Rule 119 of The General Financial Rules 2017 Recoveries for NonGovernment Services

Rule 119 of The General Financial Rules 2017 Recoveries for NonGovernment Services

Original Rule Text

Recoveries of expenditure for services rendered to non-Government parties. Recoveries of expenditure for services rendered or supplies made to non-Government parties or other Governments (including local funds and Governments outside India), shall in all cases, be classified as receipts of the Government rendering such services.

Visual Summary

Non-Govt Parties

Services/supplies to private entities or other governments.

Classification Rule

Recoveries are always classified as Government receipts.

Broad Scope

Includes local funds and governments outside India.

Executive Summary

Rule 119 of the General Financial Rules, 2017, mandates that any money recovered for services or supplies provided by the Government to non-Government entities, including local funds and foreign governments, must always be recorded as receipts of the Government that rendered the service. This ensures proper accounting and transparency of such transactions.

In-Depth Analysis of the Rule

Introduction: Rule 119 of the General Financial Rules, 2017, provides clear guidance on the accounting treatment of funds recovered by the Government when it extends services or supplies to external parties. This rule is crucial for maintaining transparency and accuracy in government financial records.

Breakdown of the Rule: