Period of Accounts
Article 21
The annual accounts of the Central, State and Union Territory
Governments which the Comptroller and Auditor-General is required to render shall
record transactions which take place during a financial year running from the 1st April to
31st March. Similarly the annual General Financial Statement (the Combined Finance
and Revenue Accounts of the Central Asia State Governments in India) which the
Comptroller and Auditor-General prepares shall record the transactions of the Central,
State and Union Territory Governments for the same period.
Cash basis of Accounts
Article 22
With the exception of such book adjustments as may be authorized by
any rules included in this Code or by any general or special order issued by Government
after consultation with the Comptroller and Auditor-General, the transactions in Govt.
accounts shall represent the actual cash receipts and disbursements during a financial year
as distinguished from amounts due to or by Government during the same period.
Main Divisions of Accounts
Article 24
The Govt. Accounts shall be kept in the following three parts :—
Part I Consolidated Fund of India or of the State/Union Territory concerned.
Part II Contingency Fund of India or of the State/Union Territory concerned.
Part III Public Account of India or of the State/Union Territory concerned.
The first division shall deal with the proceeds of taxation and other receipts
classed as revenue, and the expenditure met there from. The section ‘Receipts Heads.
(Capital Account)’ in the second division shall deal with receipts of a capital nature
which cannot be applied as a set-off to Capital Expenditure.
The section ‘Expenditure Heads (Capital Account)’ in the second division shall
deal with expenditure met usually from borrowed funds with the object either of
increasing concrete assets of a material and permanent character or of reducing recurring
liabilities. It also includes receipts of a Capital nature intended to be applied as set-off to
Capital Expenditure.
The section “Public Debt” and “Loans and Advances” etc., of the Second division
shall comprise, loans raised and their repayments by Government such as Internal Debt,
External Debt to the Central Government and Loans and Advances made (and their
recoveries) by Governments. The section also includes certain special types of heads for
transactions relating to ‘Transfers from the Consolidated Fund to the Contingency Fund’
and ‘Inter State Settlement’.
In Part II of the Account, shall be recorded the transactions connected with the
Contingency Fund set up by the Government of India or of a State or Union Territory
Governments under Article 267 of the Constitution/Section 48 of the Government of
Union Territories Act, 1963.
In Part III of the Account, the transactions relating to Debt (other than those
included in Part I). ‘Deposits’, ‘Advances’, ‘Remittances’ and ‘Suspenses’ shall be
recorded. The transactions under ‘Debt, Deposit and Advances’ in this part are such in
respect of which Government incurs a liability to repay the moneys received or has a
claim to recover the amounts paid, together with the repayments of the former (Debt and
Deposits) and the recoveries of the latter (Advances). The transactions relating to
‘Remittances’ and ‘Suspense’ in this part shall embrace all merely adjusting heads under
which shall appear such transactions as remittances of cash between treasuries and
currency chests, accounts between different accounting circles, etc., The initial debits or credits to these heads will be cleared eventually by corresponding receipts or payments
either within the same circle of account or in another account circle.
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