05 (72-78)

CHAPTER V

DIRECTIONS REGULATING THE EXHIBITION OF RECOVERIES OF

EXPENDITURE IN GOVERNMENT ACCOUNTS

🆀 In the direction regulating the exhibition of recoveries of expenditure in government accounts which article do include: 

(A) 72 to 77

(B) 55 to 71 

(C) 79 to 82

(D) 83 to 85

INTRODUCTORY 

72. The directions in this chapter shall regulate the exhibition of recoveries of expenditure in Government accounts. 

In these directions— 

The term ‘recovery’ means repayment by another Government Department or an outside body or person of expenditure initially borne by a Government Department and recorded as such in its accounts.

RECOVERIES FROM PRIVATE PERSONS OR BODIES AND
GOVERNMENTS OUTSIDE INDIA

73. Recoveries from private persons or bodies (including local funds, and Governments outside India) should, as a general rule, be treated as revenue and not as deduction from expenditure.

Exceptions.—(i) When a Government undertakes a service merely as an agent of a private body, so that the entire cost of the service is recovered from that body, the net cost to Government being nil, the recoveries may be taken in reduction of expenditure. 

(ii) Recoveries of expenditure on works in progress and transactions of stock and other suspense accounts:— 

 

🆀Recoveries from Private persons or bodies (including local funds, and Governments outside India) should, as a general rule, be treated as revenue and not as deduction from expenditure subject to exceptions. Which among the following is NOT an exception in this regard?

A:-When a Government undertakes a service merely as an agent of a private body, so that the entire cost of the service is recovered from

that body

B:-Recoveries of expenditure on works in progress

C:-Transactions of stock and other suspense accounts

D:-None of these

Correct Answer:- Option-D

The technical estimates take cognisance of all anticipated receipts from sale proceeds of materials, plant, etc., received from the old structure while the receipts under ‘Stock and Suspense’ are by their very nature inseparable from the expenditure recorded under the main head. The recoveries falling under these two categories should therefore be treated as reduction of gross expenditure. 

🆀As a general rule, recoveries from private persons or bodies (including local funds and Governments outside India)should be treated as

(A) Deduction from expenditure

(B) Expenditure 

(C) Revenue

(D) Deduction from Revenue 

Correct Answer Option :(C)

 

RECOVERIES BY ONE GOVERNMENT FROM ANOTHER

ഒരു സർക്കാർ മറ്റൊരു സർക്കാരിൽനിന്നും നടത്തുന്ന റിക്കവറി

74. As between two or more Governments the following directions shall regulate the classification of recoveries:— 

  (a) If the recoveries represent debits to another Government of expenditure which was so debitable from the moment it was sanctioned, they should not be treated as revenue of the Government effecting the recoveries but as deductions from expenditure.

  (b) In the case of joint establishments, where the expenditure is not shared by two or more Governments ab initio but is incurred by one of the Governments and partially repaid by the others, the repayment, if made while the accounts of the year are still open, should be treated as deduction from expenditure. 

(c) Recoveries of the classes falling under (a) and (b), if not effected within the accounts of the year in which the expenditure was incurred, should be treated as revenue.

Exception.—In cases where the recovery is made on the basis of the calendar year instead of the financial year, the whole amount of the recovery may be treated as reduction of expenditure though a portion of it relates to expenditure incurred during the previous financial year. 

(d) Recoveries on account of commuted value of pensions effected from other Governments should be treated as deductions from expenditure.

🆀How are recoveries on account of commuted value of pensions effected from other Governments treated?

A:-Credited as Revenue

B:-Deductions from expenditure

C:-Miscellaneous receipt

D:-None of these

Correct Answer:- Option-B

🆀Recoveries made from another department if not effected within the accounts of the year in which the expenditure was incurred,should be treated as ________, unless otherwise specifically authorized by provision in the budget estimates.

A:-Revenue

B:-Deductions from Expenditure

C:-Miscellaneous receipt

D:-None of these

Correct Answer:- Option-A

🆀Recoveries on account of commuted value of pensions effected from other Governments should be treated as: 

(A) Deductions from net receipts 

(B) Deductions from expenditure 

(C) Revenue recovery 

(D) Reduction from gross receipts

Correct Answer Option :(B)

 

  (e) All other recoveries should be credited as revenue of the recovering Government, whenever they are received. 

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RECOVERIES BY ONE DEPARTMENT FROM 
ANOTHER DEPARTMENT OF THE SAME GOVERNMENT 

ഒരു വകുപ്പ് അതേ സർക്കാരിന്റെ മറ്റൊരു വകുപ്പിൽ നിന്നും നടത്തുന്ന റിക്കവറികൾ

75. As between different departments of the same Government, the recoveries should be treated as deduction from the gross expenditure, except such recoveries as are made by a commercial department, which would be treated as receipts of that department.

🆀Recoveries by one department from another department of the same Government, should be treated as _________, except such recoveries as are made by commercial departments.
A:-Revenue
B:-Miscellaneous Capital receipt
C:-Deduction from the gross expenditure
D:-None of these
Correct Answer:- Option-C

🆀The recoveries between different departments of the same Government effected within the accounts of the year in which the expenditure was incurred should be treated as
(A) Deduction from net expenditure
(B) Deduction from net receipts
(C) Deduction from gross receipts
(D) Deduction from gross expenditure
Correct Answer Option :(D)

Note—1. The term ‘recoveries by a commercial department’ for the purpose of this direction shall apply to recoveries in respect of services rendered to other departments in pursuance of the proper functions for which the department is constituted that is to say in the case of the Post and Telegraphs Department, recoveries shall be treated as receipts only when they are made in respect of Postal, Telegraph or Telephone services rendered to the other department. Where, however, a commercial department acts as an agent of another department for the discharge of functions not germane to the essential purpose of the department, the recoveries shall be taken in reduction of expenditure. 

 

Note—2. Recoveries made from another department if not effected within the accounts of the year in which the expenditure was incurred, should be treated as revenue and not as deduction from expenditure, unless the latter course is authorised by provision in the budget estimates. 

 

🆀Recoveries made from another department if not effected within the accounts of the year in which the expenditure was incurred should be treated as............unless otherwise authorised in the budget. 

(A) Revenue

(B) Deduction from expenditure 

(C) Miscellaneous receipt 

(D) None of the above

Correct Answer Option :(A)

RECEIPTS AND RECOVERIES ON CAPITAL ACCOUNT 

മൂലധനക്കണക്കിന്മേലുള്ള വരവുകളും റിക്കവറികളും

76. Notwithstanding anything to the contrary that may be provided by or under the directions in this chapter, receipts and recoveries on Capital Accounts in so far as they represent recoveries of expenditure previously debited to a capital major head shall be taken in reduction of expenditure under the major head concerned, except where under the rules of allocation applicable to a particular department such receipt have to be taken to revenue. 

🆀How shall recoveries of expenditure previously debited to a capital major head be accounted ? 

(A) As reduction of expenditure under the major head concerned 

(B)As revenue receipt 

(C) As revenue under capital major head 

(D) Under suspense head

Correct Answer Option :(A)

SETTLEMENT OF DOUBTS OR DISPUTES 

77. In the case of doubt or dispute, the question whether any particular recovery is classifiable as revenue or as deduction from expenditure under the directions in this chapter will be decided by the Comptroller and Auditor-General, with the approval of the President.

🆀The question whether any particular recovery is classifiable as, revenue or as deduction from expenditure will be decided by 

(A) The Accountant General (A &E) 

(B) The Finance Department 

(C) The Governor 

(D) The Comptroller and Auditor General

Correct Answer Option :(D) 

78. [Deleted.] 

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