2. Finance Accounts (FA)- Defined.
The Finance Accounts of the Union Government are
consolidated statements of accounts of all the transactions of
the Union Government
and Union Territories Government(without legislature)
under Consolidated Fund,
Contingency Fund
and the Public Account.
•It includes transactions of Civil Ministries/Departments, Ministries of Defence and Railways and the
Departments of Posts and Telecommunication.
•It also makes disclosures in the form of financial assets and liabilities.
The Finance Accounts of the Union Government comprise the accounts of the Union Government as a whole and
include transactions of Civil Ministries/Departments, Ministries of Defence and Railways and the Departments of Posts
& Telecommunication. These present the accounts of receipts and outflows of the Union Government for the financial
year together with the financial results disclosed by different accounts and other data coming under examination. These
accounts include the Revenue and Capital Account, Public Debt Account and other liabilities and assets worked out
from the balances in the accounts.
The Finance Accounts is an Auditor's presentation of the general accounts of the Government to
Parliament.
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3. Constitutional Provisions
regarding FA
The office of the Controller General of Accounts (CGA) under the Department of
Expenditure, Ministry of Finance is responsible for preparing and submitting Finance
Accounts of the Central Government.
Article 150 of the Constitution provides for maintenance of the Government Accounts “in
such form as the president may, on the advice of the Comptroller & Auditor General of India,
prescribe”. The executive power to prescribe the form and content of the accounts are
delegated to the Controller General of Accounts, Ministry of Finance under the allocation of
Business Rules.
Rule 89 of General Financial Rules 2017: Under the allocation of Business Rules, Finance
Accounts shall be prepared by the Controller General of Accounts.
Annual Accounts and Report of the Comptroller & Auditor General of India are laid before
Parliament in accordance with Article 151 of the Constitution.
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4. Form of Finance Accounts and
contents
a) Structure of Finance Accounts
Finance Accounts comprise two parts - Part I and Part II. Part I presents five summarized
Statements in respect of Revenue, Capital, Debt, Deposit, Suspense and Remittances transactions
and Contingency Fund, while Part II has 11 detailed Statements in respect of these transactions,
along with other related Statements.
Finance Accounts of the Union Government contain details up to Minor Head Level and include
net details of transactions adjusted after recoveries from gross amount.
Part I presents the summarized statements in respect of Revenue, Capital, Debt, Deposit, Suspense
and Remittances transactions and Contingency Fund,
while Part II has detailed statements in respect of these transactions, along with other related
statements.
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5. The Part II of the Finance Accounts is further subdivided into two sections `A' & `B’.
While section `A' comprises of detailed accounts and statements relating to Receipts
and Expenditure on Revenue and Capital accounts, section "B' has detailed accounts
and statements relating to Debt, Deposit, Suspense & Remittances transactions and
Contingency Fund.
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6. Part I of Finance Accounts contain five
summarised statements (Statements No. 1 to 5).
Statement No.1 – Summary of Transactions It is prepared in three parts i.e. Consolidated Fund of India,
Contingency Fund of India and Public Accounts. In revenue section major head wise total is given.
This statement is prepared in crores of Rupees up to two decimal places. It shows a summary of all transactions of the
Union Government for the current and the previous year, with the Receipts and Expenditure transactions shown
separately. Grand Total Receipts should be equal to Grand Total Disbursements. After the Summary of Transactions,
there is an Annexure which contains major head-wise details of Taxes and Duties assigned to States during the year.
The total Revenue Receipts and Expenditure for the current year are compared with those of the previous year. The
increase in respect of Defence, Railways and Posts is shown as a single figure, while the reasons for increase in civil
departments are explained for those major heads where the increase is marked.
At the end of the Statement, transactions of Ministry of Railways are analysed, showing their Revenue Receipts and
Revenue Expenditure, the net surplus and the distribution of net revenue into dividend for General Revenues and
Appropriation to the respective Reserve Funds. This write up is vetted by the Ministry of Railways before incorporating
in the Statement.
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7. Statement No.2 – Summary of Debt Position
This statement is prepared in crores of Rupees up to two decimals.
It has three parts-
Statement of Borrowings
This part contains the debt position at the commencement of the
year, Receipts and Repayments during the year, the debt position
at the end of the year and the net increase during the year. This
part of the statement includes heads under Public Debt and Small
Savings, Provident Funds, etc. With the components of Market
Loans raised during the year are also being indicated. A new para
depicting the correct position of outstanding liability of the
Central Government has been inserted from the year 2004-05.
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8. (ii) Other Obligations
This part of the statement includes similar information as mentioned in
(i) above in respect of Reserve Funds and Deposits (bearing interest
and not bearing interest) separately.
(iii) Service of Debt
In this part of the statement, transactions of the current year and the
previous year are compared in relation to total interest paid by the
Government indicating the interest on (a) Public Debt and Small
Savings and Provident Funds, (b) Reserve Funds and (c) other
obligations.
A footnote showing the amount of Dividend received on investments in
the commercial undertakings is also incorporated.
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9. Statement No.3 – Loans and Advances by the Union Government
This statement contains the following details: -
(i) The balance of loans at the commencement of the year, amount of
loans paid and repaid during the year, balance of loans at the end of
the year and net addition/decrease during the year;
(ii) The loans granted to State and UT Governments to cover gap in
resources;
(iii) Loans to State Governments written off in terms of
recommendations of Finance Commission;
(iv)The amount of loan paid as Ways and Means Advances to State
Governments for clearance/avoidance of overdrafts from RBI and also
the repayments made during the year;
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10. (v) Details of loans sanctioned by the Government where the
terms and conditions of the loans were not settled;
(vi) Ministry wise and State/UT Government wise information on
loans other than rehabilitation loans in which repayment of loans
and/or payment of interest was defaulted;
(vii) Ministry wise details where fresh loans were sanctioned for
payment of arrears of principal and interest; and
(viii) Ministry wise information on loans in which repayment of
loans and /or payment of interest was defaulted by a loanee
other than State/UT Government.
This statement is also known as IGAS 3
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11. Statement No. 4 Guarantees Given by the Union Governments
Under article 292 of the Constitution, the Union Government may give
guarantees within such limits, if any fixed by the Parliament.
As per requirements of the FRBM Rules, a new format for disclosing
guarantees given by the Government has been introduced in the Finance
Accounts for the year 2004-05. This statement is prepared in crores of
Rupees up to two decimals. At the outset, the purposes for which Government
stands guarantee are stated. The maximum amount of guarantee for which
Government had entered into agreements and sums guaranteed outstanding
at the end of the year are mentioned in crores of Rupees. The Ministry/
Department-wise details of guarantees under different categories
(6categories) are given. This statement is also known as IGAS 1. These
statements are prepared class wise as well as sector wise. 11
12. Statement No. 5-Summary of Balances
Under the Indian Government Accounts book-keeping system,
the amounts booked under Receipts and Expenditure heads in
Revenue and Capital Account and those under major heads
`7810 Inter- State Settlement’,`7999- Appropriation to the
Contingency Fund’ and `8680 Miscellaneous Government
Account’, are closed to a single head with the nomenclature
`Government Account’. The balances under this head represent
the cumulative result of all such transactions. The closing cash
balance at the end of the year can be worked out and proved by
adding the balances under ‘Government Account’ and those
under Debt, Deposit, Suspense and Remittance heads and the
Contingency Fund. 12
13. This statement is prepared in thousands of Rupees having
three parts, and shows the balances as at the end of the year
under various sectors of account, with the total debit balances
being equal to the credit balances. The other information
available in this statement, in brief, is as follows: -
(i) The sector-wise details of Prior Period Adjustments made
in the account, along with the debit and credit totals of the
PPAs;
(ii) The significance of “Government Account” head and the
closing balance under it;
(iii) The debit or credit balance (as on 31st March of the year)
for each sector of the account.
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14. PART – II Detailed Accounts and
Other Statements
A – Receipts and Expenditure
This part contains seven
statements; Statements 6 to 12
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15. Statement No. 6-Statement showing Percentage
Distribution of Revenue Receipts and Revenue
Expenditure for the year.
This statement is prepared in crores of rupees up to two
decimal places. The information is furnished in three
columns. In the first half of the statement, the total Revenue
Receipts is depicted component wise along with the
percentage against the total Revenue Receipts. In the
second half the various components of Revenue Expenditure
are similarly depicted.
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16. Statement No. 7- Statement showing the distribution
between Charged and Voted Expenditure.
This statement is prepared in thousands of Rupees and
contains the following information it depicts, in a nutshell,
the distribution of total expenditure under (F) between
Charged and Voted expenditure: -
(i) The distribution of the expenditure under the
Consolidated Fund
(ii) Breakup of disbursement under Public Debt, Loans and
Advances, Inter-State Settlement and Transfer to
Contingency Fund.
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17. Statement No. 8-Detailed Account of Revenue Receipts
and Capital Receipts by Minor Heads.
This statement shows the following details of Revenue and
Capital Receipts minor head-wise.
(a) The totals at the Sub-Major, Major Head, and Sector
levels as also the, (b) Total Revenue Receipts, (c) Capital
Receipts and (d) The total of Revenue and Capital
Receipts. The reasons for minus transactions at Minor
head levels except those under deduct heads are recorded
as footnotes at relevant pages. 17
18. Statement No. 9 Detailed Account of Revenue Expenditure
by Minor Head and Capital Expenditure by Major Head
This statement depicts the details of Revenue expenditure by
minor heads and Capital expenditure by Major heads. The
breakup, if any, of expenditure into Charged and Voted
components is also shown with the charged expenditure shown
in italics. The reasons for minus expenditure except those under
deduct heads are recorded as footnotes at the relevant pages.
Appendix to statement No. 9
Disclosure statement accounting and classification of
grants-in-aid. It is known as IGAS 2
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19. Statement No.-10 Statement of Expenditure on Capital
Account during and to the end of the year.
The expenditure on Capital Account during and to the end of the
year, is depicted minor head-wise in this statement. However, due
to non – availability of progressive figures at minor head levels, the
figures are shown at sub – major head level for major head 4076
and at the major head levels for major heads 5002 and 5003. An
appendix is added indicating the minor head – wise details of
expenditure incurred during the year under the Major Heads 4076,
5002 and 5003. The reasons for minus expenditure except those
under deduct heads are recorded as footnotes at relevant pages.
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20. Statement No.11 - Statement showing the
Investments of the Union Government in Statutory
Corporations, Government Companies, Other Joint
Stock Companies, Co-operative Banks and Societies,
etc., up to end of the year. It contains name of the
concern, year of investment, type of share, number
of shares, face value of share, total amount of
investment, percentage of Government investment
in paid up capital and dividend received.
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21. This statement contains full details of investments made by the
Government in Statutory Corporations, Government
Companies, Other Joint Stock Companies, Co-operative Banks
and Societies, etc., up to the end of the year. Those enterprises
which are under construction/expansion are included in Part I of
the statement while the enterprises already in operation are
covered in Part II of the statement. Dividend received during the
year is mentioned in column (9) of the statement, and if no
dividend is received, the reasons thereof are recorded in the
remarks column. Any PPA that affects the investment is
suitably explained in the footnote.
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22. Statement No. 12 - Statement showing Capital and Other
expenditure (outside the Revenue Account) to end of the year
and the principal sources from which funds were provided for
that expenditure
The figures depicted in this statement are shown in two parts. The
first part indicates the expenditure on Capital account and on
Loans and Advances while the second part indicates the sources
of funds for that expenditure. The net provision of funds for the
current year should be equal to the total capital and loan
expenditure during the current year. Figures in respect of
investment heads are shown separately and are not included in
the concerned sectors.
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23. Part B – Debt, Deposit,
Remittances and
Contingency Fund
This part contains five
statements i.e. Statement
Nos. 13, 14, 14A, 15 & 16.
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24. This statement contains the following: -
(i) Details of Consolidated Fund at the beginning of the
statement, with the Receipts and Disbursements under
Revenue and Capital account are shown in respective
columns.
As these heads close to Government Account, there are no
opening and closing balances of these heads;
(ii) The balances against Major Head 8000 – Contingency
Fund of India;
(iii) The details of transactions and balances under Public
Account, with the details for every minor head with sub-
sector-wise breakup; 24
25. (iv) Aggregate totals are made at all levels viz sub – major
head, major head, sub – sector and sector levels. The total
for the Public Account is also depicted;
(v) Minor head wise details of the major head 8999 Cash
Balance under the ‘Sector N Cash Balance’. The opening
balance under this major head is equal to the figure under
the column for Receipts while the closing balance is equal to
the figure under the column for Disbursements. A footnote
comparing the closing balance under head 8999 – 102
Balance with Reserve Bank in this statement with the closing
balance as Reported by RBI, CAS, Nagpur is also recorded.
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26. Statement No. 14-Statement of Debt and other interest
bearing obligations of Government.
This Statement depicts:
(1) Minor - head wise details under the -
(i) Sector E-Public Debt (ii) Sub-Sectors (iii) State Provident Fund
and (iv) Other Accounts below the Sector I Small Savings,
Provident Funds etc.
(2) A statement showing details of foreign loans in foreign
Currencies/Rupees in Crores and the exchange rate adopted (as
on 31st March of the year) is appended to statement no.14. This
is furnished by CAAA.
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27. Statement No. 14 A- Details of Market Loans raised
in India and securities issued to international
Financial Institutions
This statement supplements statement No. 14, furnishing
details of each loan, under major head “6001”, even
below the minor head level. Head-wise details of loans
shown at minor head level in statement No.14 are
furnished in this statement, which is obtained separately
from the concerned department(s) and incorporated.
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28. Statement No. 15-Statement of loans and advances
showing the amounts advanced and repaid, interest
received during the year and the balances of such loans
and advances at the commencement and close of the year.
The Minor head-wise figures of loans are given in this
statement. This statement also contains the breakup of the
State/UT Government wise under major heads 7601 and 7602.
In addition, an Appendix is added to indicate the major head-
wise details of loans advanced during the year for “Plan”
purposes.
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29. Statement No. 16-Statement showing the position of
National Small Savings Fund.
This statement was introduced in Finance Accounts in the year
1999-2000 and depicts the minor head-wise details of balances
under National Small Savings Fund that also includes Savings
Deposits and Savings Certificates etc. At the end of the
Statement, two Appendices are added – (i) Showing the details
of Income & Expenditure of National Small Savings Fund and
(ii) Showing State-wise details of investments made by
Government of India in Special State Government Securities.
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30. Accounting Authorities in FA
The scheme of Departmentalization of Accounts provides for the Secretary of the Ministry/Department concerned to be
the Chief Accounting Authority. He discharges his functions through and with the assistance of the Financial
Adviser/Pr. Chief Controller of Accounts (Pr.CCA)/Chief Controller of Accounts (CCA)/Controller of Accounts (CA)
of the Ministry/Department concerned on these matters. The Financial Adviser works for and on behalf of the Chief
Accounting Authority under the scheme of departmentalization and is responsible for the compilation and consolidation
of the accounts of the Ministry/Department in the prescribed form and their timely rendition to the Controller General
of Accounts.
The Pr. CCA/CCA/CA, as the case may be, is the Head of Accounting Organisation in the Civil
Ministries/Departments and functions under the overall supervision and control of the respective Financial Advisers.
The Financial Adviser/ Pr. CCA/CCA/CA, is responsible for the following main items of work under the scheme of
departmentalization, performed for and on behalf of the Chief Accounting Authority.
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31. Preparation of Finance
Accounts
Each Pay and Accounts Office sends monthly accounts to its Principal Accounts Office, in the format
prescribed by the Controller General of Accounts. On receiving the monthly accounts of Pay & Accounts
Office, the Principal Accounts Office checks them, mainly to detect prima-facie errors in classification. After
this, the Principal Accounts Office consolidates the accounts of Pay and Accounts Offices and submit these
accounts to the CGA office.
Finance Accounts Section in the office of CGA issues a circular by the end of March every year, prescribing the
time schedule for closing of Union Government accounts. Circulars are also issued by this section detailing
guidelines relating to the preparation of Statement of Central Transactions (SCTs) and other materials for the
Finance Accounts.
Each Principal Accounts Office prepares a ‘Statement of Central Transactions’ (SCT) at the end of every
financial year, representing the progressive effect of all the transactions during the year including that of March
supplementary transactions. The Statement of central transactions is prepared up to minor head-wise.
CGA then compiles the data of all the SCTs received form the various controllers and thus, Finance Accounts
of the Union Government are prepared.
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32. The basic inputs for compilation of Finance Accounts are as
follows:-
(1) Statement of Central Transactions;
(2) Journal Entries;
(3) Prior Periods Adjustments;
(4) Pro-forma Adjustments; and
(5) Progressive figures up to the end of the previous year.
While the first four inputs mentioned above are received from the
various accounting authorities and progressive figures up to the end
of previous year are available in the records of Finance Accounts
Section.
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33. Material for Finance accounts
The Finance Accounts is prepared on the basis of materials furnished by
various accounting authorities to the Controller General of Accounts.
(a) Statements of Finance Accounts, Statement of Central Transactions
(SCTs) and other materials by Pr Accounts Offices relating to Ministries /
Departments, Accountants General and separated Accounts Organizations
of Union Territory Administrations/Governments.
(b) SCTs and other material by Dy. Director General, Postal Accounts.
(c) SCTs and other material by Dy. Director General, Telecommunications.
(d) SCTs and other material by Controller General of Defence Accounts.
(e) SCTs and other material by. Railway Board.
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34. The updated copy of Statement of Central Transactions,
duly reconciled with the figures of Head wise
Appropriation Accounts shall be submitted to the
Controller General of Accounts, in the prescribed form.
The Statement of Central Transactions should include
the progressive figures up to March (Supplementary)
accounts.
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35. After its submission of SCTs to the Controller General
of Accounts, any further correction to the Statement of
Central Transactions that becomes necessary will be
carried out by proposing a Journal Entry in form
CAM 34 duly singed by the CCA/CA/AG after
obtaining the approval of Controller General of
Accounts. Finally, an abstract in Form CAM-36 shall
also be sent to the CGA, incorporating the effect of all
Journal Entries accepted for incorporation. The
figures in the Statement of Central Transaction are to
be indicated in ‘thousands of rupees’
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36. Various timelines for
preparation
CGA prepares time schedule for the certification of Accounts in February/ March every year. CGA also issues
circulars detailing guidelines relating to the preparation of Statement of Central Transactions and other materials
for the Finance Accounts.
Submission of SCTs: Around mid-May
Submission of all Statements of Finance Accounts to Audit (without adding Journal Entries):
Second week of June
Corrections in draft Finance Accounts: First week of August
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38. Certification of Finance
Accounts – its procedure
…Continued
On the approval of Audit Certificate by the CAG, a formal approval is sent to CGA
by DGA (Finance and Communication) with request to send 12 signatory copies of
the Union Finance Accounts for the signature of CAG of India.
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