General Financial Rules 2017 PDF

 PREFACE 1. General Financial Rules (GFRs) are a compilation of rules and orders of Government of India to be followed by all while dealing with matters involving public finances. These rules and orders are treated as executive instru...

 PREFACE 1. General Financial Rules (GFRs) are a compilation of rules and orders of Government of India to be followed by all while dealing with matters involving public finances. These rules and orders are treated as executive instructions to be observed by all Departments and Organisations under the Government and specified Bodies except otherwise provided for in these Rules. 2. General Financial Rules were issued for the first time in 1947 bringing together in one place all existing orders and instructions pertaining to financial matters. These have subsequently been modified and issued as GFRs 1963 and GFRs 2005. 3. In the last few years, Government has made many innovative changes in the way it conducts its business. Reforms in Government budgeting like removal of distinction in non-plan and plan expenditure, merger of Railway Budget with General Budget, focusing on outcomes through an improved Outcome Budget document, all needed to be reflected in the GFRs. Increased focus on Public Finance Management System(PFMS), reliance on the Direct Benefit Transfer (DBT) Scheme to ensure efficient delivery of entitlements, introduction of new e-sites like Central Public Procurement Portal, Government e-Marketing (GeM) Portal, Non-Tax Revenue Portal have also necessitated revision of the existing GFRs to keep them in tune with the changing business environment. The objective was to make the GFRs facilitate efficiency rather than create impediments in smooth and timely implementation while following principles of accountability and procedures of financial discipline and administrative due diligence. The Expenditure Management Commission set up in 2014 to recommend ways in which efficiency of public expenditure could be increased has also made several recommendations especially with respect to Autonomous Bodies. New rules on non-tax revenues, user charges, e-receipts portal have been added in addition to the manner in which Autonomous Bodies are run. 4. The PAC in April 2015, Group of Secretaries in February 2016 and EMC in March 2016 has recommended setting up a Task Force to review the GFRs so as to frame comprehensive rules to address the issues as highlighted in the above para. 5. GFRs, 2017 have evolved as a result of wide consultations with Central Government Ministries and Departments, some State Governments and other stakeholders at the Task Force stage and thereafter. The Discussion Draft was also uploaded on the MoF’s website. Secretaries of each Department/ Ministry of Government of India were asked to give their views for additions/ modifications, keeping in view their specific requirements of their domain. Detailed deliberations were also carried out within the Ministry. C&AG’s comments on the draft GFRs have also been taken into consideration. 6. The aim of any rule is to provide a framework within which an organization manages its business in a financially prudent manner without compromising its flexibility to deal with varied situations. The GFRs 2005 have been very comprehensively reviewed with the aim of promoting simplicity and transparency in the Government financial system and procedures. It is expected that the new GFRs 2017 will enable an improved, efficient and effective framework of fiscal management while providing the necessary flexibility to facilitate timely delivery of services. 7. Department of Expenditure would like to place on record the exceptional work done by the Task Force on Review of GFRs, the office of the C&AG, the office of the CGA, Budget Division of Department of Economic Affairs, the Ministries and Departments for their valuable inputs and its own officers for assiduously and meticulously completing this vital and challenging exercise in a time bound manner. (ASHOK LAVASA) Finance Secretary & Secretary(Expenditure) Department of Expenditure Ministry of Finance North Block, New Delhi Dated: 11th February, 2017  CONTENTS GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure TABLE OF CONTENTS Chapter Name of the Chapter Page No. No. 1 Introduction 9 2 General System of Financial Management 11 I. General Principles relating to expenditure and payment of money 12 II. Defalcation and losses 15 III.Submission of records & information 16 3 Budget formulation and implementation. 17 4 Government Accounts 25 5 Works 38 6 Procurement of Goods and Services 41 I. Procurement of Goods 41 II. Procurement of Services 54 7 Inventory Management 58 8 Contract Management 63 9 Grants-in-aid and Loans 67 10 Budgeting and Accounting for Externally Aided Projects 85 11 Government Guarantees 89 12 Miscellaneous Subjects 94 I. Establishment 94 II. Refund of revenue 96 III. Debt and misc. obligations of Govt. 97 IV. Security deposits 98 V. Transfer of land and buildings 99 VI. Charitable endowments and other trusts 99 VII. Local bodies 99 VIII. Maintenance of records 100 IX. Contingent and Miscellaneous Expenditure. 100 5  CONTENTS GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure APPENDIX Appendix Subject Page No. No. 1 Instructions for regulating the Enforcement of 102 Responsibility for losses, etc., 2 Procedure for the preparation of Detailed Estimates of Receipts 103 3 Instructions for the preparation of Detailed Estimates of 105 expenditure from the Consolidated Fund 4 Procedure for compilation of Detailed Demands for Grants 112 5 Procedure to be followed in connection with the Demands for 115 Supplementary Grants 6 The Contingency Fund of India Rules 117 7 Transfer of Land and Buildings between the Union and 120 State Governments 8 Charitable Endowments and other Trusts 122 9 Destruction of Office Records connected with Accounts. 135 10 Check against provision of funds 144 11 Formula for Price Variation Clause 145 12 Rates of Guarantee Fee 146 FORMS Form Description Page Serial No. No. GFR 1 Application for an Additional Appropriation 147 GFR 2 Revenue Receipts 148 GFR 2 - A Estimates of foreign grants 149 GFR 2 - B Estimates of interest receipts and loan repayments 150 GFR 3 Liability Register 151 GFR 3 - A Liability Statement 153 GFR 4 Statement of proposals for pre-budget discussions 156 GFR 5 Register showing expenses by Heads of Account 158 GFR 6 Broadsheet for watching receipt of account from Disbursing Officers 159 GFR 7 Compilation Sheet 160 6  CONTENTS GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure Form Description Page Serial No. No. GFR 8 Consolidated Accounts 161 GFR 9 Broadsheet for watching Receipt of the Returns from the Heads of 162 Departments under a Department of the Central Government GFR 10 Report of Surplus, Obsolete and Unserviceable Stores for Disposal 163 GFR 11 Sale Account 164 GFR 12 - A Form of Utilization Certificate (Autonomous Bodies) 165 GFR 12 - B Form of Utilization Certificate (For Loans) 167 GFR 12 - C Form of Utilization Certificate (State Governments)) 168 GFR 13 Statement of aggregate balance of loan(s) outstanding as on 169 31st March and details of defaults GFR 14 Form of Security Bond (Fidelity Bond Deposited as Security) 170 GFR 15 Form of Written Undertaking to be executed by an Undertaking/ 172 Corporation wholly owned by the Central Government at the time of sanctioning of a loan. GFR 16 Certificate of transfer of charge 173 GFR 16 - A Joining Report 175 GFR 17 Fidelity Guarantee Policy 176 GFR 18 Accession Register 179 GFR 19 Notice to borrower about the due date for repayment of 180 loan and interest thereon GFR 20 Register of Policy Holder 181 GFR 21 Register of Grants to be maintained by the sanctioning Authority. 182 GFR 22 Register of Fixed Assets 183 GFR 23 Stock Register of consumables such as Stationery, Chemicals, 184 Spare parts etc. GFR 24 Register of Assets of Historical /Artistic value. 185 GFR 25 Government Guarantees. 186 GFR 26 Furnishing of data regarding Guarantees to Ministry of Finance. 187 CONCORDANCE TABLE 188 7 8  Chapter – 1 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure INTRODUCTION Rule 1 Short Title and Commencement: These responsibility of controlling the rules may be called General Financial Rules, incurring of expenditure and/or the 2017 and they shall come into force at once collection of revenue. The term shall and shall be applicable to all Central include a Head of Department and Government Ministries/Departments, also an Administrator; attached and subordinate bodies. The (xi) “Department of the Government of provisions contained in GFRs are deemed to India” means any of the Ministries, be applicable to Autonomous Bodies except Departments, Secretariats and Offices to the extent the bye-laws of an Autonomous as notified from time to time and listed Body provides for separate Financial Rules in the First Schedule to the which have been approved by the Government of India (Allocation of Government. Business Rules); Rule 2 Definition : In these rules, unless the context (xii) “Drawing and Disbursing Officer” otherwise requires- means a Head of Office and also any (i) “Accounts Officer ” means the other Gazetted Officer so designated Head of an Office of Accounts or the by a Department of the Central Head of a Pay and Accounts Government, a Head of Department Office set up under the scheme of or an Administrator, to draw bills and departmentalization of accounts; make payments on behalf of the (ii) “A d m i n i s t r a t o r ” m e a n s Central Government. The term shall Administrator of a Union Territory, by also include a Head of Department or whatever name designated; an Administrator where he himself (iii) “A p p r o p r i a t i o n” m e a n s t h e discharges such function; assignment, to meet specified (xiii) “Ministry of Finance” means the expenditure, of funds included in a Ministry of Finance of the Central primary unit of appropriation; Government; (iv) “Audit Officer” means the Head of (xiv) “Financial Year” means the year an Office of Audit; beginning on the 1st of April and (v) “Competent Authority” means, in ending on the 31st of March respect of the power to be exercised following; under any of these Rules, the President (xv) “Government” means the Central or such other authority to which the Government; power is delegated by or under these (xvi) “Government Account” means the Rules, Delegation of Financial Power account relating to the Consolidated Rules or any other general or special Fund, the Contingency Fund and the orders issued by the Government of Public Account; as defined in these India; rules; (vi) “ C o m p t r o l l e r a n d A u d i t o r (xvii) “Head of the Department’ means General” means the Comptroller an authority or person (not below the and Auditor General of India; rank of a Deputy Secretary to the (vii) “Consolidated Fund” means the Government of India), declared by the Consolidated Fund of India referred concerned Department in the to in Article 266 (1) of the Government of India as a Head of Constitution; Department in relation to an (viii) “ C o n s t i t u t i o n ” m e a n s t h e identifiable establishment or Constitution of India; establishments to exercise the delegated financial powers under (ix) “Contingency Fund” means the these Rules; Contingency Fund of India established under the Contingency (xviii) “Head of Office” means (a) a Fund of India Act, 1950, in terms of Gazetted Officer declared as such in Article 267 (1) of the Constitution; the Delegation of Financial Powers Rules and (b) any other authority (x) “Controlling Officer” means an declared as such under any general or officer entrusted by a Department of special orders of the competent the Central Government with the 9  Chapter – 1 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure authority; (xxxi) CAPEX model: In the CAPEX Model, (xix) “Local Body” means an authority Capital expenditures is used by the legally entitled or specially buyer to straightway purchase goods empowered by Government to followed by procurement of administer a local fund; consumables, arranging (xx) “Local Fund” means a local fund as comprehensive maintenance contact defined in Rule 652 of the Treasury after warranty period and finally Rules; disposing the product after useful life; (xxi) “Non-recurring expenditure” (xxxii) OPEX model: In the OPEX model, the means expenditure other than Seller provides the goods, maintains it recurring expenditure; and also provides the consumables as required and finally takes back the (xxii) “President” means the President of goods after useful / contracted life. India; The expenditure is made by the Buyer (xxiii) “Primary unit of appropriation” in a staggered manner as per the means a primary unit of terms and conditions of the contract. appropriation referred to in Rule 8 of Rule 3 Interdepartmental consultations: When the Delegation of Financial Powers the subject of a case concerns more than one Rules; Department, no order shall be issued until all (xxiv) “Public Account” means the Public such Departments have concurred, or, failing Account of India referred to in Article such concurrence, a decision has been taken 266 (2) of the Constitution; by or under the authority of the Cabinet. In (xxv) “Public Works” means civil/ this regard it is clarified that every case in electrical works including public which a decision, if taken in one Department, buildings, public services, transport is likely to affect the transaction of business infrastructure etc., both original and allotted to another Department, shall also be repair works and any other project, deemed to be a case which concerns more including infrastructure which is for than one Department. the use of general public; Rule 4 Departmental Regulations of financial (xxvi) “Re-appropriation” means the character: All Departmental regulations, in transfer of funds from one primary so far as they embody orders or instructions unit of appropriation to another such of a financial character or have important unit; financial bearing, must invariably be made (xxvii) “Recurring expenditure” means the by, or with the approval of the Ministry of expenditure which is incurred at Finance. periodical intervals for the same Rule 5 Removal of Doubts: Where a doubt arises purpose. Expenditures other than as to the interpretation of any of the recurring expenditure are non- provisions of these Rules, the matter shall be recurring expenditure; referred to the Ministry of Finance for (xxviii)“Reserve Bank” means the Reserve decision. Bank of India or any office or agency Rule 6 Modifications: of the Reserve Bank of India and (1) The systems and procedures includes any Bank acting as the agent established by these Rules are subject of the Reserve Bank of India in to general or special instructions/ accordance with the provisions of the orders, which the Ministry of Finance Reserve Bank of India Act, 1934 (Act II may issue from time to time. of 1934); (2) The systems and procedures (xxix) “Subordinate authority” means a established by these Rules may be Department of the Central modified by any other authority only Government or any authority with the express approval of the subordinate to the President; Ministry of Finance. (xxx) “Treasury Rules” means the Treasury Rules of the Central Government; 10  Chapter – 2 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure GENERAL SYSTEM OF FINANCIAL MANAGEMENT Rule 7 All moneys received by or on behalf of the receipts shall be laid down in the regulations Government either as dues of Government or of the Department responsible for the same for deposit, remittance or otherwise, shall be Rule 11 (2) In Departments in which officers are brought into Government Account without required to receive moneys on behalf of delay, in accordance with such general or Government and issue receipts therefor in special rules as may be issued under Articles Form GAR-6 the departmental regulations 150 and 283 (1) of the Constitution. should provide for the maintenance of a Rule 8 (1) proper account of the receipt and issue of the (I) Under Article 284 of the Constitution all receipt books, the number of receipt books to moneys received by or deposited with be issued at a time to each officer and a check any officer employed in connection with with the officer’s accounts of the used books the affairs of the Union in his capacity as when returned. such, other than revenues or public Rule 12 Amounts due to Government shall not be left moneys raised or received by outstanding without sufficient reasons. Government, shall be paid into the Where such amounts appear to be Public Account. irrecoverable, the orders of the competent (ii) All moneys received by or deposited with authority shall be obtained for their the Supreme Court of India or with any adjustment. other Court, other than a High Court, Rule 13 Unless specially authorized by any rule or within a Union Territory, shall also be order made by competent authority, no sums dealt with in accordance with Clause (i) shall be credited as revenue by debit to a of sub-rule (1). suspense head. The credit must follow and Rule 8 (2) The Head of Account to which such not precede actual realization. moneys shall be credited and the withdrawal Rule 14 Subject to any general or special orders of moneys therefrom shall be governed by the issued by a Department of the Central relevant provisions of Government Government, an Administrator or a Head of a Accounting Rules 1990 and the Central Department responsible for the collection of Government Account (Receipts and revenue shall keep the Finance Ministry fully Payments) Rules, 1983 or such other general informed of the progress of collection of or special orders as may be issued in this revenue under his control and of all behalf. important variations in such collections as Rule 9 It is the duty of the Department of the Central compared with the Budget Estimates. Government concerned to ensure that the Rule 15 (1) Rents of buildings and lands. When receipts and dues of the Government are the maintenance of any rentable building is correctly and promptly assessed, collected entrusted to a civil department, other than the and duly credited to the Consolidated Fund Central Public Works Department, the or Public Account as the case may be. Administrator or the Head of the Department Rule 10 The Controlling Officer shall arrange to concerned shall be responsible for the due obtain from his subordinate officers monthly recovery of the rent thereof. accounts and returns in suitable form Rule 15 (2) The procedure for the assessment and claiming credit for the amounts paid into the recovery of rent of any building hired out will treasury or bank as the case may be, or be regulated generally by the rules applicable otherwise accounted for, and compare them to buildings under the direct charge of the with the statements of credits furnished by the Central Public Works Department. Accounts Officer to see that the amounts Rule 15 (3) The detailed rules and procedure, reported as collected have been duly regarding the demand and recovery of rent of credited. Accordingly, each Accounts Officer Government buildings and lands, are will send an extract from his accounts contained in the departmental regulations of showing the amounts brought to credit in the the departments in charge of those buildings. accounts in each month to the Controlling Rule 16 (1) Fines. Every authority having the power Officer concerned. to impose and/ or realize a fine shall ensure Rule 11 (1) Detailed rules and procedure regarding that the money is realized, duly checked and assessment, collection, allocation, remission deposited into a treasury or bank as the case and abandonment of revenue and other may be. 11  Chapter – 2 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure Rule 16 (2) Every authority having the power to officer should also enforce financial order refund fines shall ensure that the refunds are and strict economy and see that all relevant checked and no double refunds of amounts financial rules and regulations are observed, of fines collected or refunds of fines not by his own office and by subordinate actually paid into a treasury or bank as the disbursing officers. Among the principles on case may be, are made which emphasis is generally laid are the Rule 17 Miscellaneous Demands. Accounts following :- Officers shall watch the realization of (i) Every officer is expected to exercise the miscellaneous demands of Government, not same vigilance in respect of falling under the ordinary revenue expenditure incurred from public administration, such as contributions from moneys as a person of ordinary State Governments, Local Funds, contractors prudence would exercise in respect of and others towards establishment charges. expenditure of his own money. Rule 18 Remission of Revenue. A claim to revenue (ii) The expenditure should not be prima shall not be remitted or abandoned save with facie more than the occasion the sanction of the competent authority. demands. Rule 19 (1) Subject to any general or special orders (iii) No authority should exercise its issued by the Government Departments of powers of sanctioning expenditure to the Central Government, Administrators and pass an order which will be directly or Heads of Departments, other than those in indirectly to its own advantage. the Department of Posts, shall submit (iv) Expenditure from public moneys annually on the 1st of June to the Audit should not be incurred for the benefit Officer and the Accounts Officer concerned, of a particular person or a section of statements showing the remissions of the people, unless – revenue and abandonment of claims to (a) a claim for the amount could be revenue sanctioned during the preceding enforced in a Court of Law, or year by competent authorities in exercise of the discretionary powers vested in them (b) the expenditure is in pursuance of otherwise than by law or rule having the force a recognized policy or custom. of law, provided that individual remissions Rule 22 Expenditure from Public Funds. No below Rupees one thousand need not be authority may incur any expenditure or enter included in the statements. into any liability involving expenditure or Rule 19 (2) For inclusion in the statements referred to transfer of moneys for investment or deposit in Rule 19 (1) above, remissions and from public funds (Consolidated Fund / abandonments should be classified broadly Contingency Fund and the Public Accounts) with reference to the grounds on which they unless the same has been sanctioned by a were sanctioned and a total figure should be competent authority given for each class. A brief explanation of Rule 23 Delegation of Financial Powers. The the circumstances leading to the remission financial powers of the Government have should be added in the case of each class. been delegated to various subordinate Rule 20 Departments of the Central Government and authorities vide Delegation of Financial Administrators may make rules defining Powers Rules as amended from time to time. remissions and abandonments of revenue The financial powers of the Government, for the purpose of Rule 19 above. which have not been delegated to a subordinate authority, shall vest in the Finance Ministry. I. GENERAL PRINCIPLES RELATING TO Rule 24 Consultation with Financial Advisers. All EXPENDITURE AND PAYMENT OF draft memoranda for Expenditure Finance MONEY Committee or Public Investment Bureau or Committee on Establishment Expenditure Rule 21 Standards of financial propriety. Every and Cabinet Committee for Economic Affairs officer incurring or authorizing expenditure or Cabinet shall be circulated by the Ministry from public moneys should be guided by or Department concerned after consultation high standards of financial propriety. Every with the concerned Financial Adviser of the 12  Chapter – 2 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure Ministry or Department. A confirmation to the President, a subordinate authority shall this effect shall be included in the draft not, without the previous consent of the memorandum at the circulation stage. Finance Ministry, issue an order which - Rule 25 (1) Provision of funds for sanction. All (i) involves any grant of land, or sanctions to the expenditure shall indicate the assignment of revenue, or concession, details of the provisions in the relevant grant grant, lease or licence of mineral or or appropriation wherefrom such forest rights, or rights to water, power expenditure is to be met. or any easement or privilege of such Rule 25 (2) All proposals for sanction to expenditure, concessions, or shall indicate whether such expenditure can (ii) involves relinquishment of revenue in be met by valid appropriation or re- any way appropriation. Rule 29 Procedure for communication of Rule 25 (3) In cases where it becomes necessary to sanctions. All financial sanctions and orders issue a sanction to expenditure before funds issued by a competent authority shall be are communicated, the sanction should communicated to the Audit Officer and the specify that such expenditure is subjected to Accounts Officer. The procedure to be funds being communicated in the budget of followed for communication of financial the year. sanctions and orders will be as under :- Rule 26 Responsibility of Controlling Officer in (i) All financial sanctions issued by a respect of Budget allocation. The duties Department of the Central and responsibilities of a controlling officer in Government which relate to a matter respect of funds placed at his disposal are to concerning the Department proper ensure : and on the basis of which payment is (i) that the expenditure does not exceed to be made or authorized by the the budget allocation. Accounts Officer, should be addressed (ii) that the expenditure is incurred for the to him. purpose for which funds have been (ii) All other sanctions should be accorded provided. in the form of an Order, which need (iii) that the expenditure is incurred in not be addressed to any authority, but public interest. a copy thereof should be endorsed to the Accounts Officer concerned. (iv) that adequate control mechanism is functioning in his Department for (iii) In the case of non-recurring prevention, detection of errors and contingent and miscellaneous irregularities in the financial expenditure, the sanctioning authority proceedings of his subordinate offices may, where required, accord sanction and to guard against waste and loss by signing or countersigning the bill or of public money, voucher, whether before or after the money is drawn, instead of by a Rule 27 (1) Date of effect of sanction. Subject to separate sanction. fulfilment of the provisions as contained in the Delegation of Financial Powers Rules, all (iv) All financial sanctions and orders rules, sanctions or orders shall come into issued by a Department of the Central force from the date of issue unless any other Government with the concurrence of date from which they shall come into force is the Internal Finance Wing or Finance specified therein. Ministry, as applicable, should be communicated to the Accounts Officer Rule 27 (2) Date of creation to be indicated in in accordance with the procedure laid sanctions for temporary posts. Orders down in the Delegation of Financial sanctioning the creation of a temporary post Powers Rules, and orders issued should, in addition to the sanctioned thereunder from time to time. duration, invariably specify the date from which it is to be created (v) All financial sanctions and orders issued by a Department with the Rule 28 Powers in regard to certain special matters.— concurrence of the Ministry of Home Except in pursuance of the general Affairs or Comptroller and Auditor delegation made by, or with the approval of General of India or Department of 13  Chapter – 2 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure Personnel should specify that the concurrence of the Comptroller and sanction or orders are issued with the Auditor General of India shall be concurrence of that Department supplied to the Comptroller and along with the number and date of Auditor General of India. relevant communication of that (xi) Copies of all sanctions or orders other Department wherein the concurrence than the following types should be was conveyed. endorsed to the Audit Officers:- (vi) All orders conveying sanctions to (a) Sanctions relating to grant to expenditure of a definite amount or advances to Central Government upto a specific limit should express employees. both in words and figures the amount (b) Sanctions relating to appointment of expenditure sanctioned. or promotion or transfer of (vii) Sanctions accorded by a Head of Gazetted and non- Gazetted Department may be communicated to Officers. the Accounts Officer by an authorized (c) All sanctions relating to creation or Gazetted Officer of his Office duly continuation or abolition of posts. signed by him for the Head of Department or conveyed in the name (d) Sanctions for handing over charge of the Head of the Department. and taking over charge, etc. (viii) All orders conveying sanctions to the (e) Sanctions relating to payment or grant of additions to pay such as withdrawal of General Provident Special Allowance, Personal Pay, etc., Fund advances to Government should contain a brief summary of the servants. reasons for the grant of such (f) S a n c t i o n s o f c o n t i n g e n t additions to pay so as to enable the expenditure incurred under the Accounts Officer to see that it is powers of Head of Offices. correctly termed as Special (g) Other sanctions of routine nature Allowance, Personal Pay, etc., as the issued by Heads of Subordinate case may be. Officers (other than those issued by (ix) Orders issued by a Department of a Ministries or Departments proper Union Territory Government where and under powers of a Head of Audit and Accounts (a) have not been Department). separated shall be communicated (xii) Sanctions accorded by competent direct to the Audit authority; (b) have authority to grants of land and been separated, copies shall be alienation of land revenue, other than endorsed to the Audit authorities. those in which assignments of land In case of sanctions in respect of revenue are treated as cash payment, matters, where reference was made to shall be communicated to the Audit the Central Government under the and/ or the Accounts Officer, as the Rules of Business framed under case may be, in a consolidated Section 46 of the Government of monthly return giving the necessary Union Territory Act, 1963, the details. following clause shall be added in the Rule 30 Lapse of Sanctions. A sanction for any fresh sanction endorsed to Audit:- charge shall, unless it is specifically renewed, “A reference had been made in this lapse if no payment in whole or in part has case to the Central Government and been made during a period of twelve months the above order/letter conforms to the from the date of issue of such sanction. decision of the Central Government Provided that - vide Government of India, (i) when the period of currency of the Ministry/Department of...........Letter sanction is prescribed in the No…………dated…………..”. departmental regulations or is (x) Copies of all General Financial specified in the sanction itself, it shall Orders issued by a Department of the lapse on the expiry of such periods; or Central Government with the (ii) when there is a specific provision in a 14  Chapter – 2 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure sanction that the expenditure would (b) under assessments which are due be met from the Budget provision of a to interpretation of the law by the specified financial year, it shall lapse local authority being overruled by at the close of that financial year; or higher authority after the expiry of (iii) in the case of purchase of stores, a the time-limit prescribed under the sanction shall not lapse, if tenders law, and have been accepted (in the case of (c) refunds allowed on the ground that local or direct purchase of stores) or the claims were time-barred: the indent has been placed (in the (ii) Petty losses of value not exceeding case of Central Purchases) on the Rupees ten thousand. Central Purchase Organization within Rule 33 (2) Cases involving serious irregularities shall the period of one year of the date of be brought to the notice of Financial Adviser issue of that sanction, even if the or Chief Accounting Authority of the Ministry actual payment in whole or in part has or Department concerned and the Controller not been made during the said General of Accounts, Ministry of Finance. period. Rule 33 (3) Report of loss contemplated in sub-rule Rule 31 Notwithstanding anything contained in (1) & (2) shall be made at two stages.— Rule 30, a sanction in respect of an addition to a permanent establishment, made from (i) An initial report should be made as year to year under a general scheme by a soon as a suspicion arises that a loss competent authority, or in respect of an has taken place. allowance sanctioned for a post or for a class (ii) The final report should be sent to of Government servants, but not drawn by authorities indicated in sub rule (1) & the officer(s) concerned, shall not lapse. (2) after investigation indicating Rule 32 Remission of disallowances by Audit and nature and extent of loss, errors or writing off of overpayment made to neglect of rules by which the loss has Government servants. The remission of been caused and the prospects of disallowances by Audit and writing off of recovery. overpayments made to Government servants Rule 33 (4) The complete report contemplated in sub- by competent authorities shall be in rule 3, shall reach through proper channels accordance with the provisions of the to the Head of the Department, who shall Delegation of Financial Powers Rules, and finally dispose of the same under the powers instructions issued thereunder. delegated to him under the Delegation of Financial Power Rules. The reports, which he cannot finally dispose of under the delegated II. DEFALCATION AND LOSSES powers, shall be submitted to the Finance Ministry. Rule 33 (1) Report of Losses. Any loss or shortage of Rule 33 (5) An amount lost through public moneys, departmental revenue or misappropriation, defalcation, receipts, stamps, opium, stores or other embezzlement, etc., may be redrawn on a property held by, or on behalf of, simple receipt pending investigation, Government irrespective of the cause of loss recovery or write-off with the approval of the and manner of detection, shall be authority competent to write-off the loss in immediately reported by the subordinate question. authority concerned to the next higher Rule 33 (6) In cases of loss to Government on account authority as well as to the Statutory Audit of culpability of Government servants, the Officer and to the concerned Principal loss should be borne by the Central Accounts Officer, even when such loss has Government Department or State been made good by the party responsible for Government concerned with the transaction. it. However the following losses need not be Similarly, if any recoveries are made from the reported: erring Government officials in cash, the (i) Cases involving losses of revenue due to receipt will be credited to the Central (a) mistakes in assessments which are Government Department or the State discovered too late to permit a Government who sustained the loss. supplementary claim being made, Rule 33 (7) All cases involving loss of Government 15  Chapter – 2 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure money arising from erroneous or irregular assessment of responsibility for the loss shall issue of cheques or irregular accounting of be conducted according to the instructions receipts will be reported to the Controller contained in Appendix 1 and those issued by General of Accounts along with the the Ministry of Personnel from time to time. circumstances leading to the loss, so that he Rule 38 Prompt disposal of cases of loss. Action at can take steps to remedy defects in rules or each stage of detection, reporting, write off, procedures, if any, connected therewith. final disposal, in cases of losses including Rule 34 Loss of Government Property due to fire, action against delinquents and remedial theft, fraud. Departmental Officers shall, in measures should be completed promptly with addition to taking action as prescribed in special attention to action against Rule 33, follow the provisions indicated delinquents and remedial measures, taken to below in cases involving material loss or strengthen the control system destruction of Government property as a result of fire, theft, fraud, etc. III. SUBMISSION OF RECORDS AND All losses above the value of Rupees Fifty INFORMATION thousand due to suspected fire, theft, fraud, etc., shall be invariably reported to the Police for investigation as early as possible. Rule 39 Demand for information by Audit or Accounts Officer. A subordinate authority Once the matter is reported to the Police shall afford all reasonable facilities to the Authorities, all concerned should assist the Audit Officer and Pay and Accounts Officer Police in their investigation. A formal for the discharge of his functions, and furnish investigation report should be obtained from fullest possible information required by him the Police Authorities in all cases, which are for the preparation of any official account or referred to them. report, payments and internal audit. Rule 35 Loss of immovable property by fire, flood Rule 40 A subordinate authority shall not withhold etc. All loss of immovable property any information, books or other documents exceeding Rupees fifty thousand , such as required by the Audit Officer or Accounts buildings, communications, or other works, Officer. caused by fire, flood, cyclone, earthquake or any other natural cause, shall be reported at Rule 41 If the contents of any file are categorized as once by the subordinate authority concerned ‘Secret’ or ‘Top Secret’ the file maybe sent to Government through the usual channel. personally to the Head of the Audit Office All other losses should be immediately specifying this fact, who will then deal with it brought to the notice of the next higher in accordance with the standing instructions authority. for handling and custody of such classified documents. Rule 36 Report to Audit and Accounts Officers. After a full enquiry as to the cause and the extent of the loss has been made, the detailed report should be sent by the subordinate authority concerned to Government through the proper channel; a copy of the report or an abstract thereof being simultaneously forwarded to the Audit officer and Pay and Accounts Officer 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. He will also be held personally responsible for any loss arising from fraud or negligence of any other officer to the extent to which it may be shown that he contributed to the loss by his own action or negligence. The departmental proceedings for 16  Chapter – 3 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure BUDGET FORMULATION AND IMPLEMENTATION Rule 42 Financial Year. Financial year of the wise classification, it may be ensured that Government shall commence on the 1st day item wise break-up of all major items of tax of April of each year and end on the 31st day and non-tax revenues are clearly identified of March of the following year. and depicted in the receipt estimates. This is Rule 43 (1)Presentation of Budget to Parliament. required to highlight all individual items of In accordance with the provisions of Article significance. Any major variation in estimates 112 (1) of the Constitution, the Finance with reference to past actuals or/and Budget Minister shall arrange to lay before both the Estimates shall be supported by cogent Houses of Parliament, an Annual Financial reasons. The accounting heads under which Statement also known as the ‘Budget’ major tax and non-tax revenues are collected showing the estimated receipts and shall be prescribed by the administrative expenditure of the Central Government in Ministry in consultation with the Budget respect of a financial year, before the Division in the Finance Ministry. commencement of that year. Rule 46 Non-Tax Revenues. While the tax revenues, Rule 43 (2) The receipts and expenditure of the non-debt capital receipts including Railways being a departmental commercial disinvestments and borrowings are managed organization form part of the Government’s by the various Departments of the Ministry of receipts and expenditure and are included in Finance, the non-tax revenues are collected the Annual Financial Statement. With the through all Ministries/Departments and other merger of Railway Budget with the General autonomous bodies and implementing Budget, the Demands for Grants and the agencies and comprise an important source Statement of Budget Estimates of Railways of revenue for the Government. shall also be part of the General Budget with Rule 47 User Charges. ‘User Charges’ is an effect from 2017-18. important component of the non-tax Rule 43 (3) The provisions for preparation, revenues. Each Ministry/Department may formulation and submission of budget to the undertake an exercise to identify the ‘user Parliament are contained in Articles 112 to charges’ levied by it and publish the same on 116 of the Constitution of India. its website. Rule 43 (4) The Ministry of Finance, Budget Division, (i) While fixing the rates of user charges, shall issue guidelines for preparation of the Ministries/Departments must budget estimates from time to time. All the ensure that the user charges recover Ministries/Departments shall comply in full the current cost of providing services with these guidelines. with reasonable return on capital Rule 44 The budget shall contain the following :- investment. (i) Estimates of all revenues expected to (ii) Any deviation from these principles be raised during the financial year to shall be specifically recorded with which the budget relates ; reasons justifying the setting of user charges lower than the cost recovery (ii) Estimates of all expenditure for each norms, if any. programme, scheme and project in that financial year; (iii) The rates of user charges should be linked with appropriate price indices (iii) Estimates of all interest and debt and reviewed at least every three servicing charges and any repayments years. on loans in that financial year; (iv) In order to enable ease of revision of (iv) Any other information as may be user charges, the rate of user charges prescribed. shall be fixed, whereever possible Rule 45 Receipt Estimates. The detailed estimates of through Rules or executive orders and receipts shall be prepared by the estimating not through a statute. authorities separately for each Major Head Rule 48 Dividends and Profits. Dividends and of Account in the prescribed form. For each profits including the transfer of surplus from Major Head, the estimating authority shall Reserve Bank of India is a major component give the break-up of the Minor/Subhead/ of the non-tax revenues. The payment of Detailed wise estimate along with actuals of dividends/profits etc. by the Central Public the past three years. While doing the head Sector Enterprises shall not be delayed and 17  Chapter – 3 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure must be paid within an appropriate time expenditure for which vote of Lok Sabha is frame immediately after the decision on required shall be in the form of Demand for dividend is taken in the AGM. Ministries or Grants. Departments shall monitor timely payments Rule 51 (2) Generally, one Demand for Grant is of dividends and profits. The dividend shall presented in respect of each Ministry or be payable as per the guidelines issued by Department. However, in respect of large DIPAM in this regards. Ministries or Departments, more than one Rule 49 Receipts Portal. The Government has Demand may be presented. Each Demand provided a public portal for online collection normally includes provisions required for a of various non-tax revenues including service, i.e. provisions on account of revenue various fees and user charges through e- expenditure, capital expenditure, grants to Receipts. All Ministries/Departments,shall the State and Union Territory Governments take prompt measures for migration to e- and also Loans and Advances relating to the Receipts, to ensure customer convenience service. and immediate credit of receipts to the Rule 51 (3) The Demand for Grants shall be Government account. presented to Parliament at two levels. The Rule 50 (1) Expenditure estimates. The main Demand for Grants shall be presented expenditure estimates shall show separately to Parliament by the Ministry of Finance, the sums required to meet the expenditure Budget Division along with the Annual Charged on the Consolidated Fund under Financial Statement while the Detailed Article 112 (3) of the Constitution and sums Demands for Grants, for consideration by the required to meet other expenditure for which “Departmentally Related Standing a vote of the Lok Sabha is required under Committee” (DRSC) of the Parliament, are Article 113(2) of the Constitution. laid on the Table of the Lok Sabha by the Rule 50 (2) The estimates shall also distinguish concerned Ministries/ Departments, as per provisions for expenditure on revenue dates approved from time to time. account from capital account, including on Rule 52 (1) Form of Annual Financial Statement loans by the Government and for repayment and Demands for Grant. The form of the of loans, treasury bills, cash management Annual Financial Statement and Demands bills and ways and means advances. for Grants shall be laid down by the Finance Rule 50 (3) The detailed estimates of expenditure Ministry and no alteration of arrangement or shall be prepared by the estimating classification shall be made without the authorities up to the final unit of approval of that Ministry. appropriation (Object head) under the Rule 52 (2) The heads under which provision for prescribed Major and Minor Heads of expenditure shall be made in the Demands Accounts for both Revenue and Capital for Grants or Appropriation shall be expenditure. Estimates shall include suitable prescribed by the Finance Ministry in provision for liabilities of the previous years consultation with the Administrative Ministry that is to be discharged during the year. or Department. The authorized heads for Rule 50 (4) The estimates of scheme related and expenditure in a year shall be as shown in the other expenditures shall be processed in Detailed Demands for Grants passed by consultation with the Budget Division, Parliament and no change shall be made Ministry of Finance in accordance with the therein without the formal approval of the instructions issued by it. Finance Ministry. Rule 50 (5) The Revised and Budget Estimates of both Rule 52 (3) The major head wise provisions in the Revenue and Capital expenditure after being Detailed Demands for Grants shall match scrutinized by the Financial Advisers and with the provision made in the Demands for approved by the Secretary of the Grants presented by Budget Division, as the Administrative Ministry or Department appropriations are sought on the basis of concerned shall be forwarded to the Budget Demands for Grants. Division in the Ministry of Finance in such NOTE: Detailed instructions for preparation manner and forms as may be prescribed by it of the budget are available in Appendix 2, 3 from time to time. and 4. Rule 51 (1) Demands for Grants. The estimates for Rule 53 (1) Acceptance and inclusion of 18  Chapter – 3 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure estimates. The estimates of receipts and Rule 56 Communication and distribution of expenditure of each Ministry/Department grants and appropriations. After the shall be scrutinized in the Budget Division of Appropriation Bill relating to Budget is the Ministry of Finance. Secretary passed, the Ministry of Finance shall (Expenditure) may hold meetings with communicate the same to the Ministries / Secretaries or Financial Advisers of Departments which, in turn, shall distribute Administrative Ministries or Departments to the same to their subordinate formations. The discuss the totality of the requirements of distribution so made shall also be funds for various programmes and schemes, communicated to the respective Pay and along with receipts of the Ministries or Accounts Officers who shall exercise check Departments. against the allocation to each subordinate Rule 53 (2) The estimates initially submitted by the authority. Departments may undergo some changes as a result of scrutiny in the Budget Division, II. CONTROL OF EXPENDITURE AGAINST Ministry of Finance and deliberations in the BUDGET pre-budget meetings between the Secretary (Expenditure) and the Secretary or Financial Adviser of the Department concerned. The Rule 57 (1) Responsibility for control of final estimates arrived at on the basis of Expenditure. The Departments of the scrutiny and pre-budget meetings shall be Central Government shall be responsible for incorporated in the Budget documents. the control of expenditure against the sanctioned grants and appropriations placed Rule 54 Outcome Budget. After finalization of the at their disposal. The control shall be estimates for budgetary allocations, the exercised through the Heads of Departments Department of Expenditure in consultation and other Controlling Officers, if any, and with NITI Aayog and the concerned Ministries Disbursing Officers subordinate to them. shall prepare an Outcome Budget statement linking outlays against each scheme/project Rule 57 (2) A Grant or Appropriation can be utilised with the outputs/deliverables and medium only to cover the charges (including liabilities, term outcomes. The outputs/deliverables if any, of the past year) which are to be paid shall be mandatorily given in during the financial year of the Grant or measurable/quantitative terms on the basis Appropriation and adjusted in the account of of parameters and deliverables decided in the year. No charges against a Grant or advance, on the basis of projections made in Appropriation can be authorized after the the Medium Term Expenditure Framework expiry of the financial year. (MTEF) Statement. Allocations for each Rule 57 (3) No expenditure shall be incurred which scheme/project shall be against a firm set of may have the effect of exceeding the total deliverables which shall be adhered to. The grant or appropriation authorized by performance against specified outcomes Parliament by law for a financial year, except would form the basis of deciding on the after obtaining a supplementary grant or continuation of the scheme and the quantum appropriation or an advance from the of budget allocation. Contingency Fund. Since voted and charged Rule 55 Vote on Account. If the Appropriation Bill portions as also the revenue and capital seeking authorization of the Parliament to sections of a Grant/Appropriation are distinct make expenditure in consonance with the and re-appropriation inter se is not Budget proposal is likely to be passed after permissible, an excess in any one portion or the start of the financial year to which it section is treated as an excess in the corresponds then pending the completion of Grant/Appropriation. the procedure prescribed in Article 113 of the Rule 57 (4) To have effective control over expenditure Constitution for the passing of the Budget, by the Departments, Controlling and the Finance Ministry may need to obtain a Disbursing Officers subordinate to them shall ‘Vote on Account’ to cover expenditure for follow the procedure as given below :- abrief period in accordance with the (i) For drawal of money the Drawing and provisions of Article 116 of the Constitution. Disbursing Officer shall (a) Funds made available under Vote on Prepare and present bills for Account are not to be utilized for expenditure “charged” and “voted” expenditure on a ‘New Service’. 19  Chapter – 3 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure separately. (b) Enter on each bill the Controlling Officer finds defects in complete accounts classifications any of these respects, he shall take from major head down to the object steps to rectify the defect. head of account. When a single bill (vi) When all the returns from the includes charges falling under two or Disbursing Officers for a particular more object heads, the charges shall month have been received and found be distributed accurately over the to be in order, the Controlling Officer respective heads. (c) Enter on each bill shall compile a statement in Form the progressive total of expenditure GFR 7, in which he shall incorporate - up-to-date under the primary unit of (a) the totals of the figures supplied by appropriation to which the bill relates, Disbursing Officers; including the amount of the bill on (b) the totals taken from his own which the entry is made. registers in Form GFR 5; (ii) All drawing and disbursing officers (c) the totals of such adjustments shall maintain separate registers in under the various detailed heads Fo r m G F R 5 , p h y s i c a l l y o r as communicated to him by the electronically for allocation under Accounts Officer on account of each minor or sub-head of account transfer entries and expenditure with which they are concerned. debited to the grant as a result of (iii) On the third day of each month, a settlement of inward account copy of the entries made in this claims and not reckoned by his register during the preceding month DDOs. shall be sent by the officer (vii). If any adjustment communicated by maintaining it, to the Head of the the Accounts Officer affects the Department or other designated appropriation at the disposal of a Controlling Officer. This statement subordinate Disbursing Officer, the shall also include adjustment of an fact that the adjustment has been inward claim, etc., communicated by made shall be communicated by the Pay and Accounts Officer directly to Controlling Officer to the Disbursing the DDO (and not to his Grant Officer concerned. Controlling Officer). If there are no entries in the register in any month, a (viii). On receipt of all the necessary returns, ‘nil’ statement shall be sent. the Head of the Department shall prepare a consolidated account in (iv) The Controlling Officer will maintain Form GFR 8, showing the complete a broadsheet in Form GFR 6 to expenditure from the grant or monitor the receipt of the return appropriation at his disposal upto the prescribed in the foregoing sub- end of the preceding month. clause Rule 57 (5) The Head of the Department and the (v). On receipt of the returns from Accounts Officer shall be jointly responsible Disbursing Officers, the Controlling for the monthly reconciliation of the figures Officer shall examine them and satisfy given in the accounts maintained by the Head himself :- of the Department with those appearing in (a) that the accounts classification the Accounts Officer’s books. The procedure has been properly given; for reconciliation shall be as follows :- (b) that progressive expenditure has (I). DDOs shall maintain a Bill Register in been properly noted and the Form TR 28-A, and note all bills available balances worked out presented for payment to the PAO in correctly; the register. As soon as cheques for the (c) that expenditure up-to-date is bills presented for payment are within the grant or appropriation; received, and/or status of e-payments and are verified from the reports available (d) that the returns have been signed with DDO on PFMS portal these shall by Disbursing Officers. Where the be noted in the appropriate column of the Bill Register and the DDOs shall 20 Chapter – 3 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure ensure that the amounts of cheques Principal Accounts Officers (or the tally with the net amount of the bills PAO concerned) for reconciliation. presented. In case any retrenchment The Head of the Department shall is made by the PAO, a note of such furnish a quarterly certificate to the retrenchments shall be kept against Principal Accounts Officer certifying the bill in the remarks column in TR the correctness of the figures for the 28-A. quarter by the 15th of the second (ii) The PAOs shall furnish to each of the following month after the end of DDOs including Cheque –drawing quarters April-June, July-September, DDOs, an extract from the October-December and January- expenditure control register or from March. the Compilation Sheet every month Rule 57 (6) The Departments of the Central indicating the expenditure relating to Government shall obtain from their Heads of grants controlled by him classified Departments and other offices under them under the various major-minor the departmental figures of expenditure in detailed head of accounts. The Form GFR 8 by the 15th of the month statements for May to March shall also following the month to which the returns contain Progressive Figures. relate. The figures relating to Revenue and (iii). On receipt of these extracts from the Capital expenditure shall be separately PAOs, the DDOs shall tally the figures shown in these returns. The information so received, excluding book obtained shall be posted in register(s) kept for adjustments, with the expenditure watching the flow of expenditure against the worked out for the month in the GFR 5 sanctioned grant or appropriation. register. Discrepancies, if any, Progressive totals of expenditure shall be between the two sets of figures shall worked out for the purpose. If the be promptly investigated by the DDO departmental figures obtained in Form in consultation with the PAO. He shall GFR 8 and posted in the register(s), require also note in the GFR 5 register correction in a subsequent month, Heads of particulars of book adjustments Departments or other offices shall make such advised by the PAO through the corrections by making plus or minus entries in monthly statement. Thereafter, the the progressive totals. In case the Accounts DDO shall furnish to the PAO a Office figures which subsequently become certificate of agreement of the figures available are found to be higher than as per his books with those indicated departmental figures, the former shall be by the PAOs by the last day of the assumed to be the correct figures, as month following the month of appropriation accounts are prepared on the accounts. basis of the figures booked in the accounts. (iv). The Principal Accounts Officer (or PAO Rule 57 (7) The Departments of Central Government wherever payments, relating to a shall also obtain from the Heads of grant are handled wholly by a PAO) of Departments and other authorities under each Ministry, shall send a monthly them, statements showing the details of the statement showing the expenditure physical progress of the schemes for which vis-à-vis the Budget provision under they are responsible. This statement shall the various heads of accounts, in the show the name of the scheme, the Budget prescribed pro forma, to the Heads of provision for each scheme, the progressive Departments responsible for overall expenditure on each scheme, the progress of control of expenditure against grant the scheme in physical terms and the detailed of the Ministry as a whole. The figures reasons for any shortfalls or excess, both so communicated by the Principal against physical and financial targets. Accounts Officer (or the PAO Rule 57 (8) A Broadsheet in Form GFR 9 shall be concerned) shall be compared by the maintained by the Departments of Central Heads of Departments with those Government or each Head of Department consolidated in Form GFR 8 and and other authorities directly under them, to differences, if any, shall be taken up watch the prompt receipt of the various by the Heads of Departments with the returns mentioned above from month to 21  Chapter – 3 GENERAL FINANCIAL RULES 2017 Ministry of Finance Department of Expenditure month and to take necessary measures for financial year, all the anticipated savings rectifying any defaults noticed. noticed in the Grants or Appropriations Rule 58 Maintenance of Liability Register for controlled by them. The Finance Ministry shall effecting proper control over communicate the acceptance of such expenditure. In order to maintain proper surrenders as are accepted by it to the control over expenditure, a Controlling Accounts Officer, before the close of the year. Officer shall obtain from the spending The funds provided during the financial year authorities liability statements in Form GFR 3- and not utilized before the close of that A every month, starting from the month of financial year shall stand lapsed at the close October in each financial year. The of the financial year. Controlling Officer shall also maintain a Rule 62 (2) The savings as well as provisions that Liability Register in Form GFR 3. cannot be profitably utilised shall be Rule 59 Personal attention of the Head of surrendered to Government immediately Department /Controlling Officer they are foreseen without waiting till the end required to estimate savings or excesses. of the year. No savings shall be held in A Head of Department or Controlling Officer reserve for possible future excesses. shall be in a position to estimate the Rule 62 (3) Rush of expenditure, particularly in the likelihood of savings or excesses every month closing months of the Financial year, shall be and to regularize them in accordance with regarded as a breach of financial propriety the instructions laid down in Rule 62. and shall be avoided. The Financial Advisers Rule 60 C o n t r o l o f ex p e n d i t u r e a g a i n s t of the Ministries/Departments shall ensure grant/appropriation and ultimate adherence to the stipulated Monthly responsibility of the authority Expenditure Plan and the guidelines issued in administering it. The Accounts Officer this regard by the Budget Division, shall report to the Head of the Department Department of Economic Affairs, from time to concerned immediately on the first time. appearance of any disproportionate Rule 62 (4) The Financial Advisers of the Ministries/ expenditure, particularly in respect of Departments shall ensure adherence to the recurring items of expenditure under any stipulated Quarterly Expenditure Plan and the grant or appropriation or a primary unit of guidelines issued in this regard by Ministry of appropriation thereof. However, the Finance from time to time. authority administering a grant/ Rule 63 Expendit