D.    Grants-in-aid and Contributions
E.    Public Debt

Notes:

(1)    This minor head shall have three sub heads namely: -

1. Market loans bearing interest
2. Market loans not bearing interest
3. Market Loans suspense.

Each denomination of loan will appear as a distinct detailed head under the sub-head (a) above. The amounts representing unclaimed balance of old loans which have been notified for discharge and have ceased to bear interest from the due date of discharge will be transferred from the sub-head (a) above to the sub-head (b) and will appear under corresponding detailed heads under the latter sub-head.

These unclaimed balances are usually retained in Government Accounts as debt for 20 years from the date of discharge of the loans, after which, the balances are transferred to Revenue by credit to the head "0075 Miscellaneous General Services -Other Receipts”. Repayments of these amounts subsequently claimed likewise will be debited to the head "2075 - Miscellaneous General Services - Other Expenditure".

The full nominal value of Zero Coupon Bonds, 1999 will also be credited under a detailed head "Zero Coupon Bonds, 1999" below the sub-head (b) above and the amount of discount on the Bond will be debited to the minor head "136 - Discount Sinking Fund" with sub-head "Sinking Fund for Zero Coupon Bonds, 1999" thereunder below the major head "8663- Accounting Adjustment Suspense''. The amount debited to the minor head '136- Discount Sinking Fund' below the major head ‘8663- Accounting Adjustment Suspense’ will be written back to revenue in equal instalment over the currency of loan by debting one fifth of the amount initially debited to "Discount Sinking Fund'' to the expenditure major/sub-major/ minor head "2049- Interest Payments - 01 - Interest on Internal Debt - 113 Discount on Zero Coupon Bonds, 1999" per contra credit i.e. minus Debit to the minor head "136- Discount Sinking Fund' below the major head "8663- Accounting Adjustment Suspense". On maturity of the Bonds, the entire amount will be repaid by debiting major/minor/ sub/detailed head "6001 - Internal Debt of Central Government - 101 Market Loans -Market Loans not bearing interest - Zero Coupon Bonds, 1999.

The subscriptions towards Market Loans received initially will be credited under a distinct detailed head below the sub-head (c) above. The amount of accepted subscription for which scrips are issued by the RBI will be transferred to the sub-head (a). The over -subscribed amount which will not bear any interest may be refunded by minus credit to the sub-head (c) and no budget provision will be necessary for this purpose.

(2)    This minor head shall have two sub-heads, namely: -

1. Treasury Bills with 91 days currency.
2. Treasury Bills Converted as securities.

The sub-head at (a) will cater to investments in Government of India Treasury Bills subscribed to by the State Governments, Banks, Corporations etc of their surpluses and the repayments thereto. The subhead at (b) shall account for Treasury Bills converted special securities and issued to Reserve bank of India.

(3)    Each institution, namely, the International Monetary Fund, the International Bank for Reconstruction and Development, the International Development Association etc. will appear as sub-heads under this minor head with Detailed Heads for each denomination of the Security for such Institutions.

(4)    This minor head will record transactions in respect of loans for construction/ Acquisition of residential/Non-residential buildings constructed by the Government of India missions abroad from foreign branches of Indian financial institutions like L.I.C., Banks etc.

(5)    This minor head shall account for securities issued to Reserve Bank of India for acquisition of Special Drawing Rights etc.

(6)    This minor head will record investment made by all parties other than Reserve Bank of India.

(7)    When the bonds are issued, the full nominal value of the bonds will be credited under this minor head per contra debit to a minor head '137-Suspense Account -Redemption of 12.08% Government of India compensation (Project Exports to Iraq) Bonds, 2001 below the major head '8663- Accounting Adjustment Suspense'.

Also please see Note (4) below the major head '8663 Accounting Adjustment Suspense'. On redemption of bonds the amount will be debited under this minor head after making necessary budget provision of that year.

(8)    The temporary cash surpluses of State Governments, foreign central banks and other specified bodies so invested will be classified under this minor head. This minor head will include transactions of '14-Days Treasury Bills' through auction and also transactions relating to 13/15 days Treasury Bills"

(9)    The unclaimed balances of these bonds are usually retained in Government Accounts for 20 years from the date of their maturity after which the balances are transferred to Revenue by credit to the head '0075 Miscellaneous General Services - Other Receipts'. Repayments of these amounts subsequently claimed likewise will be debited to the head '2075-Miscellaneous General Services - Other Expenditure’.

Note:

(1)    Each denomination of loan received from each foreign counter/Institution will appear as a sub-head under the relevant minor heads.

Notes:

(1)    See Note 1 below "6001-Internal Debt of the Central Government".

(2)    Each institution from which loans are received will appear as a distinct sub-head under this minor head,

(3)    The unclaimed balances of these bonds are usually retained in Government Accounts for 20 years from the date of their maturity after which the balances are transferred to Revenue by credit to the head '0075 Miscellaneous General Services - Other Receipts'. Repayments of these amounts subsequently claimed likewise will be debited to the head '2075-Miscellaneous General Services - Other Expenditure.

Notes:

(1)    This sub-major head has been provided to account for the outstanding balance of the central loans advanced to States upto 31.3.1984 as on 1.4.85.

(2)    This minor head will have the following three sub-heads.--

1. Pre 1974 loans written off
2. 1974-84 Relending loans written off.
3. 1979-84 Straight loans-in respect of these loans, the repayments by the State Government, to the Centre would be according to the terms on which the loans were sanctioned.

(3)    In respect of these loans, the repayments by the State Government to the Centre would be according to thd terms on which the loans were sanctioned.

(4)    This minor head will have the following sub-heads: -

1. Loans for productive purposes repayable over 15 years from 1979-80.
2. Loans for semi-productive purposes repayable over 30 years from 1979-80.

(5)    This minor head shall be operated to classify temporarily the advances received by the State Government as recommended by the 7th Finance commission pending issue of presidential order within the close of the Financial year and such advances shall be free of interest. The advances so classified shall be withdrawn within the account of the same financial year by minus credit and shall be brought to account under the major head "1601-Grants-in-aid from central Government",

(6)    Loans as advanced Plan assistance for drought relief will be adjusted under distinct sub-head Drought-Relief.

(7)    This minor head will have the following two sub-heads.

1. Loan repayable annually over 25 years
2. Loans repayable annually over 30 years

(8)    This minor head will have the following four sub-head: -

1. Loans repayable annually over 15 years
2. Loans repayable annually over 20 years
3. Loans repayable annually over 25 years
4. Loans repayable annually over 30 years

(9)    This minor head would include write off of overpayments during 1985-89 as recommended by the Eighth Finance Commission. The balances of the pre 1984-85 'Orissa Hirakund project Stage I" loans and the 1979-84 consolidated loans will also initially be debited to this minor head. The final allocation of the amounts of loans under these categories will follow formal sanction of the Government of India.

Note :

(1)    This major/minor head will account for the external loan transaction under the Direct Payment Procedure i.e. when the amount is required to be paid by the importer. Payments to Suppliers abroad out of external loans by the Donors will initially be taken as a credit against the relevant grant/loan minor head under the major heads '1605 External Grant Assistance', '6002 External Debt' per contra minus credit to this major/minor head. This minus credit will be relieved when the deposit is received from the Indian importer.