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Rules, 1978
Public Exchequer
control
R.T.I.Jammu
Session Overview
In the previous session we discussed the
General Financial Rules,, 2005 and their
application in disciplining the financial and
budgetary
g y control in government
g
spending
p
g
etc.
Public Exchequer
control
R.T.I.Jammu
Session Overview
Another tool of public exchequer control is
well defined p
powers of different
functionaries in the Government for
incurring
g expenditure
p
from public
p
funds.
Public Exchequer
control
R.T.I.Jammu
Session Overview
The General Financial Rules, 2005 are
supplemented
pp
by
y the Delegation
g
of
Financial Powers Rules, 1978, which lay
down the financial p
powers of different
functionaries for incurring expenditure of
ppublic funds for better and effective control
and monitoring of Government spending
out of the allotted funds.
Public Exchequer
control
R.T.I.Jammu
Session Overview
In this session we will discuss the main
features of delegation
g
of financial ppowers as
laid down in the Delegation of Financial
Powers Rules,, 1978.
Public Exchequer
control
R.T.I.Jammu
Learning Objective
At the end of the session the trainees will be
able to state the p
powers of various
Government Officers and other
functionaries as laid down in the Delegation
g
of Financial Powers Rules, 1978.
Public Exchequer
control
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R.T.I.Jammu
Public Exchequer
control
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control
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control
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Basic Concepts
The definitions of some of the frequently
used terms in the Rules are as under;;
Appropriation means the assignment to
p
expenditure
p
of funds
meet specified
included in a primary unit of appropriation
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Basic Concepts
Contingent Expenditure means all incidental
and other expenditure including expenditure on
stores which is incurred for the management of an
office, for the working of technical establishment,
office eexpenses
penses and the like bbutt does not incl
include
de
any expenditure which has been specifically
classified as falling under some other Head of
expenditure, such as Works, tools and Plant.
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control
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14
Basic Concepts
Head of the Department in relation to an office
or offices under his administrative control, means
an authority/person as the concerned department
in the Central Government may, by order, specify,
as a Head of the Department.
Department Such
S ch person has to
be the Head of an identifiable organization and the
minimum of his revised scale of pay should not be
lower than that of a Deputy Secretary to
Government of India.
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control
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Basic Concepts
Head of Office means a Gazetted Officer
declared as such under Rule 14 of these rules
(Rule 14 specifies that the Central Government,
Administrators and Heads of Departments shall
have power to declare any Gazetted Officer
subordinate to them as Head of an Office for the
purpose of theses rules, and not more than one
Gazetted Officer shall be declared as Head of
Office in respect of the same office/establishment
office/establishment,
unless such office/establishment is distinctly
separated from one another).
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Basic Concepts
Recurring expenditure means the
expenditure
p
which is incurred at periodical
p
intervals. Expenditure other than recurring
expenditure
p
is Non-recurring
g
expenditure.
Primary
Primary unit of Appropriation
Appropriation means a
primary unit of Appropriation referred to in
Rule 8.
8
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control
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Basic Concepts
Re-appropriation means the transfer of
funds from one p
primary
y unit of
appropriation to another such unit.
Subordinate
Subordinate Authority
Authority means a
Department of the Central Government or
any authority subordinate to the President
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Effect of sanction
Expenditure against a sanction shall be
incurred only
y when funds to meet the
expenditure/liability are made available by
valid Appropriation/Re-appropriation
pp p
pp p
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control
R.T.I.Jammu
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Effect of sanction
In the case of a recurring
expenditure/liability, sanction becomes
operative when funds for the first year are
made available by valid Appropriation/reappropriation
i ti or by
b an advance
d
from
f
the
th
Contingency Fund, as the case may be, and
it remains effective for each subsequent
year subject to appropriation in such years
and subject to the terms of the sanction.
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Effect of sanction
It is not within the competence of a
Department
p
of the Central Government to
order/agree to re-appropriation without the
concurrence of the Ministry
y of Finance
from the funds provided for new items in
g ((Govt. of India decision under
the budget.
Rule 9)
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control
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control
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Grants-in-aid to private
institutions other than for
Export Promotions
Schemes, Recurring
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control
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Grants-in-aid
Grants
in aid to private
institutions other than
for Export
p Promotions
Schemes, NonRecurring
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control
Above Rs
Rs.10
10 lakhs
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Expenditure on Schemes or
Projects
A Department of the Central Government
may
y sanction expenditure
p
on any
y scheme/
project, the total outlay on which does not
p
one crore fifty
y lakhs,, , if
exceed rupees
the scheme has been approved by the
y
Finance Ministry.
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control
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Expenditure on Schemes or
Projects
The limit includes the entire cost of the
scheme upto
p the date of completion,
p
, both
recurring/ non-recurring), cost of the works,
even where the p
provision for such work is
made in a demand under the control of
another Department
p
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Expenditure on Schemes or
Projects
Approval of the Finance Ministry shall not
be required
q
to sanction excess expenditure
p
over the original estimates of a sanctioned
p to ten p
per cent or rupees
p
five
scheme up
crores which ever is less (in the case of
plan scheme),
p
), and ten p
percent or rupees
p
three crores which ever is less (in the case
of non-plan
p
scheme
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Expenditure on Schemes or
Projects
In relation to public works this is subject to
the p
provisions of the Central Public Works
Department Code/ Central Public Works
Account Code,, etc
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Expenditure on Schemes or
Projects
The powers to sanction expenditure on
schemes in respect of the Departments of
Central Government having Integrated
Finance Advice System under plan
schemes
h
h
have
been
b
enhanced
h
d tto schemes
h
costing less than Rs.50 crores (provided the
scheme has been accepted by the
Ministry of Finance at the pre-budget
stage
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Expenditure on Schemes or
Projects
The enhanced powers are, however, to be
exercised subject
j to the approval
pp
of the
schemes of specified costs by the prescribed
authorities. ((Rule 18))
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control
R.T.I.Jammu
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Expenditure on Schemes or
Projects
The increase in the cost will be approved by the
Administrative Ministry/Department in
consultation with the Planning Commission,
where such increases are due to:
(a)
( ) Increase in
i statutory levies;
l i
(b) Exchange rate variations within the originally
approvedd project
j t time
ti scale.
l Government
G
t off
Indias decision 2 below Rule 18
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Expenditure on Schemes or
Projects
Where the Revised Cost Estimates exceed
5% of the approved
pp
completion
p
cost
(excluding changes in statutory levies and
g rate variation)) due to scope
p
exchange
change, addition deletion etc., the same
shall be submitted to the Public Investment
Board (PIB)/Cabinet Committee on
pp
Economic Affairs ((CCEA)) for approval.
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Expenditure on Schemes or
Projects
Any further increases above 3 % is also
required
q
to be ggot approved
pp
byy the
PIB/CCEA.
The powers for preparation of Feasibility
Report in all cases involving cost of less
than Rs.
Rs 10 crores is delegated to the
Administrative Ministries [GOI decision 3
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Details
Reference (DFP
Rules, 1978)
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Re-appropriation of funds to
augment the secretariat
expenditure
di
Public Exchequer
control
R.T.I.Jammu
G.O.Is
decision
under
d
Rule 10 72
Public Exchequer
control
R.T.I.Jammu
G.O.Is
decision
under Rule
10
G.O.Is
decision
under Rule
10
73
10
R.T.I.Jammu
GOIs
decision
below
Schedule V
Rule 21
74
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