Government Accounting Rules

In the year 1990, President of India makes Government Accounting Rules taking the advice of Comptroller and Auditor General. These rules describes the general principles of Government Accounting for Government departments. These rules cover the following:-


  • Short Title and Commencement.
  • Definitions
  • Articles of the Constitution etc. to be kept in view in devising the form of accounts
  • Annual Accounts
  • Issue of Subsidiary Instructions
  • Special provision relating to Railways, Posts, Telecommunication and Defence Departments


  • Agreements of the Central Government with the Reserve Bank
  • Account of the Central Government with the Bank
  • Accounts of State Governments with the bank
  • State Transactions in Central Treasuries
  • Transactions of the other Governments, including Central Government in State
  • Broad outlines of the accounts – feeder-network and system of accounts of the Central Government and Union Territory Administrations.
  • Broad outlines of the accounts – feeder-network and system of accounts of State Governments and of the Union Territory Governments.
  • Accounts between different Accounts offices of the Central Government
  • Authorities responsible for the preparation of Annual Accounts of the Central Government, State and Union Territories Governments.
  • Proforma Accounts
  • Journal and Ledger


  • Period of Accounts
  • Cash basis of Accounts
  • Currency in which Accounts are kept
  • Form of Accounts – Main Divisions of Accounts
  • Sectors and Sub-sectors of Accounts
  • Allotment of Code to each Major Head and range of Code Numbers
  • Major, Minor and Detailed Heads
  • Classification of expenditure as “Charged” or as “Voted”
  • Classification of transactions in accounts
  • Basis of classification
  • Criteria for determining whether expenditure should be classified under heads of Capital Section or Revenue Section of the Consolidated Fund.
  • Allocation between capital and revenue expenditure on a capital scheme
  • Net Gain or Loss by Exchange in respect of Government transaction in foreign currencies
  • Classification and accounting of transactions pertaining to more than one Major Head of Account
  • Classification and accounting of transactions relating to Scheduled Areas
  • Classification and accounting of recoveries of over payments
  • Accounts of Government Commercial Departments or Undertakings
  • Rectification of Mis-classifications
  • Criteria for writes-off of balances from Debt. Deposit, Suspense and Remittances Heads closed to balance and classification thereof in accounts

Chapter 4 – Criteria for recovery of charges for services rendered or articles supplied by Government Departments

  • Introductory
  • Adjustment between Governments
  • Adjustments with Foreign Governments, outside bodies, etc.
  • Inter-departmental adjustments
  • General

Chapter 5 – Rules regarding classification of recoveries of Expenditure in Government Accounts

  • The rules contained in this Chapter indicate the manner of classification of ‘recoveries’ of expenditure in Government accounts.
  • Classification of Recoveries made from non-Government parties and other Governments including Government outside India
  • Classification of recoveries made by one department from another department of the same Government.
  • Classification of recoveries of expenditure on works in progress and transactions of stock and other suspense account
  • Classification of receipts and recoveries on Capital Accounts.

Chapter 6 – Rules relating to classification of losses in Government Accounts

  • Classification of loss etc. of receipts
  • Buildings, lands, stores and equipment
  • Classification of losses or deficiencies of cash in hand, whether in treasury or in departmental charge
  • Classification of Irregular or unusual payments
  • Classification of Inevitable Losses

Chapter 7 – Miscellaneous Rules

  • Incidence of certain charges and receipts between Governments
  • Treasury Accounts
  • Departmental Accounts

Chapter 8 – Important General Orders Governing Classification

  • Pay & Allowances (Other than Travelling Allowances) of Government Servants
  • Travelling Expenses
  • Contributions made by or to Government
  • Classification of transactions under “Civil Advances”
  • Classification of transactions under ‘Suspense’
  • Sale-proceeds of Government land and Buildings
  • Municipal rates and taxes
  • Interpretation
  • Repeal


Download Govt. Accounting Rules