the disposal of a disbursing officer for expenditure, at his discretion, on certain specified objects. Such charges are known as Contract Contingencies and generally consist of charges the annual incidence of which can be averaged with reasonable accuracy.
(ii) Contingent charges regulated by scale laid down by the competent authority. Such charges may be called Scale Regulated Contingencies.
(iii) Contingent charges, whether recurring or non-recurring, which cannot be incurred without special sanction in each case of a superior authority. These may be termed Special Contingencies.
(iv) Certain contingent charges may be incurred without special sanction. They nevertheless require the approval and countersignature of a superior authority before they can be admitted as legitimate expenditure against the Consolidated Fund of India or of a State. Such charges are known as Countersigned Contingencies. Countersignature is ordinarily obtained after the bills are paid but, in rare cases, it is necessary before payment.
(v) Contingent charges which require neither special sanction nor countersignature, but may be incurred by the disbursing officer on his own authority subject to the necessity of accounting for them. Such Contingencies may be termed Fully Vouched Contingencies. In actual practice, however, the Comptroller and Auditor General dispenses with the production to audit of vouchers of less than a prescribed amount.
What This Means
All contingent expenditure falls into one of five categories: (1) Contract Contingencies — from a lump sum grant for specified purposes, (2) Scale Regulated — governed by approved scales, (3) Special — requiring specific sanction from a superior authority for each case, (4) Countersigned — needing approval of a superior officer either before or after payment, and (5) Fully Vouched — incurred by the officer on own authority with proper accounting. The CAG may waive the requirement to produce vouchers below a certain amount.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Five categories: Contract, Scale Regulated, Special, Countersigned, and Fully Vouched
- 2Contract contingencies come from a lump sum for predictable recurring expenses
- 3Scale regulated contingencies follow rates or limits set by competent authority
- 4Special contingencies need case-by-case sanction from a superior authority
- 5Countersigned contingencies require a controlling officer's approval, usually after payment
- 6Fully Vouched contingencies are incurred on the drawing officer's own authority
Practical Example
A collector's office has a fixed annual contract grant of Rs. 2 lakh for stationery and postage (Contract Contingency). When a staff member needs to attend a training program, the travel cost requires specific sanction from the department head (Special Contingency). The office telephone bill is paid monthly and countersigned by the controlling officer (Countersigned Contingency).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can the same expenditure fall under multiple categories?▼
What does the CAG dispensation for small vouchers mean?▼
Who decides which category a particular expenditure falls under?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.