There is no denying the fact that Financial Accounting system has derived its authorization from the Constitution of Bangladesh. The Constitution empowered the Comptroller and Auditor General to prescribe the forms and manners of the government accounting. The Comptroller and Auditor General (Additional Functions) Act, 1974 entrusted the C&AG with the responsibilities of keeping the accounts of the Republic. These responsibilities of the Appropriation Accounts. Office of the Controller General of Accounts, Controller General Defense Finance, Additional Director General Finance of Railway and the Bangladesh Bank are the main source of accounting information for the government. Controller General of Accounts plays the most important role in the government accounting function. CGA is responsible for keeping the accounts of the receipts and expenditure that are done the govt. departments other than the departmentalized accounting Departments and the Defense and Railway Department. CGDF maintains the accounts of the armed Forces and the departments under the Ministry of Defense. ADGFR is responsible for keeping the accounts of Bangladesh Railway. Bangladesh Bank furnishes the information and figures to the govt accounting departments regarding foreign loans and aids provided by the International Development Partners to Bangladesh.
The consolidated fund of the republic consists of all revenue receipts of the Government, all loans raised through issuing treasury bills and all money receipts on account of repayment of loans. Money under the consolidated fund cannot be appropriated except in accordance with law and for the purpose and in the manner as laid down in the constitution. All these receipts constitute the Receipt side of the Consolidated Fund. The disbursement side of the Consolidated Fund has got the components like: expenditure on account of civil administration and administration of debt services, expenditure of public works and loans and advances made by Government. Therefore, the Consolidated Fund has got three divisions: Revenue, Capital and Debt. The 'Revenue' consists of all revenue raised and all works received by the Government on the receipt side and all current expenditure to run the government on payment side as revenue expenditure. The 'Capital' deals with the expenditure met usually from borrowed funds with the objective of increasing assets of Capital nature, or reducing future recurring liabilities e.g, future division comprises loans raised by the Government-loans of temporary nature turned as floating Debt such as Treasury Bills and Permanent Debts i.e, debt having maturity more than one year.
The Public Accounts comprises of three divisions Debt, Deposits and Reserves and Remittances. The 'Debt' Comprises receipt and payments in respect of which government incurs a liability to repay the money received or has a claim to recover the amount paid together with repayments of the former and recoveries of the latter. State General Provident Fund, National Savings Certificate and Postal Savings Certificates etc. are recorded in this division. The 'Deposit and Reserves' comprises receipts and payment for which the Government acts as a banker. The government, as the banker, deals with civil deposit, personal deposit and renewal reserve fund etc. The 'Remittances' division comprises all adjusting heads for instance, remittances to and from Bangladesh Bank and PWD, Defense, Forest, T and T and Postal etc. Remittances to Bangladesh mission abroad are also included in this division.