In exercise of the powers conferred by
clause (2) of Article 283 of the Constitution of India and in supersession of
the Rules contained in the Mysore Financial Code, Volume 1 (1952 Edition) with
Appendices and Forms as contained in the Mysore Civil Account Code, Volume 1
(1927 Edition) as amended, other than the rules relating to contingent
expenditure, the Governor of Karnataka, hereby makes the following rules,
namely:- CHAPTER
I
TITLE AND DEFINITIONS (1)
These rules may be called the Karnataka
Financial Code, 1958. (2)
They shall come into force on the First day
of July 1958. If the Government considers it
necessary or expedient so to do for avoiding any hardship or removing any
difficulty that may arise as a result of the application of these rules, it may
subject to such restrictions and conditions, if any, as it may think fit to
impose, dispense with or relax the provisions of any of these rules in any case
or class of cases. In this Code, unless the context
requires otherwise the following words and phrases have the meanings hereby
assigned to them:- (1)
"Accountant General" means the head
of the Office of Audit and Accounts who maintains the accounts of the State and
exercise Audit functions in relation to those accounts on behalf of the
Government. (2)
"Abstract Bill".-A bill without
details either for contingent or travelling allowance expenditure, paid at a
treasury without the scrutiny and countersignature of a controlling authority,
to save delay in the discharge of a claim. (3)
"Budget Calendar" means the
calendar fixed by Government for the preparation of the budget estimates and
for completion of the State Budget of the year (Refer to the Budget Manual). (4)
"Budget Estimates" are the detailed
estimates of the receipts and expenditure of a financial year. (Refer to the
Budget Manual). (5)
"Cash Order" means an order issued
by a Treasury Officer for private remittances on another Treasury, of a
specified amount to a specified person. (6)
"Cheque" means a written order (not
expressed to be payable otherwise than on demand) addressed by a person called
the "drawer" to a Bank or Treasury to pay a specified sum of money to
himself or to a third party known as the "payee" and includes a
demand draft drawn on any specified Bank. (7)
"Controlling Authority" means the
Head of a department or other departmental officer who is entrusted with the
responsibility of controlling the incurring of expenditure and/or the
collection of revenue by the subordinate authorities of a department. (8)
"Disbursing Officer" means a
Government servant who draws moneys from the Treasury on bills or cheques, but
excludes a Government servant who is not the Head of an office and draws only
his own pay and allowances from the treasury. (9)
"Financial Year" means the year
beginning with the 1st April and ending with the following 31st March. (10)
"Government" means the Government
of Karnataka. (11)
"Government Servant" means any
person serving in connection with the affairs of the Government, whether
remunerated by salary or not, and includes every person who is authorised to
receive, keep, carry or spend moneys on behalf of Government. (12)
"Head of a Department" means any
authority specially ordered by the Government to be the Head of a Department
(vide Appendix 1). (13)
"Inevitable Payments" means money
which is indisputably payable. (14)
"Inspecting Officer" means a
Government servant who is appointed solely or mainly for performing specified
duties of inspection which involve touring the State and does not include a
Government servant who performs inspection duties occasionally as part of his
general supervision of his subordinates. (15)
"Lapse of Grant" means the expiry
at the close of the financial year of the sanctioned grant not utilised for
expenditure or the unexpended portion of the sanctioned grant, except grants
which are specially exempted from the rule of lapse (Refer to the Budget
Manual). (16)
"Local Body" means a District
Board, a Municipal Council, Village Panchayat, Trust Board, etc. (17)
"Local Fund" means:- (1)
the revenues administered by Bodies which
come under the control of Government by law or rule having the force of law
whether in regard to the proceedings generally or to specific matters such as
the sanctioning of their budgets, sanction to the creation or filling up of
particulars appointments. the encashment of leave, pensioner similar rules; and (2)
the revenues of any body which may be
specially notified by the Government of Karnataka as such. (18)
"Major Head" means a main head of
account for the purpose of recording and classifying receipts and disbursements
of moneys that enter into the accounts of Government (Refer to the Budget
Manual). (19)
"Miscellaneous Expenditure" means
all expenditure other than that falling under pay and allowances, contingencies
and works. (20)
"Proposition Statement" means a
statement to be submitted to Government setting forth the financial effect of a
proposal for revision of establishments. (21)
"Re-appropriation" means the
transfer of funds from one head of account to another. (Refer to the Budget
Manual). (22)
"Receipts of Government" means and
includes all moneys received by a Government servant on behalf of the
Government, not only the proceeds of taxation and the yield of ordinary revenue
but also capital receipts, such as, the proceeds of sales of land; the proceeds
of borrowing operations unfounded debt, and such receipts of a banking or
deposit nature as by virtue of any statutory provision or of any general or
special executive order of the Government have to be held in the custody of the
Government. (23)
"Revised Estimates"-Refer to the
Budget Manual. (24)
"Surrender of Grants" means the
formal surrender of grants which are not likely to be utilised before the
expiry of the year to be placed at the disposal of Government (Refer to the
Budget Manual). (25)
"Treasury" means any Treasury in
the State and includes a Taluk Treasury. (26)
"Treasury Officer" means the
officer in immediate executive charge of a Treasury. (27)
"Unit of Appropriation" means the
lowest account head under which the Government place a specific appropriation
at the disposal of the spending authority concerned (Refer to the Budget
Manual). (28)
"Ways and Means Estimates" -Refer
to the Budget Manual.KARNATAKA
FINANCIAL CODE, 1958
PREAMBLE