The accounts of Government are kept in the following three parts:

Part I - Consolidated Fund

Part II- Contingency Fund

Part III - Public Account

In Part I, namely Consolidated Fund

There are two main divisions, Viz.


Consisting of sections for 'Receipt heads (Revenue Account)' and 'Expenditure heads (Revenue Account)' and Capital, Public Debt, Loans, etc - consisting of sections for 'Receipt heads (Capital Accounts)', 'Expenditure heads (Capital Accounts)' and 'Public Debt, Loans and Advances, etc.

The Revenue division

Deals with the proceeds of taxation and other receipts classified as revenue and the expenditure met there from, the net result of which represents the revenue surplus or deficit for the year.

In Capital division

'Receipt Heads' (Capital Account)' deals with receipts of capital nature which cannot be applied as set-off to capital expenditure.

The section 'Expenditure Heads (Capital Account)' deals with expenditure met usually from borrowed funds with the object of increasing concrete assets of a material and permanent character.  It also includes receipts of a capital nature intended to be applied as a set-off against expenditure.

The Section 'Public Debt, Loans and Advances, etc.' comprises loans raised and repayments by Government such as 'Internal Debt' and 'Loans and Advances' made (and their recoveries) by Government.  This section also includes certain special types of heads for transactions relating to 'Appropriation to the Contingency Fund' and 'Inter-State Settlement'.

In Part II, namely Contingency Fund

Of the accounts, the transactions connected with Contingency Fund established under Article 267 of the Constitution of India are recorded.

In Part III, namely Public Account

Of the accounts, the transactions relating to 'Debt' (other than those included in Part I), 'Deposits', 'Advances', 'Remittances' and 'Suspense' are recorded.  The transactions under 'Debt', 'Deposits' and 'Advances', in this part are those in respect of which Government incurs a liability to repay the moneys received or has a claim to recover the amounts paid, together with the repayments of the former ('Debt', and 'Deposits') and the recoveries of the latter ('Advances').  The transactions relating to 'Remittances' and 'Suspense' in this part embrace merely adjusting heads under which appear such transactions as remittances of cash between Treasuries and currency chests, transfers between different accounting circles, etc.