The West Bengal Financial Rules
Chapter 2

General System of Financial Management and Control



Public Sector Banks Receipt of Government dues and check of revenue Public Sector Banks receipt by Departmental Officers

4. All transactions to which any officer of Government is a party in his official capacity must be brought to account without delay.

5. All moneys received by or on behalf of Government either as dues of Government or for deposit, remittance or otherwise shall be brought into Government Account without delay, in accordance with such general or special rules as may be issued under article 150 and clause (2) of article 283 of the Constitution of India.

6. (1) (a) All moneys received by or deposited with any officer, employed in connection with the affairs of the State in his capacity as such, other than revenues or public money raised or received by Government shall be paid into the Public Account.

(b) All moneys received by or deposited with any Court within the territory of the State to the credit of any cause, matter, account or persons shall be paid into the Public Account.

(2) The head of account to which such moneys shall be credited shall follow the normal rules of classification and the withdrawal of these moneys from the account shall be governed by the provisions in the Treasury Rules or such other general or special orders as may be issued in this behalf.

7. Departmental receipts may ordinarily be realised in legal tender coin or notes only, But in certain cases cheques payable on demand including crossed cheques, Reserve Bank of India Drafts and demand drafts may be accepted.

See also note below S. R. 32 of the Treasury Rules, West Bengal.

8. The departmental controlling officers should see that all sums due to Government are regularly received and checked against demands and that they are paid into the treasury. They Should accordingly arrange to receive from their subordinates accounts and returns claiming credit for 80 much paid into the treasury, and compare with those the figures recorded in the books of the Accountant-General if these are supplied to them under an arrangement between the Auditor-general and the Government.

The detailed rules regarding the demands and collection of revenue of the different departments are contained in the Departmental Regulations or Manuals. Note 1 - It is essential that the departmental controlling officer's account should not be compiled from the returns prepared by the treasury. But the Treasury Officer is in some oases required to verify returns prepared for submission to departmental controlling officers.

Note 2 - To facilitate the reconciliation of the returns submitted by the subordinate revenue authorities to the Board of Revenue with the figures supplied to the Board by the Accountant-General, the latter sends to each Collector a return showing the results arrived at in the first stage of the preparation of his monthly account. This return shows under certain heads the figures of the Treasury Cash Account and all the corrections and alterations introduced therein in this stage. These figures should be carefully compared by the Collector with those sent by him to the Board of Revenue with explanation of difference, if any. A certificate of this comparison should be given at the foot of the Revenue Returns, and a similar certificate should also be sent to the Accountant-General.

Revenue receipts of the Works and Buildings or of the Irrigation and Waterways Department

9. Revenue of the Works and Buildings or of the Irrigation and Waterways Department is assessed and realised in accordance with the following rules :-

(a) Divisional Officers of the Works and Buildings or of the Irrigation and Waterways Department are responsible that demands are made as revenue falls due, that steps are taken with a view to effect prompt realisation of all revenue, regular or occasional, and that proper records are kept to show, in respect of all items of revenue, recurring or non-recurring, the assessments made, the progress of recovery and the outstanding debts due to Government.

Note - The object of this rule is that all classes of revenue, whether accruing from property of any kind, from leases of rights and concessions (e.g., rights for fishing, grazing, etc., and use of waterpower) or from any other source are property watched.

(b) The recovery of all debts due to Government should receive the special attention of the Divisional Officer, and no debt should be remitted or written off except under the orders of competent authority.

Irrigation revenue collected by the District and Revenue authorities

10. (a) When revenue from irrigation and navigation works, etc., is realised by the District and Revenue authorities, the Divisional Officer should receive from the Collectors monthly statement of the amounts realised, to enable him to watch the progress of recovery against demands or assessments.

(b) The Divisional Officer should also submit to the Accountant-General a half-yearly statement showing separately for each civil district, the monthly realisations, as compared with assessments, in respect of each canal or other work. Recoveries of rents on buildings and lands

(a) From private persons

11. When a. public building, land or other property is let to a person not in the service of Government, the full assessed rent must be recovered in advance.

(b) From Government servants and pensioners

12. The recovery of rent from Government servants occupying rentable buildings in-charge of the department may be made either in cash or by deduction from their pay bills through the Treasury Officer or other disbursing officer concerned.

Note 1 - Amounts due on account of the hire of Government furniture and on account of the value of articles of furniture and other Government property lost or damaged by a Government servant as well as any other dues for which a Government servant may be liable to Government in respect of the residence allotted to him may also be recovered either in cash or by deduction from pay bills in accordance With this rule.

Note 2 - The system of direct recovery in cash from employees of other divisions and departments is ordinarily not suitable' when the rent recoverable is dependent upon the rate of pay of the occupant.

Note 3 - he agreement to be executed by Government servants occupying rentable-Government buildings shall include the following clause, namely:

The Governor (the lessor) shall have the right to deduct, through the concerned Treasury Officer or the concerned Disbursing Officer, as the case may be, from the Government servant s (the lessee's) monthly pay bill any amount which is due to Government as rent and recoverable from him (the lessee).

13. A tenant, who is in receipt of a pension from Government, should be treated as a private individual for the purpose of these rules. But if he desires to make payments by deductions from his pension, recoveries from him may be made through the Treasury Office or other disbursing officer concerned, on the pensioner's furnishing the Divisional Officer with a written request authorising such deduction. This authority should be transmitted to the treasury or disbursing officer with the first demand.

14. Where rent is recoverable in cash, a bill in suitable form for a particular month, should be sent to the tenant on or before the 15th of the previous month. The tenant should be required to pay in the rent on the first working day of the month for which the rent is due.

15. When recoveries of rent are to be effected through a Treasury Officer or other disbursing officer a demand in F.R. Form No. 1 (Statement of roots recoverable in cash or by deduction from pay bills) should be issued before the close of each month and the recoveries effected in accordance with S.R. 164 of the Treasury Rules, West Bengal, Volume I.

16. If a Government servant vacates his quarters before the last day of a month, owing to his departure on transfer, leave or retirement, the demand for the felt for broken period should be made at once, so that the amount due may be recovered before his departure.

17. Pending orders on a representation against the Divisional Officer's assessment, the amount assessed must be paid by, tenants on demand. Should the representation prove successful, the excess amount charged should be adjusted as soon as orders are issued by a reduction in the assessment of a subsequent month, or, if this is not practicable or convenient, by an actual repayment.

Note - The recovery of rent of non-Works and Buildings residences including hired or re-questioned buildings should be generally regulated by the rules applicable to Works and Buildings residences. In such cases the demand statement should be prepared by the head office or department as the case may be who watches the recovery of rent through a demand and collection register maintained for the purpose.

(c) Register of Rents of Buildings and Lands

18. A register in F.R. Form No. 2 (Register of Rents of Buildings. and Lands) should be maintained in the Divisional Office to show the monthly assessments, realisations and balances of rents of all residential buildings (including office buildings used as residences) and of such other buildings, lands, etc., as may be available for being let. No building other than those falling within the categories specified below or site should be excluded from this register on the plea that it is intended to be occupied rent-free or is not likely to be rented, but all such buildings may be grouped separately :-

(1) Residences for the use of the Governor.

(2) Buildings which are situated within the precincts of jails, hospitals, police lines, tehsils, educational institutions, provided that they are allotted free under orders of Government to Government servants who are required to occupy particular houses in order to ensure the proper performance of their duties.

Note 1. - Private buildings which have been hired for use as residences or are used as such, wholly or in part, should be included in this Register.

Note 2. - When a residence remains vacant owing to there being no incumbent of the post for which it is reserved, a note to that effect should be made in the Register of Rents under the initial of the Divisional Officer. In such cases sanction to remission is unnecessary.

Note 3. - Rent-free quarters for inferior servants need not be entered in this register except when allotted to persons from whom rent is recoverable. Nor need rest houses or other travellers bungalows be entered although rent receipts from them are also treated as rents of buildings

19. The-entries relating to the assessment of rent should be made month by month, and for this purpose arrangements should be made to obtain timely intimation (with full particulars) of all changes of tenancy from the subordinates in charge of the properties.

Note. - If any property is occupied free of rent, or if the rate for any months' assessments is neither the standard rate nor the ten per cent of the occupant's emoluments a suitable remark (quoting authority} should be made against the entry relating to it. If a Government servant is not entitled to but is actually allowed the benefit of the 10 per cent concession a reference to the specific orders of Government allowing it should be recorded in the remarks column of the Register rents.

20. The total realisation of each month should be abstracted at foot of the register, so as to show separately (1) cash realised in the division, (2) recoveries by other disbursing officers adjusted in the divisional accounts, and (3) recoveries at treasuries in the same circle of account adjustable in the Accountant-General's office, for both rents of buildings and rents of lands, etc. If any buildings are provided with special services such as furniture, etc., for which rent is charged separately the account of rent charged for each building in respect of these services should be kept separate from that of the rent of the building itself, and in the abstract also the realisations en account of each of these services should be shown separately. ,

Note. - Cash refund of rents realised should be shown separately as minus realisation in the Register of Rents of buildings and lands, and thus distinguished from the gross realisation of rents.

Revenue arising from investment of surplus cash balances of Government

21. The surplus cash balances of Government, under the orders of the Finance Department, be invested in the name of the Government of West Bengal in securities of a Government of India or in the shares of such private companies as Government may, by special order, so direct. A proforma account will be maintained in the office of the Accountant-General, West Bengal, to record the transaction on account of these investments and the revenue arising therefrom. The correctness of the Ledger balance will be certified at the end of the year by the Finance Department with whom will rest the duty of watching the full realisations of the revenue on account of these investments. (See also S. R. 82 of the Treasury Rules, West Bengal.)


22. Subject to any special rule or order made by Government in this behalf, every erstwhile gazetted officer, cashier, store keeper and other subordinate who is entrusted with the custody of cash or stores should be required to furnish security, the amount being regulated according to circumstances and to local conditions in each case under the sanction of competent authority, and to execute a security bond setting forth the conditions under which Government will hold the security and may ultimately refund or appropriate it.

Note 1.- The amount of security deposit should, as a rule, be equivalent to 10 percent In excess of the maximum amount of cash or the maximum value of stores likely to be in the custody of a Government servant at anyone time. In special eases where the application of this principle may cause hardship, the competent authority may, for reasons to be recorded in writing, reduce the amount of security as far as he thinks necessary.

Note 2.- In the case of Government servants of 20 years, pensionable service or upwards ,he security may be diminished by a sum calculated on their monthly pay, multiplied by 25 with the proviso that the security will, in no case, be diminished by more than one-half of the amount fixed under Note I. .

Note 3.- Ordinarily clerical and other Government servants, who are required to give security to Government against loss through dishonesty, negligence or disregard of rules, should deposit the whole amount of the security on appointment or bind themselves by two sureties for the whole amount and agree to monthly deductions of 25 per cent of their pay. Where the amount of securities is Rs. 500 or less, the following alternative procedure may be adopted :-
  1. The Government servant may give a fidelity bond of an Insurance Company approved by Government for the full amount of the required security guaranteeing Government against losses through dishonesty negligence or disregard of the rules on the part of the Government servant. He shall also be required to execute a security bond in the form given in Appendix I.
  2. Deductions will then be made monthly at the rate of 10 per cent of the Government servant's pay, the fidelity bond to be cancelled only after the full amount of the security bond has been deposited in cash.
  3. Government servants in charge of offices will be responsible for seeing that fidelity bonds, which expire before the full amount of security has been recovered by deduction from pay, are renewed in good time so as to cover the outstanding amounts.

Note 4.- Fidelity bonds with the Indian Insurance Companies Association Pool, Bombay shall, in all cases, be accepted subject to the form of the bond being scrutinised in individual passed by the heads of departments in consultation with the law officer, where necessary.

If in any particular case, an employee desires that a policy from some insurer (other than the Indian Insurance Companies Association Pool, Bombay) may be accepted, the case shall be referred to the Assistant Controller of Insurance, Government of India, Simla, for advice.

Note 5.- When deductions are made monthly from the pay of a Government servant to cover the amount of his security, a Savings Banks Account should be opened with the Post Office !in the name of the officer to whom the security is to be pledged, for the deposit of the amounts realised monthly. The realisations should always be made in cash at the time of disbursement of the pay and the amounts remitted forthwith for credit to the Post Office Savings Bank. The amounts realised by deduction and paid to the Savings Bank shall also be debited and credited in the General cash Book.

Note 6.- Notes 3 and 4 of this rule will also apply to cases where Government may by special order, direct that fidelity bonds for securities in excess of Rs. 500 shall be taken.

Note 7.- The power under rule 22B may be exercised by the Heads of Department in consultation with the Accountant-General, West Bengal.

22A. A register in F .R. Form No. 2A (Register of Security Deposits) should be maintained in all offices and institutions to watch the receipt and disposal of security deposits including interest-bearing securities.

Note 1.- In this register should be inserted an index in the following form :-

Sufficient space will be left in this part for the addition of fresh names from year to year.

The register and index will be in the charge of the Head of Office or Institution who will certify each year that the register is complete and that the name of every officer to give security has been entered in the register, whether he has given security or not. The certificate will form part II of the index, and will be in the following form :-

When filling in the certificate, the Head of Office or Institution will also initial and date the last entry in part I of the index.

Note 2.- In all Public Works Department the receipts and disposal of interest bearing securities are entered in the Central Public Works Accounts Form No. 85.

22B. Every Librarian or other subordinate who is entrusted with the custody of books, journals, etc., should be required to furnish a security bond in the form as in Appendix No. 1A or 1B or 1C, as the case may be, the amount thereunder being regulated according to the circumstances in each case under the sanction of the competent authority and reduced in accordance with the provisions of Note 2 at the discretion of the competent authority.

23. When a Government servant who has furnished security takes leave or is deputed to other duty for not more than six months, he should ordinarily be required to stand surety for the Government servant appointed to act for him to the extent of his own security or for the difference between the security offered by the acting incumbent and that prescribed for the appointment. If, however in special circumstances the permanent incumbent is unable to do so, the Government servant acting for him must furnish the full amount of the security, or. at the discretion of the head of the office, half the amount in cash and the rest in fidelity bonds. Security to the full amount should always be taken when the acting appointment is made for more than six months.

Provided further that if a Government servant holding substantively a post in which no security is demanded is appointed for a period not exceeding three months to a post in which the security is required, the head of the office may permit him to furnish security for a reduced amount or, when the security required does not exceed Rs. 500, may, for special reasons to be recorded, exempt him from furnishing any security

24. Whenever a private person or firm contracts with Government to supply stores or execute a work, he or it should, unless exempted by competent authority, be required to give security for the due fulfillment of the contract and suitable provisions regarding the security should be incorporated in the agreement

25. Subject to the provisions of rule 26, the security taken from a Government servant not covered by the provisions of note 5 below rule 22 or from a contractor shall be in one of the following forms subject to the conditions noted against each. or partly in one and partly in another of these forms when this is specially permitted by the departmental authority authorised to accept the security



  1. Cash
  2. Promissory Notes, Stock certificates of the Central Government or a State Government, Municipal Debentures, Port Trust Bonds, Bonds and/or Debentures of the State Financial Corporations.
  3. Post Office Savings Bank Pass Books.
  4. National Savings Certificates, Post Office Time Deposits. .

Government will not pay any interest on' any deposit held in the form of cash.

These securities shall be accepted at five per cent below their market price or at their face value, which- ever is less and shall be dealt with in accordance wit-h the rules in Chapter IX of the Government Securities Manual.

  1. A Pass Book for a deposit made under the Post Office Savings Bank Rules may be accepted as security provided that the depositor has signed and delivered to the Postmaster a letter in the prescribed form as required by those rules.
  2. The Pass Book shall be sent to the Post Office as soon as possible after the 15th June of each year, so that the necessary entries on account of interest may be made in them,
  3. The Certificates shall be formally transferred to the Governor. The departmental authority authorised to accept the security shall accept the same with the sanction of the Post Master of the Office of Registration at their surrender value at the time of tender.
  4. Certificates which are not held in the name of' the person furnishing t-he security shall not be accepted.
  5. Deposit receipts of recognised banks approved by the Government for the purpose.
  6. Fidelity Bonds of Life Insurance Corporation of India.
  7. The deposit receipt shall be made out in the name of the pledgee or if it is made out in the name of the pledger, the bank shall certify on it that the deposit can be withdrawn only on, the demand, or with the sanction, of the pledgee. The bank shall agree that on receiving a signed treasury challan and withdrawal order from the pledgee in respect of the deposit or any Part thereof, it will at once remit the amount specified in to the nearest Treasury along with the challan and send the treasury receipt to the pledgee.
  8. The depositor shall agree in writing to undertake any risks involved in the investment and make good the depreciation, if any.
  9. The depositor shall receive the interest when due direct from the bank on a letter from the pledgee authorising the bank to pay it to him.
  10. The responsibility of the pledgee in connection with the deposit and the interest on it will cease when he issues a final withdrawal order to the depositor and sends intimation to the bank that he has done so.

A fidelity bond may be accepted as security from a Government servant but not from a private party. When a Government servant has furnished security in the form of a fidelity bond, the departmental authority authorised to accept security shall see that the Government servant pays premia necessary to keep it alive on the due dates and continues to do so until he vacates his office. If the Government servant fails to submit the premium receipts ill time, he shall not be allowed to perform the duties of his post and dealt with in accordance with the terms of his appointment

26. Security furnished in cash by a Government officer or a contractor may be converted, at the cost of the depositor, into any of the interest bearing forms of security mentioned in items (ii) to (vi) of rule 25 provided.

(i) that the depositor has expressly requested in writing that this be done and

(ii) that the acceptance of the new form or forms of security is permissible; under the rules and under the terms of the agreement or bond.

Note 1. - Cash actually received or recovered may be converted into an interest bearing form of security even when it forms part of a deposit which is being paid in instalments and has not yet been realised in full.

Note 2. - Percentage deductions made from a contractor's bill held as security for the due fulfilment of a contract should not be converted into any other form of security unless there is special rule or order for such conversion.

27. Subject to any rule or order made by Government in this behalf the form of the security bond to be executed at the time of furnishing security should be determined under orders of the head of the department according to the kind of security furnished. When a Government officer is specially permitted to furnish security partly in one and partly in another of the forms of security specified in rule 25 he should execute separate bonds for the different kinds of security.

Note.- The model form of security bond to be taken from Treasurer in district treasuries is given in Form T.R. 2 in Treasury Rules, West Bengal.

28. (1) Post Office Savings Bank Pass Books, deposit receipts of banks, fidelity bonds and security bonds or agreements should be kept in the safe custody of the departmental authority which takes the security but in the absence of sufficient security arrangements in the office of the departmental authority the aforesaid documents may be sent by such authority to the treasury for safe custody.

Note 1.- All the Post Office Savings Bank Pass Books should be sent to the post office as soon as possible after the l5th June of each year, so that the necessary entries on account of interest may be made in them.

In the case of deposit receipts of banks the depositor should receive the interest, when due, Direct from the bank on a letter from the pledgee authorising the bank to pay it to him.

Note 2.- The security bonds of Government officers employed in treasuries should be kept in a locked box in the double lock strong room of the district treasury. The Treasury Offices will be responsible for the safe custody of the bonds and should keep the key of the box in his personal custody.

(2) Promissory Notes, Stock certificates of the Central Government or a State Government, Municipal Debentures, Port Trust Bonds, Bonds and/or Debenture of the State Financial Corporations, National Savings certificates, Post Office Time Deposits deposited as security shall be lodged for safe custody with the Manager of the Reserve Bank of India at places where there are offices of that Bank and with the district treasury in other places in accordance with the rules in Chapter IX of the Government Securities Manual.

29. A security deposit taken from a Government officer should be retained for at least six months from the date when he vacates his post, put a security bond should be retained permanently or until it is certain that there is no further necessity for keeping it.

30. Without the special orders of the competent authority no security deposit should be repaid or retransferred to the depositor, or otherwise disposed of, except in accordance with the terms of his security bond or agreement. A departmental authority on returning any security to the depositor should invariably obtain his acknowledgement duly signed and witnessed. When an interest-bearing security is returned or retransferred, the acknowledgement should set forth full particulars of the security.

31. The security deposit of a contractor, comprised wholly of earnest money retained after the acceptance of his tender or of percentage deductions from subsequent bills- for work done, or partly of the former and partly of the latter, shall not be refunded till the' final bill for the relative work has been prepared and passed.


32. Earnest money deposit tendered by contractors or purchasers of forest produce must be paid by them direct into a treasury or sub-treasury and orders authorising the repayments should be addressed by the Divisional Forest Officers to the Treasury Officer concerned. Earnest money deposits which the purchasers of forest produce are required to make with their bids in auction sales may, however; be accepted in cash by the Divisional Forest Officer (or a gazetted officer duly authorised by him) at the time of auction. Such deposits shall be accounted for in the books of the Forest Department in accordance with the directions contained in the Account Code, Volume III (see Article 255), and remitted at the earliest opportunity to the Treasury.

Note l.- Earnest money submitted with sealed tenders must be deposited in the treasury by the contractor himself and a copy of the treasury challan submitted with the tender to the Divisional Forest Officer as evidence of the fact that earnest money has been paid.

Note 2.- Suppliers registered with the Directorate General of Supplies and Disposals and the Small Scale Units registered with the Directorate of Cottage and Small Scale Industries, West Bengal, shall be exempt from the payment of earnest money against all tenders and under this Government.

Note 3. -

  1. The contractors / suppliers registered with the Government of India Stationery Office. Calcutta, shall be exempt from the payment of earnest money against all tenders under this Government. The performances of the concerned firm shall, however, be taken into account before deciding the question of exemption.
  2. The Rehabilitation Industries Corporation Limited shall be exempt from the payment of earnest money against all tenders under this Government.
  3. The Light House for the Blind, a society registered under the Societies Registration Act, 1860 (21 of 1863), with its registered office at 6, Old Post Office Street, Calcutta - l, shall be exempted from the payment of earnest money in respect of quotations for caning and repair of chairs of all offices under this Government.
  4. The Tea Trading Corporation or India Limited a Government of India under taking shall be exempt from the payment of earnest money in respect of supply of tea to all offices of this Government.
  5. The Labour Co-operative Societies shall also be exempt from the payment 0: earnest money against all tenders under this Government;.

(ii) Works and Buildings or Irrigation and Waterways Department

33. In the case of Works and Buildings or Irrigation and Waterways Department earnest money deposits are received by the departmental officers and dealt with in their accounts.

Note 1.- As an exception to the above rule, Divisional Officers are authorised not to pass through the divisional accounts earnest money received from, and returned to, contractors on the same day the tenders are opened, provided that the contractors concerned are required to give a stamped receipt for the money in the register of tenders maintained in the Divisional Office, and that the register is to that extent treated as a Subsidiary Cash Book. and consequently as an amounts form.

Note 2.-Suppliers registered with the Directorate General of Supplies and Disposals and Small Scale Units registered with the Directorate of Cottage and Small Scale Industries, West Bengal, shall be exempt from the payment of earnest money against all tenders under this Government.

Note 3.
  1. The Contractors / suppliers registered with the Government of India Stationery Office, Calcutta. shall be exempt from the payment or earnest motley against all tenders under this Government. The performances of the concerned firm shall, however, be taken into account before deciding the question of exemption.
  2. The Rehabilitation Industries Corporation Limited shall be exempt from the payment of earnest money against all tenders under this Government.
  3. The Light House for the Blind, a society registered under the Societies Registered under the Societies registration Act, 1860 (21 of 1860} with its registered office at 6, Old Post office Street, Calcutta - l, shall be exempt from the payment or earnest money in respect of quotations for canning and repair of chairs of all offices under this Government.
  4. The Trading Corporation of India Limited, a Government of India Undertaking shall be exempt from the payment of earnest money in respect of supply of tea to all office of this Government.
  5. The Labour Co-operative Societies shall also be exempt from the payment or earnest money against all tenders under this Government.


Essential conditions government expenditure from public funds


34. As a general rule no authority may incur expenditure or enter into any liability involving expenditure from public funds until the expenditure has been sanctioned by general or special orders of the Governor or by an authority to which power has been duly delegated in this behalf and the expenditure has been provided for in the authorised grants and appropriations for the year.

Standards of financial propriety

35. Every officer incurring or authorising expenditure from public funds should be guided by high standards of financial propriety. Among the principles on which emphasis is generally laid are the following :-
  1. Every public officer is expected to exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own money.
  2. The expenditure should not be prima facie more than the occasion demands.
  3. No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage.
  4. Public moneys should not be utilised for the benefit of a particular person or section of the community unless-
  1. the amount of expenditure involved is insignificant, or
  2. a claim for the amount could be enforced in a court of law, or
  3. the expenditure is in pursuance of a recognised policy or custom.
  4. The amount of allowances granted to meet expenditure, of a particular type should be so regulated that the allowances are not on the whole a source of profit to the recipients.

Control of expenditure

36. Each head of a department is responsible for enforcing financial order and strict economy at every step. He is responsible for observance of all relevant financial rule and regulations both by his own office and by subordinate disbursing officers. 37. A controlling officer must see not only that the total expenditure is kept within the limits of the authorised appropriation but also that the funds allotted to spending units are expended in the public interest and upon objects for which the money was provided. In order to maintain a proper control, he should arrange to be kept informed, not only of what has actually been spent from an appropriation but also what commitments and liabilities have been and will be incurred against it. He must be in a position to assume before Government and the Public Accounts Committee, if necessary, complete responsibility for departmental expenditure and to explain or justify any instance of excess or financial irregularity that may be brought to notice as a result of audit scrutiny or otherwise

Internal check against irregularities, waste and fraud

38. In the discharge of his ultimate responsibilities for the administration of an appropriation or part of an appropriation placed at his disposal, every officer incurring or authorising expenditure from public fund must satisfy himself not only that adequate provisions exist within the departmental organisation for systematic internal checks calculated to prevent and detect errors and irregularities in the financial proceedings of his subordinate officers and to guard against waste and loss of public money and stores, but also that the prescribed checks are effectively applied


Report of losses

39. (1) With the exception noted below, any loss of public money, depart- mental revenue or receipts, stamps, opium, stores or other property held by or on behalf of Government, caused by defalcation or otherwise, which is discovered in a treasury or other office or department, should be immediately reported by the officer concerned to his immediate official superior as well as to the Accountant-General, even when such loss has been made good by the party responsible for it. Such reports must be submitted as soon as a suspicion arises that there has been a loss; they must not be delayed while detailed enquiries are made. When the matter has been fully investigated, a further and complete report should be submitted of the nature and extent of the loss showing the errors or neglect of rules by which such loss was rendered possible, and the prospects of effecting a recovery

(2) If the irregularity be detected by Audit in the first instance, the Accountant-General will report it immediately to the administrative authority concerned, and if he considers necessary to Government as well.

Exception. - Petty cases, that is, cases involving losses not exceeding Rs. 200 each, need not be reported to the Accountant-General, unless there are, in any, important features which merit detailed investigation and consideration.

40. The officer receiving a report submitted to him under rule 39 must forward it forthwith to Government through the usual channel with such comments as may be considered necessary. He should also submit a detailed report, after completing such departmental investigations as may be necessary or expedient, on the causes or circumstances which led to the defalcation or loss, the steps taken to prevent its recurrence and the disciplinary or any other action proposed as regards the persons responsible


41. Any serious loss of immovable property, such as buildings, communications or other works, caused by fire, flood, cyclone, earthquake or any other nature cause should be reported at once by the departmental officer to the head of the department and by the latter to Government. When a full enquiry as to the cause and extent of the loss has been made, the detailed report' should be sent by the departmental officer concerned to the head of the department, a copy of the report or an abstract thereof being simultaneously forwarded to the Accountant-General.

Responsibility for losses, etc.
42. Every Government officer should realise fully and clearly that he will be held personally responsible for any loss sustained by Government through fraud or negligence on his part and that he will also be held personally responsible for any loss arising from fraud or negligence on the part of any other Government officer to the extent to which it may be shown that he contributed to the loss by his own action or negligence. Detailed instructions for regulating the enforcement of such responsibility are embodied in Appendix 2.

43. Heads of departments should submit annually to the Accountant-General statement, showing the remissions of revenue and abandonments of claims to re- venue sanctioned during the preceding year by the competent authorities in exercise of the discretionary powers vested in them otherwise than by law or rule having the force of law.
For inclusion in these statements, remissions and abandonments should be classified broadly with reference to the grounds on which they were sanctioned, and a total figure should be given for each class. A brief explanation of the circumstances leading to the remission should be added in the case of each class.
The statement shall not include individual remissions below Rs. 500, and it shall be submitted by the first week of June following the year to which they relate.

Note 1.- Where the administrative year does not coincide with the financial year, the figures of the former may, if this prove convenient to the departmental authorities, be given in the statements.
Note 2.- Land revenue remissions should not 00 reported through the statement to be rendered under this rule.


  1. A drawer of pay abstracts or bills for pay, allowances or contingent expenses will be held responsible for any overcharge. -
  2. The responsibility of the countersigning officers will be that which attaches to all controlling officers, and which brings them under liability to make good any loss arising from their culpable negligence.
  3. The Treasury Officer, who makes payments without pre-audit, will be responsible for checking any palpable errors, and (in the case of change of office, or of rate of pay of gazetted Government servants) for passing the new rate with reference to the orders directing the change. He is also required to examine the accuracy of the arithmetical computations in a bill.
  4. The responsibility for an overcharge will thus rest primarily with the drawer of the bill, and (failing recovery from him) the overcharge will be recovered from the Treasury Officer or the countersigning officer only in the event of culpable negligence on the part of either of them.


45. (a) The Conservators of Forests (and through them the Conservator. General of Forests) exercise a strick control over ...he whole outlay of the Forest Department for conservancy and work, and examine the charges on account or travelling allowance and contingencies. To facilitate the exercise of this control, the Conservators are furnished monthly by the Divisional Officers with duplicate copies of the Abstracts of Receipts and Expenditure submitted to Audit.
(b) They are further required specially to control the adjustments of advances for which purpose the monthly abstracts of the contractors' and disbursers' ledger, submitted to Audit by the Divisional Officers, are required to pass through the conservators.
Note.- It is optional with Government to retain the procedure described under which the accounts are sent through the Conservators.
(c) They are responsible for seeing that the accounts returns are punctually submitted to the Accountant-General by Divisional Officers.
(d) They should sign all letters issued from their office sanctioning expenditure, appointment, et~., and may delegate the power to a gazetted Government servant, if any, in their office, but not to the head clerk or other office employee.

46. (a) The Chief Engineers, Works and Buildings and Irrigation and Waterways Departments, exercise a concurrent control over the duties of the officers of the departments in connection with the maintenance of the accounts, and give all legitimate support to the Audit Officer in enforcing strict attention to the regulations concerning the disbursement of money, the custody of stores and the submission of accounts. (b) The Superintending Engineers are responsible for the maintenance of the authorised system of accounts throughout their circles. They should see that Divisional Officers submit their accounts to the Accountant-General punctually. They should examine the books of Executive Engineers and their subordinates, and see that the matters relating to the primary accounts are attended to personally by Divisional and Sub-divisional Officers, and that the accounts fairly represent the progress of each work. It will also be their duty to examine the registers or works, so as to keep a vigilant watch over the rates of work, and if they consider it necessary, they may require an Executive Engineer to report to them monthly or at longer intervals, on a Works Slip, the total expenditure to date under each sub-head of work, in contrast with the sanctioned estimate.

47. Administrative Department are required to see that any detailed rules and regulations on this subject in departmental manuals or codes are kept in conformity with the above principles.
48. The classes of deeds, contracts and other instruments authorized by the Governor to be executed by the various authorities on his behalf have been reproduced in Appendix 3.



49. Erasures or overwritings in any register, records or returns are absolutely forbidden; if any correction be necessary, the incorrect entry should be cancelled neatly in red ink, and the correct entry inserted. Each such correction, or any interpolation deemed necessary, should be authenticated by the head of the office setting, his dated initials against each.

Audit objections

50. Every Government servant, entrusted with the duty of making payments on behalf of Government, should attend promptly to all objections and orders communicated to him by the Accountant-General, either direct, or through the Treasury Officer, by letters, audit memoranda, etc., and return the audit memoranda or reply to objections within a fortnight or send letters explaining the cause of delay.
Note 1.- The fact that some or the objections are still under reference is no reason for keeping back the statement. Such oases can be extracted for subsequent explanation.
Note 2.-In the case or the Forests Department the objection statements should be returned in original by the Divisional Forest Officer through the Conservator within a week of their receipt from the Accountant-General. A list will also be forwarded by the Accountant-General to the Conservator each month showing the dates on which the objection statements were sent to each divisional office. The list should be completed and sent back to the Accountant-General by the Conservator after all the objection statements for the month have been returned.

Payment of owners' and occupiers' shares of municipal taxes

51. Instructions regarding payment of 'owners and occupier's shares of municipal taxes in areas where the Bengal Municipal Act, 1932, or the Cooch Behar Municipal Act, 1944, applies are reproduced in Appendix 4.

Preservation and destruction of record.

52. (a) Rules regarding the destruction of Accounts records in office rendering accounts to the Accountant-General have been reproduced in Appendix 5.
(b) Rules regarding the period of preservation of certain records for treasuries and sub- treasuries have been reproduced in Appendix 6.