Rule 89 of The General Financial Rules 2017 Finance Accounts
Original Rule Text
Visual Summary
Controller General of Accounts prepares annual Finance Accounts.
Secretary (Expenditure) countersigns the prepared accounts.
Covers receipts, disbursements, and balances of Union Government.
Executive Summary
Rule 89 of The General Financial Rules, 2017, outlines the responsibility for preparing and signing the annual Finance Accounts of the Government of India. These accounts, which detail annual receipts, disbursements, and balances for the Union, are prepared and signed by the Controller General of Accounts and then countersigned by the Secretary (Expenditure) in the Ministry of Finance. This ensures accountability and accuracy in the financial reporting of the Central Government and its various entities, including the Department of Posts, Ministries of Defence and Railways, and Union Territory Governments.
In-Depth Analysis of the Rule
Rule 89 is a foundational provision within the General Financial Rules, 2017, establishing the procedural framework for the creation and authentication of the Government of India’s annual Finance Accounts. It delineates clear roles for key financial authorities, ensuring a robust system of financial accountability and transparency.
Breakdown of the Rule:
- Scope of Accounts: The rule specifies that the Finance Accounts cover the annual receipts and disbursements, along with the statement of balances, for the entire Union Government. This includes transactions from the Department of Posts, Ministries of Defence and Railways, and transactions under the Public Account of India for Union Territory Governments.
- Preparation Authority: The primary responsibility for preparing these comprehensive annual accounts rests with the Controller General of Accounts (CGA). The CGA is the principal accounting adviser to the Government of India and is responsible for establishing and maintaining a sound financial management system.
- Signing and Countersigning: The prepared Finance Accounts must be signed by the Controller General of Accounts. Crucially, they also require a countersignature from the Secretary (Expenditure) in the Ministry of Finance. This dual authentication signifies a high level of scrutiny and approval, reflecting the importance of these financial statements.
- Purpose: The Finance Accounts serve as a critical document for assessing the financial health and operations of the Government, providing a consolidated view of its financial activities for the year.
Practical Example:
Imagine the end of a financial year (March 31st, 2025). The Controller General of Accounts would compile all financial data from various government ministries, departments, and Union Territories. This includes all tax collections, revenue from services, expenditure on schemes, salaries, capital investments, and the balances held in various government funds. Once compiled, the CGA signs off on these ‘Finance Accounts’. Subsequently, the Secretary (Expenditure) in the Ministry of Finance reviews and countersigns them, certifying their accuracy and completeness before they are presented for further review and eventual submission to Parliament.
Related Provisions
Understanding Rule 89 is enhanced by examining related provisions that govern government accounts and financial reporting:
- Rule 71 of The General Financial Rules, 2017 (Preparation and presentation of Accounts): This rule details the overall process for preparing and presenting the Union Government’s annual accounts, including their certification by the Comptroller and Auditor General of India and submission to the President.
- Rule 72 of The General Financial Rules, 2017 (Form of Accounts): This provision specifies that the form of Union Government accounts is prescribed by the President on the advice of the Comptroller and Auditor General of India, with the Controller General of Accounts being responsible for framing rules and manuals.
- Rule 77 of The General Financial Rules, 2017 (Main Divisions and structure of Accounts): This rule outlines the three main parts of Government accounts (Consolidated Fund, Contingency Fund, and Public Account) and their respective divisions and sectors.
Learning Aids
Mnemonics:
- CGA Signs, Sec (Exp) Countersigns: Remember that the Controller General of Accounts prepares and signs, while the Secretary (Expenditure) provides the crucial countersignature for the Finance Accounts.
Process Flowchart:
Multiple Choice Questions (MCQs)
1. According to Rule 89 of The General Financial Rules, 2017, who is primarily responsible for preparing the annual Finance Accounts of the Government of India?
- A) The Finance Minister
- B) The Comptroller and Auditor General of India
- C) The Controller General of Accounts
- D) The Secretary (Expenditure)
Show Answer
Correct Answer: C) The Controller General of Accounts
2. As per Rule 89 of The General Financial Rules, 2017, who must countersign the Finance Accounts after they are prepared and signed by the Controller General of Accounts?
- A) The President of India
- B) The Prime Minister
- C) The Secretary (Expenditure), Ministry of Finance
- D) The Chief Economic Adviser
Show Answer
Correct Answer: C) The Secretary (Expenditure), Ministry of Finance
3. Which of the following entities’ transactions are explicitly included in the annual Finance Accounts of the Government of India, as per Rule 89 of The General Financial Rules, 2017?
- A) Only transactions of the Ministry of Finance
- B) Transactions of Department of Posts, Ministries of Defence and Railways, and Union Territory Governments
- C) Only transactions related to the Consolidated Fund of India
- D) Transactions of State Governments only
Show Answer
Correct Answer: B) Transactions of Department of Posts, Ministries of Defence and Railways, and Union Territory Governments
4. What do the annual Finance Accounts, as described in Rule 89 of The General Financial Rules, 2017, primarily show?
- A) Budget estimates for the upcoming financial year
- B) Details of government procurement contracts
- C) Annual receipts, disbursements, and statement of balances for the Union
- D) Performance reports of various government schemes
Show Answer
Correct Answer: C) Annual receipts, disbursements, and statement of balances for the Union
5. According to Rule 89 of The General Financial Rules, 2017, the Finance Accounts are prepared for the purpose of the:
- A) Individual Ministries/Departments
- B) State Governments
- C) Union
- D) Public Sector Undertakings
Show Answer
Correct Answer: C) Union
Frequently Asked Questions
What is the primary purpose of the Finance Accounts mentioned in Rule 89 of The General Financial Rules, 2017?
The primary purpose is to show the annual receipts, disbursements, and statement of balances for the entire Union Government, providing a comprehensive overview of its financial activities.
Does Rule 89 of The General Financial Rules, 2017, apply to the financial transactions of Union Territories?
Yes, Rule 89 explicitly states that the Finance Accounts include transactions under the Public Account of India of Union Territory Governments.
Why is the countersignature of the Secretary (Expenditure) required for the Finance Accounts under Rule 89 of The General Financial Rules, 2017?
The countersignature by the Secretary (Expenditure) ensures an additional layer of scrutiny and approval from a high-ranking official in the Ministry of Finance, reinforcing the accountability and accuracy of the financial statements.
Key Takeaways
- Rule 89 mandates the preparation of annual Finance Accounts for the Government of India.
- The Controller General of Accounts is responsible for preparing and signing these accounts.
- The Secretary (Expenditure), Ministry of Finance, must countersign the Finance Accounts.
- These accounts cover receipts, disbursements, and balances of the Union, including various ministries and Union Territories.
Conclusion
Rule 89 of The General Financial Rules, 2017, is a cornerstone of financial governance in India, meticulously defining the process for the creation and authentication of the Union’s Finance Accounts. By assigning clear responsibilities to the Controller General of Accounts and the Secretary (Expenditure), it underpins the integrity and transparency of government financial reporting, which is vital for parliamentary oversight and public trust.