Meghalaya Financial Rules, 1981
No: FEG.5/74 Dated: Jul, 03 1981
GOVERNMENT OF MEGHALAYA
FINANCE DEPARTMENT
No.FEG.5/74. - In the exercise of the powers conferred by clause (3) of Article 166 and clause (2) of Article 283 of the Constitution and of all other powers enabling him in this behalf, and in supersession of rules and orders relating to the matters covered by these rules, the Governor of Meghalaya is pleased to make the following rules, namely:-
1. Short title and commencement – (1) These rules may be called the Meghalaya Financial Rules, 1981.
(2) They shall come into force with effect from the date of publication.
PART I - GENERAL
CHAPTER – I
INTRODUCTION
2. Article 283 (2) of the Constitution of India empowers the Governor of a State to make rules regulating the custody of the Consolidated Fund and the Contingency Fund of a State and the procedure for payment of moneys into and withdrawal of moneys from such funds. It further empowers the Governor to make similar rules for the custody of public moneys other than those credited to the above funds, as well as for their payment into and withdrawal from the public account of the State. The rules and procedure relating to the payment of money into and withdrawal of funds from the Public Account including the Consolidated Funds of the State have been separately prescribed under the Meghalaya Treasury Rules. These rules, therefore, are primarily intended to regulate the matters pertaining to the treatment of moneys before their receipt into, or after their withdrawal from, the Treasury or the Bank, and those relating to the control over receipt and the disbursement of moneys and their safe custody in offices other than Treasuries. Thus, it is obvious that these rules are inseparable from the Meghalaya Treasury Rules, and for this reason, relevant provisions of these rules have been incorporated in the Treasury Rules.
The term “Financial Rules” also includes the rules regulating the contingent expenditure of various departments and those relating to the preparation of budget and revised estimates and the departmental control of receipts and expenditure, but these rules are included in separate volumes entitled “Contingency Manual” and “Budget Manual” respectively.
3. The rules and orders contained in this volume are sufficiently general in character except where they are indicated as applicable to particular departments. Matters relating to departmental instructions will be regulated by codes of departmental rules.
4. The functions of the Union and State Government and of the Reserve Bank of India in respect of the procedure to be followed at Government Treasuries in connection with the movement of funds, the custody and remittance of treasure and the supply of currency to the public are explained below:-
The functions of prescribing the procedure to be followed at Treasuries and Sub-Treasuries under the administrative control in respect of the custody of treasure, the receipt and disbursement of moneys held in the treasury balance, the security of strong rooms, etc., devolve on the State Government.
The State Government will also prescribe, in consultation with the Reserve Bank of India, the Treasury procedure governing the maintenance of currency chest accounts, the submission of the connected returns to the Reserve Bank and all matters connected with resource and remittance of funds. The Reserve Bank will issue necessary orders and directions to the branches of the State Bank of India conducting Treasury business as its Agents.
The Union Government will be the authority to issue instructions regarding Treasury procedure in respect of Treasuries under its administrative control.
The Union Government will deal with all matters relating to coinage, such as the statutory rules under the Indian Coinage Act, withdrawal of coins from circulation, etc.
5. Under Article 150 of the Constitution of India, the accounts of the Union and the States shall be kept in such from as the Comptroller and Auditor-General of India may, with the approval of the President, prescribe. For this purpose, the rules prescribed by the Comptroller and Auditor-General of India are embodied in a comprehensive compilation issued by him and called the ‘Account Code’. The relevant extract of the Constitution and orders issued thereunder are given in Appendix I.
6. These rules are intended to be applicable to State transaction only, but where they indicate specifically that they relate to any Union subjects with which the State Government deal as Agent of the Union Government, they should be regarded as the rules of that Government.
7. If any question arises relating to the interpretation of any of these rules, it shall be referred to the Finance Department whose decision thereon shall be final.
CHAPTER II
DEFINITIONS
8. Unless there is anything repugnant in the subject or context, the terms defined in this chapter are used in these rules in the sense herein explained.
9. Accountant General means the Accountant General, Meghalaya.
10. Constitution means the Constitution of India.
11. Administrative Approval means the formal acceptance by the department concerned, of the proposal for an original work (other than a petty work costing Rs.7.500 or under) to be undertaken for the department either by the Public Works Department or by any other department of Government to which the world may have been assigned by the Governor Taken with the provisions of funds in the budget, it operates as a Financial sanction to the work.
12. Agency Transactions is the term employed to denote those transactions in which the Government of Meghalaya acts as the Agent of the Government of India under Article 258 of the Constitution of India.
13. Advance payment means a payment made on a running account to a contractor for work done by him but not measured.
14. Assets.- In the accounts of works this term indicates all outstanding or anticipated credits, which have to be taken in reduction of final charges. Example: Recoveries of advances or recoverable payments, and sale-proceeds or transfer value of surplus materials.
15. The term ‘Bank’ means the Reserve Bank of India or any office or agency of the Reserve Bank of India and includes any branch of the State Bank of India acting as the Agent of the Reserve Bank of India in accordance with the provisions of the Reserve Bank of India act, 1934 (Act II of 1934).
16. Book Transfer.- This term is applied to the process whereby financial transactions which do not involve the giving or receiving of Cash, or of Stock materials, are brought to account. Such transactions may either affect the books of a single accounting officer, or they may involve operation on the books of more than one accounting officer whose accounts are ultimately incorporated in the accounts of Government. They usually represent liabilities and assets of Government brought to account either by way of settlement or otherwise, but they may also represent corrections and amendments made in Cash, Stock, or Book Transfer transactions previously taken to account.
17. Commercial Department.- Commercial Department means a department declared as such by the State Government in consultation with the Accountant General and in accordance with the principles laid down by the Comptroller and Auditor- General of India (vide Appendix 5).
18. Completion and Completed.-“Completion of work” may be understood to include “abandonment of a work” and “completed” to include “abandoned”.
19. Contingencies (Works).- When used in respect of the accounts of works, this term indicates the incidental expenses of a miscellaneous character which cannot appropriately be classified under any distinct sub-head or sub-work, yet pertain to the work as a whole.
20. Contract and Contractor.- The term Contract means any kind of undertaking, written or verbal, express or implied, by a person, not being a Government servant, or by a syndicate or firm, for the construction, maintenance or repairs of one or more works, for the supply of materials, or for the performance of any service in connection with the execution of works or the supply of materials.
The term “Contractor” means a person, syndicate of firm that has made such an undertaking, but often its use in restricted to contractors for the execution of works or for services in connection therewith.
21. Deposit Works.- This term is applied to works of construction or repair by the Public Works Department the cost of which is met, not out of Government funds, but out of funds from non-Government sources, which may either be deposited in cash or otherwise placed at the disposal of the Divisional Officer of the Public Works Department or Public Health Engineering Department. Works executed for municipalities or any other public bodies fall under this category when the cost is chargeable either to cash deposits made for the purpose, or to either credit balances at Treasuries.
22. Direct charges and Direct outlay.- These expression are applied to those charges pertaining to a work, project or job, which are directly incurred for its execution and are included in the regular accounts of it. (Cf. “Indirect charges” and “Indirect outlay” in rule 29 below).
23. Direction Office.- This term indicates the office of any Administrative Officer who has one or more Public Works Divisional Officers working under his orders and is not himself intrusted with the execution of works or with the receipt and disbursement of public money, e.g., a Chief or a Superintending Engineer, or a Superintendent of Works, but, if such an officer is also entrusted at any time with the receipt and disbursement of public money, he is treated as a Divisional Officer even though some part of his emoluments may be treated as Direction charges.
24. Direct Receipts.- These receipts relate to items of revenue receipts which are realized in connection with a work or project either by officers of the Public Works Department or other departments and are directly brought to account as appertaining to the work or project.
25. Final Payment.- Means the last payment on a running account made to contractor on the completion or determination of his contract and in full settlement of the account.
26. Government or State Government.- Means the Governor exercising the executive power of the State of Meghalaya in accordance with the Constitution of India, except in so far as the Governor is by or under the Constitution of India required to act in his discretion.
27. Head of a Department.- Means an authority declared as such in the Meghalaya Subsidiary Rules framed under the Fundamental Rights.
28. Head of an office.- Is a Government servant recognised as such by the Government or the Head of a Department under whom he may be employed