MINISTRY OF FINANCE
(Deptt. of Expenditure)
Controller General of Accounts

CORRECTION SLIPS TO CIVIL ACCOUNTS MANUAL
(FIRST EDITION).

Correction Slip Nos. 1 to 57

Correction Slip no. 1

Page : 10

Para : 1.15.8

Add the following at the end of this sub-para after deleting the fullstop :— 

of the Classified Abstract.

Correction Slip no. 2

Page : 11

Para : 1.16.3

Add the following at the end of this para:—

He will also watch whether credit is given in bank scrolls for all the cheques/bank drafts sent to the bank by him for credit into Government account, and take appropriate action in respect of those outstanding, in consultation with the bank. If any of outstanding bank drafts happens to be one that was received from a Departmental Officer (without cheque drawing powers) stationed at an outstation, he would have to keep the latter informed and/or arrange for further action being taken with the party concerned through the latter.

Correction Slip no. 3

Page : 11

Para : 1.16.4

Add the following after the second sentence of this para:—

The Pay and Accounts Office shall intimate to the Departmental Officer for further action, details of cheque(s)/bank draft(s) remaining outstanding or dishonoured at the end of the month subsequent to that in which the latter had reported it (them) as remitted to the Bank.

Correction Slip No. 4

Page : 12

Para : 1.17.1

Add the following after the first sentence of this para:—

In order to reduce clerical work in this respect in cases of heavy receipt of valuables from outstation non-cheque drawing D.D.Os, the covering list of valuables received from them may be pasted in the register after checking each entry in the list with the valuables enclosed therewith.

Correction Slip no. 5

Page : 97

Para : 5.3.3

Add the following sentence at the end of the para:—

Corrections or transfers affecting Capital major heads which do not affect the accounts of other Governments, should be effected without financial adjustment, by merely altering the progressive figures and on 'Proforma' basis for purposes of statement No. 12 of Finance Accounts, that is, without passing debit and credit entries through the accounts of the year's financial transactions. This would avoid unnecessary inflation of the actual expenditure appearing in the accounts of the year in which the misclassification etc. was detected.

(Authority: Note 1 under article 251(b) of Account Code Volume IV)

Correction Slip No. 6

Page: 97

Para : 5.3.4

Substitute the last sentence of the para by the following :—

If the accounts of the year in which the error takes place are closed, then the following procedure may be adopted:

(i) an item taken to one debt, deposit, suspense or remittance head instead of another—the correction should be made by transfer from the one to the other;

(ii) an item credited to a debt, deposit, suspense or remittance head instead of to a revenue head; or debited to a debt, deposit, suspense or remittance head instead of to an expenditure head—the correction should be made by transfer to the head under which it should originally have appeared;

(iii) an item credited to a revenue head instead of to a debt, deposit, suspense or remittance head—correction should be made by debiting refunds and crediting the proper head; and

(iv) an item debited to an expenditure head instead of to a debt, deposit, suspense or remittance head—correction should be made by debiting the proper head and crediting the relevant departmental receipt head (or in the case of a department not having corresponding receipt head, to the major head 068—Miscellaneous General services).

However, when the correction affects a head for which budget provision is obtained, the correction/transfer may be effected by affording plus credit or minus credit under the head concerned, without affecting the actual expenditure (i.e.debit side of the head) for the year.

(Errors in the accounts of works in the Central Public Works Deptt. are governed by the provisions of article 200 of Account Code Vol. III)

[Authority: Article 250(b) and note under article 254(b) of Account Code Volume IV]

Correction Slip No. 7

Pages: 98-99

Para: 5.4

Add a para after para 5.4.5 as follows :—

5.4.6. After the postings in the compilation sheets and the classified abstract are completed, they should be submitted to the Junior Accounts Officer who will carefully test check the postings. The Junior Accounts Officer and Accounts Officer shall personally check the correctness of postings in respect of items over Rs. 2,500 and Rs. 10,000 respectively under any detailed head of account and trace the entry in the classified abstract. However, in respect of postings of challans (Receipts) relating to the Central Board of Excise and Customs, the extent of checking of correctness of postings by concerned JAOs and AOs are relaxed so as to excise checks to the following extent:—

JAO--—All items over Rs. 20,000 and 50% of the items above Rs. 10,000 but below 20,000.
A.Os——All items above Rs. 50,000

(Authority: Para 4.10 of Chapter II of Handbook and CGA's letter No. S.I 1038/1/77/MF-CGA(TA)/436 dated 4-3-78).

Correction Slip no. 8.

Page : 101

Para : 5.9.1

Insert (a) after the number 5.9.1, and add the following as sub-para(b) :—

(b) The two heads of account '768-Inter-State Settlement' (Sector G) and '769-Appropriation to Contingency Fund' (Sector H) are not of the nature of debt, deposit, suspense or remittance heads and are also to be closed to Government Account annually vide para 5.10. Balances under debt, deposit, suspense and remittance heads are to be individually closed to balance (as per para 5.9.2), except that balances under the head '880-Miscellaneous Govt. Account' are to be closed to Govt. Account annually and those under'875—Deposits with Reserve Bank' held in the books of Principal Accounts Offices should be closed annually to Govt. Account, but those in the books of the Controller General of Accounts are to be transferred to the head '899-Cash Balance', every month.

Correction slip no. 9

Page : 159

Para: 9.2.4

Add the following as a note to this Para:—

Note: However, the incidence of expenditure on account of Dearness Allowance on Leave Salary payable to a Government servant who retires/ dies in harness while on foreign service, shall be paid to him by the parent department as part of cash equivalent of leave salary of unutilised leave admissible to him at the time of his retirement/demise. These orders take effect from 10-8-1981.

(Authority: Min. of Fin. (Deptt.of Exp.)O.M.No.21011/21/81-E. II(B) dated 10-8-1981).

Correction Slip No. 10

Page : 170

Para : 10.7.1

Add the following at the end of this Para :—

For calculation of interest, Para 4.29.2 may be referred to.

Correction Slip No. 11

Pages : 231-32

Para : 13.2.1

Substitute the following words for the words "Cases........................elsewhere" appearing in the 7th line on page 232 :—

cases [i.e. attracted by the provisions of Notes 1 to 3 of article 31(2) of Account Code Vol. I] covering joining time pay and allowances for the admissible joining time period or upto the date of joining the new office elsewhere, whichever is earlier.

Correction Slip No. 12

Page : 250

Para : 13-14

After re-numbering the existing para 13.14 as 13.15, insert the following as a new Para :-

13.14 ADJUSTMENT OF GAIN OR LOSS BY EXCHANGE

1.    The question of adjustment of Loss/Gain by exchange has been considered in detail in consultation with Budget Division of the Ministry of Finance, Controller of Accounts, Ministry of External Affairs and the Comptroller and Auditor General of India against the background indicated below :-

(i)    Disbursements made against agreements for loans/grants after 1st April, 1976 by foreign banks etc. under the direct payment procedure, are credited as External Debt/External Grant Assistance at daily rate of exchange by contra debit to the minor head "Suspense Account for purchases etc. abroad" under the major head "858—Suspense Accounts". The deposits made by importers at the Composite rate of exchange (fixed by the Controller of Aid Accounts and Audit) and interest under the minor head "Deposits for purchases etc. abroad" below the major head "843—Civil Deposits" are cleared by (a) transferring amounts to the above noted Suspense head thereby clearing it; (b) adjusting the difference between daily rate and composite rate of exchange under "068—Miscellaneous General Services—Gain by Exchange" and (c) adjusting the element of interest recovery under the head "049—Interest Receipts".

(ii)    In respect of loan / grant transactions appearing in the accounts of C.A.O., H.C.I., London and C.A.O., I.S.M., Washington, conversion is made at the composite rate of exchange, whereas the same are booked in the accounts by the C.A.A. & A. at the daily rate of exchange, the difference being adjusted under '068—Miscellaneous General Services—Gain by exchange' or "268—Miscellaneous General Services—Loss by Exchange" as the case may be.

(iii)    When loans are fully repaid, the balance lying under the head "Exchange variation' under the major head '' 602—External Debt" is cleared by adjusting the same under Major etc. head ''068" or "268" according as the balance left represents a credit or debit.

(iv)     Transactions of periodical remittances by way of transfer of heavy amounts of cash from India to High Commission of India, London and E.I. Washington and accounts received from HCI London and E.I. Washington except payment towards personal claims arising in HCI London and Chancery payments in E.I. Washington- shall be accounted for at the composite rates. Capital transaction relating to aquisition of property by missions abroad and all payments to international bodies towards India's contribution shall be converted at composite rates of exchange wherever such rates are prescribed for the relevant foreign currencies by the Deptt. of Economic Affairs, but in cases where composite rates are not prescribed, these transactions shall be accounted for at official rates of exchange prescribed by the Ministry of External Affairs.

Loss or gain arising on the above account shall be adjusted under the major etc. heads "268" or "068", as the case may be.

The remittances to Missions other than H.C.I. London and E.I. Washington and expenditure relating to personal claims appearing in the account of H.C.I. London and chancery payments in E.I. Washington will be accounted for at official rates of exchange prescribed by Ministry of External Affairs. The gain or loss arising on that account shall also be adjusted under the major etc. heads "068"/"268" as the case may be.

2. While each category of transactions that give rise to an element of loss or gain by exchange during the course of a year shall be adjusted under the Major etc. head "268/ "068", as the case may be but before the accounts of that year are finally closed and the Appropriation Accounts are prepared, the net effect of the transactions booked under these two major heads should be worked out and got reflected against a single head i.e., '068—Miscellaneous General Services—gain by Exchange' in case of overall gain, or against "268—Miscellaneous General Services—Loss by Exchange" in the case of overall loss during the year. In other words, net annual effect should be exhibited against either "068" or "268" as the ease may be.

3. "Loss by exchange" under the major head "268" is budgeted for centrally in the Demands for Grants "Other Expenditure of the Ministry of Finance". Accordingly, the Controller of Accounts, Ministry of Finance is responsible for the maintenance of the Appropriation Audit Register and preparation of Appropriation Accounts for this grant and accounts for the expenditure arising against this major head and the minor head "loss by Exchange" threreunder. The figures of expenditure received every month by him from various Accounts Officers will be entered in the Appropriation Audit Register for necessary action. Further, the Controller of Accounts, Ministry of External Affairs, Controller of Aid Accounts and Audit and other Accounts officers (other than of Railways) will continue to operate on these two major heads in the course of the year in their books and soon after the closure of the March (Supplementary) Accounts and as soon as the Statement of Central Transactions is prepared by them, they will intimate the figures of Receipt and Expenditure booked separately under the major heads "068—Gain by Exchange" and "268—Loss by Exchange" to the Principal Accounts Officer, Ministry of Finance.

4. The Principal Accounts Office, Ministry of Finance shall prepare a journal entry transferring the amount through a T.E. so that either of these two heads is brought to 'nil' by a deduct entry under the head thereby arriving at the net figure to be exhibited under "068—Gain by Exchange"/"268—Loss by Exchange" as the case may be. The correctness of the figures so consolidated in respect of Central Civil shall also be got checked by him by obtaining the figures from the Computer cell of this Ministry (C.G.A's Organisation). The figures so arrived at shall be used as material for the preparation of the Appropriation Accounts for the grant "Other Expenditure of the Ministry of Finance" and shall be used for any explanation for any saving or excess etc. under this Major head. A detailed statement leading to the netting of the figures shall also be furnished by him to the Appropriation Accounts/Finance Accounts Section of this Ministry (C.G.A's Orgn.) indicating sources from which the gross figures under "068" and "268" were obtained by him so as to enable this Ministry (C.G.A's organisation) to check the correctness of the figures intimated by the Controller of Accounts, Department of Economic Affairs in his Appropriation Accounts and in the statement for the Finance Accounts. This procedure shall be adopted for the financial year 1981-82 & onwards.

5. The existing system of various Principal Accounts Offices intimating each month the monthly figures and progressive figures booked under the head "268—Miscellaneous General Services—Loss by Exchange" to the Ministry of Finance, Department of Economic Affairs shall, however, continue.

6. They shall also furnish similarly a Statement each month for the receipts booked during the month under the head "068—Miscellaneous General Services—Gain by Exchange", as well as progressive figures.

(Authority : C.G.A's O.M.No. S. 11011/1/81/TA/2266 dt. 11-8-81).

Correction Slip No. 13

Page : 263

Form : CAM -6

Substitute "Bill Dairy" for "Returned Bill Register" appearing in the 5th line of the form of certificate.

Correction Slip No. 14

Page : 242

Main Para 13.8

Add the following as a new para below para 13 8-1 :-

13.8.2 The provisions of the procedure at (ii) of para 13.8.1 above mutatis mutandis: and of (iii) & (iv) thereof, shall also be followed for release of Original documents to Departmental Enquiry Officers.

Correction Slip No. 15

Page : 9

Para : 1.15.5

(i) Substitute the word "gross" for the word "net" appearing in 1st and 2nd lines of this para.

(ii) Substitute the second sentence by the following :

Thereafter he shall take the figures of payments and receipts for each month to the account head "858—Suspense Accounts—Public Sector Bank Suspense" on the appropriate side i.e. credit and debit sides respectively in the Classified Abstract.

Correction Slip no. 16

Page: 9

Para: 1.15.6

Substitute the following for the existing para 1.15.6

1.15.6: The idea behind opening the minor head' Public Sector Bank Suspense' with effect from 1st April, 1977 is to exhibit in accounts the difference between amounts of Central Government (Civil) transactions occuring in Public Sector Banks which are included in Government Accounts and the amounts actually adjusted by the Reserve Bank of India, Central Accounts Section, Nagpur against the Central Government on the basis of advices received from the link branches of Public Sector Banks through designated offices of Reserve Bank of India. The progressive balances outstanding on credit and debit sides under the minor head 'Public Sector Bank Suspense' in the books of the Principal Accounts Officer concerned will represent respectively the payments and receipts of the Ministry/Department handled by its accredited Public Sector bank for which either settlement remains to be effected between the public sector bank and the Reserve Bank of India or non clearances therefrom by the Principal Accounts Offices due to non-receipt of monthly statement(s) of transactions from the R.B.I., Central Accounts Section, Nagpur before close of the monthly accounts of relevant month. Causes for the said non-settlement will generally be (i) delay in receipt of memorandum of transaction(s) by link banks from branch banks, (ii) delay or omission on the part of link banks in including the amounts of branch bank's memorandum in their daily advice to Reserve Bank of India, (iii) difference between amounts indicated in branch bank memo (which gets reflected in link bank advice) and the correct amounts of cheques paid /receipt chalans scrolled and (iv) erroneous classification of transactions of a Ministry/ Department against another Ministry/Department in its advice(s) by a branch or link bank of a public sector bank which handles transactions of more than one Ministry/Department.

Similarly, in the monthly Civil Accounts of the Government of India consolidated by the Controller General of Accounts, progressive figures of credit and debit balances outstanding under the head 'Public Sector Bank Suspense' will give a total picture thereof relating to all Civil Ministries/Departments put together.

(Correction slips 15, 16, 17 and 20 are a sequel to O.M. No. S. 11012/1/81/ RBD/3959 datted 29-9-1981).

Correction Slip no. 17

Page: 13

Para: 1.19.2

Delete the last sentence of the sub-para and add the following sentence:-

The clearance will be effected by means of a transfer entry by affording against the suspense head 'Minus debit' to the extent of the total receipts shown in the report, and minus credit' to the extent of the total disbursements shown, with contra entry against the head 875—Deposits with Reserve Bank—Central Civil—R.B.H.Q. on the appropriate side for the net effect thereof.

Correction Slip No. 18

Page :131

Main Para: 8.3

Add the following as para No. 8.3.5.:-

8.3.5:—Outward claims of Pay and Accounts Offices to be settled with State Accountants General may be raised directly against them by the Pay and Accounts Offices; but outward claims (other than those relating to expenditure etc. on National Highways) of State Accountants General to be settled with Pay and Accounts Offices may, as a special arrangement, be routed through concerned Principal Accounts Offices.

(Authority—O.M.No. S.11019/8/80/TA/1882 dated 17-5-1980 forwarding Comptroller and Auditor General's Circular No 39-AC/1980 (978-AC/Sep./ 164-76 II KW) dated 8-5-1980).

Correction Slip no. 19

Page: 231-232

Para: 13.2.1

Add the following sentences at the end of this para:

In the latter type of cases, however, if for any reason, LPC is issued before payment of joining time pay and allowances, the payment thereof shall be arranged by the same Central Civil D.D.O. by drawing it from his accredited Pay and Accounts Office, and routing the crossed cheque/bank draft drawn in favour of the Officer concerned through the D.D.O. of the new Office, and in the case of a State Government Gazetted Officer (who is permitted to draw his personal entitlement directly from the State Treasury etc.) directly to the Officer. Simultaneously, a revised L.P.C. marked "final" shall also be issued to the new D.D.O. or the Accountant General as the case may be, stating that the Last Pay Certificate issued earlier was a provisional one.

Correction Slip No. 20

Page: 280

Form : CAM-17

(i) Put asterik mark against the phrases 'Deduct', 'Payments/Receipts' and 'Net payments/Receipts' appearing at the bottom, left side of the form.

(ii) Add the following at the end below the bottom line of the form.

*These entries will not appear in the Register of Public Sector Bank Suspense.

Correction Slip no. 21

Page: 166

Para: 9.10

Add the following as a new paragraph : —

9.10: PAYMENT OF PENSION / C.P.F. CONTRIBUTIONS AND/OR G.P.F. SUBSCRIPTIONS AND/OR REPAYMENT OF LOANS AND ADVANCES DURING THE PERIOD OF FOREIGN SERVICE OUT OF INDIA.

9.10.1: Pay and Accounts Offices shall watch that Govt. servants proceeding on foreign service out of India, make remittances of Pension/C.P.F.contributions and/or G.P.F. subscriptions and repayment of loans and advances regularly during the period of their foreign service out of India, according to the procedure laid down in the Ministry of Finance (Department of Expenditure) O.M. No. F. 8(8)-E.III/81 dated 22nd September, 1981 as amended from time to time.

(Authority : Ministry of Finance (Department of Expenditure) O.M. No F 8 (8)-E. III / 81 dated 22-9-1981).

Correction Slip No. 22

Page:12.

Paras: 1.18.1 & 1.18.2

Substitute the following paragraphs in place of paras 1.18.1 & 1.18.2

1.18 ADVICES ON RESERVE BANK OF INDIA (CAS) NAGPUR AND OPERATION & CLEARANCE OF THE MINOR HEAD, RESERVE BANK SUSPENSE (C.A.O.) ETC:

1.18.1 Payments of loans and grants to State Governments and repayments of loans/payment of interest by State Governments are effected by the issue of advices to the Central Accounts Section of R.B.I., Nagpur by various Principal Accounts Offices etc. in terms of the procedure prescribed in Chapters. Advices issued by a Pr. A.O. to R.B.I. (CAS), Nagpur in this connection for effecting monetary settlement through its books will be given the same treatment in accounts as is given to cheques issued, except that the head '858-Supense Accounts-R.B. Suspense (C.A.O.)' instead of the head '870-Cheques and Bills' will be operated upon for affording contra credit. This suspense head will also be cleared with a minus credit as soon as relevant intimation (clearance memo) is received from R.B.I. - - C.A.S. Nagpur about having effected the settlement in the manner indicated in para 1.18.3 et seq.

1.18.2 Intimations received by a Principal Accounts Office from the RBI(CAS), Nagpur about credit having been afforded to the Ministry's/Department 's account based on advices from Accountants General etc. will be dealt with in the same manner as receipt scrolls from banks (without supporting details which would be awaited from the Accountant General concerned) and the head "Reserve Bank suspense (C.A.O.)" (credit side) will be operated upon. On receipt of details from the A.G., the suspense head should be cleared through a transfer entry, affording minus credit to it with per contra credit to the final head (s). This procedure of operating on Reserve Bank Suspense (C.A.O.) may be adopted in respect of all such Clearance menos received irrespective of whether particulars are received and complied, or not.

1.18.3 Form of register of Reserve Bank Deposits-Part II (CAM 17A) has been devised for use in the manner indicated in the other sub paras of this para and in the next para. However, Principal Accounts Offices which are not concerned with the operation of remittances heads need not open columns meant for indicating contra effect against major heads 886 to 889 (viz. columns 7 to 10).

All advices for payments of the type referred to in para 1.18.1. above should be entered in a register in form CAM 65 and they should be submitted for signatures along with the register. Monthly total under column 3 of the register should be entered as credit against the head '858-Suspense accounts-Reserve Bank Suspense (Central Accounts Office)' in the classified/consolidated abstract. Also, full classification of the final head(s) to which the payment is debitable should be indicated/pasted on a spare copy of each advice, and passed on to the Compilation Section along with the daily memorandum of advices issued, for posting in the compilation sheet etc. As soon as clearance memos are received from the RBI, their particulars should be entered in form CAM17A. Total amount under column 12 thereof will have to be reckoned for posting against the said suspense head in the classified abstract as responding minus credit.

Clearance memos received in the type of cases referred to in para 1.18.2 are to be entered in form CAM 17A and credit afforded to the said suspense head to the extent of the monthly total under column 6 of the register and T.Es proposed in all cases on receipt of particulars from AGs in the manner indicated in para 1.18.2.

The net of total receipts and disbursements under columns 5 and 11 of the said register will be reckoned for the purpose of entry on the appropriate side of the classified abstract/consolidated abstract against the head of account "875-Deposits with Reserve Bank-Central Civil-Reserve Bank.Central Accounts Office". Ordinarily, no balance should remain outstanding under the head 'Reserve Bank Suspense' at t he close of the accounts of a financial year.

1.18.4 In the case of operation of remittances heads by Supply Accounts and External Affairs Accounts Offices etc. referred to in paras 8.10.1 and 8.11.1 et seq, the original adjustment of debit against these heads would have arisen at the time of compilation of the relevant payment vouchers in a manner similar to adjustment under 'PAO Suspense' dealt with in para 8.2.1 with the difference that the settlement will be by issuing advices on RBI, CAS, Nagpur instead of by asking for a cheque. The responding stage commences with the issue of an advice to RBI (CAS) Nagpur. The advices may be entered in a separate register in form CAM 65. When the relevant clearance memo is received from RBI, "Nagpur, it should be entered in C.A.M.17A so as to give responding minus debit to the relevant remittance head from the monthly total thereunder and the corresponding debit would form part of the figure to be reckoned against the head '875-Deposits with Reserve Bank—Central Civil—Reserve Bank Central Accounts Office'.

Ordinarily, no balance should remain outstanding under these remittances heads at the close of the accounts of a financial year.

1.18.5. Monthly totals under columns No. 5 & 11 should be tallied and reconciled with the monthly report of adjustments submitted by R.B.I. (CAS) Nagpur vide portion (i) of para 1.19.1 et seq.

Correction Slip No. 23

 

(a) Page 255/256

List of Forms

 

In the list of forms, after Nos. 17 and 64, add the following respectively :-

17A—Register of Reserve Bank Deposits—Part II 1.18.3
65—Register of advices on RBI Nagpur issued 1.18.4 & 1.18.3

 

(b) Page 280

Form C.A.M. - 17A

Add form C.A.M. 17A with the following format :

C.A.M. 17A
(See Paras 1.18.3 & 1.18.4)

Effect on R.B.D. etc. based on clearance memos received against settlement through R.B.I. (CAS) Nagpur.

Principal Accounts Office, Ministry/Department of..........................         Month of............ 19................

SI. No. (to be continuos for a financial year) R.B.I. clearance memo No. & date. Indicate against entries in col. 3 whether particulars were received & T.Es. prepared (See para 1.18.3) Amounts where the memos afford receipts Amounts where memos represent disbursements Remark
Against advices issued by Pr. A.O. Against advices; issued by AG on Railways etc. in terms of paras 8.20.2, 8.10.3 & 8.15.1 Total

Heads bearing contra effect

Total Head bearing contra effect
(to be reckoned as debit under R.B.D.) 858 etc. 886 887 888 889 (to be reckoned as credit under R.B.D.)
R. B. S. (Original credit vide para 1.18.2) (only in supply/Ex. Affairs accounts books, vide paras 8.10.1 & 8.11.1; to appear as responding (—) Dr. vide para 1.18.4) 858 etc. R.B.S. (Responding (—) Cr. vide para 1.18.1 or original debit vide para 8.10.3)
1 2 3 4 5 6 7 8 9 10 11 12 13
        Rs. Rs. Rs. Rs. Rs. Rs. Rs.  

 

 

 

 

 

 

(c) Page 374.

Form CAM - 65

 

Add Form C.A.M.—65 with the following format :—

C.A.M.—65
(See para 1.18.3)

Register of Advices issued to Reserve Bank of India (C.A.S.) Nagpur.

Principal Accounts Office,                            Ministry/Department of.................................
Month of...................... 198................

SI. No. (to be continuous for a financial year) Advice No. & Date Amount Initials of the authority signing the advice Serial number of the corresponding clearance memo as entered in CAM—17 A. Remarks
1 2 3 4 5 6
 

 

 

         
Total :
Abstract pertaining to the year 198................ 8............ after closing of the annual accounts. Sl. No. Total amount
Rs.
(a) SI. Nos. of advices issued during the year (or even upto the 3rd week of following April relating to the year) and not given effect to by R.B.I. in that year's accounts  

 

(b) Total progressive amount outstanding under 'R.B.S.' (credit side ) in the accounts of March (Sy), excluding adjustments pertaining to the previous year
(c) Analysis of difference if any.

Correction Slip No. 24

Page : 13.

Para: 1.19.1

Add the following in the 10th line on the page between the words 'Principal Accounts Office' 'and (ii)' :—

in terms of para 1.18.1 and from A.Gs in terms of para 1.18.2 read with paras 8.10.3 & 8.20.2, & from Railways in terms of para 8.15.1 etc.

Correction Slip No. 25

Pages : 233-234

 Main Para: 13.3.

                                                                                

(i) Substitute the following for the existing para 13.3.5 :

13.3.5 : Except to the extent modified in these instructions the rules contained in CTRs regarding deposits of various categories should continue to be followed. Deposits which lapse to Government in terms of rule 635 of CTRs are to be entered in a register in form C.A.M. 63A giving therein a cross reference to their Serial Nos. in the Register of deposits. (However, deposits which could not be claimed/refunded due to litigation/arbitration cannot normally be treated as unclaimed and hence not be creditable to Government. To seggregate such items, the PAO shall ascertain from the Departmental Officer whether any legal proceedings/arbitration are pending against the relevant contracts/supply orders. On receipt of an affirmative reply, a note to that effect shall be kept in the remarks column of Form CAM.63. Depending on the outcome of such proceedings, the relevant items of deposit shall be refunded, or forfeited and adjusted as the case may be). For effecting credit to Govt., a transfer entry should be incorporated in the accounts debiting the major and minor head etc. under which the original deposit was credited, with per contra credit to the major etc. head '068-Miscellaneous General Services-Unclaimed Deposits'. Before authorising refund of such a lapsed deposit, the PAO will (i) verify that the departmental officer counter-signing the application for refund has certified about the claimant's identity and title for the refund; and (ii) ascertain from the register (form CAM 63 or 63A) that the deposit item was really received and is traceable and that it was transferred to the revenue head of Government as lapsed deposit and was not paid previously. Necessary entries about payment will thereafter be made in the relevant columns of the register. Such lapsed deposits when refunded, shall be accounted for under the sub-head "Deduct-Refund" below the major etc. head '068-Miscellaneous General Services-Unclaimed Deposits'.

(ii) Substitute the following for the existing para 13.3.7 :

13.3.7. Lapsing and refund of deposits, the detailed accounts of which are maintained by Departmental Officers

Lists of items lapsing to Government in terms of rule 635 of C.T. Rs (indicating distinctly along with relevant particular deposits which pertain to contracts/supply orders that are under litigation/arbitration) will be submitted by departmental officers with full particulars (vide columns 1 to 4 of form CAM 63A) to their Pay and Accounts Office. If the items are numerous, these lists may be used in original to form the folios of the register after opening additional columns No. 5 to 8; if not, then these may be entered in the register. Effect of the lapsing should also be reflected in accounts by the PAO through a transfer entry in the same manner as stated in para 13.3.5. Bills for refund of lapsed deposits of this type will also require to be submitted to the PAO for payment after scrutiny etc. in the same manner. (For discharging these duties in respect of deposits that lapsed during the three years preceding the date of departmentalisation, departmental officers were required to send full lists thereof to the PAO.)

Correction Slip No. 26

(a) Pages 255-256 :

List of Forms

In the list of forms, after No. 63 add the following :

63A Register of Deposits lapsed and Credited to Government

(b) Page 373

Form CAM - 63A

Add Form CAM 63A with following format :

(Refer para 13.3.5)

Register of Deposits lapsed and credited to Government during the year 19..........19..............

Particulars of original Deposit

T.E. No. & date. B.R. No. Amount of refund authorised Initials of P.A.O
SI. No. Year of deposit & SI. No. in the register of deposits Name of the depositor (i.e. party concerned) Balance lapsed Vr. No. & date
1 2 3 4 5 6 7 8
 

 

 

 

             

Correction Slip No. 27

Page : 65

Para : 4.8.1

In line 7 of this Para following words may be added between the words "major head" and "267" :

"concerned relieving the initial debit under the major head".

Correction Slip No. 28

Pages : 128-129

Para : 8.2.1

Add Note 4 below Para 8.2.1

Note 4 : In respect of employees taken on foreign service from the public sector undertakings, autonomous bodies, institutions etc., recoveries on account of their contributions to the contributory provident fund maintained by such bodies and other recoveries like instalments of repayment of conveyance advance, house building advance etc. drawn by them from their parent Organisation, which are adjustable finally in the books of these bodies, shall not enter the accounts of Government. These recoveries shall not be entered in the body of the bills. The Drawing and Disbursing Officer concerned shall prepare and attach a separate schedule relating to such amounts required to be remitted to the parent body, by indicating such recoveries only on the outer cover of the Bill as "payable to ....................Organisation (name of the body to be indicated)" and seek a crossed cheque/bank draft, as the case may be, in favour of the Organisation for being despatched to it. The PAO shall pass the bill and issue one cheque for the net amount of the salary payable to the employee (or if cash is payable to the employee, include it in the amount of the cheque in favour of the D.D.O) and another in favour of the Parent Organisation specified in the bill which shall be despatched by the D.D.O. to the Organisation with a covering letter indicating the name of the Government servant and details of the recovery against which the cheque is forwarded.

Correction Slip No. 29

Page : 287

Form CAM—22.

In column 8 of form CAM—22 read

"1+3-4+7" for "(1+3) — (4+7)"

Correction Slip No. 30

Page : 283

Form CAM—20

In column 6 of form C.A.M.—20

read "2+3-4+ 5" for "(2+3) (4+5)"

Correction Slip No. 31

Page: 117

Para: 7.1.3

Add the following at the end of this para:

For this purpose, the P.P.O. will be sent by the former to his Principal Accounts Office, for being forwarded to the latter with suitable endorsement.

Correction Slip No. 32

Page : 249

Para: 13.13.1

Insert the following as sub para to Para 13.13.1:

Occasionally there could be a case in which broad-sheet balance under a loan, debt, deposit, remittance or suspense head may be higher than the ledger balance and full details would also be available in the broadsheet. In such a case to rectify the book keeping error, the ledger balance has to be increased so as to agree with the broad-sheet figure involving write-up of the balances. This shall be done by a per contra entry under '880-Misc. Government account' after obtaining sanction in terms of article 53 of Account Code Vol. I. If however, no details are available in the broadsheet the difference between broadsheet & ledger figures shall be dropped without any account adjustment by a mere correction in the broadsheet.

(Authority: C. & A.G's circular No. 844-Comp/18-72 dt. 14-9-72)

Correction Slip No. 33

Page: 172

Para: 10.8.2

Add a sub-para to the para as follows:

There is a distinct minor head with the nomenclature "Festival Advance" under the major ' head "766-Loans to Government Servants etc.". Of all loans and advances to Government servants, the maximum budget provision is made under the minor head "Festival Advances". No interest is also recoverable in respect of this type of advance. Also, generally, all employees drawing the advance repay it in the maximum permissible instalments (viz. 10 at present). Therefore, Pay & Accounts offices could easily carry out a cross check (so long as the rate and number of instalments for repayment or not varied) based on data available with them as to whether total of recoveries effected on this account during any month by a D.D.O. is to the extent actually required to be effected etc, so as to facilitate conduct of further probe in cases of large variations etc. Distortions, if any, could be only on account of (i) non-recovery from persons on extraordinary leave during the month or double instalment recovery from persons returning from such leave; or (ii) due to cases of 'transfers in' and 'transfers) out' of persons (who have the advance outstanding), from or to another Central Government Department on deputation/reversion from deputation, which would also be rare. Cross check as follows could be exercised either in respect of individual D.D.Os or for all D.D.Os together:—

The total recovery effected (by a D.D.O. or group of D.D.Os) during any one month should be-1/l0th of the total advance drawn and paid (by the same D.D.O. or same group of D.D.Os). during the preceding ten months.

A similar cross-check can be effected by a Principal Accounts Office for all the D.D.Os put together, provided that the transactions of no D.D.O. were left out of the compilation for the period.

Correction Slip No. 34

Page: 11

Para: 1.16.4

Insert the following as a new sub para immediately above the existing note under this Para:

"Even category III cheques/drafts bearing the endorsement "Not negotiable and not payable in cash—creditable to Government account only" drawn in favour of Chief Controller/Controller / Dy. Controller of Accounts i.e. Principal Accounts Officer, could be eneorsed by him in favour of a P.A.O. under him for crediting to Government account".

(Authority: R.B.I's letter No. GA No. 2091/22-81/82 dated 19-4-1982 in file No. S. 14014/8(5)/82/TA)

Correction Slip No. 35

Page: 169

Para: 10.4.2(b)

Add the following as Note below Para 10.4.2(b):

"Note: In order that Government may get relevant credit by the due date cheque/draft should be so tendered at the bank as to give enough time for its clearance on or before the due date by the bank".

Correction Slip No. 36

Page: 59

Para: 4.3

(a) Delete the Para 4.3 (heading), 4.3.1, 4.3.2 and 4.3.3.

(b) Insert the following as Para 4.3 (heading), 4.3.1 and 4.3.2

4.3 SCRUTINY OF DISTRIBUTION OF GRANTS/APPROPRIATION, CHECK OF REAPPROPRIATION ORDERS, AND SCRUTINY WITH REFERENCE TO THE GUIDELINES ON "NEW SERVICE"/NEW INSTRUMENT OF SERVICE".

4.3.1 While scrutinising orders relating to allotment and reappropriation of funds, provisions of the Rules contained in Sections V and VI of Chapter 5 of the General Financial Rules and Rules 7 to 10 of the Compilation of Delegation of Financial Powers Rules 1978, as amended from time to time, may be kept in view. It may also be checked whether relevant orders are issued by the competent authority and that the total of the allotments among various controlling and disbursing officers does not exceed the funds duty provided under the relevant head and further that reappropriation orders are free from arithmetical in accuracies etc. and contain full reasons for the reappropriations.

4.3.2 Ministry of Finance (Department of Economic Affairs) O.M. No. F.7 (15)-B (RA)/82 dated 13th April, 1982 containing guidelines on the above subject are reproduced in the Appendix along with the annexures thereto. The provisions thereof may be kept in view while exercising check of sanction etc. and precheck of bills.

Correction Slip No. 37

Page : (iii)

Contents.

Substitute the following for the existing entry 'New Instrument of Service—Limits requiring approval of Parliament—Annexure A—89—94' :

Scrutiny of distribution of grants/appropriations, check of reappropriation orders and scrutiny with reference to the guidelines on "New Service"/"New Instrument of Service". Appendix 89—94

Correction Slip No. 38

Page : 89

Annexure : 'A'

Substitute the following as Appendix 'A' to Chapter 4 for the existing Annexure 'A' (both statements—'A' & 'B').

Appendix 'A' to Chapter 4
(Referred to in para 4.3.2)

No. F. 7(15)-B (RA)/82
Ministry of Finance
Department of Economic Affairs

New Delhi, the 13th April, 1982

OFFICE MEMORANDUM

Subject : Revised guidelines on 'New Service'/'New Instrument of Service'.

The financial limits to be observed in determining cases relating to 'New Service'/'New Instrument of Service' prescribed in this Ministry's O.M. No. F. 8(60)-B/69 dated the 27th July, 1970 have been reviewed in pursuance of the recommendations of the Public Accounts Committee (Seventh Lok Sabha) in their 41st report. The revised limits, which have been drawn up in consultation with the Comptroller and Auditor General of India and have been approved by the Public Accounts Committee in their 70th report are annexed.

2. As the Ministry of Agriculture, etc. are aware, the term 'New Service', appearing in article 115(l)(a) of the Constitution, has been held as referring to expenditure arising out of a new policy decision, not brought to the notice of Parliament earlier, including a new activity or a new form of investment. Likewise, relatively large expenditure arising out of important expansion of an existing activity is treated as a 'New Instrument of Service' which is a slight variant of the term 'New Service'. The basic principle is that no expenditure can be incurred from the Consolidated Fund of India on a 'New Service'/'New Instrument of Service' without prior approval of Parliament through a Supplementary Grant. That is to say, the powers of Ministries/Departments to re-appropriate savings available under some sub-head(s) in a Grant for meeting additional requirements under other sub-head(s) within that Grant are subject to the aforesaid limits. As any non-observance of these limits reflects laxity in financial control, Ministries/Departments are requested to ensure strict adherence of these instructions in examining proposals for augmentation of sanctioned provisions.

3. Where in an emergent case of 'New Service'/New Instrument of Service' it is not possible to wait for prior approval of Parliament, the Contingency Fund of India can be drawn upon for meeting the expenditure pending its authorisation by Parliament. Recourse to this arrangement should normally be taken only when Parliament is not in session. Such advances are required to be recouped to the Fund by obtaining a Supplementary Grant in the immediately next session of Parliament. However, when Parliament is in session, a Supplementary Grant should preferably be obtained before incurring any expenditure on a 'New Service'/'New Instrument of Service'. That is to say, recourse to Contingency Fund of India should be taken only in cases of extreme urgency; in such cases the following procedure recommended by the Sixth Lok Sabha Committee on Papers Laid on the Table in their 4th Report should be observed.

"As far as possible, before such withdrawal is made, the concerned Minister may make a statement on the floor of the Lok Sabha for information giving details of the amount and the scheme for which the money is needed. In emergent cases, however, where it is not possible to inform the Members in advance, the withdrawal may be made from the Contingency Fund and soon thereafter a statement may be laid on the Table of the Lok Sabha for the information of the Members".

It has been suggested by the Rajya Sabha Secretariat that the above procedure may also be observed in Rajya Sabha.

4. The following checks may be observed by the Ministries/Departments to ensure that any expenditure likely to attract limits of 'New Service/'New Instrument of Service' is not incured by re-appropriation.'

(i) A specific certificate should be recorded in each case involving augmentation of sanctioned provision by the IF/Budget Section of the Ministry/Department on receipt of related proposals, to the effect that the proposed augmentation attracts / does not attract limits of 'New Service'/New Instrument of Service'. Where the proposal is held to attract these limits the procedure indicated in paragraphs 2 or 3 above will, depending upon the circumstances of the case ,have to be followed.

(ii) Subject to Paragraph 5 below, the Pay and Accounts Officers should examine each expenditure sanction from the 'New Service'/New Instrument of Service' angle, especially those involving investments, loans, grants-in-aid, subsidies, new works, etc. All doubtful cases should be put to the Controllers of Accounts/Financial Advisers.

If in any exceptional case, the expenditure, whether partly or fully, on a 'New Service'/ 'New Instrument of Service' has been incurred inadvertently and this fact comes to notice within the financial year, an advance from the Contingency Fund should be obtained during the year itself to cover the expenditure already incurred as also for the expenditure likely to be incurred before a Supplementary Grant for that Service becomes available.

5. Having regard to the volume of Government transactions it is not possible to list out those which are not attracted by 'New Service'/'New Instrument of Service' limits. Broadly, however, expenditure on normal activities of Government (such as normal administrative expenditure — including that resulting from reorganisation of Ministries/Departments, holding of conferences, seminars, exhibitions, surveys, feasibility studies, etc., assistance to foreign Governments, contributions to international bodies and transfers to State and Union Territory Governments) is not attracted by the limits of 'New Service'/'New Instrument of Service'. Further, these limits are applicable only to expenditure which is subject to vote of Parliament.

6. It should be noted that additional expenditure to the extent mentioned in column 2 of the annexed statement can be met by re-appropriation, subject to report to Parliament, only if savings are available in the relevant Grant; otherwise a Supplementary Grant has to be obtained.

Report to Parliament should ordinarily be made through the ensuing batch of Supplementary Demands and failing this by adding an Annexure in the Detailed Demands of Ministry/ Department for the ensuing year. Where possible a suitable mention of such cases may be made in the Notes on Demands for Grants of the Ministry/Department. Mere exhibition of augmented provisions in the Revised Estimates included in the Demands for Grants will not be adequate to meet the requirement.

7. Where a doubt arises about the application of limits of 'New Service'/'New Instrument of Service', a reference may be made to the Budget Division for clarification.

8. A mention may also be made here about the 'New Service' Annexure which is appended to the main Demands for Grants. The purpose of this Annexure is somewhat different. It is intended to bring to the notice of Parliament the details of new schemes i.e. schemes for which the Budget includes provision for the first time so that these can receive special attention of Parliament. These schemes are normally to be taken up after the passing of Budget; the Vote on account provisions are not intended to be utilised therefor. In cases of urgency, expenditure on a 'New Service' during Vote on Account period can, therefore, be incurred only by obtaining an advance from the Contingency Fund in the manner recommended by the Sixth Lok Sabha Committee on the Papers Laid on the Table, mentioned in paragraph 3 above. Such advances will be resumed to the Contingency Fund on enactment of Appropriation Act in respect of expenditure for the whole year.

ANNEXURE to O.M. No.F. 7(15)-B(RA)/82 dated 13-4-82
financial limits to be observed in determining cases relating to
'NEW SERVICE'/'NEW INSTRUMENT OF SERVICE'

Nature of transaction

Limits upto which expenditure can be met by re-appropriation of savings in a Grant subject to report to Parliament Limits beyond which prior approval of Parliament is required for expenditure from the Consolidated Fund
1 2 3
1. CAPITAL EXPENDITURE
A : Departmental Undertakings.
(i) Setting up a new undertaking, or taking up a new activity by an existing undertaking All Cases
(ii) Additional investment in an existing undertaking Above Rs. 50 lakhs but not exceeding Rs. 1 crore Above Rs. 1 crore
B: Public Sector Companies/Corporations
(i) Setting up of a new Company, or splitting up of an existing Company, or amalgamation of two or more Companies, or taking up a new activity by an existing Company. All cases
(ii) Additional investment in/loans to an existing company
(a) Where there is no Budget Provision Above Rs. 10 lakhs but not exceeding Rs. 20 lakhs Above Rs. 20 lakhs
(b) Where Budget Provision exists for investment and/or loans
Paid up Capital of the Company
Upto Rs. 1 crore Above Rs. 10 lakhs but not exceeding Rs. 20 lakhs. Above Rs. 20 lakhs
Above Rs. 1 crore and upto Rs. 25 crores Above Rs. 1 crore but not exceeding Rs. 2 crores Above Rs. 2 crores.
Above Rs. 25 crores and upto Rs. 100 crores Above Rs. 5 crores but not exceeding Rs. 10 crores. Above Rs. 10 crores
Above Rs. 100 crores Above Rs. 75 crores but not exceeding Rs. 15 crores. Above Rs. 15 crores
Nature of transaction Limits upto which expenditure can be met by re-appropriation of savings in a Grant subject to report to Parliament Limits beyond which prior approval of Parliament is required for expenditure from the Consolidated Fund
1 2 3
Note 1 : In computing additional requirements for applying the above limits, loan and capital investments, over and above the budget provisions therefor, should be taken together.
Note 2 : For additional fund requirements of term lending institutions which are under the audit of the Comptroller and Auditor General of India, the limits will be twice those specified above.

Where an institution does not have paid up capital, the limits will be applied with reference to Central loans outstanding against it at the end of the previous financial year.

Note 3 : For financing projects under construction, within the approved cost estimates already brought to the notice of Parliament, augmentation of budget provisions beyond the monetary limits prescribed above will be permissible subject to availability of savings in the Grant. A report of such cases to Parliament will, however, be necessary.
Note 4 : Short term (working capital) loans, repayable within five years, will not be treated as 'New Instrument of Service' but will require to be reported to Parliament.
C: Port Trusts, Delhi Municipal Corporation, Khadi and Village Industries Commission, Tea Board and Coffee Board.  

 

Loans : The limits prescribed for public sector companies will apply with reference to central loans outstanding against them at the end of the previous financial year.
D: Private sector Companies/Private Institutions:
(i) Investments to be made for the first time except in Units coming under Government Management with the approval of Parliament All cases
(ii) Additional investments in or loans to an existing company/institution including private sector units coming under Government Management with the approval of Parliament. Above Rs. 50 lakhs but not exceeding Rs.1 crore. Above Rs. 1 crore.
Note 1 : While applying these limits loans and capital investments are to be taken together.
Note 2 : In the case of loans to statutory and other public institutions (other than those mentioned under item C above) substantially financed by grants-in-aid from Government e.g. University Grants Commission, Indian Institute of Technology and joint sector enterprises, limits as applicable to private sector companies/institutions should be applied.
Nature of transaction Limits upto which expenditure can be met by re-appropriation of savings in a Grant subject to report to Parliament Limits beyond which prior approval of Parliament is required for expenditure from the Consolidated Fund
1 2 3
Note 3: Where there is no Budget provision for investment/ loans to a company/institution, prior approval of Parliament will be necessary for investment/ loans exceeding Rs. 10 lakhs except in the case of units brought under Government Management.
E: Expenditure on new Works (Land, Buildings and/or Machinery) Above Rs. 10 lakhs but not exceeding Rs. 50 lakhs Above Rs. 50 lakhs
II. REVENUE EXPENDITURE
F: Grants-in-aid to statutory and other public institutions :  

 

(i) Institutions in receipt of grant-in-aid upto Rs. 1 crore Rs. 10 lakhs
(ii) Institutions in receipt of grant-in-laid of more than Rs. 1 crore 10% of the Budget provision or Rs. 2 crores, whichever is less.
Note 1 : These limits will apply with reference to moneys disbursed by an individual Ministry/Department and not by the Government as a whole.  

 

Note 2 : The above limits will also apply to institutions which are substantially financed by grants-in-aid from Government and to public sector undertakings in receipt of grants-in-aid.  

 

Note 3 : Where a lump sum provision is made for providing grant-in-aid under a particular scheme in the absence of institution-wise break up at the time the provision is made, the aforesaid limits will not apply to releases to such institutions within the budgeted provision. The details will, however, be reported to Parliament.  

 

G: Grants-in-aid to Private institutions other than for Export Promotion Schemes
(i) Recurring •• Above Rs. 5 lakhs
(ii) Non-recurring •• Above Rs. 10 lakhs
Note 1 : In the case of recurring grants exceeding Rs. 5 lakhs per annum the financial implications should be reported to Parliament where the grant is to be made for 2 years or more.  

 

Note 2 : The limits for non-recurring and recurring grants-in-aid will apply with reference to moneys disbursed by an individual Ministry Department and not Government as a whole.  

 

Nature of transaction Limits upto which expenditure can be met by re-appropriation of savings in a Grant subject to report to Parliament Limits beyond which prior approval of Parliament is required for expenditure from the Consolidated Fund
1 2 3
Note 3: Where a lumpsum provision is made for providing grant-in-aid under a particular scheme in the absence of institution-wise breakup at the time the provision is made, the aforesaid limits will not apply to releases to such institutions within the budgeted provision. The details will, however, be reported to Parliament.
H : Subsidies and Grants under Export Promotion Schemes. The budget provision should be split up as under :—
 

 

(i) Product Promotion and Commodity Development (this sub-head will accommodate payments of cash compensatory support on all items of exports including textiles).
(ii) Grants-in-aid to Export Promotion and Market Development Organisations (this sub-head would accommodate grants to Export Promotion Councils and other organisations like Trade Development Authority, Indian Institute of Foreign Trade, etc. for their establishment expenditure as well as developmental activities and also to recognised export houses for specified export promotion actvities).
(iii) Export Credit Development (This sub-head will cover payments made to commercial banks towards interest subsidy under the Export Credit Subsidy Schemes).
Limits for augmentation of total provision under the Export Promotion Schemes :
Above Rs. 50 lakhs but not exceeding Rs. 2 crores Above Rs. 2 crores
I : Food Subsidy Above Rs. 50 lakhs but not exceeding Rs. 2 crores Above Rs. 2 crores
J : Other subsidies Above Rs. 10 lakhs
K : Payments against cess collections Limits as applicable to grants-in-aid to statutory or public institutions will apply
L : New Commissions or Committees of Enquiry •• Above Rs. 4 lakhs (total expenditure)
M : Write off of Government loans Above Rs. 50,000 but not exceeding Rs. 1 lakh (individual cases) Above Rs. 1 lakh   (individual cases)
 

 

Note : This limit will also apply where it is decided to sanction grant to a private institution/individual for repayment of loan.  

 

Nature of transaction Limits upto which expenditure can be met by re-appropriation of savings in a Grant subject to report to Parliament Limits beyond which prior approval of Parliament is required for expenditure from the Consolidated Fund
1 2 3
N: Other cases of Government expenditure Each case to be considered on merits.
O: P & T Railways Defence The aforesaid limits, including those relating to Works expenditure, will also apply to these Departments subject to considerations of security in the case of Defence.
Note 1 : For investment in ordnance Factories, the limit of Rs. 1 crore mentioned in item A(ii) will be applicable with reference to investment in all the factories as a whole.
Note 2 : Civil Works, which do not form part of any project of the departmental undertakings (Ordnance Factories) should be treated as ordinary Defence works. As such, prior approval of Parliament will be necessary if the cost of individual works exceeds Rs. 50 lakhs and in cases where the individual works cost Rs. 10 lakhs or more but not exceeding Rs. 50 lakhs, a report to Parliament will be required. A list of such works should, however, be supplied to Director of Audit, Defence Services.

Correction Slip No. 39

Pages: 160-161

Para: 9.4.1

Substitute the following for the existing para 9.4.1

9.4.1 The "specified" Pay and Accounts Office in the context of various payment and/or accounting functions relating to Central Government employees, which arise while they are on foreign service or on deputation to State Governments. Defence, Railways, P&T Department, Union Territory Governments/Administrations shall be:—

(I) The Pay and Accounts Office of the concerned parent Ministry/Department in respect of employees belonging to any particular Ministry/Department (i.e. not borne on a Centrally administered cadre). [The corresponding DDO may be associated in matters involving DDO's responsibilities].

Note 1: In accordance with para 6.1.1. of this manual, the said P.A.O. is also responsible for the maintenance of their G.P. Fund accounts.

**Note 2: An employee who proceeds on foreign service or on a deputation referred to above, while on deputation to another Central (Civil) Ministry/ Department without actually reverting to the parent Ministry/Department. is deemed notionally to have reverted to the parent Ministry/Department before, proceeding on the foreign Service/depuration purposes of these provisions also.

(II) PAO of the Ministry/Department in which the Officer served before proceeding on foreign service/deputation, in respect of an Officer belonging to a Centrally administered cadre such as the Indian Civil Accounts Service. Indian Economic Service who proceeds on foreign service or on a deputation referred to above. (The corresponding D.D.O may be associated in matters involving D.D.O's responsibilities).

(III) The "specified" Pay and Accounts Office will perform functions indicated below:-

(i) in respect of Central Civil employees on foreign service or on deputation to a State Government:

(a) of watching recovery of foreign service contributions leave salary contributions from the foreign body/State Government respectively and credit to Government; or arrange payment of any arising in terms of main para Nos. 9.3., 9.5 and 9.7 etc. of the Chapter.

(b) of watching receipt of contributions under the Central Government Employees' Insurance Schemes of 1977 or 1980 as the case may be, and payments arising thereunder and reporting statistics pertaining thereto and

(c) all other residuary payment/accounts work, such as payment and recovery of instalments of long term advances and interest thereon, cash payment in lieu of unutilised earned leave, which are required to be handled by Central Government Accounts authorities.

(ii) in respect of employees on deputation to Defence, Railways, P&T Departments, U.T. Governments and Administrations, of watching recoveries of long term advances and interest thereon, if any, handling pre-check payments of such advances and inclusion thereof in accounts. Functions as at (a) above will not arise in the case of such deputations, payment of cash in lieu of unutilised leave [vide para 9.8.1(a)(ii) et seq] and deduction/payment etc, under the two schemes against (b) above will be effected by the borrowing Department and accounted* for in its own books in the manner separately prescribed except that in the case of deputationists to U.T. Governments/Administrations who subscribe to the Scheme of 1980, relevant functions there under will be performed by the specified PAO.

IV Recoveries on account of subscriptions the General Provident Fund in respect of All India Service Officers borne on the Union Territory Cadre, effected while they are on foreign service or on deputation with the Government of lndia (including Railway, Defence and P&T Departments) would be passed on to PAO NO.VI Tis Hazari under the Controller of Accounts, Delhi Administration, as he is required to maintain their GP Fund accounts. This PAO will also act*** as the 'specified' PAO in respect of functions similar to (a) & (c) above, arising in connection with UT Cadre A.I.S. Officers. But recoveries under the AIS (Group Insurance) Rules, 1981 effected while they are on deputation as above, would be finally accounted for and adjusted in the books of the Accounts Officer of the Central Government Department concerned.

*S.11044/1/78/TA/804 dated 23-2-1980.

**S.11031/1/78/TA1/1264 dated 14-6-1978.

***D.O. No.S. 11034/1/79/TA/536 dated 5-2-1980 to C.A. Delhi Administration.

Correction Slip No. 40

Page: 165-166

Para: 9.9.2

At the end of Para 9.9.2 add a sentence as follows:—

"Provisions of Para 9.4.1(1) ante may please be referred to".

Correction Slip No. 41

Page: 166

Para: 9.9.5

Substitute the following for para 9.9.5 already deleted vide Errata to C.A.M:

"9.9.5: In respect of All India Service Officers borne on State Cadres but serving on deputation with a Department of Central Government including Railways, Defence and P.&T. Departments, recoveries on account of G.P. Fund and under the Group Insurance Scheme applicable to AIS Officers shall be passed on to the State Accountant General concerned".

Correction Slip No. 42

Page: 128

Para: 8.2.1

Note 1 to Para 8.2.1

Add the following as a sub para at the end of this note:

Recoveries from salary bills on account of Central Government Employees' Insurance Scheme, 1977 and Central Government Employees' Group Insurance Scheme, 1980 will also be adjusted to the final head of account by each Pay and Accounts Office, Accounts Office in its own books [except that transactions pertaining to these schemes which arise in the books of Railways require to be settled with Pay and Accounts Office (Expenditure) in the usual manner as in the case of their own employees], even in respect of employees (other than Defence Services personnel) on deputation inter se among Civil, P&T, Defence, Railway Departments in any combination and A.I S. officers belonging to the Union Territories cadre on deputation with any such Department, so as to reduce inter-departmental adjustments. Relevant transactions relating to such deputationists will be included in the statistics to be furnished under the latter Scheme. However, subscription under the All India Service Officer's (Group Insurance) Rules 1981 recovered from an Officer borne on a State Cadre while serving on deputation with the Government of India shall be passed on to the Accounts Officer of the state Government concerned and will not be included in the statistics of borrowing Ministry/Department.

Correction Slip No. 43

Page: 45

Para: 2.4.2

In line 3 of this para, following may be substituted for "PAO Suspense- cheques cancelled but paid"—as corrected by errata.

"Suspense Account (Civil)—Cheques cancelled but paid ".

Correction Slip No. 44

Page: 166

Para : 9.10

(i) Insert the following after the words "GPF subscriptions" appearing in the heading (para 9.10) and in Para 9.10.1 inserted vide correction slip No. 21

Subscriptions under the Central Government Employees' Group Insurance Scheme, 1980.

(ii) Add following at the end of the authority quoted within brackets :

"read with O.M.No. 8(3)—E. III/82 dated 11-5-1982."

Correction Slip No. 45

Page : 58

Note below para 4.2.3

Add the following at the end of the Note :

"A gist of the classification so far issued on the types of transactions that could be treated as 'charged' expenditure under the provisions of the constitution is included as Appendix 'B' to this chapter"

[Authority : Min. of Fin. (DEA) O.M. No. F.1(8)—B(AC)/82 dated 26-5-1982.]

Correction Slip No. 46

Page : (iii) Contents
Insert the following after the last entry under Chapter 4 as corrected by Correction Slip No. 37.
"Gist of instructions relating to types of expenditure to be treated as charged : Appendix "B"

 

Correction Slip No.47

Page-89

AppendixB

Insert the following as Appendix "B" to Chapter 4 after the existing Appendix "A" inserted vide Correction Slip No. 38.

Appendix 'B' to Chapter 4
(Referred to in Note below para 4.2.3)

1. A question was raised whether, in a case in which an appeal has been filed against the decree of a lower court, a deposit of the decretal amount made in the court, should be treated as a Deposit in the Public Account or as a payment charged on the Consolidated Fund of India under article 112(3)(f) of the Constitution of India.

It has been decided that, in the absence of a stay of execution of the decree, the Deposit should be deemed to be in satisfaction of the decree. If, however, deposit of the decretal amount has been made by way of security for staying the execution of the decree, or as a condition precedent to the grant of a stay order under orders of the Appellate Court, the payment made in pursuance of the said order is only a deposit and cannot be said to have been made in satisfaction of the decree passed by the lower court. The fact that the Court may allow the decree-holder to withdraw the amount so deposited by the Government does not alter this position. Consequently, the provisions of article 112(3)(f) of the Constitution would not be attracted in such cases. The amount, being in the nature of a deposit in the Court, would not constitute 'expenditure' of the Government and should be classified under the head "858-Suspence Accounts-Suspense Account-Civil" in Section "L-Suspense and Miscellaneous" in the Public Account of India-the debit under the Suspense Head being cleared after the amount is recovered if and when the appeal is decided in favour of Government. Where, however, the appeal is dismissed and the decree becomes final, the amount deposited in the Court would thereupon constitute payment made to satisfy the decree and, consequently, the debit under the Suspense Head should then be cleared by transfer to the final head, as 'Charged' expenditure, and covered by appropriate provision of funds or, in anticipation thereof, by an Advance from the Contingency Fund of India, as may be necessary.

[Ministry of Finance No. F1(44)-B/56 dated 16.5.56, F. 1(66)-B/57 dated 21.11.57 and F. 1(52)-B/68 dated 31.1.69]

2. In cases of arbitral awards/decrees against State Governments in disputes arising out of the acquisition of land, buildings and property for Union purposes, since the award/decree is against the State Government and the liability for the initial payment in satisfaction of the award/decree devolves on the State Government, the expenditure should be charged on the Consolidated Fund of the State under article 202(3) (e) of the Constitution. The subsequent reimbursement by the Central Government would be merely an inter-governmental adjustment which does not attract the provisions of article 112(3)(f) of the Constitution, since such an award/decree is not enforceable against the Central Government.

[Ministry of Finance No. F. 2(43)-B/59 dated 12.9.59]

3. There are cases in which security deposits of contractors are appropriated by Government towards liquidated damages. In such cases, if recovery made from the contractor on this account has to be refunded as a result of the levy of compensation in terms of the agreement having been held by the arbitrator as not justified, the refund should be treated as expenditure charged on the Consolidated Fund under article 112(3) (f) of the Constitution.

[C & AG letter No. 1267-AC/178-63 dated 24. 9. 63]

4. Where a Court award is for a composite amount which is not capable of being split up as "Refunds of Revenue" and "Other Expenditure", the entire amount of award should be treated as "Charged" expenditure.

Where an award is exclusively for the refund of security deposit or other revenue, the refund should not be treated as "Charged" expenditure but accounted for as refund of deposit or revenue, as the case may be, under "Deduct-Refunds".

Where an award is specific about the components of the award (e.g. refund of security deposit plus cost) or is for a composite amount which is capable of being split up as "Refunds" and "Other expenditure", the components are to be accounted for individually as" Refund" of deposit or revenue and as "Charged" expenditure respectively.

[C & AG's letter No. 437-AC/131-65.dated 18.5.66.]

5. The Ministry of Law have advised that for the purposes of article 112(3)(f) of the Constitution, a tribunal must be constituted by the State (and not merely by an agreement of parties) and must be invested with the States' inherent judicial (as distinguished from purely administrative or executive) powers and the trappings of a court. Accordingly, an arbitrator appointed under Section 10A of the industrial Disputes Act, 1947 or a private arbitrator to whom a dispute is referred under an arbitration agreement under the Arbitration Act, 1940 is not a tribunal within the meaning of article 136 of the Constitution. Consequently, payment in satisfaction of the award of such an arbitrator cannot be treated as expenditure "Charged" on the Consolidated Fund. However, in cases where such an award by a private arbitrator is filed in a court and a degree is obtained in terms of the award, the expenditure required to satisfy the court decree will be the expenditure charged on the Consolidated Fund.

[Ministry of Finance No. F.1(124)-B/64 dated 13th November, 1964].

6. The award of a collector under the Land Acquisition Act is not an award of court nor can it be considered as an award of arbitral tribunal. While making an award under Section 11 of the Act, the collector merely acts as an office of the Government making enquiries in order to determine the compensation payable. Payment of such awards should, therefore, be treated as a voted item of expenditure.

[Ministry of Finance No. F.1(14)-B/66 dated 19th April, 1966].

7. A case arose in which an award was decreed against the Government for payment of rent in respect of certain requisitioned property. It has been held that where an award imposes an obligation to make a recurring payment, every recurring payment including those beyond the date of the award would be expenditure "Charged" on the Consolidated Fund under article 112(3) (f) of the Constitution.

[Ministry of Finance No. F.1(124)-B/64 dated 20th April, 1965].

8. Pension payments in the under-mentioned cases are required to be treated as "Charged" expenditure in terms of various provisions of the Constitution shown against each:

Article of the Constitution
(a) Judges of the Supreme Court/Federal Court/High Courts 112(3)(d)
(b) Comptroller & Auditor General of India 112(3)(e)
(c) Officers and servants of the Supreme Court 146(3)
(d) Persons serving in the Comptroller and Auditor General's Office 148(6)
(e) Officers and servants of High Courts 229(3)
(f) Members and staff of U.P.S.C. and State Public Service Commissions 322

The pensions payable to or in respect of the Judges of Supreme Court, Federal Court and High Court, the Comptroller and Auditor General of India and members of the Public Service Commissions (both Union and States) do not present any problem and they are required to be "Charged" on the Consolidated Fund of India or the States, as the case may be. In the case of officers and staff of the Courts, Public Service Commissions and Comptroller and Auditor General of India, however, it is not possible to follow a uniform procedure in all cases in view of the difference in the wording of the relevant articles of the Constitution. Having regard to the Constitutional provisions, the entire pension of the officers and staff of the High Court, Supreme Court, UPSC and State Public Service Commissions should be treated as "Charged" expenditure only in cases in which the employees hold a lien on a post in these organisations, or in the case of temporary employees, if they do not hold a lien on a post in any other organisation.

In the case of the office of the C & A.G., however, in view of the wording of article 148(6) of the Constitution, pension of all officers and staff serving in that office immediately before retirement or proceeding on leave preparatory to retirement from that office should be treated as "Charged" expenditure irrespective of the office or service to which they belong.

A pension will either be wholly charged or wholly voted and the fact the same is allocable between different Governments or Departments, service under one or more of which does not by itself qualify for a "Charged" pension, should not make any difference.

[Ministry of Finance No. F. 1(79)-B/64 dated 1-10-1965]

9. Under article 112(3)(a) of the Constitution of India, the emoluments and allowances of the President of India and "other expenditure relating to his office" shall be expenditure charged on the Consolidated Fund of India. It has been held by the Ministry of Law that it would not be proper to exclude pension, gratuity etc. payable to retired employees or their families from being a charged expenditure on the Consolidated Fund of India, only because those particular items were not specifically referred to in the above clause of the Constitution. It has, therefore, been held that the expression "other expenditure relating to his office" referred to in this clause includes also pension, gratuity etc. It has been further held that pensions, gratuity etc. in respect of persons who have served the President's Secretariat before retirement, or who retire while serving the President's Secretariat, should be treated as 'Charged' expenditure, only if the employees hold a lien on a post in the President's Secretariat or, in the case of temporary, employees, if they do not hold a lien on a post in any other organisation.

[Ministry of Finance U.O. No. F. 7(14)-B(D)/77-KW dated 10-5-78 and F.3(102)-B (AC)/78 dated 27-8-79; the Ministry of Law, Justice & Company Affairs U.O. No. 23037/78 dated 19-5-78; and the CAG's U.O. Note No. 1514-AC/142-78 dated 13-8-79]

Correction Slip No. 48

Page : 109

para : 6.4.2

Add the following as Note below para 6.4.2 :

Note : In respect of All India Service officers on deputation to the Central Government, the Pay & Accounts Officer of that Ministry/Department will make payment of the GPF advance/Part final withdrawal from G.P.F. on the basis of sanction issued by the competent authority in the Central Government and classify the same under the major etc. heads 858—P.A.O. Suspense etc. The P.A.O. will raise a debit against the A.G. concerned for getting reimbursement.

As regards other officials of State Governments/ Autonomous Bodies on deputation to the Central Government, the concerned State Government/Autonomous Body only can grant advances/withdrawals to such deputationists, unless the concerned State Government/Autonomous Body have delegated powers to the Central Government departments for grant of advances/withdrawals from Provident Fund to such deputationists. Information as to whether a certain State Government or Autonomous Body have delegated such powers to the Central Government departments should be ascertained by the concerned Central Government department by writing to the concerned State Government/Autonomous Body. It should, however, be noted that even if such powers have been delegated by a State Government/Autonomous Body to Central Government, departments, the Provident Fund Rules of the concerned State Government/Autonomous Body should be followed in granting advances/withdrawals to such deputationists from their Provident Fund accounts.

[Authority : Ministry of Finance (Department of Expdtr) O.M. No. F. 9(1)-EV(B)/77 dated 29-1-1979 read with Fund Group U.O. No. S. 11015/1/80/MF-CGA/318 dated 30-7-1980 to C.A. D.P.A.R.]

Correction Slip No. 49

Page : 171

Para : 10.7.3

Add the following as a sub para to this Para :

"A similar procedure will also be followed for the drawal and payment of other types of advances, if any, sanctioned by State Government to its officers on deputation with the Central Government Departments. For drawal of temporary advances and part final withdrawal from the G.P. Fund, please see Note below Para 6.4.2 as inserted by correction slip No. 48.

Correction Slip No. 50

Page : 130

Para : 8.3.3(d)(i)

Substitute "Suspense Account (Civil)—unclassified" for the words "PAO—Suspense" appearing in 7th line of Para 8.3.3 (d)(i)

Correction Slip No. 51

Page : 131

Para : 8.4.1

Substitute "Suspense Account (Civil)—Challans/Vouchers Suspense" for the words "PAO Suspense" appearing in 17th line of the para 8.4.1

Correction Slip No. 52

Page : 5

Para : 1.8.1(i)

Add the following words between the words 'identifying' and 'that the amount' appearing in 5th line of second sub para of this Para.

"the massenger, or to the payee's banker on certifying"

Correction Slip No. 53

Page: 250

Para: 13.15

Add the following as a new para after renumbering the existing para relating to period of preservation of records etc. which was renumbered as 13.15 through correction slip No. 12 as 13.16:-

13.15: ACQUISITION OF STORES ON DEFERRED PAYMENT TERMS

Under agreements/contracts entered into by the Government of India with foreign Governments/ suppliers abroad, equipment, stores, etc. are sometimes procured on deferred payment basis. According to the terms of such agreements/contracts, specified sums are payable to the Foreign Governments/suppliers from time to time alongwith interest, if any, in terms of the conditions of the relative agreement/contracts. It has been held that the purchase of goods on credit while constituting a commitment to pay, does not ipso facto constitute a loan or borrowing. Accordingly, the fall value of the equipment/stores procured on deferred payment terms or on supplier's credit should be brought to account forthwith i.e. immediately on receipt of the plant and equipment or stores in question, by debit to the relevant service major head of account concerned, contra credit being afforded to a suitable 'suspense' head within the same service major head itself as in the case of Public Works Department. The credit under the 'suspense' head will be relieved as and when actual payments are subsequently made to the suppliers/foreign Government.

Interest payable on the deferred payment purchase has the effect of increasing the Value of the goods purchased and may, therefore, as and when paid, be debited to the same head to which the full value of the equipment, stores, etc. was initially debited.

The above procedure should be followed by all Ministries/Departments, with the exception of Defence, even if the purchases on deferred payment terms/supplier's credit are covered by issue of promissory notes or loans agreements, since the said imports constitute a commitment to pay the supplier over a period of time and the account adjustments prescribed as above are unaltered by the mode of such commitment.

In order to enable pay and Accounts Offices to carry out the required adjustments. Ministries/ Departments concerned should send advices (other than in the case of Departments in which the P.W. system of accounts is followed and the initial and subsidary accounts are compiled departmentally and rendered to the Pay and Accounts Offices), to the Pay and Accounts Office to carry out the adjustment in question as soon as the equipment, stores, etc. are received. In cases where accounts are compiled departmentally and rendered to a Pay and Accounts Office, the value of the equipment etc. obtained on deferred terms/supplier's credit should be reflected in the compiled accounts rendered to the latter.

[Based on Ministry of Finance (DEA) O. M. No. F. 1 (69)-B/74 dated 22nd October, 1974 and O.M. of even No. dated 8th May, 1975].

Correction Slip No. 54

Page: (VI)

Contents

(i) Add the following entries immediately after the entry:
"Review of Balances 13.13"
Adjustment of gain or loss by exchange 13.14
Acquisition of stores on deferred payment terms 13.15
(ii) Renumber para 13.14 as 13.16 against the existing entry "Period of retention of Accounts Records".

Correction Slip No. 55

Page: 65

Paras 4.8.1

Add the following at the end of this sub para:-

The value of technical services or cost of experts deputed by foreign agencies at their own cost, does not have to be incorporated in Government accounts.

Correction Slip No. 56

Page: (v)

Contents.

Add the following entry immediately after the last existing entry under Chapter—9

"Payment for Foreign Service contributions etc. during the period of foreign service out of India."

9.10

Correction Slip No. 57

Page 8

Para 1.12.3

Substitute the following for the words "cheque for the total amount drawn in favour of the bank" appearing in lines 4 & 5 of this para:——

"Cheque of category I (Negotiable) for the total amount drawn in favour of the bank (name of the bank to be indicated as payee)."

 

Continued