[See Note 3 below Rule 26(d)]
Grants-in-aid and loans are given by various Ministries/Departments of the Government of India to State Governments/Union Territory Governments under Central Plan Schemes and also Centrally sponsored Plan Schemes. Many of the Central Plan Schemes/Centrally sponsored Plan Schemes are common to a number of States/Union Territories. In order to achieve uniformity in the accountal of such central grants/ loans in the books of all recipient State/Union Territory Governments, the following procedure shall be adopted:
2. Provisions for the release of grants-in-aid and loans to State/Union Territory Governments under Central Plan Schemes and Centrally-sponsored Plan Schemes are made in the Union Budget comprising (i) major/sub-major heads "3601/3602-Grants-in-aid to State/Union Territory Governments" alongwith 'grants for Central Plan Schemes' or 'grants for Centrally Sponsored Plan Schemes' and under "7601/7602 Loans and Advances to State/Union Territory Governments" alongwith "Loans for Central Plan Schemes' or 'Loans for Centrally Sponsored Plan Schemes' and (ii) minor heads thereunder with nomenclature designed in terms of paras 3.9 and 6.5 of 'General Directions' contained in the List of Major and Minor Heads of Account of Central and States. According to these paragraphs, the first portion of the nomenclature of the minor head is to indicate the function as per sub-major head (or where a sub-major head does not give any indication of the function e.g. General, the major head concerned is to be indicated in bracket; or in the absence of a sub-major head, function as per major head itself) on the revenue expenditure side and second portion is to indicate the programme minor head.
3. Approval for the plan outlay under various schemes and also sanctions issued by the Central Ministries/Departments releasing grants-in-aid and/or loans, will indicate the budget head/head of the account upto minor head designed as above and also sub-detailed heads to which the expenditure is debitable in central books. The nomenclature of the minor head mentioned in the sanctions etc. would automatically provide necessary clue in regard to the major/sub-major and minor heads under which corresponding provisions should be budgeted for and expenditure accounted for in State/Union Territory Government books, and the sub/detailed heads mentioned in such sanctions would provide clue to similar heads to be opened in State/Union Territory Government books.
4. Some illustrations of the manner in which budget head/account head should be devised in books of the recipient Government with reference to budget/account head in the central books and mentioned in the sanction etc. releasing the grant/loan by the Central Government Ministries/Departments, are given in the Annexure for facility of understanding the modus operandi of the above procedure.
5. There may be some schemes/programmes in which constitution of a fund in the public account may also be involved. If the relevant sanction of the Ministry releasing fund relating to such a scheme does not indicate the head (s) of account to be operated upon in the public account portion etc. of the State/Union Territory Government, the Controller General of Accounts, Ministry of Finance (Department of Expenditure) may be approached for the purpose of indicating necessary major/minor head of account in the interest of uniformity of classification.
|Head in Central Govt. Budget/Sanction letter||Corresponding heads in State Govt.
books from which
expenditure is to be incurred
|Sl. No.||Major Head||Sub-major head||Minor head||Purpose||Sub-head||Major head||Sub-major head||Minor head||Sub-head|
|1.||7601-Loans & Advances to State Govt.||03-Loans for Central Plan Schemes.||Housing-General - Assistance to Housing Boards, Corporations, etc.||Grants-in aid to Housing Boards, Corporations.||Construction of residential Buildings.||2216- Housing||General||Assistance to Housing Boards, Corporation, etc.||Grants for Construction of affiliated Colleges.|
|2.||Do.||Do.||Capital outlay on other Housing Schemes -Subsidised, Housing Scheme for Plantation workers.||Meant for direct investment by the State Govt.||Do.||4216- Capital Outlay on Housing||03-Rural Housing Schemes.||Subsidised Housing Scheme for Plantation workers.||(Place/ name to be given)|
|3.||7601-Loans & Advances to State Govt.||03-Loans for Central Plan Schemes.||Loans for Housing-Loans to Housing Boards, Corporations, etc.||Meant for relending by State Govt. to Housing Society.||Loans to ------ (Name of the board to be indicated)||6216-Loans for Housing.||Loans to Housing Boards.||Loans to ------ (Name of the Housing board to be indicated.)|
|4||Do.||Do.||University & Other Higher Education- Assistance To Non-Govt. Colleges.||For release of grant-in aid to non-Govt. Colleges as Revenue Expenditure by State Govt.||Construction of Hostels of affiliated - Colleges.||2202- General Education.||University & Other Higher Education.||Assistance to Non-Govt. Colleges & institutes||Grants for construction of affiliated Colleges.|
|5.||Do.||Do.||Capital Outlay on Education Sports Art and Culture University & Higher Education.||Investment||Construction of hostels of affiliated Colleges.||4202-Capital Outlay 1 on Education, Sports and Culture.||Nil||University & Higher Education.||Buildings Equipments.|
|6.||7601-Loans & Advances to State Govts.||03-Loans for Central Plan Schemes.||Loans for Education Sports, Art and Culture University & Higher Education.||For relending by State Govt. to Non-Govt. Colleges.||Loans for Construction of hostels of affiliated Colleges.||6202-Loans for Education, Sports Art& Culture.||Nil||University & Higher Education.||Loans for Construction of hostels of affiliated Colleges- Name of the loan College.|
|7.||Do.||Do.||Cooperation-Assistances 0 Credit Cooperatives.||Grants in aid by State Govts. to Credit coop.||Grants for Credit Co-operative Institutions in underdeveloped States.||2425-Co-operation.||Assistance to Credit Co-operatives.||Grants for Credit cooperative Institutions in underdeveloped States.|
|8.||7601-Loans & Advances to State Govts,||03- Loans for Central Plan Scheme||Loans for Cooperation- Credit Co-operatives.||For relending||Loans to Credit Cooperatives Institutions in underdeveloped States.||6425-Loans for Co-operatives,||Loans to Credit Cooperatives-||Loans for Credit Co-operative Institutions for under developed States.|
|9.||Do.||Do.||Capital Outlay and Cooperation in Credit Co-operatives.||Investment in Credit Co-operatives by States.||Investment in -------||4425-Capital outlay on Co-operation||Investment in Credit Co-operatives.||Investment in |
|10.||Do.||04-Loans for Centrally Sponsored Plan Schemes.||Villages & Small Industries (Separate minor head for each departmental Commercial Under-taking)||Grant-in-aid to meet working expenses of Departmental Commercial Undertakings relating to S.S.I.||Management Operation & maintenance.||2851-Village & Small Industries.||Nil||Management/ Operation & Maintenance.|
|11.||7601-Loans & Advances to State Govts.||04-Loans for Centrally Sponsored Plan Schemes.||Capital Outlay on Village & Small Industries Small Scale Industries.||Capital Expenditure by State Govt.||Integrated Training Centres.||4851-Capital Outlay on Village & Small Industries.||Small Scale Industries.||Integrated Training Centres.|
|12.||Do||Do.||Loans for Village & Small Industries Small Scale Industries.||Relending of Loans.||Loans to Public Sector & other Undertakings.||6851-Loan. for Village & Small Industries.||Small Scale Industries.||Loans to Public Sector & Other Undertakings.|
|13.||Do.||03-Loans for Central Plan Schemes.||Dairy Development-Dairy Development Projects.||Grants by State Govt. for dairy development in the State.||Assistance to State Govt. for new Dairy.||2404-Dairy Development.||Dairy Development Projects.||Assistance for ne Dairy.|
|14.||7601-Loans & Advances to State Govt.||03-Loans for Central Plan Schemes.||Capital Outlay on Dairy Development.||Investment||Assistance to State Govt. for new Dairy.||4404 Capital Outlay on Dairy Development.||Dairy Development Projects.||Investment in State run new Dairy.|
|15.||Do.||Do.||Loans for Dairy Development-Dairy Development Projects.||For relending.||Do.||6404-Loans for Dairy Development.||
|Do.||Loans to new Dairies.|