Rule 17 of the General Financial Rules 2017 Miscellaneous Demands
Original Rule Text
Visual Summary
Accounts Officer’s Duty
They are responsible for monitoring the collection of specific government dues.
Miscellaneous Demands
These are special payments owed to the government, not regular taxes or revenue.
Examples of Payers
Includes State Governments, contractors, and others paying for specific costs like staff charges.
Executive Summary
This rule assigns a specific duty to Accounts Officers: they must keep track of and ensure the collection of special, non-routine payments owed to the government. These payments, called ‘miscellaneous demands,’ are different from regular taxes and fees. They often come from sources like State Governments, local funds, or contractors who need to contribute towards specific costs, such as the expenses of government staff (‘establishment charges’).
In-Depth Analysis of the Rule
Introduction
Rule 17 of the General Financial Rules, 2017, carves out a specific responsibility for Accounts Officers regarding a particular category of government income. While many rules deal with the broad collection of revenue like taxes, this rule focuses on ensuring that other, less common, financial demands are not overlooked.
Breakdown of the Rule
The rule is straightforward and contains a few key terms:
- Accounts Officers: These are the government officials responsible for maintaining financial records and ensuring that all monetary transactions are correctly accounted for.
- Shall watch the realization of: This phrase places an active duty on the Accounts Officer. ‘Watch’ means to monitor and follow up, while ‘realization’ means the actual collection of the money owed. It’s not enough for the demand to exist; the officer must ensure it is paid.
- Miscellaneous demands of Government: This is the core subject. These are financial claims that are not part of the ‘ordinary revenue administration.’ In simple terms, they are not your everyday taxes, duties, or fees.
- Examples provided: The rule gives clear examples to illustrate what constitutes a miscellaneous demand, such as ‘contributions from State Governments, Local Funds, contractors and others towards establishment charges.’ ‘Establishment charges’ typically refer to the costs of running an office or employing staff for a specific purpose.
Practical Example
Imagine the Central Government’s Survey of India department is hired by a State Government to conduct a special land survey for a new infrastructure project. The cost of deploying the surveyors, their salaries, and administrative support for the duration of the project are ‘establishment charges.’ The State Government agrees to pay these charges to the Central Government. This payment is a ‘miscellaneous demand.’ Under Rule 17, the Accounts Officer in the Survey of India department is responsible for tracking this payment, ensuring the State Government is billed correctly, and following up until the money is received and credited to the government’s account.
Conclusion
Rule 17 is a crucial safeguard in the government’s financial system. It ensures that specialized or one-off payments, which could easily be lost in the vastness of government transactions, are diligently monitored and collected. By assigning this specific ‘watching’ duty to Accounts Officers, the rule helps maintain financial discipline and prevents the loss of non-tax revenue.
Related Provisions
This rule is part of a broader framework for managing government receipts. Understanding the following related provisions can provide a more complete picture:
- Rule 12: Outstanding Amounts Due to Government – This rule provides the general principle that government dues should not be left outstanding. Rule 17 is a specific application of this principle to miscellaneous demands.
- Rule 18: Remission of Revenue – This rule explains the process for when a claim to revenue (which could include a miscellaneous demand) is to be officially forgiven or abandoned, requiring the sanction of a competent authority.
- Rule 9: Duty to Credit Receipts – This establishes the fundamental responsibility of government departments to ensure all money received is correctly and promptly credited, which is the ultimate goal of the process monitored under Rule 17.
Learning Aids
Mnemonics
- WATCH MD: Remember that Accounts Officers must **WATCH** **M**iscellaneous **D**emands.
- AO’s Special Watch: Accounts Officers (AO) have a ‘Special Watch’ duty for payments that are not ordinary revenue, like contributions for establishment charges.
Mindmap
Multiple Choice Questions (MCQs)
1. [Easy] Who is specifically assigned the duty to ‘watch the realization’ of miscellaneous demands under Rule 17?
- A) The Head of the Department
- B) The Controlling Officer
- C) The Accounts Officer
- D) The Drawing and Disbursing Officer
Show Answer
Correct Answer: C) The Accounts Officer. The rule explicitly states that ‘Accounts Officers shall watch the realization of miscellaneous demands’.
2. [Medium] Which of the following is explicitly mentioned in Rule 17 as an example of a miscellaneous demand?
- A) Fines collected by a court
- B) Rent from government buildings
- C) Contributions from contractors towards establishment charges
- D) Annual income tax payments
Show Answer
Correct Answer: C) Contributions from contractors towards establishment charges. The rule provides this as a specific example, along with contributions from State Governments and Local Funds.
3. [Hard] What is the key characteristic that distinguishes ‘miscellaneous demands’ from other forms of government revenue according to Rule 17?
- A) They are always paid in installments.
- B) They are exclusively paid by other government bodies.
- C) They are not part of the ordinary revenue administration.
- D) They must be collected within a single financial year.
Show Answer
Correct Answer: C) They are not part of the ordinary revenue administration. This is the defining feature mentioned in the rule that separates these demands from regular revenue streams like taxes or standard fees.
Frequently Asked Questions
What exactly is a ‘miscellaneous demand’ in simple terms?
A miscellaneous demand is a special or non-routine payment owed to the government. It’s not a regular tax or fee. For example, if a private company uses government services and has to pay for the staff time involved, that payment is a miscellaneous demand.
Who is responsible for making sure these special payments are collected?
The Accounts Officer of the concerned government department is responsible. Their job is to ‘watch’ or monitor these demands until the money is actually ‘realized’ or collected.
Why are these demands treated separately from normal revenue?
They are treated separately because they fall outside the ‘ordinary revenue administration.’ This means they are not part of the standard, predictable income streams like income tax or customs duty, and therefore require special attention from Accounts Officers to ensure they are not missed.
Key Takeaways
- Accounts Officers have a specific duty to monitor and ensure the collection of special government dues.
- These dues, known as ‘miscellaneous demands,’ are separate from regular, everyday revenue like taxes.
- Examples include payments from state governments or contractors to cover specific costs, such as staff expenses.
- This rule ensures that non-standard income is not overlooked and is properly collected.