Rule 9 of the General Financial Rules 2017 Duty to assess collect and credit Government receipts
Original Rule Text
Visual Summary
Each Central Government department is responsible for managing its own revenue.
The amount of money owed to the government must be calculated accurately.
The dues must be collected without any unnecessary delay.
All collected money must be deposited into the correct government account.
Executive Summary
Rule 9 establishes a fundamental duty for every Central Government department. It mandates that each department is responsible for ensuring that all money owed to the government (receipts and dues) is calculated correctly, collected promptly, and deposited into the appropriate official government account, which is either the Consolidated Fund of India or the Public Account.
In-Depth Analysis of the Rule
Introduction
Rule 9 of the General Financial Rules, 2017, serves as a cornerstone of public financial management. It assigns clear and direct responsibility to government departments for the entire lifecycle of revenue collection, from calculation to deposit. This ensures accountability and prevents loss of public funds.
Breakdown of the Rule
The rule can be broken down into three key actions that every concerned department must ensure:
- Correctly and Promptly Assessed: ‘Assessment’ is the process of determining the exact amount of money someone owes the government. This could be a tax, a fee for a service, or a fine. The rule emphasizes that this calculation must be both ‘correct’ (accurate) and ‘prompt’ (done without delay).
- Collected: After assessment, the department is responsible for actually collecting the money from the individual or entity that owes it.
- Duly Credited: This is the final and crucial step. ‘Crediting’ means depositing the collected money into the government’s official treasury. The rule specifies two main accounts: the Consolidated Fund of India (where most government revenues like taxes are kept) and the Public Account (which holds money that the government is temporarily managing for others, like provident funds). The department must ensure the money goes into the correct account.
Practical Example
Imagine you apply for a visa at an Indian embassy. The visa fee is a due of the Government. The Ministry of External Affairs is the ‘department concerned’. Under Rule 9, it is their duty to:
1. Assess: Ensure the visa fee charged is the correct, officially mandated amount.
2. Collect: Receive your payment promptly when you submit your application.
3. Credit: Deposit that fee into the Consolidated Fund of India.
Conclusion
Rule 9 is a simple but powerful directive that underpins the integrity of the government’s revenue system. By placing the responsibility squarely on the shoulders of the relevant departments, it aims to create a seamless, accountable, and efficient process for handling public money, ensuring that every rupee owed to the government is properly accounted for.
Related Provisions
This rule is part of a broader system of financial management. Understanding the following related provisions provides a more complete picture of how government funds are handled:
- Rule 7: Moneys received by Government to be brought into Government Account – This rule sets the overarching principle that all money received by the government must be deposited into the Government Account without delay, providing the foundation for Rule 9.
- Rule 10: Controlling Officer’s duty to check credits – This rule acts as a verification mechanism for Rule 9, requiring a Controlling Officer to cross-check and confirm that the amounts reported as collected have actually been credited to the government’s account.
- Rule 12: Handling of outstanding dues – This provision addresses situations where the ‘collection’ part of Rule 9 fails. It states that dues should not be left outstanding and outlines the process for dealing with irrecoverable amounts.
Learning Aids
Mnemonics
- Remember the three core duties with the acronym ACC:
A – Assess correctly and promptly.
C – Collect the dues.
C – Credit to the proper account.
Mindmap
Multiple Choice Questions (MCQs)
1. What is the primary duty of a Central Government Department under Rule 9?
- A) To audit the accounts of other departments.
- B) To set the rates for taxes and fees.
- C) To ensure correct assessment, collection, and crediting of government dues.
- D) To decide how the collected revenue should be spent.
Show Answer
Correct Answer: C) To ensure correct assessment, collection, and crediting of government dues.
2. According to Rule 9, where should government receipts and dues be credited?
- A) Into the Reserve Bank of India’s general account.
- B) Into the department’s own operational bank account.
- C) Into a temporary suspense account until audited.
- D) Into the Consolidated Fund or Public Account, as appropriate.
Show Answer
Correct Answer: D) Into the Consolidated Fund or Public Account, as appropriate.
3. If a department correctly assesses and collects a fee but deposits it into the government account two months late, which specific aspect of Rule 9 has been violated?
- A) The duty to ‘correctly assess’ the dues.
- B) The duty to ‘promptly’ handle the process.
- C) The duty to credit to the ‘Public Account’.
- D) The rule does not specify a timeframe, so no violation occurred.
Show Answer
Correct Answer: B) The duty to ‘promptly’ handle the process. The rule requires dues to be ‘promptly’ assessed and ‘duly’ credited, implying timeliness throughout the process.
Frequently Asked Questions
Does Rule 9 apply to every single government department?
Yes, this rule applies to any Central Government department that is responsible for handling any kind of income for the government. If a department collects fees, fines, taxes, or any other dues, it must follow this rule.
What is the difference between the ‘Consolidated Fund’ and the ‘Public Account’?
In simple terms, the Consolidated Fund is the main bank account of the government where all its revenues (like taxes, duties, and loan repayments) are credited. The Public Account, on the other hand, holds money that the government is temporarily looking after for others, such as employee provident funds. Rule 9 ensures that money is deposited into the correct account based on its nature.
Key Takeaways
- Accountability is Key: Each department is directly responsible for the money it is supposed to collect.
- Accuracy is Mandatory: The amount of dues must be calculated correctly, not estimated.
- Timeliness Matters: The entire process, from assessment to depositing the money, must be done promptly.
- Proper Accounting: All collected funds must be deposited into the correct official government account to ensure transparency and proper financial management.