THE MADHYA PRADESH FINANCIAL CODE

VOLUME I

CHAPTER I – INTRODUCTORY
1. The rules in this volume, which are essentially executive orders of the Governor,
describe primarily the financial powers of different authorities subordinate to the
State Government and the procedure prescribed, which should be followed
functions entrusted to them. The rules and procedure relating to the payment of
moneys into and withdrawal of funds from the Consolidated fund and Public
Account of the State and the control to be maintained at treasuries have been
provided in the Madhya Pradesh Treasury Code, Volume I. The rules and
procedure relating to the treatment of money before the receipt into, or after
their withdrawal from the treasury or the Bank, and those for the control over
receipts and disbursements of moneys and their safe custody in offices other
than treasuries mint of Government money, these rules are supplementary to
treasury rules and should be applied in conjunction with them. Departmental
authorities should follow these rules, supplemented or modified by the special
rules and instructions, if any, contained in their departmental regulations and
other special orders applicable to them.
Definitions
2. In these rules unless there by anything repugnant in the subject or context, the
following terms and expressions shall have the meanings hereby assigned to
them:
(1) Accountant General means the head of the office of audit or of accounts and
audit who is subordinate to the Comptroller and Auditor-General of India and
who Keeps the accounts of the State and exercise audit functions in relation to
those accounts on behalf of the Comptroller and Auditor-General of India.
(2) Appropriation means the assignment to meet specified expenditure of funds at
the disposal of the assigning authority.
Note – it is intended to cover all the charges including the liabilities of
past years to be paid during a financial year or to be adjusted in the
counts of the yea. It is operative until the close of that year. Any
unspent balances lapses and is not available for utillisation in the
following years.

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(3) The 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).
(4) Collector means the chief officer in charge of the revenue administration of a
district.
(5) Competent authority means Government or any other authority to which the
relevant powers may be delegated by Government.
(6) Consolidated Fund of the State means the Fund into which the revenues receive
by the State Government, loans raised by the Government by the issue of
treasury bill, loans or ways and means advances and money received by that
Government in repayment of loans are credited and from which the expenditure
of the Government, when so authorised by the State Legislature is met
(7) The constitution means the Constitution of India.
(8) Controlling Officer means a head of a department, or other Department officer
who is entrusted with the responsibility of controlling the incurring of
expenditure and / or the collection f revenue by the authorities subordinate to
the department.
(9) Disbursing Officer means a Government servant who draw money from the
treasury on bills or cheques, etc excludes a Government servant who is not the
head of an office and draws only his own pay and allowances finance from
treasury.
(10) Finance Department means the Finance Department of the Government of
Madhya Pradesh
(11) Financial year means the year beginning on he 1s t of April and ending on the
31s t March following.
(12) Government or State Government mans the Government of Madhya Pradesh.
(13) Governor means Governor of Madhya Pradesh.
(14) Head of Department means an authority declared to be such by Government.
Note – A list of heads of departments is given in the Annexure to
Chapter 1 of the Madhya Pradesh Book of Financial Powers.
(15) Non-recurring expenditure means expenditure sanctioned as a lump sum
charge, whether the money be paid as a lump sum or by installments.

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(16) Public Account of the State means the account into which all moneys other
than those pertaining to the “Consolidated Fund of the State” received by or on
behalf of the State Government are credited, e.g., State Provident Fund, Sinking
Fund, Reserve Funds, Deposits and Remittance, etc., and from which
disbursements are made in accordance with the prescribed rules.
(17) Public works means Civil works and irrigation, navigation, embankment and
drainage works.
(18) Re-appropriation means transfer of funds from one unit of appropriation to
another such unit or from one standard object of expenditure to another such
object of expenditure.
(19) Recurring expenditure means all expenditure, which is not non-recurring.
(20) Subordinate authority means a department of the Government, a head of
department or any authority subordinate to Government.
(21) Treasury includes a sub-treasury.
(22) Treasury officer means the officer in immediate executive charge of a
treasury.
1
(23) ”Head of office” means a Gazetted officer in-charge of a local office who is
declared as such by the Department of the Government and who may be vested
with powers of Disbursing officer.

1
Inserted wide F.D. No. E/17/2/79/R-V/IV dated 31.12.1979

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