Bihar Financial Rules 4.5.22.pptx

Bihar Financial Rules

1. Bihar Financial Rule -- Er. Chet Narayan Prasad Reader ( Drainage ), WALMI, P atna

2. FINANCIAL RULE The Bihar Financial Rules contains two volumes - Volume-I It contains- 500 Rules and One Annexure-A Volume-II It c ontains - 15 appendices having executive orders and circulars and 28 forms. The Financial administration / Financial Management of the State of Bihar is governed by rules laid down under Bihar Financial Rules -

3. Chapter wise Rules of Bihar Financial Rules SI.NO. Chapter No. Rules No. Description 1 Chapter-1 Rule nos.-1 to 2 Deals with Introduction & Definitions 2 Chapter-2 Rule nos. 3 to 36 Deals with General System of Financial Management and Control. 3 Chapter-3 Rule nos. 37 to 58 Deals with Revenue & Receipts. 4 Chapter-4 Rule nos. 59 to 77 Deals with power to sanction expenditure. 5 Chapter-5 Rule nos. 78 to 79 Deals with responsibility for the preparations of the budget estimates. 6 Chapter-6 Rule nos. 80 to 104 Deals with establishment. 7 Chapter-7 Rule nos. 105 to 123 Deals with contingencies. 8 Chapter-8 Rule nos. 124 to 198 Deals with store .i.e. procurement of good and services. 9 Chapter-9 Rule nos. 199 to 333 Deals with works. 10 Chapter-10 Rule nos. 334 to 346 Deals with Miscellaneous expenditure 11 Chapter-11 Rule nos. 347 to 355 Deals with Rupee Debt .i.e. Debt and miscellaneous obligations of Govt., provident funds, service and other funds 12 Chapter-12 Rule nos. 356 to 367 Deals with local funds. 13 Chapter-13 Rule nos. 368 to 381 Deals with loan and advances. 14 Chapter-14 Rule nos. 382 to 433 Deals with Advances to Govt. Servants. 15 Chapter-15 Rule nos. 434 to 446 Deals with Miscellaneous Subjects. 16 Chapter-16 Rule nos. 447 to 500 Deals with Govt. Accounts.

4. Financial Administration/Management of of the State of Bihar is governed by rules laid down under Bihar Financial Rules which includes Preparation of Budget Legislative approval of Budget- Appropriation Execution of Budget To insure the lawful and efficient use of fund Treasury Management of Finance ie. safe custudy of fund Accounting and Audit Since introduction of CFMS w.e.f. 01.04.2019,some rules relating to drawl of amount of cheque and Remittance of revenue to the treasury officer and sending the monthly accounts to AG office are no longer in practice CFMS ( Comprehensive Financial Management system) is online application that enhances efficiency in financial transaction, effectiveness in financial control,transpirancy in operation ,accountibility at all levels

5. CHAPTER - 5 Rule- 78-79 : BUDGET Deals with responsibility for the preparations of the budget estimates. Rule 78 : The responsibility for the preparation of the estimated revenue and expenditure under Article 202 of the Constitution of India, which is laid before the legislature in each year , as well as any supplementary estimates or demands for extra grants, lies with the Finance Department. The material on which such such estimates are based is obtained by that department from the departments concerned., which are responsible for the correctness of the material itself. The Heads of Department and other subordinate authorities are responsible for the submission of correct detailed estimates punctually on the date fixed by the Finance Department.

6. Execution of Work Four stages of Works- Administrative Approval - Formal acceptance by competent authority to incur expenditure Expenditure sanction- Concurrence of govt. to the expediture proposed Technical approval- Techno- economic approval Technical sanction- Order of competent authority sactioning a properly detailed estimate

7. Rule- 205 No works shall be commenced or liability incurred in connection with it until : - Administrative approval has been obtained from the appropriate authority in each case. Sanction to incur e expenditure has been obtained from the competent authority. Properly detailed design has been sanctioned. Estimates containing the detailed specifications and quantities of various items have been prepared on the basis of Schedule of Rates maintained by PWD or public works organizations and sanctioned. Tenders invited and processed in accordance with rules. A work order issued by the competent authority. Funds to cover the change during the year have been provided by the competent authority.

8. Chapter – 1 Rules No. – 1 & 2 It contains two (2) rules dealing definitions and introduction. Rule – 1 Introduction :- Rules are executive order of the governor Describes the financial powers of different authorities. Financial methods and Procedure prescribed for the discharge of the functions. , dealing with transactions relating to public works Supplementary to the rules in the Bihar Treasury Code, 2011.

9. Rule -2 Definitions : - Financial Year :- means the year beginning on the 1 st of April and ending on the 31 st March, following Accountant General (AG) means the head of the office of audit and accounts subordinate of the Controller and Auditor General of India who keeps the accounts of state Comptroller and Auditor General (CAG) :- means the Comptroller and Auditor General of India who keeps the accounts of the State and exercises audit functions. Appropriation – means the assignment to meet specified expenditure of funds at the disposal of assigning authority. Re-appropriation :- means the transfer of funds from one unit of appropriation to another such unit.   Competent Authority – means Govt. of Bihar or any other authority to which the relevant powers may be delegated by the Govt.

10. Definition Public Account :- ( Article 266 (2) means the consolidated fund into which money received on account of the revenues of the state are paid or credited and from which all disbursements of or on behalf of the state are met. Revenue of State: - Revenue is the total amount of income generated by sale of goods or services It includes all money recieved by government servant on behalf of state government as such not only the proceeds of taxation and yield of ordinary revenue but also capital reciept such as proceeds of sale of land, proceeds of borrowings,unfunded debt etc. Major source of Revenue- GST, Income tax , Property tax, corporate tax, Interest , Dividend, Rental Income Public work: - means civilworksand irrigation,navigation,Embankment & Drainage work

11. RECIEPT OF MONEY Rule-3 : All transactions to which any officer of Govt. is a party in his official capacity must be brought to account without delay. Rule-4 : Money received as dues of Govt. or for deposit in the custody of Govt. should be credited into the public account in accordance with Bihar Treasury code rules (BTC Rules)   Rule-5 (1 ) : All money received by or deposited with any officer employed in connection with the affairs of the State in his capacity as such other then revenue of public money raised or received by Govt. shall be paid into public account. Rule- 5 (ii) All money recieved by or deposited with any court to the credit of any cause shall be paid in the public Account

12. General System of Financial Management and Control. Withdrawl of Moneys from the Public acount Rule-6 : Unless otherwise expressly authorized by any law or rule or order having the force of law, money may not be removed from the public account for investment or deposit elsewhere without the consent of the finance department. Each Department should obtain the concurrence of F.D. for incurring the expenditure on such matters for which provision does not already exist. Expenditure and payment of moneys Rule- 8 : As a general rule, no authority may incur any expenditure from the public fund until the expenditure has been sanctioned by general or special rule of government and authority and expenditure has been provided for in authorised grants and appropriation for the year

13. Standards of Financial Propriety . Rule – 9 Every public officer is expected to exercise the same vigilance in respect of expenditure incurred from money as a person of ordinary prudence would exercise in respect of expenditure of his own money. The expenditure should not be prima facie more than the occasion demands. No authority should exercise its power sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage. Public money should not be utilized for the benefit of a particular person or section of the community unless - (i)the amount of expenditure is insignificant or , (ii) claim of amount could be enforced in a court of law, or (iii)The expenditure is in persuance of recognised policy or custom

14. Control of Expenditure R ule – 11 : A controlling officer must see not only that the total expenditure is kept within the limits of the authorized appropriation but also that the funds allotted to spending units are expended in the public interest and upon objects for which the money was provided , expenditure is incurred well against the commitment and liability and is answerable to Government ,Public acount committee, Audit As per Rule -107 oh Bihar budget Mannual, it is no economy to postpone inevitable payment for want of provision in the Budget.Provision should be made in the first or second supplementary statement of expenditure for approval from cabinet or by reappropriation Rule-13 (3) No money should be withdrawn from the treasury unless is required for immediate payment. It is not permissible to draw advance from the treasury either for the prosecution of works, the completion of which is likely to take considerable time, or to prevent the lapse of appropriati on Rule-19 : Cheques should not be used for the transfer of funds from one division to another.  

15. Rule-29 – Contracts : Management and General Principles . All contract shall be made by an authority empowered to do so by or under the orders of the Governor in terms of Article – 299 (1) of the constitution of India. All the contracts and assurances of property made in the exercise of executive power of the State shall be executed on behalf of the Governor. The words “for and on behalf of the Governor of Bihar” should follow the designation appended below the signature of the officer authorized in this behalf.

16. Rule-30 : General principles for contracts :- The following general principles should be observed while entering into contracts :- The terms of contract must be precise, definite and without ambiguities. The terms should not involve an uncertain or indefinite liability, except in the case of a cost plus contract or where there is a price variation clause in the contract. Standard forms of contracts should be adopted wherever possible, with such modifications as are considered necessary in respect of individual contracts. The modifications should be carried out only after obtaining financial and legal advice. In cases where standard forms of contract are not used, legal and financial advice should be taken in drafting the clauses in the contract. Pl. refer BFR book.

17. No work of any kind should be commenced without proper execution of an agreement as given in the foregoing provisions. Contract document, wherever necessary, should be executed within 21 days of the issue of letter of acceptance. Non- fulfilment of this condition of executing a contract by the contractor or supplier would constitute sufficient ground for annulment of the award and forfeiture of Earnest Money deposit. Cost plus contract should generally be avoided. Where such contracts become unavoidable, full justification should be recorded before entering into the contract.   A cost plus contract means a contract in which the price payable for supplies or services under the contract is determined on the basis of actual cost of production of the supplies or services plus profit either at a fixed rate per unit or at a fixed percentage on the actual cost of production Price variation clause can be provided only in the long-term contract,where delivery period extend beyond 18 months.

18. 30A- Management of contract - Implementation of contract should be strictly monitored and notices issued promptly whenever a breach of provisions occures Proper procedure for safe custody and monitoring of Bank Guarantees or other instruments should be laid down. Monitoring should include a monthly review of all Bank Guarantees or other instruments expiring after three months . Extentions of of Bank Guarentees or other instruments , where warrented , should be sought immediately After acceptance of tender, agreement should be executedby competent authority on behalf of Governer within 21 days Original contract document should be kept with Engineer in charge Cetified copy should be furnished to the higher authority A certified copy of agreemet should be supplied to the contractor and officer and Engineer in charge Every page of agrement should be signed by the contractor and officer or Engineer in charge

19. Rule-36 : A NNEXURE – B Destruction of Accounts records :- The following records should on no account be destroyed :- Records connected with expenditure which is within the period of limitation fixed by law. Records connected with expenditure on projects, schemes or work not completed although beyond the period of limitation. Records connected with claims to service and personal matters affecting persons in the service. Orders and sanctions of a permanent character until revised. B.   t he following records should be preserved for not less than the period specified against them :

20. Records Preservation Period SI.NO. Description of records Period of preservation (Years) 1 Annual Establishment Returns (Book of Establishment) 35 Years 2 Register of contingent expenditure 5 Years 3 Detailed budget estimate of an office 5 Years 4 T.A. Bills & Acquittance rolls related thereto 3 Years 5 Service Book 5 Years after death or retirement which ever is earlier. 6 Leave account of non- gazetted Govt. Servants. 3 Years after death or retirement 7 Pension cases 7 Years after retirement / death. 8 Nomination papers under the liberalized pension rules. If the gratuity and / or family pensions are paid to minors. To other than minors. If not in accordance with the order in which nomination have been made If in accordance with the order in which nomination has been made 30 years. 30 Years. 6 Years after the payment of gratuity or last installment of family pension. 9 Statement of monthly progressive expenditure and correspondence relating to discrepancy in the figures. 2 Years. 10 Pay-bill and Acquittance rolls where these are maintained separately of Govt. servants for when no establishment returns are submitted or no service books or service rolls are maintained. 35 Years. 11 Pay bills of other classes of Govt. servants and A-Rolls for pay and allowances 6 Years 12 Muster rolls Minimum of three account years excluding the years of payment. 13 Cash book 20 Years

21. Major source of Revenue - GST, Income tax , Property tax, corporate tax, water tax, Road tax Interest , Dividend, Rental Income Rule – 37 . It is the duty of the departmental controlling officers to see that all sums due to Govt. come regularly promptly assesse d, realized and duly credited in the public account through treasury. They should accordingly arrange to obtain from their subordinates monthly accounts and returns in suitable form claiming credit for so much paid into the treasury or otherwise accounted for and compare then with the statements of treasury credits furnished by the Accountants General to see that the amounts reported as collected have been duly credited in the public account. CHAPTER -3 Rule 37 to 58 : Deals with Revenue and Receipts.

22. CHAPTER -4 Rule 59 to 79 Deals with powers of sanction of Expenditure. Rule- 59 : The more important of the powers to sanction expenditure which are exercised by heads of department and other officers are detailed in the compendium of Financial Delegations.   Rule- 60 : The financial powers of the State Government which have not been delegated to any other department or authority vest in the Finance Department.   Rule- 61 : Unless otherwise provided by any special rule or order of Government a higher authority may exercise the powers delegated to an authority subordinate to it. Rule- 62 : No department or authority may without previous consent of the Finance Department issue any orders (other than orders in pursuance of general delegation made by or with the approval of the Finance Department which involve any grant of land, or assignment of revenue or concession grant, base or license or mineral, or forest rights, or right to water, power or any easement, or privilege in respect of such concessions for in any way involve any relinquishment of revenue.

23. CHAPTER - 5 Rule- 78-79 : BUDGET Deals with responsibility for the preparations of the budget estimates. Rule 78 : The responsibility for the preparation of the estimated revenue and expenditure under Article 202 of the Constitution of India, which is laid before the legislature in each year, as well as any supplementary estimates or demands for extra grants, lies with the Finance Department. The material on which such such estimates are based is obtained by that department from the departments concerned., which are responsible for the correctness of the material itself. The Heads of Department and other subordinate authorities are responsible for the submission of correct detailed estimates punctually on the date fixed by the Finance Department.

24. CHAPTER -6 Rules : 80- 104 Deals with establishment i.e. Alteration of establishment, transfer of office, annual returns of Govt. Servants. Establishment Service books, Service rolls etc. have been dealt in this chapter . Rule – 80. No permanent post under Government can be created without the sanction of Government. In respect of temporary posts, powers have been delegated to Departments of Governments and certain Heads of Departments and other subordinate authorities within specified limits. Rule – 81. When the entertainment of a new establishment, or a change, temporary or permanent, is proposed in an office, a letter fully explaining the proposals and the conditions which have given rise to them, should be submitted to the competent authority.

25. Transfer of office Rule – 8 6 . Every transfer of charge of a gazetted Government servant should be reported by post on the same day to Accountant General. Copies of the Charge Report should simultaneously be sent to the treasury officer or Sub-treasury where the officer draws his pay and to the head of the department or other controlling authorities concerned. Charge Report on 202 Form

26. F.R. FORM 3. Charge Report Place.......... ........... I.........................( In Block letters) undersigned have made over charge to Mr..........................( in Block lettersletters)undersigned as ........ ...........on forenoon/afternoon of ..............of year ............... Relieved Officer Relieving Officer A permanent advance of Rs ( in words ) ......has been made over by me........... 2. Certified that I..... on assuming charge of officer of .......have recieved a copy of the printed instruction for guidance of officers recieving, handing the public funds Signature..... Place ..... Date .... FOR USE IN AUDIT OFFICE Noted in Audit Register Histry of Services.Pay Slip issued Accountant- General;s Office

27. Rule -87. In cases in which the transfer of charge involves assumption of responsibility for cash, stores, etc., the following instructions should be observed : The cash book or imperest account should be closed on the date of transfer and a note recorded in it over the signature of both the relieved and the relieving Government servant, showing the cash and imperest balances, and the number of unused cheques , if any, made over and received by them respectively. The relieving Government servant in reporting that the transfer has been completed should bring to notice anything irregular or objectionable in the conduct of business that may have come officially to his notice. He should examine the accounts, count the cash, inspect the stores, count, weigh and measure certain selected articles in order to test the accuracy of the returns. He should also describe the state of the account records. (iii) In the case of any sudden casualty occurring or any emergent necessity arising for a Government servant to quit his charge, the next senior Government servant of the department will take charge.

28. Special Rule for PWD Rule – 88. The relieving Government servant will take up the expenditure of cash and stores from and for the first day of the month during which the relief took place and submit the next monthly accounts in the same manner as he has been in charge during the whole month. But the relieved Government servant remains responsible that a proper explanation is forthcoming for transactions during his incumbency.

29. Rule – 89. If the relieving Government servant fails to bring to notice within a reasonable specified period any deficiency or defect in work or stores taken over from his predecessor, he will be held responsible for the same, both as to quantity and quality, so far as he was in a position to ascertain it. Rule – 90. The receipts of cash and stores balances should be prepared by the relieved Government servant, but the relieving Government servant should note any instructions therein so that the Superintending Engineer or Executive Engineer as the case may be, may pass such orders in respect of any deficient articles as may be necessary.

30. Rule – 91. The relieving Government servant should then unless otherwise ordered proceed with the relieved Government servant to inspect the records, cash, stores, works and materials at site of works in-charge of subordinates. The relieving Government servant should examine the accounts, count the cash, inspect the stores and should minutely examine the work in progress as to their quality, and as to their accordance with the sanction, plans and estimates; he should also record his opinion as to the correctness of accounts of materials at site. Rule – 92. The relieved Government servant should further furnish the relieving Government servant with a complete statement of all unadjusted claims with the reasons for their not having adjusted in due course and a report as to any complication likely to arise owing to their non-adjustment.

31. Rule–93. The relieving Government servant, in reporting that the transfer has been completed should bring to notice anything irregular or objectionable in the conduct of business that may have come officially to his notice. In the case of the transfer of a divisional charge, he should describe the state of the records, cash, stores and works mentioning what outstations he has yet to inspect and when he proposes to visit each. Rule – 95. In the case of transfer of charges other than divisions and subdivisions, the Executive Engineer should issue instructions as to the works to be inspected jointly by the relieved and relieving Government servants.

32. Service Books : Rule – 100. Detailed rules regarding maintenance of service books are contained in rules 288 to 296 of the Bihar Service Code. Rule – 101. (1) At a fixed time early in the year the service books should be taken up for verification by the head of the office [or by any senior gazetted officer under him] who after, satisfying himself that the services of the Government servant concerned are correctly recorded in each service book, should record in it a certificate in the following form over his signature : “Service verified up to (date) from (the record from which the verification is made)”.

33. Note – The verification of service referred to above should be in respect of all service qualifying for pension whether permanent, provisional, temporary or officiating. (2) The head of the office in recording the annual certificate of verification should, in the case of any portion of service that cannot be verified from office records, distinctly state that for the excepted periods (naming them) a statement in writing by the Government servant, as well as a record of the evidence of his contemporaries, is attached to the book.

34. When, however, a non- gazetted Government servant is transferred from one office to another the head of the office under whom he was originally employed should record [himself or authorise any senior gazetted officer under him to record in the service book under this signature the result of the verification of service, which reference to pay bills and acquittance rolls, in respect of the [whole period for which the Government servant concerned was paid in his office, was employed under him, before forwardng the service book to the office where the services are transferred] (3) When non- gazetted Government servants are officiating in gazetted posts, their service books should be kept by the head of the office to which each such Government servant permanently belongs, but when they are confirmed in such posts, their service books should be forwarded to the Accountant-General’s office for record.

35. CHAPTER -7 Rule- 105 to 123 : Deals with contingencies i.e. powers of subordinate authorities to sanction contingent charges, permanent advances, control of contingent expenditure, Contract contingencies etc . Rule–105. The rules in this Chapter are supplementary to the general rules of procedure prescribed in Section –I & II of Chapter IV of the Bihar Treasury Code and have to applied, where necessary, in conjunction with them .

36. Rule 131C. Purchase of goods without quotation : Bihar Financial (Amendment ) Rule-2005- Fin Notification. No. 6076 F(2) Patna-15, Dated 10-11-2005 Purchase of goods upto the value of Rs. 15000/- - (Rupees Fift een Thousand) only on each occasion may be made without inviting quotations or bids on the basis of a certificate to be recorded by the competent authority in the following format. "I, ___________________, am personally satisfied that these goods purchased are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price."

37. Rule 131D. - Purchase of goods by purchase committee Bihar Financial (Amendment ) Rule-2005- Fin .Letter no 6076F(2) Dt. 10.11.2005 Purchase of goods costing above Rs. 15, 00 /- (Rupees Fi fteen Thousand) only and upto Rs. 1 ,00,000/- (Rupees one lakh) only on each occasion may be made on the recommendations of a duly constituted Local Purchase Committee consisting of three members of an appropriate level as decided by the Head of the Department. The committee will survey the market to ascertain the reasonableness of rate, quality and specifications and identify the appropriate supplier. Before recommending placement of the purchase order, the members of the committee will jointly record a certificate as under. - "Certified that we _____________________, members of the purchase committee are jointly and individually satisfied that the goods recommended for purchase are of the requisite specification and quality, priced at the prevailing market rate and the supplier recommended is reliable and competent to supply the goods in question. "

38. AMENDMENTS IN RULE-131C &131D (i) Bihar Financial (Amendment ) Rule-2005- ( Fin .Letter no 6076F(2) Dt. 10.11.2005) Rule- 131C- Purchase of goods w committe- costing above Rs 15000/- & Upto Rs 1000 00 (ii)Bihar Financial (Amendment ) Rule-2016 Fin .Letter noM-4-12/2015(Part)-8523/ F Dt. 28.10.2016 Rule-131D- Purchase by purchase committe - Upto Rs 200000/ - (iii)Bihar Financial (Amendment ) Rule-2016 (Fin .Letter noM-4-12/2015(Part)-9331/ F Dt. 28.10.2016) Rule-131C -Purchase by without Quotation - Costong upto 50000/- Rule -131D -Purchase by purchase committee - Costing above 50000/- & upto Rs 500000/-

39. Rule-168 of BTC. The term ‘contingent charges’ or ‘contingencies’ used in this chapter means and includes all incidental and other expenses which are incurred for the management of an office as an office, or for the technical working of a department other than those which under prescribed rules of classification of expenditure fall under some other head of expenditure e.g. ‘works’ ‘stock’, ‘tools and plant’ etc. Rule-169 of BTC. The rules of procedure prescribed in this section shall apply primarily to contingencies. However, miscellaneous expenditure which is not classed as contingencies is also subject to these rules except in so far as it may be governed by any special rules of procedure prescribed in other sections of this chapter or by any departmental regulation.

40. Rule-172 of BTC. Permanent advances are granted to government servants who may have to meet certain classes of expenditure before they can place themselves in funds by drawing bills. The amount of the advances should be fixed by competent authority according to the requirements of each office. The holder of a permanent advance is responsible for the safe custody of the money placed in his hands and the must at all times be ready to produce the total amount of money either in vouchers or in cash. Rule-173 of BTC. An imperest is a standing advance of a fixed sum of money given to a disbursing officer in the Works Department to enable him to make certain classes of payments which may be entrusted to his charge by the Executive Engineer or the sub-divisional officer.

41. Rule-174 of BTC. When a disbursing officer makes a remittance to a subordinate officer to enable him to make a number of petty payments on muster-roll or other vouchers which have already been passed for payment, the amount remitted should be treated as a temporary advance. Rule-175 of BTC. The permanent advance and imperest should be authorized by a sanction of the Finance Department under intimation to the Accountant General.

42. CHAPTER - 8 Rules - 124 to 198 Deals with stores i.e. procurement of goods and services.   Rule- 126 : The procedure to be followed in making public procurement must confirm to the following yardsticks :- The specifications in terms of quality, type, etc as also quantity of goods to be procured, should be clearly spelt out keeping in view the specific needs of the procuring organizations. Offers should be invited following a fair, transparent and reasonable procedure. The procuring authority should be satisfied that the selected offer adequately meets the requirements in all respect. Price of the selected offer is reasonable and consistent with the quality required. At each state of procurement the concerned authority must place on record, in precise terms.

43. CHAPTER -9 Rules - 199 to 333 Deals with works. Rule- 199 : Original Works – means all new constructions, additions and alterations, to existing works, special repairs to newly purchased or provably abandoned buildings or structures, including remodeling or replacement.   Repair Work – means works undertaken to maintain building and fixtures.

44. Rule- 205 : No works shall be commenced or liability incurred in connection with it until :- Administrative approval has been obtained from the appropriate authority in each case. Sanction to incur expenditure has been obtained from the competent authority. Properly detailed design has been sanctioned. Estimates containing the detailed specifications and quantities of various items have been prepared on the basis of Schedule of Rates maintained by PWD or public works organizations and sanctioned. Funds to cover the change during the year have been provided by the competent authority. Tenders invited and processed in accordance with rules. A work order issued by the competent authority.

45. CHAPTER -10 RULE- 334 to 346 D eals with Miscellaneous expenditure. Rule - 334. The term “miscellaneous expenditure” applies generally to all expenditure in the civil departments, which does not fall under the category of pay and allowances of Government servants, pensions, contingencies, grants-in-aid, contributions, stores or work. Rule - 335. Miscellaneous expenditure is subject generally to the rules of procedure which apply to contingent expenditure, except in so far as it may be governed by any special rules or orders made by competent authority.

46. CHAPTER -11 RULE- 347 to 355 Deals with Rupee Debt. i.e. Debt and miscellaneous obligations of Govt., provident funds, service and other funds. Rule - 347. In pursuance of resolutions passed by the houses of all State Legislatures the consolidation and amendment of the law relating to securities issued by the State Government and the management by the Reserve Bank of India of the Public Debt of the State is regulated by the Act of the Union Parliament, the Public Debt (Central Government) Rules, 1946 as amended. The management of the Public Debt of the State and the maintenance of accounts relating thereto are vested in the Central Public Debt Office, which is managed on behalf of Government by the Reserve Bank. A substantial part of the work however falls on treasuries and sub-treasuries including those of certain Indian States.

47. Rule - 348. The procedure to be followed in treasuries and other Government offices in dealing with securities of rupee loans issued by Government and in making payment of interest in respect thereof is regulated by the provisions of the Indian Securities Act (Act X of 1920) as amended from time to time, and the Statutory Rules (Indian Securities Rules) issued the reunder . Detailed rules, based mostly on the Statutory Rules, referred to above and the supplementary orders issued by Government from time to time are to be found in the Government Securities Manual, issued by Reserve Bank under the authority of the Government of India.

48. Rule - 350. Provident Funds – “Provident Funds” is strictly applicable to all “ Provident Funds” within the meaning of the Provident Funds Act, 1925 (XIX of 1925), as amended, which have been constituted for the benefit of Government servants. The procedure relating to the recovery of subscriptions to, and withdrawals from, such funds will be regulated strictly in accordance with the provisions of the respective. Provident Fund Rules and the subsidiary instructions contained in section III of Chapter VIII of the Bihar Treasury Code.

49. CHAPTER -12 RULES- 356 to 367 Deals with Local Funds. RuLe – 356 (1) The transactions of local funds (as defined in rule 573 of the Bihar Treasury Code) are not included as such in the Public Account, except in so far as their cash balances may be deposited with Government under rule 575 of Bihar Funds. “The function of Government in regard to such deposits is that of a bank. (See rule 576 of the Bihar Treasury Code.) (2) The main classes of local funds are – ( i ) District Funds; (ii) Municipal Funds; (iii) Union Committees and Union Boards Fund; and (iv) Other Miscellaneous Funds . Note – The expression ‘’local body’’ as used in this Chapter means the authority legally entitled, or specially empowered by Government to administer a local fund.  

50. CHAPTER -13 RULE- 368 to 381 Deals with Loans and Advances. Rule – 368 Loans and advances made by the State Government fall under the following main head :- Interest bearing loans and advances :- Loans of Municipalities Loans of District Boards and other Local Fund Committees. Loans of Land-holders and other Notabilities. Loans to cultivators under various Acts. Advances under special laws. Miscellaneous loans and advances. Advances to Government servants for purchase of conveyances, etc . Interest free advances :- Advances repayable –comprising mostly miscellaneous advances to Government servants for various public purposes. Permanent advances.

51. Rule – 370. Except as otherwise provided in any departmental rules or orders, loans and advances to local funds and private individuals under clause A ( i ) of rule 368 require the sanction of Government, Advances to Government servants are regulated by rules in Chapter relating to Miscellaneous Advances of these Rules. Permanent advances are dealt with in rule 112.

52. CHAPTER -14 RULE- 382 to 433 Deals with Advances to Govt. Servants. RULE-382 to433 The rules discussed in the book regulate the grant of advances to Governments servants and others. In cases not covered by these rules or by the rules in Chapter 1 4 advances can not been made except under the special orders of the State Government. Ex- Salery advance, Advance for marriage, Advance for construction/purchase of house, purchase of car, Motorcycle , Festival advance, computer Advance,

53. CHAPTER - 15 RULE- 434 to 446 Deals with Miscellaneous Subjects (Security Deposits, Transfer of Government Land and Building, Insurance etc.) Rule – 435. Subject to any special rule or orders made by Government in this behalf every cashier, store-keeper and other subordinate who is entrusted with the custody of cash or stores, should be required to furnish security, the amount being regulated according to circumstances and to local conditions in each case under the sanction of competent authority, and to execute a security bond setting forth the conditions under which Government will hold the security and may ultimately refund or appropriate it.

54. Rule – 436. When a Government servant who has furnished security takes regular leave or is deputed to other duty, the Government servant who is appointed to officiate for him should be required to furnish the full amount of security prescribed for the post, unless the head of department concerned has authorized a relaxation of the rules regarding security applicable to his case.   Rule – 438. Except as expressly provided otherwise in any rule or order made by Government, no land belonging to Government may be sold or made over to a local authority, private party or institution for public, religious, educational or any other purpose, except with the previous sanction of Government. Rule – 442. The normal policy of Government is not to insure its properties and no expenditure should be incurred without the prior consent of the Finance Department on the insurance of any Government property.

55. CHAPTER -16 RULE- 447 to 500 Deals with Govt. Accounts. (General form of Accounts, Capital & Revenue Accounts, Pro Forma Accounts, Subsidiary Accounts of Government commercial undertakings, Annual Accounts, Control of Expenditure etc.) Rule – 448. The structure of the accounts consists mainly of the following divisions :- Major heads -2701 Sub Major Head -01 Minor heads -102 Sub-heads -0001 Primary units Secondary units Detailed heads.

56. EXAMPLE Major Head- -2701- Major & Medium Irrigation- Sub Major Head - 01 Major Irrigation- Banijyik Minor Head - 102 Gandak Project Sub Head - 0001- Administration & Direction Bill Code - 2701011020001

57. Rule – 449. A list of authorized major and minor heads of account is given in Appendix 2 of the Accounts Code Volume 1. The introduction of any new major or minor head as well as the abolition or change of nomenclature of any of the existing heads requires the approval of the Comptroller and Auditor General . Rule – 452. Every officer responsible for the collection of Government dues or expenditure of Government money should see that proper accounts are maintained Government with which he is concerned and render accurately and promptly all such account and returns relating to them as may be required by Government, the Accountant-General or the controlling authority concerned. It is essential that all accounts should be so kept and the details so fully recorded and that the initial records of payments, measurement and transactions in general are so clear, explicit and self-contained as to be produceable , where necessary, as satisfactory and convincing evidence of facts.

58. Volume II - 15 Appendices Appendix – I : Classes of Deeds, Contracts and other Instruments authorized by the State Government to be executed by the various authorities of the Civil Departments. Appendix – 2 : Instructions for regulating the enforcement of Responsibility of losses etc. Appendix – 3 : Regulation for the conduct of audit of Receipts and of Stores and Stock accounts. Appendix – 4 : Directions for the preparation of the Annual Establishment Returns. Appendix – 5 : Power to sanction Contingent Expenditure including expenditure on the purchase of Stores.

59. Appendix – 6 : Rules for the loan of Tools and Plants to Contractors, Local bodies, and others. Appendix – 7 : Rules regulating expenditure in constructing and repair executed by Civil Officers of building assigned to their department. Appendix – 8 : Rules for the supply of Articles of Stores including stationary and printing required to be purchased for the State services. Appendix – 9 : Rules for the check of measurement Books. Appendix – 10 : Rules for the administration of the Furniture fund of the Residence of the Governor of Bihar. Appendix – 11 : Memorandum explanatory of Government Provident Fund Rules vis-à-vis the law on the subject preface.

60. Appendix - 12 : Procedure to be followed in dealing with Application for Advances for the construction, purchase or repair of houses. Appendix - 13 : Rules regulating the grant of Advance to pay for the passages overseas of certain government servants of non-Asiatic domicile and their families.\ Appendix - 14 : Rules regarding the grant of Concessions to Government Servants and Indigent persons in Bihar proceeding to the Pasteur Institute at Patna or the nearest station where anti- rabic treatment is available. Appendix - 15 : Transfer of Lands and Buildings between the Central and State Governments.

61. THANKS