GENERAL FINANCIAL RULES 2017All moneys received by or on behalf of the Government either as dues of Government or for deposit, remittance or otherwise
GENERAL FINANCIAL RULES 2017
RECEIPTS
RULE 7: All moneys received by or on behalf of the Government either as dues of Government or for deposit, remittance or otherwise, shall be brought into Government Account without delay.
RECEIPTS
RULE 9: It is the duty of the Department of the Central Government concerned to ensure that the receipts and dues of the Government are correctly and promptly assessed, collected and duly credited to the Consolidated Fund or Public Account, as the case may be.
ACCOUNTING OF RECEIPTS
RULE 10: The Controlling Officer shall arrange to obtain from his subordinate officers monthly accounts and returns in suitable from claiming credit.
ISSUE OF RECEIPTS
RULE 11(2): Officers are required to receive moneys on behalf of Government and issue receipts therefore in Form GAR-6, for the maintenance of a proper account of the receipt and issue of the receipt books.
GENERAL FINANCIAL RULES 2017
PRINCIPLES OF EXPENDITURE AND PAYMENT OF MONEY
RULE 21: Standards of financial propriety- High standards of financial propriety.
- Same vigilance in respect of expenditure incurred from public money
- The expenditure should not be prima facie more than demands.
- No authority should exercise its powers of sanctioning expenditure to its own advantage.
RULE 22: Expenditure from Public Funds- No authority may incur any expenditure unless sanctioned by a competent authority.
RULE 23: Delegation of Financial Powers- The financial powers of the Government, which have not been delegated to a subordinate authority, shall vest in the Finance Ministry.
GENERAL FINANCIAL RULES 2017
RULE 25(1): Provision of funds for sanction- All sanctions to the expenditure shall indicate the details of the provisions in the relevant grant or appropriation wherefrom such expenditure is to be met.
RULE 25(2): Proposals for sanction to expenditure should indicate whether such expenditure can be met by valid appropriation or re-appropriation.
RESPONSIBILITY OF CONTROLLING OFFICER IN RESPECT OF BUDGET
RULE 26:
- That the expenditure does not exceed the budget allocation.
- That the expenditure is incurred for the purpose for which funds have been provided.
- That the expenditure is incurred in public interest.
- That adequate control mechanism is functioning in his Department for prevention, detection of errors and irregularities in the financial proceedings of his subordinate offices and to guard against waste and loss of public money.
GENERAL FINANCIAL RULES 2017
Date of effect of sanction
RULE 27: Sanctions or orders shall come into force from the date of issue unless any other date from which they shall come into force is specified therein.
Procedure for communication of sanction
RULE 29: All financial sanctions shall be communicated to the Audit Officer and the Accounts Officer.
- All other sanctions should be accorded in the form of an Order.
- All orders conveying sanctions to expenditure of a definite amount should express both in words and figures the amount of expenditure sanctioned.
- Sanctions accorded by the Head of Department may be communicated to the Accounts Officer by an authorized Gazetted Officer of his Office duly signed by him for the Head of Department or conveyed in the name of the Head of the Department.
- All orders conveying sanctions to the grant of additions to pay such as Special Allowance, Personal Pay should contain a brief summary of the reasons for the grant of such additions to pay.
LAPSE OF SANCTIONS
RULE 30: A sanction for any fresh charge shall, unless it specifically renewed, lapse if no payment in whole or in part has been made during a period of twelve months from the date of issue of such sanction.
Ø When there is a specific provision in a sanction that the expenditure would be met from the Budget provision of a specified financial year, it shall lapse at the close of that financial year.
DEFALCATION AND LOSSES
RULE 33(1): Report of Losses- Any loss or shortage of public moneys, departmental revenue or receipts, stamps, opium, stores or other property held by, or on behalf of, Government irrespective of the cause of loss and manner of detection, shall be immediately reported to the next higher authority as well as Audit Officer
GENERAL FINANCIAL RULES 2017
RULE 33(2): Case involving serious irregularities shall be brought to the notice of Financial Adviser or Chief Accounting Authority.
RULE 33(3): Report of loss contemplated in sub-rules (1) and (2) shall be made at two stage-
- An initial report as soon as a suspicion arises.
- The final report indicating nature and extent of loss.
RULE 33(5): An amount of loss through misappropriation, defalcation, embezzlement, etc., may be redrawn on a simple receipt pending investigation, recovery or write-off with the approval of the authority competent to write-off the loss in question.
RULE 34: LOSS OF GOVERNMENT PROPERTY DUE TO FIRE, THEFT, FRAUD- All losses above the value of Rupees fifty thousand due to suspected fire, theft, fraud, etc., shall be invariably reported to the Police for investigation as early as possible.
RULE 37: RESPONSIBILITY OF LOSSES- An officer shall be held personally responsible for any loss sustained by the Government through fraud or negligence on his part.
GENERAL FINANCIAL RULES 2017
SUBMISSION OF RECORDS AND INFORMATION
RULE 39: DEMAND FOR INFORMATION BY AUDIT OR ACCOUNTS OFFICER- A subordinate authority shall furnish fullest possible information required by him for the preparation of any official account or report, payments and internal audit.
RULE 40: A subordinate authority shall not withhold any information, books or other documents required by the Audit Officer or Accounts Officer.
Budget Formulation and Implementation
RULE 43(1): PRESENTATION OF BUDGET TO PARLIAMENT- Finance Minister shall arrange to lay before both the House of Parliament, an Annual Financial Statement also known as the ‘Budget’ showing the estimated receipts and expenditure of the Central Government in respect of a financial year, before the commencement of that year.
RULE 50(1): EXPENDITURE ESTIMATES- The expenditure estimates shall show separately the sums required to meet the expenditure charged on the Consolidated Fund.
RULE 50(5): The Revised and Budget Estimates of both Revenue and Capital expenditure shall be forwarded to the budget division.
RULE 51(1): DEMAND FOR GRANTS- The estimates for expenditure in the form of Demand for Grants.
GENERAL FINANCIAL RULES 2017
RULE 54 : OUTCOME BUDGET-
The outputs/deliverables shall be mandatorily given in measurable/quantitative terms on the basis of parameters and deliverables decided in advance. The performance against specified outcomes would form the basis of deciding on the continuation of the scheme and the quantum of budget allocation.
CONTROL OF EXPENDITURE AGAINST BUDGET
RULE 57(1): RESPONSIBILITY FOR CONTROL OF EXPENDITURE- Department shall be responsible for the control of expenditure against the sanctioned grants and appropriations placed at their disposal. The control shall be exercised through the Heads of Departments and Disbursing Officers subordinate to them.
RULE 57(4): To have effective control over expenditure by the Departments procedure.
(i) For drawal of money DDO shall
(a) Prepare and present bills for “charged” and “voted”
(b) Enter on each bill the complete accounts classifications from major head down to the object head of account. When a single bill includes charges
(c) Enter on each bill the progressive total of expenditure up-to-date.
GENERAL FINANCIAL RULES 2017
RULE 57(5): The Head of the Department and the Accounts Officer shall be jointly responsible for the monthly reconciliation of the figures given in the accounts maintained by the Head of the Department with those appearing in the Accounts Officer’s books.
(i) DDOs shall maintain a Bill Register in form TR 28-A, and note all bills presented for payment to the PAO
Budget Formulation and Implementation
(ii) The PAOs shall furnish to each of the DDOs including Cheque-drawing DDOs, an extract from the expenditure control register or from the Compilation Sheet every month.
(iii) On receipt of these extracts from the PAOs, the DDOs shall tally the figures received.
RULE 59: PERSONAL ATTENTION OF THE HEAD OF DEPARTMENT/CONTROLLING OFFICER REQUIRED TO ESTIMATE SAVINGS OR EXCESSES-
Every month and to regularize them in accordance with the instructions.
RULE 62(1): SURRENDER OF SAVINGS- Before the closing of the financial year, The funds provided during the financial year and not utilized before the close of that financial year shall stand lapsed at the close of the financial year.
RULE 62(2): The savings as well as provisions that cannot be profitably utilized shall be surrendered to Government immediately they are foreseen without waiting till the end of the year.
RULE 62(3): Rush of expenditure, particularly in the closing months of the Financial year, shall be regarded as a breach of financial propriety and shall be avoided.
RULE 64(4): ADDITIONAL ALLOTMENT OF EXCESS EXPENDITURE- Shall obtain additional allotment before incurring the excess expenditure. For this purpose, the authorities incurring expenditure should maintain a ‘Liability Register’ in Form.
RULE 66: SUPPLEMENTARY GRANTS- If savings are not available within the Grant to which the payment is required to be debited, or if the expenditure is on “New Service” or “New Instrument of Service” not provided in the budget, necessary Supplementary Grant or Appropriation in accordance with Article 115(1) of the Constitution shall be obtained before payment is authorized (Refer to Appendix 5).
GENERAL FINANCIAL RULES 2017
GOVERNMENT ACCOUNTS
RULE 74: CASH BASED ACCOUNTING- Government accounts shall be prepared on cash basis.
RULE 75: PERIOD OF ACCOUNTS- 1st April to the 31st March thereof.
RULE 76: CURRENCY IN WHICH ACCOUNTS ARE KEPT-
In Indian Rupees.
RULE 77: MAIN DIVISIONS AND STRUCTURE OF ACCOUNTS- The accounts of Government shall be kept in three parts, Consolidated Fund (Part-I), Contingency Fund (Part-II) and Public Account (Part-III).
Part-I : Consolidated Fund is divided in two Divisions, namely, ‘Revenue’ and ‘Capital’ divisions.
These sections are in turn divided into sectors such as ‘ General Services’, ‘Social and Community Services’, ‘Economic Services’, etc.
Part-II : Contingency Fund, are recorded transactions connected with the Contingency Fund.
Part-III : Public Account, transactions relating to debt (other than those included in Part-I), reserve funds, deposits, advances, suspense, remittances and cash balances shall be recorded.
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GENERAL FINANCIAL RULES 2017
RULE 78: CLASSIFICATION OF TRANSACTIONS IN GOVERNMENT ACCOUNTS- Classification of transactions in Government Accounts, shall have closer reference to functions, programmes and activities of the Government.
Major Heads (comprising Sub-Major Heads, wherever necessary) are divided into Minor Heads. Minor Heads may have a number of subordinate heads, generally known as Sub Heads. The Sub Heads are further divided into Detailed Heads followed by Object Heads.
RULE 81: RESPONSIBILITY OF DEPARTMENT OFFICERS- To see that proper accounts of the receipts and expenditure, as the case may be, are maintained.
RULE 82: CLASSIFICATION SHOULD BE RECORDED IN ALL THE BILLS AND CHALANS BY DRAWING OFFICERS
RULE 86: PUBLIC FINANCIAL MANAGEMENT SYSTEM (PFMS)-
- Public Financial Management System (PFMS).
- Shall be used for sanction preparation, bill processing, payment, receipt management, Direct Benefit Transfer, fund flow management and financial reporting.
- All the payment, to the extent possible, shall be released ‘just-in-time’ by the ministries through PFMS.
GOVERNMENT ACCOUNTS
- Detailed to Demand for Grants (DDG), as approved, must be uploaded on PFMS.
- All the re-appropriation order generated through PFMS system.
- All grantee institutions shall submit Utilization Certificates,
RULE 87: DIRECT BENEFIT TRANSFER-
Transfer of benefits should be done directly to beneficiaries under various Government Schemes and Programmes using Information and Communication Technology (ICT).
Implementation Agencies shall generate Electronic Utilization Certificate (E-UCs) on PFMS portal and submit them online.
RULE 98: CAPITAL EXPENDITURE- Expenditure, acquiring tangible assets, enhancing the utility of existing assets, shall broadly be charges on maintenance, repair, upkeep and working expenses, which are required to maintain the assets in a running order as also all other expenses incurred for the day to day running of the organisation including establishment and administrative expense, revenue expenditure.
CAPITAL AND REVENUE ACCOUNTS
RULE 99: PRINCIPLES FOR ALLOCATION OF EXPENDITURE BETWEEN CAPITAL AND REVENUE-
(a) Capital shall bear all charges for the first construction and equipment of a project as well as charges for intermediate maintenance of work while not yet opened for service. Charges for further additions and improvements, which enhance the useful life.
(b) Revenue charges for maintenance and all working expenses. All expenditure on the working and upkeep of the project.
WORKS
RULE 130: ORIGINAL WORKS MEANS ALL NEW CONSTRUTIONS, SITE PREPARATION, ADDITIONS AND ALTERATIONS TO EXISTING WORKS, SPECIAL REPAIRS TO NEWLY PURCHASED TO PREVIOUSLY ABANDONED BUILDINGS.
Minor works means works which add capital value to existing assets but do not create new assets.
Repair works means works undertaken to maintain building and fixtures.
RULE 136(1): No works shall be commenced it until-
- Administrative approval has been obtained.
- Sanction to incur expenditure has been obtained.
- A properly detailed design has been sanctioned.
- Estimates containing thedetailed specificationsand quantities of various items have been prepared.
- Tender invited and processed in accordance with rules.
- A work order issued.
RULE 139: THE BROAD PROCEDURE FOR EXECUTION OF WORKS-
- The detailed procedure relating to expenditure on such works shall be prescribed.
- Preparation of detailed design and estimates shall precede any sanction for works.
- No work shall be undertaken before Issue of Administrative Approval and Expenditure Sanction by the competent Authority on the basis of estimates framed.
- Open tenders will be called for works costing Rupees five lakh to Rupees Thirty lakh.
- Limited tenders will be called for works costing less than Rupees five lakh.
- Execution of Contract Agreement or Award of work should be done before commencement of the work.
- Final payment for work shall be made only on the personal certificate of the officer-in-charge.
GRANT-IN-AID
Rule 229: General Principles for setting up of Autonomous Organizations referred to under Rule 228-
(i) All autonomous organizations, new or already in existence should be encouraged to maximise generation of internal resources and eventually attain self-sufficiency.
(ii) All Autonomous Bodies should maintain database relating to grants, income, expenditure, investment assets and employee strength in the format prescribed by the Department of Expenditure, Ministry of Finance.
GRANT-IN-AID
Rule 232: General Principles for award of Grants-in-aid for Centrally Sponsored Schemes-
(i) A time-bound quantifiable and measurable outcome targets
(ii) The release of funds to State Governments and Monitoring further utilization should be undertaken through PFMS.
GRANT-IN-AID
Rule 238.(1): Utilization Certificates-
In respect of non-recurring grants to an Institution or Organization, a certificate of actual utilization of the grants received for the purpose for which it was sanctioned in Form GFR 12-A, should be insisted upon in the order sanctioning the Grants-in-aid. The Utilization Certificate should be submitted within twelve months of the closure of the financial year by the Institution.
GRANT-IN-AID
Rule.238 (2): Release of Grants-in-aid in excess of seventy-five percent of the total amount sanctioned for the subsequent financial year shall be done only after utilization certificate and the annual audited statement relating to Grants-in-aid released in the preceding year are submitted to the satisfaction of Department concerned.
ESTABLISHMENT
Rule 285: All service matters from entry to exit, including leave, transfer, promotion, performance appraisal should be maintained in a digitized format.
ESTABLISHMENT
Rule 286: In case in which the transfer to charge involves assumption of responsibility for cash, stores, etc., the following instructions should be observed:-
(i) The Cash Book or imprest account should be closed on the date of transfer and a note recorded in it over the signature of both the relieved and the relieving Government servants, showing the cash and imprest balances and the number of unused cheques /receipt books, if any, made over and received by them respectively.
GENERAL FINANCIAL RULES 2017
ESTABLISHMENT
(ii) The relieving Government servant should bring to notice anything irregular or objectionable in the conduct of business that may have come officially to his notice to the incoming officer.
ESTABLISHMENT
Rule 288.(2): The service book of a Government servant shall be maintained in duplicate. First copy shall be retained and maintained by the Head of the Office and the second copy should be given to the Government servant for safe custody.
ESTABLISHMENT
Rule 288.(3): In January each year the Government servant shall handover his copy of the Service Book to his office for updation. The office shall update and return it to the Government Servant within thirty days of its receipts.
GENERAL FINANCIAL RULES 2017 ESTABLISHMENT
Rule 295.(1): Arrear Claims- Any arrear claim of a Government servant which is preferred within two years of its becoming due shall be settled by the Drawing and Disbursing officer or Accounts Officer, as the case may be, after usual checks.
ESTABLISHMENT
Rule 295.(3): A claim of a Government servant which has been allowed to remain in abeyance for a period exceeding two years, should be investigated by the Head of the Department concerned. If the Head of Department is satisfied about the genuineness of the claim on the basis of the supporting documents and there are valid reasons for the delay in preferring the claims, the claims should be paid by the Drawing and Disbursing Officer or Accounts Officer, as the case may be, after usual checks.
ESTABLISHMENT
Rule 296.(1): Procedure for dealing with time-barred claims-
Even a time-barred claim of a Government servant, shall be entertained by the concerned authority, provided that the concerned authority is satisfied that the claimant was prevented from submitting his claim within the prescribed time-limit on account of causes and circumstance beyond his control.
SECURITY DEPOSITS
Rule 306.(1): Furnishing of security by Government servants handling cash-
Every Government servant, who actually handles cash or stores shall be required to furnish security.
SECURITY DEPOSITS
Rule 306.(2): The amount of security to be obtained from a Government servant shall be determined on the basis of actual cash handled.
SECURITY DEPOSITS
Rule 307: Government servants who are entrusted with the custody of stores, which in the opinion of the competent authority are not considerable, need not be furnished security.
CONTINGENT AND MISCELLANEOUS EXPENDITURE
Rule 322: Permanent Advance or Imprest- Permanent advance or Imprest for meeting day-to-day contingent and emergent expenditure may be granted to a government servant by the Head of the Department in consultation with Internal Finance.
CONTINGENT AND MISCELLANEOUS EXPENDITURE
Rule 323.(1): Advances for Contingent and Miscellaneous purpose- The Head of the Office may sanction advances to a Government Servant for purchase of goods or services or any other special purpose needed for the management of the office.
CONTINGENT AND MISCELLANEOUS EXPENDITURE
Rule 323.(2): The adjustment bill, along with balance if any, shall be submitted by the Government servant within fifteen days of the drawal of advance, failing which the advance or balance shall be recovered from his next salary(ies).
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