Central Public Works Account Code

Appropriations and Re-Appropriation  

Appropriation or re-appropriation ​represents the allotment of a particular sum of money to

meet expenditure on a specified job

Expenditure can only be incurred on a work :-

(i) If sanction of competent authority has been obtained authorising the expenditure.

(ii) If funds to cover the charges during the year have been provided by competent authority.

(iii) If the expenditure conforms to the relevant provisions of the Constitution and to the financial
rules, regulations and orders issued by the competent authority

❖ For purposes of financial control, the grant allotted to each major head of account is divided
into primary units of appropriation

Form of Accounts – Main Divisions of Accounts

 Central Public Works Account Code

Part - I Consolidated Fund

These sections are divided into ​Sectors​ such as “​General Services”, “Social Services”,
“Economic Services​” etc​. under which specific functions or services are grouped which are
represented by Major Head. ​Each sector is denoted by a letter of alphabet

Note​: Consolidated Fund of India or State - ​Article 266(1)

Consolidated Fund of UT - ​Section 47 of UT Act,1963

 Central Public Works Account Code

Part II Contingency Fund

There is​ single Major Head (8000)​ to record the transactions

Note​: Contingency Fund of India - ​Article 267(1)

Contingency Fund of State - ​Article 267(2)

Contingency Fund of UT - ​Section 48 of UT Act, 1963

Part III Public Account

Record the transactions relating to Debt (other than those including in Part I), “Reserve Funds”,
“Deposits”, “Advances”, “Remittances” and “Suspense” and Cash Balances

the transactions shall be grouped into Sectors and Sub-Sectors, which shall be further
sub-divided into Major Heads of Account. The Sectors / Sub-Sectors shall be distinguished by
letters of the Alphabet.

Note: Public Account of India or State - ​Article 266(2)

There is​ no separate Public Account for UT Govt​, so transactions of UT are booked

in the Public Account of Centre Govt.

Allotment of Code to each Major Head

First Digit Head

0 or 1 Revenue Receipt
2 or 3 Revenue Expenditure
4 or 5 Capital Expenditure(​Exception: 4000- Capital Receipt​)
6 or 7 Loan & Advances
8 Public Account (​Exception: 8000 -Contingency Fund​)
 Central Public Works Account Code

Adding 2 to the first digit of the Revenue Receipt will give the Code Number for Revenue
Expenditure, adding another 2 - the Capital Expenditure and another 2 - Loans and Advances

e.g. 0401 represents the Receipt Head for Crop Husbandry.

2401 represents the Receipt Expenditure Head for Crop Husbandry.

4401 represents the Capital Outlay on Crop Husbandry.

6401 represents Loans for Crop Husbandry.

Such a pattern is however, not relevant for those departments which are not operating Capital /
Loan Head of accounts ​e.g. Department of Supply

Classification of transactions in Government Account ​:-

Main unit of classification in accounts shall be the ​Major Head

​Major Head(4)​ - functions

Sub-Major Head(2) ​- sub-function
Minor Head(3)​ - programmes
Sub Head(2)​ - scheme/activities
Detailed Head(2)​ - sub scheme
Object Head(2)​ - primary unit of appropriation(economic nature of expenditure)
(Rule 8 of the Delegation of Financial Power Rules, 1978)

Note​: detailed classification of account heads in Government Accounts (LMMHA) and the order
in which the Major / Sub-major and Minor heads shall appear are prescribed by ​President
​ on the advice of the CAG
However, ​on the behalf of President​, this is done by ​CGA on the advice of CAG
 Central Public Works Account Code

❖ In the ​PWD​, following Major Heads are generally operated

● For Buildings ---- Non-residential(0059) , Residential(0216)
● For Roads & Bridges (1054)
● For General Function Buildings ( edu - 4202 , medical - 4210 etc)
● For Irrigation (0701)
● For Water Supply & Sanitation (0215)

Grants for Expenditure Abroad

● average rate of exchange ​abolished​ ​w.e.f. 1.4.1974
● Therefore, estimates for departmental payments abroad are required to be
budgeted by composite rate of exchange notified by the Ministry of Finance
● In cases of instances of gain or loss on foreign exchange are recorded by
Revenue Division in​ 0075/2075

Re-appropriation of Funds
● Rule 10​ of Delegation of Financial Power Rules, 1978
● All cases of re-appropriation involving savings of ​more than Rs. 10 lakhs ​for the
plan heads relating to a Ministry / Department as a whole are referred to the
Ministry of Finance
● Divisional Officer should keep a constant watch over the progress of expenditure
● HOD​ and ​PAO​ shall be jointly responsible for the monthly reconciliation of the
figures given in the accounts maintained by the HOD with those appearing in the
Accounts Officer’s books.
● However, initial responsibility to reconcile accounts rests with ​PAO
Note:​ there are​ 4 types of liabilities​ in PWD---
(i) those outstanding in the suspense account, relating to contractors and labourers, in
the accounts of works
(ii) those outstanding in any of the regular suspense accounts of the division
 Central Public Works Account Code

(iii) outstanding debts adjustable by book transfer

(iv) matured claims of contractors, suppliers, etc. awaiting settlement and all unmatured
claims, the recurring or non-recurring likely to fall due for settlement before close of the
year.