Rule 100 of The General Financial Rules 2017 Allocation between Capital and Revenue Expenditure
Original Rule Text
Visual Summary
Allocation determined by prescribed orders.
Mandatory consultation with Comptroller and Auditor General.
Applies to capital schemes with separate accounts.
Executive Summary
Rule 100 of The General Financial Rules, 2017, establishes the framework for distinguishing between capital and revenue expenditure within specific Capital Schemes that maintain separate accounts. This critical allocation is determined by the Government through general or special orders, but crucially, it requires prior consultation with the Comptroller and Auditor General of India to ensure proper financial oversight and accountability.
In-Depth Analysis of the Rule
Introduction: Rule 100 provides a specific directive for how financial allocations are to be managed for large-scale government projects. It ensures that the nature of expenditure—whether it contributes to asset creation (capital) or covers ongoing operational costs (revenue)—is clearly defined and properly accounted for, particularly in schemes where distinct financial records are maintained.
Breakdown of the Rule:
- Government’s Authority: The primary responsibility for determining the allocation between capital and revenue expenditure rests with the Government. This determination is formalized through either general or special orders, providing flexibility while maintaining a structured approach.
- Mandatory Consultation: A key safeguard embedded in this rule is the requirement for the Government to consult with the Comptroller and Auditor General of India (CAG). This ensures an independent review and expert advice on financial classification, promoting transparency and preventing arbitrary decisions.
- Specific Applicability: The rule’s scope is precisely defined: it applies only to