Section 58 in The Andhra Pradesh Municipalities (Preparation of Accounts) Rules, 2017
58. Government grants.
(1)Municipalities receive grants from State Government, Central Government or any other agency.(2)Grants received by the municipalities are of two categories(a)Capital Grant: Usually received for capital expenditure, ie., for creation of fixed assets, like purchase of land/building/equipment or providing infrastructure etc. The benefits of such expenditure are of an enduring nature and spread over an extended period of time.(b)Revenue grant: Generally received for meeting recurring expenditure, the benefits of which usually expire within the accounting year in which it is incurred.(3)Grants may also be General or Specific.(a)General grants are for non specific purpose.(b)Specific grants are meant for carrying out specific projects/schemes or meeting specific expenditure.(4)Specific grants can have both capital as well as revenue component, eg., grants for construction of new roads and subsequent repairs and maintenance of roads. Specific grants may be received in advance or as a reimbursement of the expenditure incurred by the municipality. These grants shall be treated as a liability.(5)All grants received shall be entered in Grant Register. Separate Registers shall be maintained for Capital and Revenue Grants; and also separate pages for each grant. The details of receipts as well as expenditure incurred from it shall be recorded in the Grant Register.(6)The Grant Register shall be maintained in Form G-l.
