95. (1) Capital expenditure may be met from the revenues of the Province or for borrowed funds. The expenditure on all capital works met from revenues is debited to the relevant heads subordinate to "10Forest", while that met from borrowed funds is debited to head "65Capital Outlay on Forests". In sanctioning estimates for works and in classifying departmental expenditure of a capital nature, the classification should be distinguished and clearly recorded.
NOTE (1)If it is considered necessary to keep separate accounts for any large scheme of capital work met from revenues, separate pro forma commercial accounts may be kept with the sanction of the Government, outside regular accounts of the department.
NOTE (2)The interest on capital outlay met from borrowed funds is chargeable to forest revenue under "10Forest."
(2) Minor heads of appropriation under "65Capital Outlay on Forests" are given in Appendix II.
(3) In the classified abstract of expenditure sent to the Principal Auditor, the capital and revenue charges should be shown in separate sheets and distinctly classified as such. The vouchers sent in support of the abstracts should similarly indicate whether they are for capital or revenue charges.
96. In the intimation of sanction referred to in paragraph 94, the proper classification of all capital charges should be given by the sanctioning authority.