Rule 73 of The General Financial Rules 2017 Principles of Accounting
Original Rule Text
Visual Summary
Governs how Government of India accounts are maintained.
Includes G.A.R. 1990, Treasury Rules, Account Code Vol-III.
Detailed rules for Posts and other technical departments.
Executive Summary
Rule 73 of the General Financial Rules, 2017, lays down the fundamental principles for maintaining the accounts of the Government of India. It mandates adherence to established frameworks such as the Government Accounting Rules, 1990, Accounting Rules for Treasuries, and Account Code Volume-III. Furthermore, it acknowledges that specific departments, like the Department of Posts and other technical departments, will have their own detailed manuals and regulations for managing initial and subsidiary accounts, ensuring a comprehensive and tailored approach to financial record-keeping across government entities.
In-Depth Analysis of the Rule
Introduction: Rule 73 serves as a cornerstone for financial accountability within the Government of India by defining the overarching principles that govern its accounting practices. It ensures uniformity while allowing for necessary departmental specialization.
Breakdown of the Rule:
- Core Principles: The rule establishes that the accounts of the Government of India must be maintained according to a set of main principles. This ensures a standardized approach to financial management.
- Primary Sources: These main principles are specifically contained in three key documents: the Government Accounting Rules, 1990; the Accounting Rules for Treasuries; and the Account Code Volume-III. These documents form the bedrock of government accounting.
- Department-Specific Rules: For certain entities, such as the Department of Posts and other technical departments, detailed rules and instructions for initial and subsidiary accounts are found in their respective Accounts Manuals or departmental regulations. This provision allows for specialized accounting practices where general rules may not fully apply due to the unique nature of their operations.
Practical Example: Consider the Department of Posts, which handles a vast network of financial transactions. While adhering to the broad principles laid out in the Government Accounting Rules, 1990, for its overall financial reporting, its day-to-day management of savings schemes, money orders, and other specific services would be guided by its own detailed Accounts Manual, as permitted by Rule 73. This ensures that the unique operational complexities of the postal services are adequately addressed within the broader governmental accounting framework.
Related Provisions
Understanding Rule 73 is enhanced by reviewing these related provisions:
- Rule 72 of The General Financial Rules 2017 Form of Accounts: Specifies the form in which government accounts are to be kept.
- Rule 74 of The General Financial Rules 2017 Cash based Accounting: Details the cash-based nature of government accounting.
- Rule 77 of The General Financial Rules 2017 Main Divisions and structure of Accounts: Outlines the three main parts and structure of government accounts.
Learning Aids
Mnemonics
- P.A.R.T.S. – Principles, Accounting Rules, References, Treasuries, Specific Departments.
Process Flowchart
Multiple Choice Questions
1. What is the primary purpose of Rule 73 of the General Financial Rules, 2017?
- A) To define the form of government accounts.
- B) To outline the main principles for maintaining Government of India accounts.
- C) To specify cash-based accounting procedures.
- D) To detail the structure of the Consolidated Fund.
Show Answer
Correct Answer: B) To outline the main principles for maintaining Government of India accounts.
2. Which of the following is explicitly mentioned as a source for the main accounting principles under Rule 73 of the General Financial Rules, 2017?
- A) Delegation of Financial Powers Rules
- B) Government Accounting Rules, 1990
- C) Central Public Works Department Manual
- D) Reserve Bank of India Act, 1934
Show Answer
Correct Answer: B) Government Accounting Rules, 1990
3. According to Rule 73 of the General Financial Rules, 2017, where are detailed rules for initial and subsidiary accounts for the Department of Posts laid down?
- A) In the Ministry of Finance guidelines
- B) In the Government Accounting Rules, 1990
- C) In the respective Accounts Manuals or departmental regulations
- D) In the Comptroller and Auditor General’s directives
Show Answer
Correct Answer: C) In the respective Accounts Manuals or departmental regulations
4. Rule 73 of the General Financial Rules, 2017 emphasizes that Government of India accounts must be maintained according to:
- A) International Accounting Standards
- B) Principles outlined in specific accounting rules and codes
- C) Directives from the Ministry of Finance only
- D) Commercial accounting practices
Show Answer
Correct Answer: B) Principles outlined in specific accounting rules and codes
5. Which of these is NOT a primary document for accounting principles mentioned in Rule 73 of the General Financial Rules, 2017?
- A) Government Accounting Rules, 1990
- B) Accounting Rules for Treasuries
- C) Account Code Volume-III
- D) Delegation of Financial Powers Rules
Show Answer
Correct Answer: D) Delegation of Financial Powers Rules
Frequently Asked Questions
Q1: What are the core principles governing Government of India accounts under Rule 73 of the General Financial Rules, 2017?
A1: Rule 73 states that the main principles for maintaining Government of India accounts are contained in the Government Accounting Rules, 1990; Accounting Rules for Treasuries; and Account Code Volume-III.
Q2: Does Rule 73 of the General Financial Rules, 2017 allow for department-specific accounting rules?
A2: Yes, Rule 73 specifies that detailed rules and instructions for initial and subsidiary accounts for officers of the Department of Posts and other technical departments are laid down in their respective Accounts Manuals or departmental regulations.
Q3: Where can one find the detailed rules for maintaining initial and subsidiary accounts for technical departments as per Rule 73 of the General Financial Rules, 2017?
A3: For technical departments, these detailed rules are found in their respective Accounts Manuals or in the departmental regulations relating to the Departments concerned.
Key Takeaways
- Rule 73 establishes the foundational principles for maintaining Government of India accounts.
- It mandates adherence to key documents: Government Accounting Rules, 1990; Accounting Rules for Treasuries; and Account Code Volume-III.
- Specific departments, such as Posts and other technical departments, follow their own detailed Accounts Manuals or regulations for initial and subsidiary accounts.
- The rule ensures a structured and consistent approach to financial record-keeping across government entities, while accommodating specialized needs.
Conclusion
Rule 73 of the General Financial Rules, 2017, is crucial for maintaining the integrity and transparency of government finances. By clearly delineating the primary accounting principles and acknowledging the need for specialized departmental rules, it provides a robust framework that supports effective financial management and accountability across the diverse operations of the Government of India.