Procedure for Accounting of Loans and Advances Received and Made by the State Government

The following procedure is adopted for the accounting of Loans and Advances received and made by the State Government:

1. Loans Received by the State Government from Sources Other than the Central Government

When the State Government receives loans from sources other than the Central Government, all the terms and conditions applicable to such loans are recorded in the Subsidiary Loan Register (SLR). Necessary entries are also made in the Loan Module of the VLC Package maintained in the office of the Accountant General.

All such loans are accounted for under the following Major Head:

6003 – Internal Debt of the State Government

2. Loans and Advances Received from the Government of India

The details of loans and advances received from the Government of India are also entered in the Subsidiary Loan Register (SLR), indicating all the terms and conditions governing the loans. Thereafter, the details are entered in the VLC Module of the office.

These loans and advances are accounted for under the following Major Head:

6004 – Loans from the Central Government

3. Loans and Advances Made by the State Government

In respect of loans and advances granted by the State Government, the office of the Accountant General (Accounts & Entitlement) consolidates the data relating to such loans and advances on the basis of the Monthly Accounts received from various Treasuries.

While maintaining the Loan Ledger, the terms and conditions prescribed in the respective Sanction Orders are strictly adhered to.

Time Schedule Followed in Respect of Loans and Advances

(i) Sanction Entry

The sanction entry is made within one week of the receipt of the sanction order.

(ii) Clearance of Amount under “8658 – CAO RBS”

The amount lying under “8658 – CAO RBS” is cleared through Transfer Entry immediately on receipt of the sanction order.