Structure of Government Accounts SIB SANKAR BANIK, W.B.A&A.S INTERNAL AUDIT OFFICER, FIN (I/A) DEPTT.

Form of Accounts The Controller of Accounts, Ministry of Finance, Government of India in consultation with Comptroller and Auditor General of India has issued list of major and minor heads of accounts of receipts and disbursement of Central and State Govt. The Accounting Rules, 1992 has laid down the forms of A/cs to be submitted covering the Accounts of the State

Form of Accounts Cash A/C List of Payments Top Schedule Subsidiary A/cs VDMS

Structure of Govt. Accounts All moneys, receipts and disbursement made by the Govt. are divided into three parts (Article 266 - 277 of Constitution of India) Part I  Consolidated Fund of State Part II  Contingency fund of the State Part III  Public Accounts of the State

Part I – Consolidated Fund of India It is the reservoir into which all revenues and loans raised are to be deposited. Article 266(1) stipulates “ all revenues received by the Govt. of India, all loans raised by issue of treasury bills, ways and means adv etc shall form one consolidated fund called the “Consolidated Fund of India” ”.

Consolidated Fund of the State Consolidated fund of the State is divided into three divisions:- Revenue division covering income from taxes, duty, cess, fine etc. Capital division covering expenditure for acquiring or constructing assets of permanent nature Debt/ Loans and advances, interstate settlement.

Consolidated Fund of the State Tax Revenue Non Tax Revenue Borrowings Central Flow own own

Tax Revenue (Union+State) Corporate Tax Income Tax Wealth Tax/ Gift Tax Service Tax Excise Duties/ Customs Duties Electricity duties etc Land Revenue Prof. Tax etc.

Non Tax Revenue (Union Govt) Railways Post & Telegraph Opium Earning from State Undertaking Power Petroleum Fees of UPSC

Non Tax Revenue (State Govt) Forest Irrigation Electricity Fees of PSC Non Ferrous and metallurgical Industries.

Central Flow Central Flow to State Government:- Plan & Non Plan Assistant Grant Loans Discretionary Grants from Union Ministries Tax Sharing Grant in Aid Statutory Non Statutory

Taxes exclusive to Union Govt. Corporation/ Income Tax Customs Duty Taxes on Capital Value of Assets of Individuals and Companies

Taxes exclusive to State Land Revenue Stamp Duty Agri Income Tax Sales Tax Taxes on Vehicle P. Tax not exceeding Rs 2500/- per annum.

Part – II Contingency Fund of a State It is in the nature of imprest placed at the disposal of Governor for meeting unforeseen expenditure pending authorisation of the Assembly.

Part – III Public Account Public Accounts incorporates transactions in respect of which Govt. functions as banker and distinct from transaction relating to receipts and disbursements on revenue, capital and loan A/c.

Part – III Public Account Public Accounts includes:- Provident fund Small savings Deposit and advances Cash Remittance Suspense and Miscellaneous

Reserve Bank of India Reserve Bank of India is the banker of State. All money received from the Union Govt., Loans raised from market on collection of the State Govt. are deposited in RBI. Expenditure are made from the Reserve Bank Deposit (RBD)

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