Objectives of Government Accounting

Objectives of Government Accounting


The objectives of government accounting are the financial administration of the activities of the government to
promote maximisation of welfare in the form of various services. The specific objectives can be stated as under:
1. To record financial transactions of revenues and expenditure relating to the government organizations.
2. To provide reliable financial data and information about the operation of public fund.
3. To record the expenditures as per the appropriate Act, Rules, and legal provisions as set by the government.
4. To avoid the excess expenditures beyond the limit of the budget approved by the government.
5. To help in the preparation of various financial statements and reports.
6. To facilitate the auditing by the concerned government department.
7. To prevent misappropriation of government properties by maintaining the systematic records of cash and
store items.
8. To facilitate for estimating the annual budget by providing historical financial data of government and
expenditures.
The general principles of government accounting are highlighted hereunder:
1. Classification of expenditures: The Government Expenditures are classified under Sectors, major heads,
minor heads, sub-heads and detailed heads of account. The method of budgeting and accounting under the
service heads is not designed to bring out the relation in which Government stands to its material assets in
use, or its liabilities due to be discharged at more or less distant dates.
2. Based on budget: government accounting is based on the annual budget of the government. In its budget 
for a year, Government is interested to forecast with the greatest possible accuracy what is expected to 
be received or paid during the year, and whether the former together with the balance of the past year is 
sufficient to cover the later.
Similarly, in the compiled accounts for that year, it is concerned to see to what extent the forecast has been 
justified by the facts, and whether it has a surplus or deficit balance as a result of the year’s transactions. On 
the basis of the budget and the accounts, Government determines:
(a) whether it will be justified in curtailing or expanding its activities; and
(b) whether it can and should increase or decrease taxation accordingly.
3. End products of government accounting: In the field of Government accounting, the end products are 
the monthly accounts and the annual accounts. The monthly accounts serve the needs of the day-to-day 
administration, while the annual accounts present a fair and correct view of the financial stewardship of the 
Government during the year.
4. Period of Accounts: The annual accounts of the central, state and union territory government shall record 
transactions, which take place during financial year running from 1st April to 31st March.
5. Cash basis of accounting: With the exception of such book adjustments as may be authorized by these 
rules on the advice of the Comptroller and Auditor General of India (C&AG),the transactions in government 
accounts shall represents the actual cash receipt and disbursement during a financial year.
6. Form of Accounts: The accounts of Government are kept in three parts namely, Consolidated Fund, 
Contingency Fund and Public Account.


Comments

Post a Comment

Popular posts from this blog

Person means under Income Tax / Person [sec. 2(31)] /Direct Tax

PERSON [SEC. 2(31)] The term person includes the following: i) an Individual; ii) a Hindu Undivided Family (HUF); iii) a Company; iv) a Firm;  v) an Association of Persons (AOP) or a Body of Individuals (BOI), whether incorporated or not; vi) a Local authority; & vii) every artificial juridical person not falling within any of the preceding categories. Notes: 1. On the basis of a well settled principle that “the Crown cannot be charged to tax”, it can be said that unless  otherwise specifically mentioned the Union Government cannot be taxed in India.  2. An association of persons or a body of individuals or a local authority or an artificial juridical person shall be  deemed to be a person, whether or not such person or body or authority or juridical person was formed or  established or incorporated with the object of deriving income, profits or gains. 3. A firm includes limited liability partnership. Individual The word ‘individual’ means a natural person, ...
Read more

Career Elevator: Walk-In Interview for Management Industrial Trainees at Bharat Electronics Limited - 2023-24

Image
Unlock Your Career: Walk-In Interview for Management Industrial Trainees at Bharat Electronics Limited Are you ready to embark on a transformative journey in the field of professional electronics? Bharat Electronics Limited (BEL), a Navaratna and India’s premier public sector company under the Ministry of Defence, is offering an exciting opportunity for Management Industrial Trainees for the year 2023-24. Eligibility Criteria: Only Indian Nationals are eligible. Candidates should have passed ICWA Inter / CA Inter. Candidate’s upper age limit is a maximum of 25 years as of 01.02.2024. Relaxation of 5 years for SC & ST candidates, 3 years for OBC candidates, and 10 years for Persons with disabilities. Candidates who have acquired or are pursuing higher qualifications are not eligible. Candidates who do not possess ICWA Inter pass/ CA Inter pass certificate are not eligible. Selection Process: Selection is purely based on the performance of both academics and interview. St...
Read more

CA inter / CMA inter / ACCA vacancy in EY

Image
  The EY has invited applications for the post of GDS FAAS – Managed Services Senior. The Senior/Assistant Manager will be responsible for working closely with FAAS managers and Senior Managers on clients and engagements across Americas and EMEIA to provide end to end Record to Report services. Responsibilities: Responsible for monthly, quarterly, and annual closing of books Ensure adherence and meeting the KPIs and SLA Receive direction from the Manager and Senior Manager Maintain effective coordination with multiple stakeholders Variance Reporting & Analytical Review Build the necessary documents like SOPs and other end user training materials Use the available guidance’s on USGAAP/IFRS for providing technical support, as and when required Ensure quality in delivering client service by directing daily progress of fieldwork, informing Supervisors of engagement status Follow through on client requests in a timely fashion, and manage expectations regarding the timing of...
Read more