2.8 Government Officers who have to make payment for contingent expenditure or for refunds of revenues in cases where moneys on account of revenue were received and credited to Government account by them should, at the request of the refundee(s), make payment of such claims as are upto Rs. 50 from out of the permanent advance or imprests which they may be permitted to hold under the order of competent authority subject to recoupment on presentation of contingent bill. The grant of permanent advance or imprest is subject to the following rules :-
(1) The amount of advances will be fixed by the Administrative Departments up to the amount advised by the Accountant-General.
(2) Heads of Departments, Commissioners of Divisions and Deputy Commissioners may, unless a competent authority otherwise directs, sanction the grant of permanent advances for offices subordinate to them up to the amount advised as appropriate by the Accountant. General. The permanent advances for the offices of the Heads of Departments, Commissioners of Divisions and Deputy Commissioners, must, however, be sanctioned by the next superior administrative authority or other competent authority.
(3) Application for the grant or revision of a permanent advance must be submitted to the sanctioning authority through accountant-General who will advise as to the through Accountant-General who will advise as to the appropriate amount of the advance. In cases falling under sub-clauses (1) and (2) above, if there is any difference of opinion between the Accountant-General and the sanctioning authority on this point, the matter should be referred for the order of the competent authority.
Note. - The application for permanent advances should be accompanied by a statement showing month by month for the preceding 12 months, the amounts of contingent bills crashed, with classified details of items of expenditure.
(4) As these advances involve the permanent retention of money outside the treasury, they must not be larger than is absolutely essential.
(5) These advance should not be multiplied unnecessarily. A Government employee’s advance should meet the needs of every branch of his office. If he has subordinates who require petty sums, he should rather spare a small portion of his own advance for their use then apply
(6) The advance is intended to provide, on the responsibility of the Government employee entrusted with it, for emergent petty advances of all kinds, though t is seldom that they will be needed for other than contingent charges, thus, if a class IV employee is required to travel by rail, his fare must, sometimes, necessarily be advanced from this amount.
Note. 1. See also note 9 below clause (a) of rule 10.25
Note. 2. Advances may be made of the actual railway fare or/and road mileage out of permanent advance to all non-Gazetted employees of the Police Department, but such advances and their repayment need not appear in Government accounts. Travelling allowance bills may be made out, once for all, for the full claims admissible as soon as the journeys are completed and any advances made out of the permanent advance may be recovered out of the amounts drawn from the treasury of such travelling allowance bills.
Note. 3. See also note 2 below Rule 2.3
(7) In the case of transfer of charges and yearly on the fifteenth day of April, each officer in whose favour a permanent advance is sanctioned shall send an acknowledgement of the amount due from and accountable for by himself as on the thirty-first day of March preceding, to the Head of Department or the Controlling Officer, as the case may be, and the said authority shall maintain suitable record to watch receipt as such acknowledgements.
2.9. The holder of a permanent advance, or and imprest, is responsible for the safe custody of the money placed in his hands, and he must at all times be ready to account for the total amount of the money in vouchers or in cash.
Note. Neither the permanent imprest which is intended for meeting urgent expenditure before funds can be drawn from the treasury against regular bills nor other Government money awaiting disbursement are available for temporary accommodation of any officer for private purposes. It is, therefore, imperative that Government money should not be mixed up in any way, with moneys which do not belong to Government.
(a) GENERAL PRINCIPLES AND RESTRICTIONS RELATING TO EXPENDITURE
2.10. (a) Every Government employee incurring or sanctioning expenditure from the revenues of the State should be guided by high standards of financial propriety. Each Head of Department is responsible for enforcing financial order of strict economy at every step. He is responsible for the observance of all financial rules and regulations both by his own office and by subordinate disbursing offices. Among the principles on which emphasis is generally laid are the following :-
(1) Every Government employee is expected to exercise the same vigilance in respect of expenditure incurred from public money as a person of ordinary prudence would exercise in respect of the expenditure of his own money.
(2) The expenditure should not be prima-facie more than the occasion demands.
(3) Money borrowed on the security of allocated revenues should be expanded on those objects only for which money is borrowed.
(4) No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage.
(5) Government revenues should not be utilised for the benefit of a particular person or sanction of the community unless :-
(i) the amount of expenditure involved is insignificant, or
(ii) a claim for the amount could be enforced in a court of law, or
(iii) the expenditure is in pursuance of recognised policy of custom.
(6) No authority should sanction any expenditure which is likely to involve, at a later date, expenditure beyond its own powers of sanction.
(7) The amount of allowances, such as travelling allowance granted to meet expenditure of a particular type, should be so regulated that the allowances are not on the whole the sources of profit to the recipients.
(b) In addition to compliance with the canons of financial propriety enunciated above, the authorities incurring expenditure should further see-
(1) that special or general sanction of the competent authority for the expenditure exists [vide rule 17.2(1) and 17.6(b)];
(2) that necessary funds to cover the charge exist, that expenditure does not exceed these funds, that the authority incurring the expenditure will be responsible for any excess over the sanctioned funds and that expenditure in anticipation of funds is incurred only in authorised cases [vide rule 17.2(2), 17.6(a) and 17.13 to 17.15] ;
(3) that all charges incurred are drawn and paid at once and are not held up for want of funds and allowed to stand over to be paid from the grant of another year ; that money indisputably payable should not, as far as possible, be left unpaid ; and that all inevitable payments are ascertained and liquidated at the earliest possible date ;
(4) that money actually paid is under no circumstances kept out of account a day longer than is absolutely necessary;
(5) that no money is withdrawn from the treasury unless it is required for immediate disbursement or has already been paid out of the permanent advance and that it is not permissible to draw advances from the treasury for the execution of works the completion of which is likely to take a considerable time.
2.11. Omitted. *
2.12. All payments, which Government employees authorised to draw cheques, have to make, should, as far as possible, be made by Cheques, but see also rule 2.15
2.13. Omitted. *
2.14. As a rule, no cheque should be drawn until it is intended to be paid away, and cheques drawn in favour of contractors and others should be made over to them by the disburser direct ; but the disburser may be assisted in making disbursements by a cashier appointed for the purpose. The occasional delivery of cheques through a subordinate may be permitted at the discretion and on the responsibility of the disburser. In such cases, the subordinate should make no entry in any accounts which he keeps, as payment made by cheque should appear in the cash account of the disbursing officer who draws the cheque, and the subordinate’s record will be in his correspondence.
Note. 1.It is a serious irregularity to draw cheques and deposit them in the cash chest at the close of the year for the purpose of showing the full amount of the grant as utilize.
Note. 2.Whenever a cheque is drawn, and entered in the cash book, but not paid out on the day on which it is drawn, a note must be made in the cash book against that entry explaining why it has not been possible to deliver the cheques to the payee.
Note 3. For payment to contractors through their bankers, see note 2 to Subsidiary Treasury Rule 4.3
Note. 4.Cheques issued against Letters of Credits Assignments may be encashed at the Bank direct, i.e., without the intervention of the Treasury Officer if approved by the Department of Finance.
2.15. As a general rule, cheques shall not be issued for sums less then Rs. 100 unless it is permissible under the provisions of any law charges which naturally are paid in cash, e.g. the wages of labourers and of establishment charged directly to works, and value-payable postage, etc., it is permissible to draw money from time to time from the treasury by cheques to replenish the cash chest. Whether there be a guard or not, disbursers must draw cheques for the minimum of cash actually required to meet current disbursements, and if it is found at any time that the balance in hand is larger than is required to meet the anticipated expenditure of the next month, or of the next fifteen days, if the treasury is not situated at an inconvenient distance, the surplus should be returned into the nearest treasury.
Provided that in cases where payment by cheques has been introduced by the State Government in the treasuries or sub-treasuries, all payments of Rs. 10 or less will be made in cash out of the imprest and payments exceeding Rs. 10 shall made by cheque(s)
2.16. Cheques remain current for three months only after the month of issue. Thus a cheque bearing, date and time in January is payable at any time up to 30th April. If the currency of a cheque should expire owing to its not being presented at the treasury for payment within the period specified above, it may be received back by the drawer who should destroy it and issue a new cheque in lieu of it. The fact of the destruction and the number and date of the new cheque should be recorded on the counterfoil of the old cheque, and the number and date of the old cheque that is destroyed should be entered on the counterfoil of the new one. The fact of the new cheque having been issued should be entered on the date of issue in red ink in the cash book but not in the column for payment, a note being made at the same time against the original entry in the cash book. See also Article 264 of Account Code, Volume III, in respect of cheques of the Department of Forest.
2.17. When it is necessary to cancel a cheque, the concealment should be recorded on the counterfoil, and the cheque, if in the drawer’s possession, should be destroyed. If the cheque is not in the drawer’s possession he must promptly request the Treasury Officer to stop payment of the cheque (See rule 2.18) and, on ascertaining that payment has been stopped, shall write back the entry in his cash book by exhibiting the amount of the cheque as a minus figure on the payment side in the “Bank or Treasury” column. A counter reference should be given in the cash book, against the original, to the second entry of the cheque. A cheque book, against the original, to the second entry of the cheque. A cheque remaining unpaid for any cause for twelve months from the date of its issue should be cancelled and its amount written back in a similar manner. See also Article 262 of Account Code, Volume III, in respect of cheques of the Department of Forest.
2.18 (i) if a Drawing Officer be informed that a cheque drawn by him has been lost, he shall address the Treasury Officer drawn on, forwarding for signature a certificate in the following form :-
Certified that cheque No. _____________ dated_______________ for Rs.____________ reported by (the Drawing Officer) to have been drawn by him on this treasury in favour of ___________________has not been paid, and will not paid if presented hereafter.
(ii) If, after search through the lists of cheques paid the Treasury Officer finds that the cheque has not been cashed, he will sign and return the certificate taking care to note the stoppage of the cheque.
(iii) The Drawing Office on receipt of the certificate duly signed by the Treasury Officer shall enter in his account the original cheque as cancelled, and may issue another.
In respect of cheques of the Department of Forest see also Article 263 of Account Code, Volume III.
2.19 If a cheque is issued by Government in payment of any sum due by Government and that cheque is honoured on presentation to Government’s bankers, payment shall be deemed to be made: -
(a) if the cheque is handed over to the payee or his authorised messenger on the date it is so handed over, or
(b) if it is posted to the payee in pursuance of a request for payment by post, on the date on which the cover containing it is put into the post.
The rule applies mutatis mutandis to a cheque in payment of Government dues or in settlement of other transactions received and accepted in accordance with the provisions of Subsidiary Treasury Rule 2.5.
Note 1. The provisions of clause (b) above apply mutatis mutandis to payment by Government by postal money order or by any other recognised mode of remitting money by post.
Note-2 Cheques marked as not payable before a particular date should not be charged to the accounts until the date on which they become payable.
VOUCHERS FOR DEPARTMENTAL PAYMENTS
2.20 As a general rule, every payment, including re-payment of money previously lodged with Government, for whatever purpose, must be supported by a voucher setting forth full and clear particulars of the claim and all information necessary for its proper classification in the accounts. As far as possible, the particular form of voucher applicable to the case should be used. Suppliers of store and other should be encouraged to submit their bills and claims in proper departmental forms, but bills not prepared in such forms should not be rejected if they set forth the necessary details of the claims. In such cases, the additional particulars required should be added by the disbursing officer.
Note. See also sub-rule 2 to Subsidiary Treasury Rule 6.2.
2.22. (1) to (3). Omitted.*
(4) Whenever one cheque is written in favour of a person in payment of two or more of his bills, a separate stamped acknowledgement for each bill need not be taken
(5) Omitted. *
(6) Omitted. *
2.23 Omitted. *
2.24 Omitted. *
2.25 (a) The claim against the Government not preferred within period of one year from the date of its becoming due shall be presented only with an authority of the Head of Department when the claim is a charge upon the establishment of a subordinate office under him and that of the Department of the Government when it is a charge upon the establishment of a Head of Department under the Department;
Provided that the aforesaid provisions shall not apply to:-
(i) The payments of claims pertaining to pensions;
(ii) The payments made by Forest Disbursing Officers which are governed under special rules; and
(iii) Any petty claim up to the monetary limit of five hundred rupees which are over one year old but not more than three years old.
Note- Claims of Government against Railways for overcharges and claims of Railways against Government departments for undercharges will be recognised and admitted, if the claims are preferred with in six months.
(i) in the case of cash payments from the date of payment ;
(ii) in the case of warrants or credit notes from the date of presentation of bill by the Railway Administration ; and
(iii) in the case of goods or animals booked for carriage by railways, as laid down in section 78 of the Indian Railway Act, 1890.
Explanation - The terms ‘overcharges’ and ‘under-charges’ used in this note mean overcharges and undercharges of railway freight and fares only. They refer to shortages and excesses in the items includes in bill which has already been rendered; the omission of an item in a bill is not an undercharge nor the erroneous inclusion of an item an ‘overcharge’.
(b) The claims of all Government employees to arrears of pay or allowances including the claims relating to:
i) travelling allowance
iii) under payments; and
iv) fees or allowances of Public Prosecutors:.
Which have been allowed to remain in abeyance for a period exceeding and year, but not exceeding three years and shall be sanctioned after detailed scrutiny by the Head of Department when the claims relates to Government employee standing on the establishment of a subordinate office under him and by a Department of the Government when the claim relates to a Government when the claims relates to Government employee standing on the establishment of a Head of a Head of Department under that Department.
(c) All claims under clauses (a) and (b) which are more than three years old shall be referred to the competent authority for investigation.
(d) In the case of claims which are more than one month old, the preferring officer shall state in the bill the reasons for the delay.
(e) Not with standing any thing contained in clause (b) the right of a Government employee to travelling allowance including daily allowance, is for fetid or deemed to have been relinquished if the claim for it is not preferred within one year from the date on which it becomes due.
(f) All claims against Government which are barred by time under the provisions of section 3 read with the schedule to the limitation Act, 1963 (Central Act No. 36 of 1963) should ordinarily be refused. The time barred claims can, however, be admitted with the prior approval of the competent authority.
(g) The reasons for not submitting the claim, when it become due should be intimated to the authority competent to authorise the investigation of belated claims
Explanation: (1) The mere entering a claim for leave salary in an establishment bill and with holding it for subsequent payment is not claiming it within the meaning of rule 2.25 (a) (2) The one years limit referred to in clauses (a) and (e) of this rule should be reckoned in the case of travelling allowance bills from the date of return to head quarters or from the first of the following month if the tour continues over that date’; in the case of officiating pay from the date of receipt of the order sanctioning the promotion of the officiating.
Pay is due for a past completed month or months, otherwise from the following payday, in the case of leave salary from the date of the order granting the leave and in other cases from the date on which a claim became due to the date of its presented on at the treasury. In any case, however in which an allowance has been claimed but in consequences of some objection taken, payment has been delayed, the Treasury Officer will not refuse to pay such bill if, when the objection is satisfied claim happens do have become more than one year old.
3. The time limits prescribed in clauses (a) and (b) should be calculated from the date on which the charge becomes payable. In the case of sanction accorded with retrospective effect, the charge does not become payable before it is sanctioned. The time limit should, therefore, be calculated from the date from which the sanction takes effect.”
(h) The authority competent to authorise the investigation of a belated claim should be told why the claim was not submitted when it became due. In respect of non-Gazetted Government employees whose pay and allowances, are drawn on the establishment bills by the Heads of offices, the responsibility for making claims rests with the letter, and they should invariably se that all claims are presented within one year of their falling due.
Explanations-(1) A claim presented for payment 6 months or more after the date of pre-audit by the Accountant-General will against require the sanction of the Accountant-General for its payment.
(2) The mere entering a claim for leave salary in an establishment bill and withholding it for subsequent payment is not claiming it within the meaning of rule 2.25(a)
(3) The one year’s limit referred to in clauses (a) and (e) of this rule should be reckoned in the case travelling allowance bills from the date of return to headquarters or from the first of the following month if the tour continues over that date; in the case of officiating pay from the date of receipt of the order sanctioning the promotion of the officiating pay is ude for a past completed month or months, otherwise from the following pay day; in the case of leave salary from the date of the order granting the leave and in other cases from the date on which a claim became due to the date of its presentation at the treasury. In any case however, in which an allowance has been claimed but in consequence of some objection taken, payment has been delayed, the Treasury Officer will not refuse to pay such bill if, when the objection is satisfied, the claim happens to have become more than one year old.
(4) The time limits prescribed in clauses (a) and (b) should be calculated from the date on which the charge becomes payable. In the case of sanction accorded with retrospective effect, the charge does not become payable before it is sanctioned. The time-limit should, therefore, be calculated from the date of sanction and not the date from which the sanction takes effect.
2.26. Omitted *
2.27. No payments may made on account of increases to pay until the additional expenditure thereby caused has been provided for in the budget estimates and duly sanctioned.
Note.- Periodical increments of pay are not increases o pay within the meaning of this rule.
2.28. Omitted. *
Note.- For endorsing Cheques and bills, the relevant provisions of the Punjab Treasury Rules are to be observed.
2.28-A All cheques, bills, etc., preferable at a treasury for payment being non-negotiable instruments, can be endorsed only once in favour of the specific person/specific party to whom the money is to be paid ;
Provided that :-
(1) When the endorsement is made on a cheque or a bill in favour of a banker, a second endorsement can be made by the banker in favour of a messenger or an agent for collection only.
(2) In the case of contingent bill which has been endorsed in favour of a private individual/firm of suppliers, etc. under sub-rule (1) of Rule 4.50 of Subsidiary Treasury Rules the firm etc., can the banker can in turn endorse it to a messenger or an agent for collection only. Thus, in all, three endorsements are permissible in such cases provided that of three one is to be payee’s banker and one is to a messenger or agent for collection only, and
(3) An agent may, notwithstanding anything, contained in clauses (1) and (2) for the purpose of collecting the cheque or bill, endorse it in favour of his messenger.
Explanation :- In this Rule a ‘banker’ includes a Post Office Savings Bank and an ‘agent’ means any Bank, including Post Office Saving Bank acting as a collecting agency for and on behalf of the payees’ bankers.
Note :- Cheques drawn directly on the Bank without the intervention of the Treasury Officer are negotiable instruments are not subject to the provisions of this rule.
2.29. Every charge comes up for audit or disposal by the Accountant-General, who, if the charge is irregular or is in excess, proceeds to remove the irregularity or recover the excess through the Treasury Officer, usually, however, issuing a warning slip to the Government employee concerned ; and, if anything more is due (unless the amount be insignificant) informs the Government employee accordingly, leaving him to prefer the additional claim or not as he thinks proper.
2.30. Every Government employees must attend promptly to all objections and order communicated to him by the Accountant-General, either direct or through the Treasury Office by letters, audit memoranda, objection statements, etc. and return the audit memoranda or reply to objection within a fortnight, or send a letter explaining the causes of delay.
Note 1-The fact some of the objections are still under reference is no reason for keeping back the statement. Such cases can be extracted for subsequent explanation.
Note 2 - See also Rule 6.1 of Subsidiary Treasury Rules
2.31 (a) A drawer of bill for pay, allowances, contingent and other expenses will be held responsible for any overcharges, frauds and misappropriations. He should, therefore, make himself thoroughly acquainted with the meaning of the various financial checks which he is expected to exercise so that he can be in a position to detect immediately any attempt at defalcation and should pay special care to those points in financial procession at which leakage is likely to occur such as the stage at which money has been drawn from the Treasury and is lying undisbursed with a subordinate officials. To minimise the length of time during which the leakage occurs, and the amount of money lying undisbursed should be one of his first cares. [See also Subsidiary Treasury Rule 6.2]
With a view to enable the head of office to see that all amounts drawn from the treasury have been entered in the Cash Book he should obtain from the Treasury Officer by the 15th of every month a list of all bills drawn by him during the previous month and trace all the amount in the cash book.
(b) The responsibility of countersigning officers will be that which attaches to all controlling officers and which brings them under liability to make good any loss arising from their culpable negligence also. [See rule 8.26 also.]
(c) Omitted. *
(d) The responsibility for an overcharge shall rest primarily with the drawer of the bill, and it is only in the event of culpable negligence on the part of controlling officer or of the Treasury Officer, that the question of recovery from either of them may be considered.
2.32 (a) It is not sufficient that a Government employee’s accounts should be correct to his own satisfaction. He has to satisfy not only himself, but also the Accountant-General, that a claim which has been accepted is valid, that a voucher is a complete proof of the payment which it supports, and that an account is correct in all respects. (See also rules 6.2 and 6.3 of Punjab Subsidiary Treasury Rules). It is necessary that all accounts should be so kept and the details so fully recorded, as made into the particulars of any case, even though such enquiry may be as to the economy or the bonafides of the transactions. It is further essential that the records of payment, measurement and transactions in general must be so clear, explicit and self-contained as to be producible as satisfactory and convincing evidence of facts, if required in a Court of Law.
(b) The responsibilities of disbursing officers, controlling officers and heads of departments in regard to the control over expenditure incurred against the grants allotted to them are laid down in paragraph 12.3 et seq of the Punjab Budget Manual and in Appendices D, E and F ibid (For Public Works Department, see also paragraphs 1.47 and 1.52 of the Public Works Department Code.)
INTERNAL CHECK AGAINST IRREGULARITIES, WASTE AND FRAUD
2.32-A. In the discharge of his ultimate responsibilities for the administration of an appropriation or part of an appropriation placed at his disposal, every controlling Officer must satisfy himself not only that adequate provisions exist within the departmental organisation for system at internal checks calculated to prevent and detect errors and irregularities in the financial proceedings of his subordinate officers and to guard against waste and loss of public money and stores, but also that the prescribed checks are effectively applied.
(i) RESPONSIBILITY FOR LOSSES SUSTAINED THROUGH FRAUD OR NEGLIGENCE OF INDIVIDUALS
2.33. Every Government employee should realise fully and clearly that he will be held personally responsible for any loss sustained by Government through fraud or negligence on his part and that he will also be held personally responsible for any loss arising from fraud or negligence on the part of any other Government employee to the extent to which it may be shown that he contributed to the loss by his own action or negligence. [See rule 2.10(a)(1)]. A memorandum regarding (1) general principles to regulate the enforcement of responsibility for losses sustained by Government through fraud or negligence of individuals, (2) the procedure to be followed in prosecutions in respect of the embezzlement of Government money, and (3) the procedure to be observed for conduction departmental enquiry, is given in Appendix 1 to these rules.
“(ii) Loss or Destruction of Government Property-Report to Police thereof.
*2.33A -All material losses or destruction of Government property of the assessed value of more than two hundred rupees and any and every loss or destruction relating to official record. Arms and ammunition caused as a result of fire, theft and suspected sabotage shall invariably be reported to the Police for investigation.”
3. In the said rules, heading of rule 2.34 shall be renumbered as follows, namely:-
“Report to Accountant General and
Departmental Superior Authority.”
* 2.33(ii) 2.33A and 2.34 substituted vide notification dated the 11th November, 1986
2.34. The instructions for reporting to the Accountant-General, defalcations and losses, and remission of an abandonment of claims to, revenue (vide rule 4.6) are contained in annexure B to this Chapter. The directions issued by the Comptroller and Auditor-General of India regulating the exhibition of losses in Government accounts are given in Chapter 6 of Account Code, Volume I.
2.35 (1) The preliminary report prescribed by the rules in annexure B to this Chapter notifying the occurrence of a defalcation or loss of public money in a treasury should be submitted by the Deputy commissioner concerned to:
(i) the Accountant-General direct ;
(ii) the Government, unless the case is un-important ; and
(iii) the Head of the Department through the controlling officer.
(2) Losses occurring in offices, as soon as they occur or come to notice should be at once reported, through the immediate departmental superior of the Government employee reporting the loss, to the Head of the Department concerned, with statement of the steps taken in the matter. When the matter has been fully enquired a further and complete report should be submitted of the nature and extent of the loss, showing the errors or neglect of rules by which such loss was rendered possible and the prospects of effecting a recovery. The report on a loss occurring in the office of a Head of a Department may be submitted direct to Government. It is always open to a Head of a Department to obtain the advice or opinion of the Accountant-General on any loss occurring in his own office or in any office under his control if it is likely to be of use in preventing their occurrence in future.
(3) Omitted. *
(4) In regard to any loss of money belonging to a municipality, small town committee or notified area, it should be reported by the President or the Executive Officer, where such an officer has been appointed, direct to the Deputy Commissioner and to the Examiner Local Fund Accounts. Intimation may also be sent at the discretion of the Deputy Commissioner to the Commissioner of the Division who shall, if he deems it necessary, submit a complete report to the Government showing the total sum of money misappropriated, the method in which the embezzlement was effected and the steps taken to recover the money and punish the offenders.
Losses occurring in the Funds of Zila Parishad should be reported by the Chairman to the Examiner, Local Fund Accounts, and also through the Deputy Commissioner to the Commissioner.
(i) INTER GOVERNMENT TRANSACTIONS
2.36. (1) Subject to the relevant provisions of the Constitution and of the order issued there under by the President of India, adjustment in respect of financial transactions with the Union, or other State Government will unless otherwise provided for, be made in such manner and to such extent as may be mutually agreed upon between the Punjab Government and the Union Government or the State Government concerned.
2(a) (i). The Central Government (which includes Union Territories and the State Government have agreed under reciprocal arrangements not to prefer petty and isolated claims for an amount not exceeding one thousand rupees in each case against one another.
Provide that irrespective of the amount involve, monetary settlement shall always be made in the claims relating to commercial departments or undertakings of Governments, which are required to wok to a financial result, for services rendered or supplied made to or by them.
(ii) The significant criteria on in determining whether a particular claim is covered by the reciprocal arrangement mentioned above or not shall be that the claim should both petty and if an occasional character and should cover services rendered and not supplies made unless the latter forms part of service. The term “service-rendered” shall mean an individual act of service, like providing police escort to high dignitary and shall not apply to supply of stones and contributions for officers on deputation on etc. Claims relating to commercial undertaking under the Government of India or the State Government such as those of Railways, the post and Telegraph Department, the Electrical undertakings etc. shall fall outside the purview of the proposed reciprocal arrangements and shall continue to be settled as therefore.
iii) “If a doubt arise as to whether a particular claim would fall within or outside the purview of the proposed arrangement, it would be not clarified by mutual consultation”.
(b) for transactions above the limit of two thousand five hundred rupee and where the supplies and services are to be paid for irrespective of any monetary limit, the Government to which the supplies are made or services are rendered shall make the settlement through cheques or bank drafts.
(c) the monetary settlements between the State Governments, and between the State Government and the Central Government and between the State Government and the Union Territory Administration shall be made by adopting the following procedure :-
(i) The concerned officer of the State Government to whom supplies are made or services are rendered would present along with the accepted invoice and a requisition for a bank draft in favour of the concerned officer of the Government which has made supplies or has rendered services, and would remit the bank draft so obtained to the latter who will present it at the treasury for encashment or credit to the proper head of account.
(ii) the concerned Department of the Central Government or the Union Territory Administration which has received the supplies or to which the services have been rendered would present a bill along with the accepted invoice to the concerned Accounts Officer and the latter would make payment by cheque or bank draft drawn in favour of the officer concerned of the State Government making the supplies or rendering the services, in settlement of its claim.
Exception - This sub-rule will not apply to payments made to suppliers for the supplies arranged by the Department of supplies in the Ministry of Supply and Rehabilitation or purchase made by a State Government through the Directorate General Supplies and Disposals in regard to which separate procedure prescribed by the Government of India will continue to be adopted.
Note - Incidence of charges, viz. Leave salary, pension, etc. arising out of inter-governmental deputation of individual Government employees would continue to be regulated by the rules laid down in Appendix 3-B to Account code. Volume I as reproduced in Appendix 3 of the Punjab Financial Rules, Volume II. (Previously it was note 2)