Article 150 of CoI : Article 150: Form of accounts of the Union and of the States.

Explanation using Example

Example 1:

Scenario: The Government of India has decided to implement a new digital accounting system for all financial transactions.

Application of Article 150: The President of India, after consulting with the Comptroller and Auditor-General (CAG) of India, prescribes the format and guidelines for the new digital accounting system. This ensures that all financial records of the Union and the States are maintained uniformly and transparently.

Outcome: All government departments and state governments adopt the new digital accounting system as per the prescribed format. This helps in maintaining consistency and ease of auditing across different levels of government.

Example 2:

Scenario: A state government wants to introduce a new method for recording its financial transactions that deviates from the current prescribed format.

Application of Article 150: The state government must seek approval from the President of India. The President, in turn, will consult with the Comptroller and Auditor-General of India to determine if the new method is acceptable and whether it aligns with the overall accounting standards of the Union and the States.

Outcome: If the President, based on the advice of the CAG, approves the new method, the state government can implement it. Otherwise, the state must continue using the existing prescribed format to ensure uniformity and compliance with national standards.