Section 2 in Compensatory Afforestation Fund (Accounting Procedure) Rules, 2018
2.
The accounting procedure to regulate the manner of crediting the monies to the National Fund and State Fund in a year shall be in such manner as given below:(1)Consequent upon issue of notification in the Official Gazette for establishment of the 'National Compensatory Afforestation Fund' by the Central Government in terms of sub-section (1) of section 3 and in terms of sub-section (3) of section 3 of the said Act all the monies collected by the State Governments and Union territory Administrations which has been placed under the ad hoc Authority and deposited in the nationalised bank shall be transferred to the interest bearing section of Public Account of India under a distinct Minor Head with the nomenclature 'National Compensatory Afforestation Deposits' below the 'Major Head 8336- Civil Deposits' and Sub-Head opened thereunder for each State and Union territory.Note : This is a Deposit Account as 90 percent of the monies transferred from the ad hoc Authority belong to State Governments and Union territories and not the Central Government.(2)While remitting money, the ad hoc Authority shall provide detailed State wise break-up for which the Office of the Controller General of Accounts should, in consultation with the Ministry of Environment, Forest and Climate Change propose standard sub heads or detailed head for this purpose so that said standard heads are reflected under Major Heads 8336-Civil Deposits, 8121- General and other Reserve Funds and 2406-Forestry and Wildlife.(3)The one-time 10 percent share of the Central Government shall be credited/transferred to National Fund under interest bearing section of Public Account of India under a distinct minor head 'National Compensatory Afforestation Fund (NCAF)'for the purpose below the 'Major Head 8121- General and other Reserve Funds'.(4)Consequent upon issue of notification for establishment of respective State Compensatory Afforestation Funds by the concerned State Governments in terms of sub-section (1) of section 4 of the Act, State share (90 percent of the monies with ad hoc Authority) so credited to the National Compensatory Afforestation Deposits under Major Head 8336-Civil Deposits, shall be transferred to State Compensatory Afforestation Fund (SCAF) as per each State share.(5)While transferring respective State share to State Fund, breakup shall be provided at an appropriate level below the Minor Head 'State Compensatory Afforestation Fund (SCAF)' and these heads of accounts shall be uniformly applicable across all the States/Union Territories.(6)The monies received by the State Governments from the User Agencies shall be credited in 'State Compensatory Afforestation Deposits' at Minor Head level below 'Major Head 8336-Civil Deposit' in Public Account of State. Out of which 90 percent shall be transferred to the Major Head 8121 in Public Account of State and 10 percent credited into the National Fund on yearly basis as per sub-section (4) of section 3 of the Act; provided that, the credit of 10 percent Central share of funds should be ensured on monthly basis so that the same is transferred to the National Fund.(7)The expenditure of the National Authority shall be provided for under the Detailed Demand for Grants of the Ministry of Environment, Forest and Climate Change and the specific schemes to be financed from the National Fund shall be formulated by the National Authority and provisions shall be made for the same in the Ministry's Budget.(8)Similarly, the State Budget shall have provision for State Schemes financed from State Fund based on the Annual Plan of Operation of the State Authority.(9)The Pay and Accounts officer of the Ministry or the State treasury, as the case may be, shall debit the concerned Functional Head under Consolidated Fund of India/Consolidated Fund of State and thereafter make the accounting adjustment at regular intervals with the National Compensatory Afforestation Fund or State Compensatory Afforestation Fund as deduct recoveries and this ensures that the expenditure is adjusted from the National Fund or the State Fund, as the case may be, and the balance continues to remain in the interest bearing, non-lapsable fund in Public Account.
