Bi-annual compilation/updation of General Financial Rules, 2017 upto 31.01.2026General Financial Rules, 2017 updated upto 31.01.2026

GENERAL FINANCIAL RULES 2017 Updated up to 31.01.2026 1Ch.-1 - INTRODUCTION Rule 1 Short Title and Commencement: These The term shall include a Head of rules may be called General Financial Department and also an Rules, 2017 and they shall come into Administrator; force at once and shall be applicable to all Central Government Ministries / (xi) “Department of the Government Departments, attached and subordinate of India” means any of the bodies. The provisions contained in Ministries, Departments, GFRs are deemed to be applicable to Secretariats and Offices as notified Autonomous Bodies except to the extent from time to time and listed in the the bye-laws of an Autonomous Body First Schedule to the Government of provides for separate Financial Rules India (Allocation of Business Rules); which have been approved by the (xii) “Drawing and Disbursing Government. Officer” means a Head of Office Rule 2 Definition: In these rules, unless the and also any other Gazetted context otherwise requires- Officer so designated by a (i) “Accounts Officer” means the Department of the Central Head of an Office of Accounts or Government, a Head of the Head of a Pay and Accounts Department or an Administrator, Office set up under the scheme of to draw bills and make payments departmentalization of accounts; on behalf of the Central (ii) “Administrator” means Government. The term shall also Administrator of a Union include a Head of Department or Territory, by whatever name an Administrator where he designated; himself discharges such function; (iii) “Appropriation” means the (xiii) “Ministry of Finance” means assignment, to meet specified the Ministry of Finance of the expenditure, of funds included in Central Government; a primary unit of appropriation; (xiv) “Financial Year” means the (iv) “Audit Officer” means the Head year beginning on the 1st of April of an Office of Audit; and ending on the 31st of March (v) “Competent Authority” means, following; in respect of the power to be (xv) “Government” means the exercised under any of these Central Government; Rules, the President or such (xvi) “Government Account” means other authority to which the the account relating to the power is delegated by or under Consolidated Fund, the these Rules, Delegation of Contingency Fund and the Public Financial Power Rules or any Account; as defined in these other general or special orders rules; issued by the Government of (xvii) “Head of the Department’’ India; means an authority or person (vi) “Comptroller and Auditor (not below the rank of a Deputy General” means the Comptroller Secretary to the Government of and Auditor General of India; India), declared by the concerned (vii) “Consolidated Fund” means Department in the Government of the Consolidated Fund of India India as a Head of Department in referred to in Article 266 (1) of the relation to an identifiable Constitution; establishment or establishments (viii) “Constitution” means the to exercise the delegated Constitution of India; financial powers under these (ix) “Contingency Fund” means the Rules; Contingency Fund of India (xviii) “Head of Office” means (a) a established under the Gazetted Officer declared as Contingency Fund of India Act, such in the Delegation of 1950, in terms of Article 267 (1) of Financial Powers Rules and (b) the Constitution; any other authority declared as (x) “Controlling Officer” means an such under any general or officer entrusted by a Department special orders of the competent of the Central Government with authority; the responsibility of controlling (xix) “Local Body” means an the incurring of expenditure authority legally entitled or and/or the collection of revenue. specially empowered by 2Government to administer a local life; fund; (xxxii) OPEX model: In the OPEX (xx) “Local Fund” means a local fund model, the Seller provides the as defined in Rule 652 of the goods, maintains it and also Treasury Rules; provides the consumables as (xxi) “Non-recurring expenditure” required and finally takes back means expenditure other than the goods after useful / recurring expenditure; contracted life. The expenditure (xxii) “President” means the is made by the Buyer in a President of India; staggered manner as per the (xxiii) “Primary unit of appropriation” terms and conditions of the means a primary unit of contract. appropriation referred to in Rule 8 Rule 3 Interdepartmental consultations: of the Delegation of Financial When the subject of a case concerns Powers Rules; more than one Department, no order shall (xxiv) “Public Account” means the be issued until all such Departments have Public Account of India referred concurred, or, failing such concurrence, a to in Article 266 (2) of the decision has been taken by or under the Constitution; authority of the Cabinet. In this regard it is (xxv) “Public Works” means civil/ clarified that every case in which a electrical works including public decision, if taken in one Department, is buildings, public services, likely to affect the transaction of business transport infrastructure etc., both allotted to another Department, shall also original and repair works and any be deemed to be a case which concerns other project, including more than one Department. infrastructure which is for the use Rule 4 Departmental Regulations of financial of general public; character: All Departmental regulations, (xxvi) “Re-appropriation” means the in so far as they embody orders or transfer of funds from one instructions of a financial character or primary unit of appropriation to have important financial bearing, must another such unit; invariably be made by, or with the (xxvii) “Recurring expenditure” approval of the Ministry of Finance. means the expenditure which is Rule 5 Removal of Doubts: Where a doubt incurred at periodical intervals for arises as to the interpretation of any of the the same purpose. Expenditures provisions of these Rules, the matter shall other than recurring expenditure be referred to the Ministry of Finance for are non-recurring expenditure; decision. (xxviii) “Reserve Bank” means the Rule 6 Modifications: Reserve Bank of India or any (i) The systems and procedures office or agency of the Reserve established by these Rules are Bank of India and includes any subject to general or special Bank acting as the agent of the instructions/ orders, which the Reserve Bank of India in Ministry of Finance may issue accordance with the provisions of from time to time. the Reserve Bank of India Act, (ii) The systems and procedures 1934 (Act II of 1934); established by these Rules may (xxix) “Subordinate authority” means be modified by any other a Department of the Central authority only with the express Government or any authority approval of the Ministry of subordinate to the President; Finance. (xxx) “Treasury Rules” means the Treasury Rules of the Central Government; (xxxi) CAPEX model: In the CAPEX Model, Capital expenditures is used by the buyer to straightway purchase goods followed by procurement of consumables, arranging comprehensive maintenance contract after warranty period and finally disposing the product after useful 3Ch.-2 - GENERAL SYSTEM OF FINANCIAL MANAGEMENT Rule 7 All moneys received by or on behalf of the down in the regulations of the Government either as dues of Department responsible for the same. Government or for deposit, remittance or Rule 11 (2) In Departments in which officers are otherwise, shall be brought into required to receive moneys on behalf of Government Account without delay, in Government and issue receipts therefore accordance with such general or special in Form GAR-6 the departmental rules as may be issued under Articles 150 regulations should provide for the and 283 (1) of the Constitution. maintenance of a proper account of the Rule 8 (1) receipt and issue of the receipt books, the (i) Under Article 284 of the number of receipt books to be issued at a Constitution all moneys received time to each officer and a check with the by or deposited with any officer officer’s accounts of the used books employed in connection with the when returned. affairs of the Union in his capacity Rule 12 Amounts due to Government shall not be as such, other than revenues or left outstanding without sufficient public moneys raised or received reasons. Where such amounts appear to by Government, shall be paid into be irrecoverable, the orders of the the Public Account. competent authority shall be obtained for (ii) All moneys received by or their adjustment. deposited with the Supreme Rule 13 Unless specially authorized by any rule or Court of India or with any other order made by competent authority, no Court, other than a High Court, sums shall be credited as revenue by within a Union Territory, shall debit to a suspense head. The credit also be dealt with in accordance must follow and not precede actual with Clause (i) of sub-rule (1). realization. Rule 8 (2) The Head of Account to which such Rule 14 Subject to any general or special orders moneys shall be credited and the issued by a Department of the Central withdrawal of moneys therefrom shall be Government, an Administrator or a Head governed by the relevant provisions of of a Department responsible for the Government Accounting Rules 1990 and collection of revenue shall keep the the Central Government Account Finance Ministry fully informed of the (Receipts and Payments) Rules, 1983 or progress of collection of revenue under such other general or special orders as his control and of all important variations may be issued in this behalf. in such collections as compared with the Rule 9 It is the duty of the Department of the Budget Estimates. Central Government concerned to ensure Rule 15 (1) Rents of buildings and lands. When that the receipts and dues of the the maintenance of any rentable building Government are correctly and promptly is entrusted to a civil department, other assessed, collected and duly credited to than the Central Public Works the Consolidated Fund or Public Account Department, the Administrator or the as the case may be. Head of the Department concerned shall Rule 10 The Controlling Officer shall arrange to be responsible for the due recovery of the obtain from his subordinate officers’ rent thereof. monthly accounts and returns in suitable Rule 15 (2) The procedure for the assessment form claiming credit for the amounts paid and recovery of rent of any building hired into the treasury or bank as the case may out will be regulated generally by the be, or otherwise accounted for, and rules applicable to buildings under the compare them with the statements of direct charge of the Central Public Works credits furnished by the Accounts Officer Department. to see that the amounts reported as Rule 15 (3) The detailed rules and procedure, collected have been duly credited. regarding the demand and recovery of Accordingly, each Accounts Officer will rent of Government buildings and lands, send an extract from his accounts are contained in the departmental showing the amounts brought to credit in regulations of the departments in charge the accounts in each month to the of those buildings. Controlling Officer concerned. Rule 16 (1) Fines. Every authority having the Rule 11 (1) Detailed rules and procedure power to impose and/ or realize a fine regarding assessment, collection, shall ensure that the money is realized, allocation, remission and abandonment duly checked and deposited into a of revenue and other receipts shall be laid treasury or bank as the case may be. 4Rule 16 (2) Every authority having the power to economy and see that all relevant refund fines shall ensure that the refunds financial rules and regulations are are checked and no double refunds of observed, by his own office and by amounts of fines collected or refunds of subordinate disbursing officers. Among fines not actually paid into a treasury or the principles on which emphasis is bank as the case may be, are made generally laid are the following: - Rule 17 Miscellaneous Demands. Accounts (i) Every officer is expected to Officers shall watch the realization of exercise the same vigilance in miscellaneous demands of Government, respect of expenditure incurred not falling under the ordinary revenue from public moneys as a person administration, such as contributions of ordinary prudence would from State Governments, Local Funds, exercise in respect of contractors and others towards expenditure of his own money. establishment charges. (ii) The expenditure should not be Rule 18 Remission of Revenue. A claim to prima facie more than the revenue shall not be remitted or occasion demands. abandoned save with the sanction of the (iii) No authority should exercise its competent authority. powers of sanctioning Rule 19 (1) Subject to any general or special expenditure to pass an order orders issued by the Government which will be directly or indirectly Departments of the Central Government, to its own advantage. Administrators and Heads of (iv) Expenditure from public moneys Departments, other than those in the should not be incurred for the Department of Posts, shall submit benefit of a particular person or a annually on the 1st of June to the Audit section of the people, unless – Officer and the Accounts Officer (a) a claim for the amount could concerned, statements showing the be enforced in a Court of remissions of revenue and abandonment Law, or of claims to revenue sanctioned during (b) the expenditure is in the preceding year by competent pursuance of a recognized authorities in exercise of the discretionary policy or custom. powers vested in them otherwise than by Rule 22 Expenditure from Public Funds. No law or rule having the force of law, authority may incur any expenditure or provided that individual remissions below enter into any liability involving Rupees one thousand need not be expenditure or transfer of moneys for included in the statements. investment or deposit from public funds Rule 19 (2) For inclusion in the statements (Consolidated Fund / Contingency Fund referred to in Rule 19 (1) above, and the Public Accounts) unless the remissions and abandonments should be same has been sanctioned by a classified broadly with reference to the competent authority. grounds on which they were sanctioned Rule 23 Delegation of Financial Powers. The and a total figure should be given for each financial powers of the Government have class. A brief explanation of the been delegated to various subordinate circumstances leading to the remission authorities vide Delegation of Financial should be added in the case of each Powers Rules as amended from time to class. time. The financial powers of the Rule20 Departments of the Central Government Government, which have not been and Administrators may make rules delegated to a subordinate authority, defining remissions and abandonments shall vest in the Finance Ministry. of revenue for the purpose of Rule 19 Rule 24 Consultation with Financial Advisers. above. All draft memoranda for Expenditure Finance Committee or Public Investment I. GENERAL PRINCIPLES RELATING TO Bureau or Committee on Establishment EXPENDITURE AND PAYMENT OF Expenditure and Cabinet Committee for MONEY Economic Affairs or Cabinet shall be circulated by the Ministry or Department Rule 21 Standards of financial propriety. Every concerned after consultation with the officer incurring or authorizing concerned Financial Adviser of the expenditure from public moneys should Ministry or Department. A confirmation to be guided by high standards of financial this effect shall be included in the draft propriety. Every officer should also memorandum at the circulation stage. enforce financial order and strict 5Rule 25 (1) Provision of funds for sanction. All easement or privilege of such sanctions to the expenditure shall concessions, or indicate the details of the provisions in the (ii) involves relinquishment of relevant grant or appropriation wherefrom revenue in any way such expenditure is to be met. Rule 29 Procedure for communication of Rule 25 (2) All proposals for sanction to sanctions. All financial sanctions and expenditure, shall indicate whether such orders issued by a competent authority expenditure can be met by valid shall be communicated to the Audit appropriation or re- appropriation. Officer and the Accounts Officer. The Rule 25 (3) In cases where it becomes necessary procedure to be followed for to issue a sanction to expenditure before communication of financial sanctions and funds are communicated, the sanction orders will be as under: - should specify that such expenditure is (i) All financial sanctions issued by a subjected to funds being communicated Department of the Central in the budget of the year. Government which relate to a Rule 26 Responsibility of Controlling Officer in matter concerning the respect of Budget allocation. The Department proper and on the duties and responsibilities of a controlling basis of which payment is to be officer in respect of funds placed at his made or authorized by the disposal are to ensure: Accounts Officer, should be (i) that the expenditure does not addressed to him. exceed the budget allocation. (ii) All other sanctions should be (ii) that the expenditure is incurred accorded in the form of an Order, for the purpose for which funds which need not be addressed to have been provided. any authority, but a copy thereof (iii) that the expenditure is incurred in should be endorsed to the public interest. Accounts Officer concerned. (iv) that adequate control mechanism (iii) In the case of non-recurring is functioning in his department expenditure, the sanctioning for prevention, detection of errors authority may, where required, and irregularities in the financial accord sanction by signing or proceedings of his subordinate countersigning the bill or offices and to guard against voucher, whether before or after waste and loss of public money, the money is drawn, instead of by Rule 27 (1) Date of effect of sanction. Subject to a separate sanction.1 fulfillment of the provisions as contained (iv) All financial sanctions and orders in the Delegation of Financial Powers issued by a Department of the Rules, all rules, sanctions or orders shall Central Government with the come into force from the date of issue concurrence of the Internal unless any other date from which they Finance Wing or Finance shall come into force is specified therein. Ministry, as applicable, should be Rule 27 (2) Date of creation to be indicated in communicated to the Accounts sanctions for temporary posts. Orders Officer in accordance with the sanctioning the creation of a temporary procedure laid down in the post should, in addition to the sanctioned Delegation of Financial Powers duration, invariably specify the date from Rules, and orders issued which it is to be created thereunder from time to time. Rule 28 Powers in regard to certain special (v) All financial sanctions and orders matters. Except in pursuance of the issued by a department with the general delegation made by, or with the concurrence of the Ministry of approval of the President, a subordinate Home Affairs or Comptroller and authority shall not, without the previous Auditor General of India or consent of the Finance Ministry, issue an Department of Personnel should order which- specify that the sanction or (i) involves any grant of land, or orders are issued with the assignment of revenue, or concurrence of that Department concession, grant, lease or along with the number and date licence of mineral or forest rights, of relevant communication of that or rights to water, power or any Department wherein the 1 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. 14(37)/2015-E. II A dated 12.07.2024. 6concurrence was conveyed. Officers: - (vi) All orders conveying sanctions to (a) Sanctions relating to grant to expenditure of a definite amount advances to Central or upto a specific limit should Government employees. express both in words and (b) Sanctions relating to figures the amount of appointment or promotion or expenditure sanctioned. transfer of Gazetted and (vii) Sanctions accorded by a Head of non- Gazetted Officers. Department may be (c) All sanctions relating to communicated to the Accounts creation or continuation or Officer by an authorized abolition of posts. Gazetted Officer of his Office (d) Sanctions for handing over duly signed by him for the Head charge and taking over of Department or conveyed in the charge, etc. name of the Head of the (e) Sanctions relating to Department. payment or withdrawal of (viii) All orders conveying sanctions to General Provident Fund the grant of additions to pay such advances to Government as Special Allowance, Personal servants. Pay, etc., should contain a brief (f) Sanctions of contingent summary of the reasons for the expenditure incurred under grant of such additions to pay so the powers of Head of as to enable the Accounts Officer Offices. to see that it is correctly termed (g) Other sanctions of routine as Special Allowance, Personal nature issued by Heads of Pay, etc., as the case may be. Subordinate Officers (other (ix) Orders issued by a Department than those issued by of a Union Territory Government Ministries or Departments where Audit and Accounts (a) proper and under powers of have not been separated shall be a Head of Department). communicated direct to the Audit (xii) Sanctions accorded by authority; (b) have been competent authority to grants of separated, copies shall be land and alienation of land endorsed to the Audit authorities. revenue, other than those in In case of sanctions in respect of which assignments of land matters, where reference was revenue are treated as cash made to the Central Government payment, shall be communicated under the Rules of Business to the Audit and/ or the Accounts framed under Section 46 of the Officer, as the case may be, in a Government of Union Territory consolidated monthly return Act, 1963, the following clause giving the necessary details. shall be added in the sanction Rule 30 Lapse of Sanctions. A sanction for any endorsed to Audit: - fresh charge shall, unless it is specifically “A reference had been made in renewed, lapse if no payment in whole or this case to the Central in part has been made during a period of Government and the above twelve months from the date of issue of order/letter conforms to the such sanction. Provided that - decision of the Central (i) when the period of currency of Government vide Government of the sanction is prescribed in the India, Ministry/Department of departmental regulations or is Letter No…………dated… ”. specified in the sanction itself, it (x) Copies of all General Financial shall lapse on the expiry of such Orders issued by a Department periods; or of the Central Government with (ii) when there is a specific provision the concurrence of the in a sanction that the expenditure Comptroller and Auditor General would be met from the Budget of India shall be supplied to the provision of a specified financial Comptroller and Auditor General year, it shall lapse at the close of of India. that financial year; or (xi) Copies of all sanctions or orders (iii) in the case of purchase of stores, other than the following types a sanction shall not lapse, if should be endorsed to the Audit tenders have been accepted (in 7the case of local or direct ground that the claims were purchase of stores) or the indent time-barred: has been placed (in the case of (ii) Petty losses of value not Central Purchases) on the exceeding Rupees ten thousand. Central Purchase Organization Rule 33 (2) Cases involving serious irregularities within the period of one year of shall be brought to the notice of Financial the date of issue of that sanction, Adviser or Chief Accounting Authority of even if the actual payment in the Ministry or Department concerned whole or in part has not been and the Controller General of Accounts, made during the said period. Ministry of Finance. Rule 31 Notwithstanding anything contained in Rule 33 (3) Report of loss contemplated in sub- Rule 30, a sanction in respect of an rule (1) & (2) shall be made at two stages: addition to a permanent establishment, - made from year to year under a general (i) An initial report should be made scheme by a competent authority, or in as soon as a suspicion arises respect of an allowance sanctioned for a that a loss has taken place. post or for a class of Government (ii) The final report should be sent to servants, but not drawn by the officer(s) authorities indicated in sub rule concerned, shall not lapse. (1) & (2) after investigation Rule32 Remission of disallowances by Audit indicating nature and extent of and writing off of overpayment made loss, errors or neglect of rules by to Government servants. The remission which the loss has been caused of disallowances by Audit and writing off and the prospects of recovery. of overpayments made to Government Rule 33 (4) The complete report contemplated in servants by competent authorities shall sub- rule 3, shall reach through proper be in accordance with the provisions of channels to the Head of the Department, the Delegation of Financial Powers who shall finally dispose of the same Rules, and instructions issued under the powers delegated to him under thereunder. the Delegation of Financial Power Rules. The reports, which he cannot finally II. DEFALCATION AND LOSSES dispose of under the delegated powers, shall be submitted to the Finance Rule 33 (1) Report of Losses. Any loss or Ministry. shortage of public moneys, departmental Rule 33 (5) An amount lost through revenue or receipts, stamps, opium, misappropriation, defalcation, stores or other property held by, or on embezzlement, etc., may be redrawn on behalf of, Government irrespective of the a simple receipt pending investigation, cause of loss and manner of detection, recovery or write-off with the approval of shall be immediately reported by the the authority competent to write-off the subordinate authority concerned to the loss in question. next higher authority as well as to the Rule 33 (6) In cases of loss to Government on Statutory Audit Officer and to the account of culpability of Government concerned Principal Accounts Officer, servants, the loss should be borne by the even when such loss has been made Central Government Department or State good by the party responsible for it. Government concerned with the However, the following losses need not transaction. Similarly, if any recoveries be reported: are made from the erring Government (i) Cases involving losses of officials in cash, the receipt will be revenue due to credited to the Central Government (a) mistakes in assessments Department or the State Government which are discovered too who sustained the loss. late to permit a Rule 33 (7) All cases involving loss of supplementary claim being Government money arising from made, erroneous or irregular issue of cheques (b) under assessments which or irregular accounting of receipts will be are due to interpretation of reported to the Controller General of the law by the local authority Accounts along with the circumstances being overruled by higher leading to the loss, so that he can take authority after the expiry of steps to remedy defects in rules or the time-limit prescribed procedures, if any, connected therewith. under the law, and (c) refunds allowed on the 8Rule 34 Loss of Government Property due to should be completed promptly with fire, theft, fraud. Departmental Officers special attention to action against shall, in addition to taking action as delinquents and remedial measures, prescribed in Rule 33, follow the taken to strengthen the control system provisions indicated below in cases involving material loss or destruction of III. SUBMISSION OF RECORDS AND Government property as a result of fire, INFORMATION theft, fraud, etc. All losses above the value of Rupees Fifty Rule 39 Demand for information by Audit or thousand due to suspected fire, theft, Accounts Officer. A subordinate fraud, etc., shall be invariably reported to authority shall afford all reasonable the Police for investigation as early as facilities to the Audit Officer and Pay and possible. Accounts Officer for the discharge of his Once the matter is reported to the Police functions, and furnish fullest possible Authorities, all concerned should assist information required by him for the the Police in their investigation. A formal preparation of any official account or investigation report should be obtained report, payments and internal audit. from the Police Authorities in all cases, Rule 40 A subordinate authority shall not withhold which are referred to them. any information, books or other Rule 35 Loss of immovable property by fire, documents required by the Audit Officer flood etc. All loss of immovable property or Accounts Officer. exceeding Rupees fifty thousand, such Rule 41 If the contents of any file are categorized as buildings, communications, or other as ‘Secret’ or ‘Top Secret’ the file maybe works, caused by fire, flood, cyclone, sent personally to the Head of the Audit earthquake or any other natural cause, Office specifying this fact, who will then shall be reported at once by the deal with it in accordance with the subordinate authority concerned to standing instructions for handling and Government through the usual channel. custody of such classified documents. All other losses should be immediately brought to the notice of the next higher authority. 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 assessment of responsibility for the loss shall be conducted according to the instructions contained in Appendix 1 and those issued by the Ministry of Personnel from time to time. Rule 38 Prompt disposal of cases of loss. Action at each stage of detection, reporting, write off, final disposal, in cases of losses including action against delinquents and remedial measures 9Ch.-3 - BUDGET FORMULATION AND IMPLEMENTATION Rule 42 Financial Year. Financial year of the item wise break-up of all major items of Government shall commence on the 1st tax and non-tax revenues are clearly day of April of each year and end on the identified and depicted in the receipt 31st day of March of the following year. estimates. This is required to highlight all Rule 43 (1) Presentation of Budget to individual items of significance. Any Parliament. major variation in estimates with In accordance with the provisions of reference to past actuals or/and Budget Article112 (1) of the Constitution, Finance Estimates shall be supported by cogent Minister shall arrange to lay before both reasons. The accounting heads under the Houses of Parliament, an Annual which major tax and non-tax revenues Financial Statement also known as the are collected shall be prescribed by the ‘Budget’ showing the estimated receipts administrative Ministry in consultation and expenditure of the Central with the Budget Division in the Finance Government in respect of a financial year, Ministry. before the commencement of that year. Rule46 Non-Tax Revenues. While the tax Rule43 (2) The receipts and expenditure of the revenues, non- debt capital receipts Railways being a departmental including disinvestments and borrowings commercial organization form part of the are managed by the various Departments Government’s receipts and expenditure of the Ministry of Finance, the non-tax and are included in the Annual Financial revenues are collected through all Statement. With the merger of Railway Ministries/Departments and other Budget with the General Budget, the autonomous bodies and implementing Demands for Grants and the Statement agencies and comprise an important of Budget Estimates of Railways shall source of revenue for the Government. 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 undertake an exercise to identify the ‘user the Parliament are contained in Articles charges’ levied by it and publish the same 112 to 116 of the Constitution of India. on its website. Rule43 (4) The Ministry of Finance, Budget (i) While fixing the rates of user Division, shall issue guidelines for charges, the preparation of budget estimates from Ministries/Departments must time to time. All the ensure that the user charges Ministries/Departments shall comply in recover the current cost of full with these guidelines. providing services with Rule44 The budget shall contain the following: - reasonable return on capital (i) Estimates of all revenues investment. expected to be raised during the (ii) Any deviation from these financial year to which the budget principles shall be specifically relates; recorded with reasons justifying (ii) Estimates of all expenditure for the setting of user charges lower each programme, scheme and than the cost recovery norms, if project in that financial year; any. (iii) Estimates of all interest and debt (iii) The rates of user charges should servicing charges and any be linked with appropriate price repayments on loans in that indices and reviewed at least financial year; every three years. (iv) Any other information as may be (iv) In order to enable ease of prescribed. revision of user charges, the rate Rule 45 Receipt Estimates. The detailed of user charges shall be fixed, estimates of receipts shall be prepared by wherever possible through Rules the estimating authorities separately for or executive orders and not each Major Head of Account in the through a statute. prescribed form. For each Major Head, Rule 48 Dividends and Profits. Dividends and the estimating authority shall give the profits including the transfer of surplus break-up of the Minor/Subhead/ Detailed from Reserve Bank of India is a major wise estimate along with actuals of the component of the non-tax revenues. The past three years. While doing the head payment of dividends/profits etc. by the wise classification, it may be ensured that Central Public Sector Enterprises shall 10not be delayed and must be paid within Demand for Grants. an appropriate time frame immediately Rule 51 (2) Generally, one Demand for Grant is after the decision on dividend is taken in presented in respect of each Ministry or the AGM. Ministries or Departments shall Department. However, in respect of large monitor timely payments of dividends and Ministries or Departments, more than one profits. The dividend shall be payable as Demand may be presented. Each per the guidelines issued by DIPAM in Demand normally includes provisions this regard. required for a service, i.e. provisions on Rule 49 Receipts Portal. The Government has account of revenue expenditure, capital provided a public portal for online expenditure, grants to the State and collection of various non-tax revenues Union Territory Governments and also including various fees and user charges Loans and Advances relating to the through e- Receipts. All service. Ministries/Departments, shall take Rule 51 (3) The Demand for Grants shall be prompt measures for migration to e- presented to Parliament at two levels. Receipts, to ensure customer The main Demand for Grants shall be convenience and immediate credit of presented to Parliament by the Ministry of receipts to the Government account. Finance, Budget Division along with the Rule 50 (1) Expenditure estimates. The Annual Financial Statement while the expenditure estimates shall show Detailed Demands for Grants, for separately the sums required to meet the consideration by the “Departmentally expenditure Charged on the Related Standing Committee” (DRSC) of Consolidated Fund under Article 112 (3) the Parliament, are laid on the Table of of the Constitution and sums required to the Lok Sabha by the concerned meet other expenditure for which a vote Ministries/ Departments, as per dates of the Lok Sabha is required under Article approved from time to time. 113(2) of the Constitution. Rule 52 (1) Form of Annual Financial Rule 50 (2) The estimates shall also distinguish Statement and Demands for Grant. provisions for expenditure on revenue The form of the Annual Financial account from capital account, including Statement and Demands for Grants shall on loans by the Government and for be laid down by the Finance Ministry and repayment of loans, treasury bills, cash no alteration of arrangement or management bills and ways and means classification shall be made without the advances. approval of that Ministry. Rule 50 (3) The detailed estimates of expenditure Rule 52 (2) The heads under which provision for shall be prepared by the estimating expenditure shall be made in the authorities up to the final unit of Demands for Grants or Appropriation appropriation (Object head) under the shall be prescribed by the Finance prescribed Major and Minor Heads of Ministry in consultation with the Accounts for both Revenue and Capital Administrative Ministry or Department. expenditure. Estimates shall include The authorized heads for expenditure in suitable provision for liabilities of the a year shall be as shown in the Detailed previous years that is to be discharged Demands for Grants passed by during the year. Parliament and no change shall be made Rule50 (4) The estimates of scheme related and therein without the formal approval of the other expenditures shall be processed in Finance Ministry. consultation with the Budget Division, Rule 52 (3) The major head wise provisions in the Ministry of Finance in accordance with Detailed Demands for Grants shall match the instructions issued by it. with the provision made in the Demands Rule 50 (5) The Revised and Budget Estimates of for Grants presented by Budget Division, both Revenue and Capital expenditure as the appropriations are sought on the after being scrutinized by the Financial basis of Demands for Grants. Advisers and approved by the Secretary NOTE: Detailed instructions for of the Administrative Ministry or preparation of the budget are available in Department concerned shall be Appendix 2, 3 and 4. forwarded to the Budget Division in the Rule 53 (1) Acceptance and inclusion of Ministry of Finance in such manner and estimates. The estimates of receipts and forms as may be prescribed by it from expenditure of each Ministry/Department time to time. shall be scrutinized in the Budget Division Rule 51 (1) Demands for Grants. The estimates of the Ministry of Finance. Secretary for expenditure for which vote of Lok (Expenditure) may hold meetings with Sabha is required shall be in the form of Secretaries or Financial Advisers of 11Administrative Ministries or Departments Departments which, in turn, shall to discuss the totality of the requirements distribute the same to their subordinate of funds for various programmes and formations. The distribution so made schemes, along with receipts of the shall also be communicated to the Ministries or Departments. respective Pay and Accounts Officers Rule 53 (2) The estimates initially submitted by who shall exercise check against the the Departments may undergo some allocation to each subordinate authority. changes as a result of scrutiny in the Budget Division, Ministry of Finance and II. CONTROL OF EXPENDITURE deliberations in the pre-budget meetings AGAINST BUDGET between the Secretary (Expenditure) and the Secretary or Financial Adviser of the Rule 57 (1) Responsibility for control of Department concerned. The final Expenditure. The Departments of the estimates arrived at on the basis of Central Government shall be responsible scrutiny and pre-budget meetings shall for the control of expenditure against the be incorporated in the Budget sanctioned grants and appropriations documents. placed at their disposal. The control shall Rule 54 Outcome Budget. After finalization of be exercised through the Heads of the estimates for budgetary allocations, Departments and other Controlling the Department of Expenditure in Officers, if any, and Disbursing Officers consultation with NITI Aayog and the subordinate to them. concerned Ministries shall prepare an Rule 57 (2) A Grant or Appropriation can be Outcome Budget statement linking utilised only to cover the charges outlays against each scheme/project with (including liabilities, if any, of the past the outputs/deliverables and medium- year) which are to be paid during the term outcomes. The outputs/deliverables financial year of the Grant or shall be mandatorily given in Appropriation and adjusted in the account measurable/quantitative terms on the of the year. No charges against a Grant basis of parameters and deliverables or Appropriation can be authorized after decided in advance, on the basis of the expiry of the financial year. projections made in the Medium-Term Rule 57 (3) No expenditure shall be incurred Expenditure Framework (MTEF) which may have the effect of exceeding Statement. Allocations for each the total grant or appropriation authorized scheme/project shall be against a firm set by Parliament by law for a financial year, of deliverables which shall be adhered to. except after obtaining a supplementary The performance against specified grant or appropriation or an advance from outcomes would form the basis of the Contingency Fund. Since voted and deciding on the continuation of the charged portions as also the revenue and scheme and the quantum of budget capital sections of a Grant/Appropriation allocation. are distinct and re-appropriation inter se Rule 55 Vote on Account. If the Appropriation is not permissible, an excess in any one Bill seeking authorization of the portion or section is treated as an excess Parliament to make expenditure in in the Grant/Appropriation. consonance with the Budget proposal is Rule57(4) To have effective control over expenditure likely to be passed after the start of the by the Departments, Controlling and financial year to which it corresponds Disbursing Officers subordinate to them then pending the completion of the shall follow the procedure as given below: procedure prescribed in Article 113 of the - Constitution for the passing of the (i) For drawal of money, the Budget, the Finance Ministry may need to Drawing and Disbursing Officer obtain a ‘Vote on Account’ to cover shall (a) Prepare and present expenditure for a brief period in bills for “charged” and “voted” accordance with the provisions of Article expenditure separately. (b) Enter 116 of the Constitution. Funds made on each bill the complete available under Vote on Account are not accounts classifications from to be utilized for expenditure on a ‘New major head down to the object Service’. head of account. When a single Rule 56 Communication and distribution of bill includes charges falling under grants and appropriations. After the two or more object heads, the Appropriation Bill relating to Budget is charges shall be distributed passed, the Ministry of Finance shall accurately over the respective communicate the same to the Ministries / heads. (c) Enter on each bill the 12progressive total of expenditure GFR 7, in which he shall up-to-date under the primary unit incorporate – of appropriation to which the bill (a) the totals of the figures relates, including the amount of supplied by Disbursing the bill on which the entry is Officers; made. (b) the totals taken from his own (ii) All drawing and disbursing registers in Form GFR 5; officers shall maintain separate (c) the totals of such registers in Form GFR 5, adjustments under the physically or electronically for various detailed heads as allocation under each minor or communicated to him by the sub-head of account with which Accounts Officer on account they are concerned. of transfer entries and (iii) On the third day of each month, a expenditure debited to the copy of the entries made in this grant as a result of register during the preceding settlement of inward month shall be sent by the officer account claims and not maintaining it, to the Head of the reckoned by his DDOs. Department or other designated (vii) If any adjustment communicated Controlling Officer. This by the Accounts Officer affects statement shall also include the appropriation at the disposal adjustment of an inward claim, of a subordinate Disbursing etc., communicated by Pay and Officer, the fact that the Accounts Officer directly to the adjustment has been made shall DDO (and not to his Grant be communicated by the Controlling Officer). If there are Controlling Officer to the no entries in the register in any Disbursing Officer concerned. month, a ‘nil’ statement shall be (viii) On receipt of all the necessary sent. returns, the Head of the (iv) The Controlling Officer will Department shall prepare a maintain a broadsheet in Form consolidated account in Form GFR 6 to monitor the receipt of GFR 8, showing the complete the return prescribed in the expenditure from the grant or foregoing sub- clause appropriation at his disposal upto (v) On receipt of the returns from the end of the preceding month. Disbursing Officers, the Rule 57 (5) The Head of the Department and the Controlling Officer shall examine Accounts Officer shall be jointly them and satisfy himself: responsible for the monthly reconciliation (a) that the accounts of the figures given in the accounts classification has been maintained by the Head of the properly given; Department with those appearing in the (b) that progressive Accounts Officer’s books. The procedure expenditure has been for reconciliation shall be as follows: - properly noted and the (i) DDOs shall maintain a Bill available balances worked Register in Form TR 28-A, and out correctly; note all bills presented for (c) that expenditure up-to-date payment to the PAO in the is within the grant or register. As soon as cheques for appropriation; and the bills presented for payment (d) that the returns have been are received, and/or status of e- signed by Disbursing payments are verified from the Officers. Where the reports available with DDO on Controlling Officer finds PFMS portal these shall be noted defects in any of these in the appropriate column of the respects, he shall take steps Bill Register and the DDOs shall to rectify the defect. ensure that the amounts of (vi) When all the returns from the cheques tally with the net amount Disbursing Officers for a of the bills presented. In case any particular month have been retrenchment is made by the received and found to be in order, PAO, a note of such the Controlling Officer shall retrenchments shall be kept compile a statement in Form against the bill in the remarks 13column in TR 28-A. Principal Accounts Officer (ii) The PAOs shall furnish to each of certifying the correctness of the the DDOs including Cheque – figures for the quarter by the 15th drawing DDOs, an extract from of the second following month the expenditure control register after the end of quarters April- or from the Compilation Sheet June, July-September, October- every month indicating the December and January- March. expenditure relating to grants Rule 57 (6) The Departments of the Central controlled by him classified under Government shall obtain from their the various major-minor detailed Heads of Departments and other offices head of accounts. The under them the departmental figures of statements for May to March expenditure in Form GFR 8 by the 15th of shall also contain Progressive the month following the month to which Figures. the returns relate. The figures relating to (iii) On receipt of these extracts from Revenue and Capital expenditure shall the PAOs, the DDOs shall tally be separately shown in these returns. the figures received, excluding The information so obtained shall be book adjustments, with the posted in register(s) kept for watching the expenditure worked out for the flow of expenditure against the month in the GFR 5 register. sanctioned grant or appropriation. Discrepancies, if any, between Progressive totals of expenditure shall be the two sets of figures shall be worked out for the purpose. If the promptly investigated by the departmental figures obtained in Form DDO in consultation with the GFR 8 and posted in the register(s), PAO. He shall also note in the require correction in a subsequent month, GFR 5 register particulars of Heads of Departments or other offices book adjustments advised by the shall make such corrections by making PAO through the monthly plus or minus entries in the progressive statement. Thereafter, the DDO totals. In case the Accounts Office figures shall furnish to the PAO a which subsequently become available certificate of agreement of the are found to be higher than departmental figures as per his books with figures, the former shall be assumed to those indicated by the PAOs by be the correct figures, as appropriation the last day of the month accounts are prepared on the basis of the following the month of accounts. figures booked in the accounts. (iv) The Principal Accounts Officer Rule 57 (7) The Departments of Central (or PAO wherever payments, Government shall also obtain from the relating to a grant are handled Heads of Departments and other wholly by a PAO) of each authorities under them, statements Ministry, shall send a monthly showing the details of the physical statement showing the progress of the schemes for which they expenditure vis-à-vis the Budget are responsible. This statement shall provision under the various show the name of the scheme, the heads of accounts, in the Budget provision for each scheme, the prescribed pro forma, to the progressive expenditure on each Heads of Departments scheme, the progress of the scheme in responsible for overall control of physical terms and the detailed reasons expenditure against grant of the for any shortfalls or excess, both against Ministry as a whole. The figures physical and financial targets. so communicated by the Rule 57 (8) A Broadsheet in Form GFR 9 shall be Principal Accounts Officer (or the maintained by the Departments of PAO concerned) shall be Central Government or each Head of compared by the Heads of Department and other authorities directly Departments with those under them, to watch the prompt receipt consolidated in Form GFR 8 and of the various returns mentioned above differences, if any, shall be taken from month to month and to take up by the Heads of Departments necessary measures for rectifying any with the Principal Accounts defaults noticed. Officers (or the PAO concerned) Rule 58 Maintenance of Liability Register for for reconciliation. The Head of effecting proper control over the Department shall furnish a expenditure. In order to maintain proper quarterly certificate to the control over expenditure, a Controlling 14Officer shall obtain from the spending financial year. authorities liability statements in Form Rule 62 (2) The savings as well as provisions that GFR 3- A every month, starting from the cannot be profitably utilised shall be month of October in each financial year. surrendered to Government immediately, The Controlling Officer shall also they are foreseen without waiting till the maintain a Liability Register in Form GFR end of the year. No savings shall be held 3. in reserve for possible future excesses. Rule 59 Personal attention of the Head of Rule 62 (3) Rush of expenditure, particularly in Department / Controlling Officer the closing months of the Financial Year, required to estimate savings or shall be regarded as a breach of financial excesses. A Head of Department or propriety and shall be avoided. The Controlling Officer shall be in a position to Financial Advisers of the estimate the likelihood of savings or Ministries/Departments shall ensure excesses every month and to regularize adherence to the stipulated Monthly them in accordance with the instructions Expenditure Plan and the guidelines laid down in Rule 62. issued in this regard by the Budget Rule 60 Control of expenditure against Division, Department of Economic grant/appropriation and ultimate Affairs, from time to time. responsibility of the authority Rule 62 (4) The Financial Advisers of the administering it. The Accounts Officer Ministries/ Departments shall ensure shall report to the Head of the adherence to the stipulated Quarterly Department concerned immediately on Expenditure Plan and the guidelines the first appearance of any issued in this regard by Ministry of disproportionate expenditure, particularly Finance from time to time. in respect of recurring items of Rule 63 Expenditure on New Service. No expenditure under any grant or expenditure shall be incurred during a appropriation or a primary unit of financial year on a “New Service” not appropriation thereof. However, the contemplated in the Annual Budget for authority administering a grant/ the year except after obtaining a appropriation is ultimately responsible for supplementary grant or appropriation or the control of expenditure against the an advance from the Contingency Fund grant/appropriation and not the Accounts during that year. The guidelines to Officer. determine cases of “New Service”/ “New Rule 61 Excess Expenditure. Instrument of Service” are contained in 1. The Accounts Officer shall not Annexure-1 to Appendix -3. allow any payment against Rule 64 (1) Additional Allotment for excess sanctions in excess of the Budget expenditure. A subordinate authority provisions unless there is specific incurring the expenditure shall be approval of the Chief Accounting responsible for seeing that the allotment Authority. placed at its disposal is not exceeded. 2. The Financial Advisers and Chief Where any excess over the allotment is Accounting Authority, before apprehended, the subordinate authority according concurrence for shall obtain additional allotment before excess under any Head, shall incurring the excess expenditure. For this ensure availability of funds purpose, the authorities incurring through Re-appropriation/ expenditure shall maintain a ‘Liability Supplementary Demands for Register’ in Form GFR 3. Grants. (Refer Appendix 10) Rule 64 (2) A Disbursing Officer may not, on his Rule 62 (1) Surrender of savings. Departments own authority, authorize any payment in of the Central Government shall excess of the funds placed at his surrender to the Finance Ministry, by the disposal. If the Disbursing Officer is dates prescribed by that Ministry before called upon to honour a claim, which is the close of the financial year, all the certain to produce an excess over the anticipated savings noticed in the Grants allotment or appropriation at his disposal, or Appropriations controlled by them. The he shall take the orders of the Finance Ministry shall communicate the administrative authority to which he is acceptance of such surrenders as are subordinate before authorizing payment accepted by it to the Accounts Officer, of the claim in question. The before the close of the year. The funds administrative authority shall then provided during the financial year and not arrange to provide funds either by re- utilized before the close of that financial appropriation or by obtaining a year shall stand lapsed at the close of the Supplementary Grant or Appropriation or 15an advance from the Contingency Fund. sufficient time for the voting of the Instructions contained in Note below Supplementary Demand and the passing Appendix 10 may also be kept in view. of the connected appropriation bill before Rule 65 (1) Re-appropriation of Funds. Subject close of the financial year, an advance to the provisions of Rule 10 of the from the Contingency Fund set up under Delegation of Financial Powers Rules, Article 267(1) of the Constitution shall be and also subject to such other general or obtained before incurring the specific restrictions as may be imposed expenditure. by the Finance Ministry in this behalf, re- Rule 67 (2) An advance from the Contingency appropriation of funds from one primary Fund shall also be obtained to meet unit of appropriation to another such unit expenditure in excess of the provisions within a grant or appropriation, may be for the service included in an sanctioned by a competent authority at Appropriation (Vote on Account) Act. any time before the close of the financial Rule 67 (3) The application for an advance from year to which such grant or appropriation the Contingency Fund shall indicate inter relates. The Primary unit in this regard alia the particulars of the additional shall be the final unit of appropriation i.e. expenditure involved and the sanction to the Object head of account. the advance has also to indicate the sub- Rule 65 (2) Re-appropriation of funds shall be head and the primary unit of the Grant to made only when it is known or anticipated which the expenditure appropriately that the appropriation for the unit from relates. In case, however, any difficulty is which funds are to be transferred shall felt, the matter shall be referred to the not be utilized in full or that savings can Finance Ministry for clarification. be affected in the appropriation for the Rule 67 (4) The procedure for obtaining an said unit. advance from the Contingency Fund and Rule 65 (3) Funds shall not be re-appropriated recoupment of the Fund shall be as laid from a unit with the intention of restoring down in the Contingency Fund of India the diverted appropriation to that unit (Amendment) Rules, 2021 as amended when savings become available under from time to time. For ready reference, other units later in the year. rules have been placed at Appendix - 6 to Rule 65 (4) An application for re-appropriation of this volume. funds shall ordinarily be supported by a [Note: The Contingency Fund of India statement in Form GFR 1 or any other (Amendment) Rules, 2021 were special form authorized by departmental published in Extraordinary Gazette of regulations showing how the excess is India vide No. G.S.R. 721(E) dated 4th proposed to be met. In all orders, October, 2021.]1 sanctioning re-appropriation, the reasons Rule 68 Inevitable Payments. for saving and excess of Rupees 1 lakh (i) Subject to the provisions of or over and the primary units (secondary Article 114(3) of the Constitution, units, wherever necessary), affected shall money indisputably payable by be invariably stated. The authority Government shall not ordinarily sanctioning the re-appropriation shall be left unpaid. endorse a copy of the order to the (ii) Suitable provision for anticipated Accounts Officer. liabilities shall invariably be made Rule 66 Supplementary Grants. If savings are in Demands for Grants to be not available within the Grant to which the placed before Parliament. payment is required to be debited, or if Rule 69 For easy reference an extract relating to the expenditure is on “New Service” or procedures followed in the Accounts “New Instrument of Service” not provided Office for check against provision of in the budget, necessary Supplementary funds as a part of pre-check of bills has Grant or Appropriation in accordance with been placed at Appendix 10. Article 115(1) of the Constitution shall be Rule 70 Duties and Responsibilities of the obtained before payment is authorized Chief Accounting Authority. The (Refer to Appendix 5). Secretary of a Ministry/Department who Rule 67 (1) Advance from Contingency Fund. is the Chief Accounting Authority of the When a need arises to incur unforeseen Ministry/ Department shall: — expenditure in excess of the sanctioned (i) be responsible and accountable grant or appropriation or on a new service for financial management of his not provided in Budget and there is not Ministry or Department. 1 Inserted vide DoE’s OM No. 8(18)/2021/E.II.A dated 06.05.2022 in view of DEA OM F. No. 4(13)-B(SD)/2021 dated 18.04.2022. 16(ii) ensure that the public funds appropriated to the Ministry or Department are used for the purpose for which they were meant. (iii) be responsible for the effective, efficient, economical and transparent use of the resources of the Ministry or Department in achieving the stated project objectives of that Ministry or Department, whilst complying with performance standards. (iv) appear before the Committee on Public Accounts and any other Parliamentary Committee for examination. (v) review and monitor regularly the performance of the programmes and projects assigned to his Ministry to determine whether stated objectives are achieved. (vi) be responsible for preparation of expenditure and other statements relating to his Ministry or Department as required by regulations, guidelines or directives issued by Ministry of Finance. (vii) shall ensure that his Ministry or Department maintains full and proper records of financial transactions and adopts systems and procedures that shall at all times afford internal controls. (viii) shall ensure that his Ministry or Department follows the Government procurement procedure for execution of works, as well as for procurement of services and supplies, and implements it in a fair, equitable, transparent, competitive and cost- effective manner; (ix) shall take effective and appropriate steps to ensure his Ministry or Department: - (a) collects all moneys due to the Government and (b) avoids unauthorized, irregular and wasteful expenditure. Ch.-4 - GOVERNMENT ACCOUNTS Rule 71 Preparation and presentation of accounts shall be prepared by Controller Accounts. Accounts of the Union General of Accounts, certified by the Government shall be prepared every year Comptroller and Auditor General of India showing the receipts and disbursements and along with the report of the for the year, surplus or deficit generated Comptroller and Auditor General of India during the year and changes in on these accounts, shall be submitted to Government liabilities and assets. The the President of India, preferably within 17six months of close of the Financial Year, shall be kept in three parts, Consolidated who shall cause them to be laid before Fund (Part-I), Contingency Fund (Part-II) each House of Parliament. and Public Account (Part-III). Rule 72 Form of Accounts. By virtue of the Part-I – Consolidated Fund is divided into provisions of Article 150 of the two Divisions, namely, ‘Revenue’ and Constitution, the Accounts of the Union ‘Capital’ divisions. The Revenue Division Government shall be kept in such form as comprises the following sections: the President may, on the advice of the ‘Receipt Heads (Revenue Account)’ Comptroller and Auditor General of India, dealing with the proceeds of taxation and prescribe. other receipts classified as revenue and The Controller General of Accounts in the the section ‘Expenditure Heads Ministry of Finance (Department of (Revenue Account)’ dealing with the Expenditure) is responsible for revenue expenditure met therefrom. The prescribing the form of accounts of the Capital Division comprises three Union and States, and to frame, or revise, sections, viz., ‘Receipt Heads (Capital rules and manuals relating thereto on Account)’, ‘Expenditure Heads (Capital behalf of the President of India in terms of Account)’ and ‘Public Debt, Loans and Article 150 of the Constitution of India, on Advances, etc.’. These sections are in the advice of the Comptroller and Auditor turn divided into sectors such as ‘General General of India. Services’, ‘Social and Community Rule 73 Principles of Accounting. The main Services’, ‘Economic Services’, etc., principles according to which the under which specific functions or services accounts of the Government of India shall are grouped corresponding to the sectors be maintained are contained in of classification and which are Government Accounting Rules, 1990; represented by Major Heads (comprising Accounting Rules for Treasuries; and Sub-Major Heads wherever necessary). Account Code Volume-III. Detailed rules In Part-II – Contingency Fund- are and instructions relating to the forms of recorded transactions connected with the the initial and subsidiary accounts to be Contingency Fund set up by the kept and rendered by officers of the Government of India under Article 267 of Department of Posts and other technical the Constitution or Section 48 of departments are laid down in the Government of Union Territories Act, respective Accounts Manuals or in the 1963. There shall be a single Major Head departmental regulations relating to the to record the transactions thereunder, Departments concerned. which will be followed by Minor, Sub Rule74 Cash based Accounting. Government and/or Detailed Heads. accounts shall be prepared on cash In Part-III – Public Account- transactions basis. With the exception of such book relating to debt (other than those included adjustments as may be authorised by in Part-I), reserve funds, deposits, Government Accounting Rules, 1990 or advances, suspense, remittances and by any general or special order issued by cash balances shall be recorded. the Central Government on the advice of Rule 78 Classification of transactions in the Comptroller and Auditor General of Government Accounts. As a general India, the transactions in Government rule, classification of transactions in accounts shall represent the actual cash Government Accounts, shall have closer receipts and disbursements during a reference to functions, programmes and financial year as distinguished from activities of the Government and the amounts due to or by Government during object of revenue or expenditure, rather the same period. than the department in which the revenue Rule75 Period of Accounts. The annual or expenditure occurs. accounts of the Central Government shall Major Heads (comprising Sub-Major record transactions which take place Heads wherever necessary) are divided during a financial year running from the into Minor Heads. Minor Heads may have 1st April to the 31st March thereof. a number of subordinate heads, generally Rule 76 Currency in which Accounts are kept. known as Sub Heads. The Sub Heads The accounts of Government shall be are further divided into Detailed Heads maintained in Indian Rupees. All foreign followed by Object Heads. currency transactions and foreign aid The Major Heads of account, falling shall be brought into account after within the sectors for expenditure heads, conversion into Indian Rupees. generally correspond to functions of Rule 77 Main Divisions and structure of Government, while the Minor Heads Accounts. The accounts of Government identify the programmes undertaken to 18achieve the objectives of the functions he is concerned and tender accurately represented by the Major Head. The Sub and promptly all such accounts and Head represents schemes, the Detailed returns relating to them as may be Head denotes sub scheme and Object required by Government, Controlling Head represent the primary unit of Officer or Accounts Officer, as the case appropriation showing the economic may be. nature of expenditure such as salaries Rule 82 Classification should be recorded in and wages, office expenses, travel all the bills and challans by Drawing expenses, professional services, grants- Officers. Suitable classification shall be in-aid, etc. The above six tiers are recorded by Drawing Officers on all bills represented by a unique 15-digit numeric drawn by them. Similarly, classification code. on challans crediting Government money Rule 79 Authority to open a new Head of into the Bank shall be indicated or Account. The List of Major and Minor recorded by Departmental Officers Heads of Accounts of Union and States is responsible for the collection of maintained by the Ministry of Finance Government dues, etc. In cases of doubt (Department of Expenditure – Controller regarding the Head under which a General of Accounts) which is authorised transaction should be accounted, the to open a new head of account on the matter shall be referred to the Principal advice of the Comptroller and Auditor Accounts Officer of the Ministry/ General of India under the powers flowing Department concerned for clarification of from Article 150 of the Constitution. It the Ministry of Finance and the Controller contains General Directions for opening General of Accounts, wherever Heads of Accounts and a complete list of necessary. the Sectors, Major, Sub-Major and Minor Rule 83 Charged or Voted Expenditure. The Heads of Accounts and also some expenditure covered under Article 112 (3) Sub/detailed heads, authorised to be so of the Constitution of India is charged on opened. the Consolidated Fund of India and is not Ministries/Departments may open Sub- subject to vote by the legislature. All other Heads and Detailed Heads as required expenditure met out of the Consolidated by them in consultation with the Budget Fund of India is treated as Voted Division of the Ministry of Finance. Their expenditure. Charged or Voted Principal Accounts Offices may open Expenditure shall be shown separately in Sub/Detailed Heads required under the the accounts as well as in the Budget Minor Heads falling within the Public documents. Account of India subject to the above Rule 84 Capital or Revenue Expenditure. stipulations. Significant expenditure incurred with the The Object Heads have been prescribed object of acquiring tangible assets of a under Government of India’s Orders permanent nature (for use in the below Rule 8 of Delegation of Financial organisation and not for sale in the Power Rules. The power to amend or ordinary course of business) or modify these Object heads and to open enhancing the utility of existing assets, new Object Heads rest with Department shall broadly be defined as Capital of Expenditure of Ministry of Finance on expenditure. the advice of the Comptroller and Auditor Subsequent charges on maintenance, General of India. repair, upkeep and working expenses, Rule 80 Conformity of budget heads with rules which are required to maintain the assets of classification. Budget Heads in a running order as also all other exhibited in estimates of receipts and expenses incurred for the day to day expenditure framed by the Government running of the organisation, including or in any appropriation order shall establishment and administrative conform to the prescribed rules of expenses shall be classified as Revenue classification. expenditure. Capital and Revenue Rule 81 Responsibility of Departmental expenditure shall be shown separately in officers. Every officer responsible for the the Accounts. collection of Government dues or Rule 85 Banking Arrangements. The Reserve expenditure of Government money shall Bank of India (RBI) shall be the banker to see that proper accounts of the receipts the Government. It shall maintain cash and expenditure, as the case may be, are balance of the Government and provide maintained in such form as may have banking facilities to the Ministries and been prescribed for the financial subordinate or attached offices either transactions of Government with which directly through its own offices or through 19its agent banks. For this purpose, RBI Schemes and Programmes using shall, in consultation with the Controller Information and Communication General of Accounts, nominate a bank to Technology (ICT). Necessary function as Accredited Bank of a Ministry process reengineering to or Department. Pay & Accounts offices minimise intermediary levels and and Cheque Drawing and Disbursing to reduce delay in payments to Officer shall have assignment accounts intended beneficiaries with the with the identified branches of the objective of minimising pilferage Accredited Bank of the Ministry. All and duplication should be done payments shall be made through these for all Government Schemes and identified bank branches. These Programmes. The process for branches shall also collect departmental implementation of DBT as and other receipts. Tax revenues of the prescribed should be adopted. Government shall be collected by the RBI (2) DBT should include in-kind and through its own offices or through the cash transfers to beneficiaries as nominated branches of its agent banks. well as transfers/honorariums Note: Detailed procedure to be followed given to various enablers of for remittance of Government receipts government schemes like into Government cash balance and community workers, etc. for reimbursement of payments made on successful implementation of the behalf of Government by the banks are schemes. laid down in the Memoranda of (3) Transfer of cash benefits from Instructions issued by the Reserve Bank Ministries/Departments should of India. be done (a) directly to Rule 86 Public Financial Management System beneficiaries from (PFMS). Ministries/Departments; (b) (1) Public Financial Management through State Treasury Account; System (PFMS), an integrated or (c) through any Implementing Financial Management System Agency as appointed by Central / of Controller General of State Governments. Accounts, Government of India, (4) In-kind Transfer to Individual shall be used for sanction Beneficiary/ Household/Service preparation, bill processing, provider includes schemes or payment, receipt management, components of schemes where Direct Benefit Transfer, fund flow in-kind benefits are given by the management and financial Government or through any reporting. Implementing Agency as (2) All the ministries sanctioning appointed by Centre/State grant-in-aid shall register all Governments to Individual implementing agencies till last Beneficiary/ Household/ Service level of implementation on PFMS providers. to track fund flow and unspent (5) Ministries/Departments will use balances. PFMS platform for processing of (3) All the payment, to the extent payments for cash / in kind possible, shall be released ‘just- transfers to individual in-time’ by the Ministries through beneficiaries as per framework PFMS. laid down by Department of (4) Detailed Demand for Grants Expenditure, Ministry of Finance. (DDG), as approved, must be (6) Implementing Agencies shall uploaded on PFMS at the start of generate Electronic Utilisation each Financial Year. Certificate (E-UCs) on PFMS (5) All the re-appropriation orders, portal and submit them online. E- surrender order shall be UCs shall be used to certify that generated through PFMS money was actually utilized for system. the purpose for which it was (6) All grantee institutions shall sanctioned to eliminate the need submit Utilisation Certificates on for physical generation of UCs. PFMS. (7) Transaction charges for the Rule 87 Direct Benefit Transfer. financial intermediaries (1) Transfer of benefits should be facilitating DBT payments shall done directly to beneficiaries be paid as stipulated by Ministry under various Government of Finance. 20Constitution of India. II. ANNUAL ACCOUNTS Rule 91 Administrative Ministries / PSUs / Subordinate / Statutory / Autonomous Rule 88 Appropriation Accounts. Appropriation Bodies may have financial stakes in Accounts of Central Ministries (other than Public Private Partnerships (PPP)/ Ministry of Railways) and of Central Civil Production Sharing Contracts (PSCs)/ Departments (excluding Department of Joint Ventures (JV’s)/ Subsidiary Posts and Defence Services) shall be companies etc. In such case details of the prepared by the Principal Accounts financial stakes of the Government or Officers of the respective Ministries and other entities mentioned above, should Departments (under the guidance and be disclosed in the Annual Report of the supervision of the Controller General of Administrative Ministry. Accounts) and signed by their respective Chief Accounting Authorities i.e., the III. PROFORMA ACCOUNTS Secretaries in the concerned Ministries or Departments. Union Government Rule 92 Subsidiary Accounts of Government Appropriation Accounts (Civil) required to Departments undertaking commercial be submitted to Parliament, shall be activities. Where the operations of prepared annually by the Controller certain Government Departments General of Accounts by consolidating the working on a commercial or quasi- aforesaid Appropriation Accounts. commercial basis e.g., an industrial Appropriation Accounts pertaining to factory or a store cannot be suitably Departments of Posts and Defence brought within the cash-based Services shall be prepared and signed by Government accounting system, the the Secretaries to the Government of Head of the units shall be required to India in the Department of Posts and maintain such subsidiary proforma Ministry of Defence respectively and that accounts in commercial form as may be of Ministry of Railways by the Chairman, agreed between Government and Railway Board. Comptroller and Auditor General of India. Rule 89 Finance Accounts. Annual accounts of This includes the maintenance of suitable the Government of India (including Manufacturing, Trading, Profit & Loss transactions of Department of Posts and Accounts and Balance Sheet. Ministries of Defence and Railways and Rule93 Methods and principles on which transactions under Public Account of subsidiary accounts in commercial India of Union Territory Governments), form are to be kept. The methods and showing under the respective Heads the principles in accordance with which annual receipts and disbursements and subsidiary and proforma accounts in statement of balances for the purpose of commercial form are to be kept shall be the Union, called Finance Accounts, shall regulated by orders and instructions be prepared and signed by the Controller issued by Government in each case. General of Accounts countersigned by Note 1. Proforma accounts of regular the Secretary (Expenditure), Ministry of Government Workshops and Factories Finance. shall be kept in accordance with the Rule90 Presentation of Annual accounts. The detailed rules and procedure prescribed Appropriation and Finance accounts in the departmental regulations. Proforma mentioned above, shall be prepared by accounts relating to Public Works shall be the respective authorities on the dates prepared by the Accounts Officers in mutually agreed upon with the accordance with the instructions Comptroller and Auditor General of India, contained in Account Code for in the forms prescribed by the President Accountants General. on the advice of the Comptroller and Note 2. The Heads of Account (which Auditor General of India and sent to the should, as far as possible, be common to latter for recording his/her certificate. The the Government accounts and the certified Annual Accounts and the General Ledger maintained by a Reports relating to the accounts shall be Commercial Undertaking) shall be submitted by the Comptroller and Auditor selected with due regard to the principles General of India to the President in of Governmental and Commercial accordance with the provisions of Section accounting so that the monthly classified 11 of the Comptroller and Auditor account of income and expenditure of the General’s (Duties, Powers and undertaking may be prepared readily Conditions of Service) Act, 1971 and from the General Ledger maintained by it. Clause (1) of Article 151 of the Rule 94 Adequate regulations to be framed to 21ensure cost deduced is accurate and generally be authorised to be opened in true. Where commercial accounts are the following types of cases: maintained for the purpose of (a) In favour of a Designated Officer assessment of the cost of an article or appointed for the purpose of service, the Head of the unit shall ensure administering monies tendered that adequate regulations are framed with by or on behalf of wards and the approval of Government in order to attached estates under ensure that the cost deduced from the Government management. It accounts is accurate and true. shall also be ensured that proper Rule 95 Maintenance and submission of arrangements are made for the subsidiary accounts and statements maintenance and audit of by department units. The Head of the connected initial accounts; unit shall arrange to obtain the orders of (b) in relation to Civil and Criminal Government regarding the nature and Courts’ deposits, in favour of the form of subsidiary accounts and Chief Judicial Authority statements, if any. Such accounts and concerned; statements shall be submitted to the (c) where, under certain regulatory Accounts Officer on such date as may be activities of the Government, required by him. The same shall be receipts are realised and credited appended to the Appropriation Accounts to a Fund or Account under the of each year. provisions of an Act to be utilised towards expenditure thereunder IV. PERSONAL DEPOSIT ACCOUNTS and no outgo from the Consolidated Fund is involved. Rule 96 Personal Deposit Account. Personal (d) where a personal deposit Deposit Account is a device intended to account is required to be created facilitate the Designated Officer thereof to by a law or rules having the force credit receipts into and effect withdrawals of law and certain liabilities directly from the account, subject to an devolve on the Government out overall check being exercised by the of the special enactments; bank in which the account is authorised (e) officers commanding units and to be opened. The Designated Officer others concerned in the shall ensure (with the help of a personal administration of public funds in ledger account to be maintained by the the Defence Departments can be bank for the purpose) that no withdrawal authorised to open personal will result in a minus balance therein. deposit accounts for such funds. Only Government officers acting in their official or any other capacity shall be the V. CAPITAL AND REVENUE ACCOUNTS Designated Officer thereof. Rule 97 (1) Authority to open Personal Deposit Rule 98 Capital Expenditure. Significant Account. The Personal Deposit Account expenditure incurred with the object of shall be authorised to be opened by a acquiring tangible assets of a permanent special order by the concerned Ministry nature (for use in the organisation and not or Department in consultation with the for sale in the ordinary course of Controller General of Accounts. Such business) or enhancing the utility of special order or permission shall be existing assets, shall broadly be defined issued or granted by the Ministry or as Capital expenditure. Subsequent, Department concerned after it is satisfied charges on maintenance, repair, upkeep that the initial accounts of the moneys to and working expenses, which are be held in a personal deposit account and required to maintain the assets in a disbursed, shall be arranged to be running order as also all other expenses maintained properly and shall be subject incurred for the day to day running of the to audit. Every personal deposit account organisation, including establishment so authorised to be opened, shall form and administrative expenses, shall be part of the Government Account and be classified as Revenue expenditure. located in the Public Account thereof. The Capital and Revenue expenditure shall provisions relating to “Personal Deposit be shown separately in the Accounts. Account” are contained in para 16.7 of Expenditure on a temporary asset or on Civil Accounts Manual and Rule 191 to grants-in-aid cannot ordinarily be 194 of Central Government Account considered as a capital expenditure and (Receipts and Payments) Rules. shall not, except in cases specifically Rule 97 (2) Personal Deposit accounts shall authorised by the President on the advice 22of the Comptroller and Auditor General of capital grants. Only the cost of India, be debited to a Capital Head. genuine improvements, which Capital expenditure is generally met from enhance the useful life of the receipts of capital nature, as asset whether determined by distinguished from ordinary revenues prescribed rules or formulae, or derived from taxes, duties, fees, fines and under special orders of similar items of current income including Government, may be debited to extraordinary receipts. It is open to the Capital. Where under special Government to meet capital expenditure orders of Government, a from ordinary revenues, provided there Depreciation or Renewals are sufficient revenue resources to cover Reserve Fund is established for this liability. renewing assets of any Expenditure of a Capital nature as commercial department or defined above, shall not be classed as undertaking, the distribution of Capital expenditure in the Government expenditure on renewals and Accounts unless the classification has replacements between Capital been expressly authorised by general or and the Fund shall be so special orders of Government. regulated as to guard against Expenditure of a Capital nature shall be over-capitalisation on the one distinguished from the Revenue hand and excessive withdrawals Expenditure both in the Budget Estimates from the Fund on the other. and in Government Accounts. (d) Expenditure on account of Rule99 Principles for allocation of reparation of damage caused by expenditure between Capital and extraordinary calamities such as Revenue. The following are the main flood, fire, earthquake, enemy principles governing the allocation of action, etc., shall be charged to expenditure between Revenue and Capital, or to Revenue, or divided Capital: between them, depending upon (a) Capital shall bear all charges for whether such expenditure results the first construction and in creation/acquisition of new equipment of a project as well as assets or whether it is only for charges for intermediate restoring the condition of the maintenance of the work while existing assets, as may be not yet opened for service. It shall determined by Government also bear charges for such according to the circumstance of further additions and each case. improvements, which enhance (e) Expenditure on a temporary the useful life of the asset, as asset cannot ordinarily be may be sanctioned under rules considered as a capital made by competent authority. expenditure and shall not, except (b) Subject to Clause (c) below, in cases specifically authorised revenue shall bear subsequent by the President on the advice of charges for maintenance and all the Comptroller and Auditor working expenses. These General of India, be debited to a embrace all expenditure on the Capital Head. working and upkeep of the Rule 100 Allocation between capital and project and also on renewals revenue expenditure: The allocation and replacements and between capital and revenue expenditure additions, improvements or on a Capital Scheme for which separate extensions that are revenue in Capital and Revenue Accounts are to be nature as per rules made by kept, shall be determined in accordance Government. with such general or special orders as (c) In the case of works of renewal may be prescribed by the Government and replacement, which partake after consultation with the Comptroller expenditure both of a capital and and Auditor General of India. revenue nature, the allocation of Rule 101 Capital receipts during construction expenditure shall be regulated by mainly to be utilised in reduction of the broad principle that Revenue capital expenditure: Capital receipts in should pay or provide a fund for so far, they relate to expenditure the adequate re- placement of all previously debited to Capital accruing wastage or depreciation of during the process of construction of a property originally provided out of project, shall be utilised in reduction of 23capital expenditure. Thereafter their Government accounts. treatment in the accounts will depend on Rule 105 (1) Charging of interest on capital circumstances, but except under special outlay met out of specific loans raised rule or order of Government, they shall by Government. For capital outlay met not be credited to the revenue account of out of specific loans raised by the department or undertaking. Government, the interest shall be Rule 102 Receipts and recoveries representing charged at such rate as may be recoveries of expenditure previously prescribed by Government, having debited to Capital Major Head: regard to the rate of interest actually paid Receipts and recoveries on Capital on such loans and the incidental charges Account in so far as they represent incurred in raising and managing them. recoveries of expenditure previously By specific loans are meant loans that are debited to a Capital Major Head shall be raised in the open market for one specific taken in reduction of expenditure under purpose which is clearly specified in the the Major Head concerned except where, prospectus and in regard to which definite under the rules of allocation applicable to information is given at the time of raising a particular department, such receipts of the loans. have to be taken to Revenue. Rule 105 (2) For capital outlay provided otherwise, Rule 103 Conversion of outstanding loans into interest shall be charged at the rate of equity investments or grants-in-aid. interest to be determined each year by Government takes from time to time, the Department of Economic Affairs, suitable measures to strengthen/ Ministry of Finance. restructure the Capital base of public Rule 106 Method of calculation of interest. The sector enterprises so that these interest shall be calculated on the direct enterprises can improve their capital outlay at the end of the previous performance and productivity. As a part year plus half the outlay of the year itself, of the package scheme, financial relief in irrespective of whether such outlay has the form of conversion of outstanding been met from current revenues or from loans into equity investments or grants- other sources. in-aid are also agreed to. Rule 107 How interest charged to capital is to be Where loans outstanding against Public written back. When under any special Sector Undertakings are proposed to be orders of Government, charges for converted into equity investments in or as interest during the process of grants-in-aid to the Public Sector construction of a project are temporarily Undertakings, the approval of the met from capital, the writing back of Parliament to such proposals, shall be capitalised interest shall form the first obtained by including a token provision in charge on any capital receipts or surplus the relevant Demands for Grants or revenue derived from the project when Supplementary Demands for Grants as opened for working. may be found expedient. The details of such conversion of loans may be VII. ADJUSTMENT WITH GOVERNMENT explained in the relevant DEPARTMENTS ETC Budget/Supplementary Demand documents. After obtaining the approval Rule 108 Adjustments with State Governments. of the Parliament, the balances under Subject to the relevant provision of the loans and the progressive expenditure of Constitution or of law made by Parliament the Capital Heads of Accounts shall be or any orders issued thereunder, corrected proforma in the relevant adjustments in respect of financial Accounts of the Union Government, transactions with State Governments under the Loan/Capital Major Heads shall, unless otherwise provided for, be concerned. made in such manner, and to such extent as may be mutually agreed upon VI. INTEREST ON CAPITAL between the Central Government and the State Government concerned. However, Rule 104 Interest rate. Except in special cases adjustments with State Government in regulated by special orders of respect of the matters mentioned below Government, interest at such rates as shall be regulated by the rules contained may be specified from time to time shall in Appendix-5 to the Government be charged in the accounts of all Accounting Rules, 1990. The rules are Commercial Departments or units for based on reciprocal arrangements made which separate capital and revenue with the State Governments and are, accounts are maintained within the therefore, binding on all of them: - 24(i) Pay and Allowances, other than under the Government of India or the Leave Salaries. State Governments such as those of the (ii) Leave Salaries. Railways, the Department of Post, the (iii) Pensions. Electrical undertakings, etc., shall fall (iv) Expenditure involved in Audit and outside the purview of the proposed keeping Accounts. reciprocal arrangements and shall (v) Cost of Police functions on continue to be settled as hitherto. Railways including the cost of If a doubt arises as to whether a particular protecting Railway Bridges. claim would fall within or outside the (vi) Cost of Forest Surveys carried purview of the proposed arrangement, it out by the Survey of India, and shall be decided by mutual consultation. Forest maps prepared by that The above arrangements will remain in Department. force without any time limit in respect of (vii) Leave Salary and Pension all State Governments. Contributions recovered in Rule 113 Projects jointly executed by several respect of Government servants State Governments. In the case of lent on Foreign Service Projects, jointly executed by several Rule 109 Re-audit. As a convention, a period of Governments, where the expenditure is three years has been accepted by the to be shared by the participating Central and State Governments for the Governments in agreed proportions, but re- audit of past transactions involving the expenditure is ab-initio incurred by errors in classification one Government and shares of other Rule110 When adjustment necessary. participating Governments recovered Adjustment shall always be made unless subsequently; such recoveries from other otherwise agreed upon — Governments shall be exhibited as (a) If a commercial department or abatement of charges under the relevant undertaking or a regularly expenditure Head of Account in the organised store department or books of the Governments incurring the store section of a department is expenditure initially concerned, or Rule 114 Claims of State Governments on (b) If under the operation of any rule account of the extra cost of agency or order, an adjustment would functions. Claims of State Governments, have been made if the particular on account of the extra cost of agency transaction with State functions entrusted to them under Article Government were a transaction 258 of the Constitution shall be dealt with between two departments of the and settled in accordance with such Central Government. directions as may be issued by the Rule 111 Petty and isolated claims for services President in this regard from time to time rendered not to be preferred. The Rule 115 The following principles shall be generally Central Government (which includes observed in dealing with claims preferred Union Territories) and the State by State Governments under Clause (3) Governments have agreed under of Article 258 of the Constitution: — reciprocal arrangements not to prefer (i) If the agency work involves the petty and isolated claims for an amount employment of a State not exceeding Rupees ten thousand Commercial Department, it would against one another be open to that department to Rule 112 Criteria in determining whether a charge its normal commercial particular claim is covered by the costs. reciprocal arrangement. The significant (ii) Public Works Department criterion in determining whether a agency costs shall be particular claim is covered by the represented by such percentage reciprocal arrangement mentioned charges on the cost of Central above, will be that the claim shall be both Works executed by the State as petty and of an occasional character and may be agreed between the shall cover services rendered and not Central and the State supplies made unless the latter forms Government concerned, works part of service. The term “service outlay being treated as an rendered” will be taken to mean an amount placed at the disposal of individual act of service, like providing the State Government for actual police escort to a high dignitary and will expenditure on the execution of not apply to supply of stores etc. Claims the work. relating to Commercial undertakings (iii) The cost of regular joint 25establishment shall be shared as following procedure shall be followed in far as practicable on the basis of regard to transactions arising in fixed annual sums settled in connection with the agency functions agreement with the State entrusted to the State Governments Government concerned. under Article 258 of the Constitution: (iv) In other cases, the following (i) The expenditure on extra staff procedure shall be adopted or contingencies which the unless there are special orders to State Government have to the contrary: - incur-The extra cost to the State (a) Details of claims preferred Government arising mainly in by State Governments respect of the additional staff shall be ascertained. employed or contingent and (b) If the work has been other expenditure, as in the case performed by the State of work devolving on the State Government in the past, Governments in connection with the charges shall be the administration of the Census compared with those Act, is reimbursable under Article charged in the past but it is 258 (3) of the Constitution. not necessary to be Expenditure in this regard shall meticulous in the matter. be provided in the State Budget (c) If the charges are found to in the first instance and adjusted be reasonable and do not in the accounts of the State exceed Rupees Fifty Governments under the normal thousand per annum for Heads of Accounts. These will be any individual item (or reimbursed in lumpsum to the connected group of items), State Governments, necessary a five years contract shall provision being made under a be offered to the State distinct sub-head “Amounts paid Government during which to other Governments, the Central Government Departments, etc.”, under the would pay the fixed sum concerned Demand of the per annum for the work. Ministry administratively The amount will be concerned with the subject. In subjected to review at the computing the extra cost, the end of each period of five element of leave and pensionary years. charges can also be included, (d) If the amount agreed upon provided the relevant service and exceeds Rupees Fifty financial rules of the State thousand, it shall be Governments provide for this. necessary to have an annual statement of (ii) The expenditure on work proposed charges from the entrusted to the State State Government at the Government, such as time of preparation of the expenditure on construction Budget. However, if in any and maintenance of National individual case, the Highways, expenditure on charges are obviously Defence Works, Aviation static, then the contract Works, etc.-The expenditure system may be adopted in directly connected with the these cases also. execution of the scheme or work (v) In exceptional cases in which entrusted to the State arbitration has to be resorted to, Government such as expenditure the Ministry of Finance will make on the construction or the requisite arrangement in the maintenance of National matter. Highways etc., will be adjusted (vi) The Ministry of Finance shall be direct in the accounts of the consulted on all matters arising Central Government under the under Article 258 (3) of the relevant Head of Account. The Constitution. question of including the Rule 116 Principles governing transactions in estimates in this regard in the connection with the agency functions Budget of the State Governments entrusted to State Government. The and subjecting them to the vote 26of the State Legislature will not Government undertakes a service merely arise. The expenditure will be as an agent of a private body, the entire adjusted under the Head “8658 – cost of the service shall be recovered Suspense Accounts –PAO from that body so that the net cost to Suspense” in the Remittance Government is nil. The recoveries shall Section of the State Accounts in be taken as reduction of expenditure. the first instance pending their Explanation: The term ‘recovery’ is used eventual clearance in in these rules to denote repayment of, or accordance with the prescribed payment by non-Government parties or procedure. other Governments towards charges Note: In the converse case relating to the initially incurred and classified by a entrustment of a State function to the Central Government Department in the Central Government under Article258-A account, as final expenditure by debit to of the Constitution, a procedure similar to a Revenue or Capital Head of Account. that indicated in the Rule 116 above shall Recoveries towards establishment be followed. The extra cost on staff and charges, tools and plants, fees for other contingent expenditure, etc., will procurement of inspection of stores or accordingly have to be provided in the both etc., effected at percentage rates or Budget of the Central Government in the otherwise, are some examples. usual manner and recovery made in Rule 121 Payments to outside body or fund to lumpsum from the State Government be through grant-in-aid. Any relief in concerned. The other expenditure on respect of payment for services rendered execution of the work proper should be or supplies made to any outside body or debited to the State Government fund shall ordinarily be given through a concerned directly and the question of grant-in-aid rather than by remission of obtaining a vote of the Parliament for the dues. same will not arise. Rule 122 Charges relating to the maintenance Rule 117 Crucial date for closure of Inter- and demarcations and disputes over Governmental adjustments. Inter- boundaries. The incidence of charges Governmental adjustments can be relating to the maintenance and carried out upto the [10th of April or the demarcations and disputes over date as specified by office of Controller boundaries between India and a foreign General of Accounts in consultation with country is regulated by the following Reserve Bank of India from time to time]1 principles; on which date the books of the Reserve (i) Maintenance – Half the Bank are closed for the month of March. maintenance charges will be Every endeavour must, therefore, be borne by the Central made to settle as far as possible all Government, the other half being transactions with State Governments recovered, as far as practicable, before the close of the year. from the foreign country, failing Rule 118 Adjustments with foreign which the foreign country’s share Governments, outside bodies, etc. will also be borne by the Central Unless exempted by Government by Government. general or special orders, services shall (ii) Demarcation and Disputes – not be rendered to any foreign Charges relating to demarcation Government or non-Government body or of boundaries and boundary institution or to a separate fund disputes will be borne by the constituted as such except on payment. Central Government under Entry Rule 119 Recoveries of expenditure for services 10 of the Union List, subject to rendered to non-Government parties. such recovery as shall be made Recoveries of expenditure for services from the Foreign Country. rendered or supplies made to non- (iii) Where streams or other Government parties or other watercourses form the Governments (including local funds and boundaries and where the Governments outside India), shall in all ordinary principle of median line cases, be classified as receipts of the applies, the Government Government rendering such services. concerned (i.e., Foreign Country Rule 120 Recoveries of expenditure for services or India) will bear the cost of rendered as an agent. When a maintenance of the boundary line 1 Inserted vide DoE ID No. TA-2-03001/(03)/1/2022-TA-II(e 10997)/52 dated 18.01.2024 27on its side. Where a separate set Stationery, Public Works of survey marks is maintained by (Building and Roads each of the two Governments on Branch), Central Purchase its side, the cost of maintenance Organisation (Director- of the survey marks shall be General of Supplies and borne by the Government Disposals, New Delhi). concerned. (ii) Commercial Departments or Exception: Undertakings.- These are (a) The arrangement in (i) established mainly for the above in its application to purposes of rendering services or Nepal will be subject to providing supplies, of certain special arrangements special kinds, on payment for the worked out in consultation services rendered or for the with the Nepal Government. articles supplied. They perform (b) The share of the Bhutan functions, which are not Government for necessarily governmental maintenance and functions. They are required to demarcation of and disputes work to a financial result over boundaries will be determined through accounts borne by the Central maintained on commercial Government for the present principles. Rule 125 Period for preferment of claims. All VIII. INTER-DEPARTMENTAL claims shall ordinarily be preferred ADJUSTMENTS between Departments, both commercial and non-commercial of the Central Rule 123 Inter-Departmental Adjustments. Save Government, within the same financial as expressly provided by any general or year and not beyond three years from the special orders, a Service Department date of transaction. This limitation, shall not charge other Departments for however, may be waived in specific services rendered or supplies made cases by mutual agreement between the which falls within the class of duties for departments concerned. which the former Department is Rule 126 Procedure for settlement of inter- constituted. However, a commercial departmental adjustments. The Department or undertaking shall settlement of inter- departmental ordinarily charge and be charged for any adjustments shall be regulated by the supplies made and services rendered to, directions contained in Chapter 4 of or by, other departments of Government. Government Accounting Rules, 1990. Rule 124 Principles for division of Departments Rule 127 Inter-departmental and other for purposes of inter-departmental adjustments to be made in the account payments. For purposes of inter- year. Under the directions contained in Departmental payments, the the Account Code for Accountants Departments of a Government shall be General, Inter-departmental and other divided into service Departments and adjustments are not to be made in the commercial departments according to the accounts of the past year, if they could following principles: - not have been reasonably anticipated in (i) Service Departments-These are time for funds being obtained from the constituted for the discharge of proper authority. In all cases, where the those functions which either - adjustment could have reasonably been (a) Are inseparable from and anticipated as, for example, recurring form part of the idea of payments to another Government or Government e.g. department and payments which, though Departments of not of fixed amount, are of a fixed Administration of Justice, character, etc., the Accounts Officer will Jails, Police, Education, automatically make the adjustment in the Medical, Public Health, accounts before they are finally closed. Forest, Defence; or The onus of proving that the adjustments (b) Are necessary to, and form could not have been reasonably part of, the general conduct anticipated should lie with the Controlling of the business of Officer. Government e.g. As between different Departments of the Departments of Survey, same Government, the recoveries Government Printing, effected for services rendered shall be 28classified as deductions from the gross shall be taken into account in the expenditure. However, recoveries made estimate of overhead charges and by a Commercial Department, e.g., manufacturing costs for the purpose of Railways, Posts or a departmental calculating the issue price of goods commercial undertaking in respect of manufactured or fees for services services rendered in pursuance of the rendered. The calculation shall be made functions for which the Commercial at rates prescribed for the purpose by Department is constituted shall be treated Government. as receipts of the Department but where NOTE: The Railways, Posts and Defence it acts as an agent for the discharge of Departments are regarded as separate functions not germane to the essential Governments for the purpose of purpose of the Department, the adjustment of pensionary charges. recoveries shall be taken as reduction of Rule 129 Pensionary liability in the case of expenditure. Government Departments / Undertakings Exception-Recoveries of fees for declared as commercial. In the case of purchase, inspection, etc., effected by the Government Departments and Central Purchase Organizations of Undertakings declared as commercial, Government of India, are treated as adjustment of Pensionary liability shall be receipts of the Department concerned. made in the regular accounts by charging NOTE 1.-The term ‘recovery’ is used in the average of the percentage for 15th this rule to denote repayment of/or year of service based on the rates of payment by one Department of the same monthly contribution of pension as Government towards charges initially prescribed in the appropriate order incurred and classified by another issued from time to time under Appendix- Department in its accounts as final II of Fundamental and Supplementary expenditure by debit to a Revenue or Rules. Capital Head of Account. Recoveries towards establishment charges, tools and plants, fees for procurement or inspection of stores or both, etc., effected at percentage rates or otherwise, are some examples. NOTE 2.-Recoveries effected from another Department of the same Government which are to be classified as deduction from the gross expenditure, shall be shown in the relevant Demand for Grant as “below the line” recovery under the appropriate Major Head of Account etc. Recovery actually effected, irrespective of the year to which it relates shall be adjusted in accounts in the schedule of recovery to be attached to the Appropriation Account of the year in which the recovery is affected. Rule 128 Adjustment of Pensionary Charges of certain Commercial Departments. Except as otherwise provided, the pensionary liability of commercial departments and undertakings, for which pro forma commercial accounts are maintained, shall be assessed on a contribution basis at such rates as may be fixed by Government from time to time. In the case of departments and undertakings, for which no regular commercial accounts are maintained either within or outside the regular Government accounts but which are allowed to charge for their products or services rendered, the pensionary liability 29Ch.-5 WORKS electrical works such as Military Rule 130 Original works means all new Engineering Service (MES), Border constructions, site preparation, Roads Organisation (BRO), etc. or additions and alterations to existing Ministry/ Department's construction works, special repairs to newly wings of Ministries of Railways, purchased or previously abandoned Defence, Environment & Forests, buildings or structures, including Information & Broadcasting and remodeling or replacement. Departments of Posts, and Space Minor works mean works which add etc. capital value to existing assets but Rule 133 (3) As an alternative to 133(2), a do not create new assets. Ministry or Department may award Repair works means works repair works estimated to cost above undertaken to maintain building and [Rupees Sixty Lakhs]3 and original fixtures. Works will also include works of any value to: services or goods incidental or (i) Any Public Sector Undertaking consequential to the original or set up by the Central or State repair works. Government to carry out civil or Rule 131 Administrative control of works electrical works or includes: (ii) To any other Central/ State (i) Assumption of full responsibility Government organisation/ PSU for construction, maintenance which may be notified by the and upkeep; Ministry of Housing and Urban (ii) Proper utilization of buildings Affairs (MoHUA) for such and allied works; purpose after evaluating their (iii) Provision of funds for execution financial strength and technical of these functions. competence. Rule 132 Powers to sanction works. The For the award of work under this sub- powers delegated to various rule, the Ministry/ Department shall subordinate authorities to accord ensure competition among such administrative approval, sanction PSUs/ Organisations. This expenditure and re-appropriate competition shall be essentially on funds for works are regulated by the the lump sum service charges to be Delegation of Financial Powers claimed for execution of work. Rules, and other orders contained in In exceptional cases, for award of the respective departmental work under (i) and (ii) above, on regulations. nomination basis, the conditions Rule 133 (1) A Ministry or Department at its contained in Rule 194 would apply. discretion may directly execute The work under these circumstances repair works estimated to cost up to shall also be awarded only on the [Rupees Sixty Lakhs]1 after following basis of lump sum service charge due procedure indicated in Rule 139, [Note: 159 & 160. (i) Scientific Ministries/ Departments Rule 133 (2) A Ministry or Department may, at can assign repair Works estimated to its discretion, assign repair works cost up to Rs 5 crore on nomination estimated to cost above [Rupees basis even in normal cases only to Sixty Lakhs]2 and original/ minor the organizations specified in this sub-rule of GFRs. works of any value to any Public (ii) This special provision will be Works Organisation (PWO) such as applicable upto 31.03.2025. Central Public Works Department Thereafter review will be made by (CPWD), State Public Works Department of Expenditure to decide Department, others Central on further extension of these Government organisations authorised to carry out civil or powers.]4 1 Amended vide DoE OM No. F.1/3/2024-PPD dated 10.07.2024. Earth Sciences, Defence Research and Development Organisation, 2. Amended vide DoE OM No. F.1/3/2024-PPD dated 10.07.2024. Indian Council of Agricultural Research (ICAR), including its affiliated 3 Amended vide DoE OM No. F.1/3/2024-PPD dated 10.07.2024. institutions and Universities, Department of Health Research (DHR), 4 Inserted vide DoE OM No. F.20/42/2021-PPD dated 20.05.2024. including Indian Council of Medical Research, Educational and The Scientific Ministries/ Departments/ Organization of Government Research Institutes conducting post-graduate/ doctoral level of India are Department of Science and Technology, Department of courses or research, under any Ministry/ Department. Bio-technology, Department of Scientific & Industrial Research, Department of Atomic Energy, Department of Space, Ministry of 30Rule 134 Work under the administrative provisions set out under sub rule 1 of control of the Public Works rule 136 cannot be complied with, Departments. Works not specifically the concerned executive officer may allotted to any Ministry or Department do so on his own judgement and shall be included in the Grants for responsibility. Simultaneously, he Civil Works to be administered by should initiate action to obtain Central Public Works Department. No approval from the competent such work may be financed partly authority and also to intimate the from funds provided in departmental concerned Accounts Officer. budget and partly from the budget for Rule 136 (3) Any development of a project Civil works as mentioned above. considered necessary while a work Rule 135 (1) General Rules. Subject to the is in progress, which is not observance of these general rules, contingent on the execution of work (including Rule 144) the initiation, as first sanctioned, shall have to be authorization and execution of works covered by a supplementary allotted to a particular Ministry or estimate. Department shall be regulated by Rule 137 For purpose of approval and detailed rules and orders contained in sanctions, a group of works which the respective departmental forms one project, shall be regulations and by other special considered as one work. The orders applicable to them. necessity for obtaining approval or Rule 135 (2) Ministry or Department shall put in sanction of higher authority to a place, as far as possible, empowered project which consists of such a project teams for all large value group of work should not be avoided projects and these teams should be because of the fact that the cost of tasked only with project execution each particular work in the project is and not given other operational within the powers of such approval duties. or sanction of a lower authority. This Rule 136 (1) No works shall be commenced or provision, however, shall not apply in liability incurred in connection with it case of works of similar nature which until: are independent of each other. (i) Administrative approval has Rule 138 Any anticipated or actual savings been obtained from the from a sanctioned estimate for a appropriate authority in each definite project, shall not, without case. special authority, be applied to carry (ii) Sanction to incur expenditure out additional work not contemplated has been obtained from the in the original project. competent authority. Rule 139 Procedure for Execution of Works. (iii) A properly detailed design has The broad procedure to be followed been sanctioned; while by a Ministry or Department for designing the projects etc, execution of works under its own principles of Life Cycle cost arrangements shall be as under: - may also be considered. (i) The detailed procedure relating (iv) Estimates containing the to expenditure on such works detailed specifications and shall be prescribed by quantities of various items have departmental regulations framed been prepared on the basis of in consultation with the Accounts the Schedule of Rates Officer, generally based on the maintained by CPWD or other procedures and the principles Public Works Organisations underlying the financial and and sanctioned. accounting rules prescribed for (v) Funds to cover the charge similar works carried out by the during the year have been Central Public Works provided by competent Department (CPWD); authority. (ii) Preparation of detailed design (vi) Tenders invited and processed and estimates shall precede any in accordance with rules. sanction for works; (vii) a Work Order issued. (iii) No work shall be undertaken Rule 136 (2) On grounds of urgency or before Issue of Administrative otherwise, if it becomes necessary to Approval and Expenditure carry out a work or incur a liability Sanction by the competent under circumstances when the Authority on the basis of 31estimates framed; will be at the discretion of the (iv) Open tenders will be called for Administrative Ministry/Department works costing [Rs. Ten lakh to to set up a suitable mechanism for Rs. Sixty lakh]5, review and acceptance of variation (v) limited tenders will be called for within 10% of the approved works costing less than estimates. [Rupees Ten lakhs]6, (vi) Execution of Contract Agreement or Award of work should be done before commencement of the work; (vii) Final payment for work shall be made only on the Personal Certificate of the Officer-in- charge of execution of the work in the format given below: "I Executing Officer of (Name of the Work), am personally satisfied that the work has been executed as per the specifications laid down in the Contract Agreement and the workmanship is up to the standards followed in the Industry." Rule 140 For original/minor works and repair works entrusted as per Rule 133(2) or Rule 133(3), the Administrative Approval and Expenditure Sanction shall be accorded and funds allotted by the concerned authority under these rules and in accordance with the Delegation of Financial Power Rules. The Public Works Organisation or the Public Sector Undertaking or any Organisation allotted work shall then execute the work entrusted to it in accordance with the rules and procedures prescribed in that organisation. A Memorandum of Understanding (MoU) may be drawn with Public Works Organisation or the Public Sector Undertaking for proper execution of work. Rule 141 Review of Projects. After a project costing Rs. 100 crore or above is approved, the Administrative Ministry or Department will set up a Review Committee consisting of a representative each from the Administrative Ministry, Finance (Internal Finance Wing) and the Executing Agency to review the progress of the work. The Review Committee shall have the powers to accept variation within 10% of the approved estimates. For works costing less than Rs. 100 crores, it 5 Amended vide Department of Expenditure (DoE), Ministry of 6 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024. Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024. 32Ch. -6 - PROCUREMENT OF GOODS and performance AND SERVICES characteristics. b. Not indicate a requirement PROCUREMENT OF GOODS for a particular trade mark, Rule 142 This chapter contains the general trade name or brand. rules applicable to all Ministries or (ii) The specifications in terms of Departments, regarding quality, type etc., as also procurement of goods required for quantity of goods to be use in the public service. Detailed procured, should be clearly instructions relating to procurement spelt out keeping in view the of goods may be issued by the specific needs of the procuring procuring departments broadly in organisations. The conformity with the general rules specifications so worked out contained in this Chapter. should meet the basic needs of Rule 143 Definition of Goods. The term the organisation without 'goods' used in this chapter includes including superfluous and non- all articles, material, commodity, essential features, which may livestock, furniture, fixtures, raw result in unwarranted material, spares, instruments, expenditure. machinery, equipment, industrial (iii) Where applicable, the technical plant, vehicles, aircraft, ships, specifications shall, to the medicines, railway rolling stock, extent practicable, be based on assemblies, subassemblies, the national technical accessories, a group of machineries regulations or recognized comprising of an integrated national standards or building production process or such other codes, wherever such category of goods or intangible standards exist, and in their products like software, technology absence, be based on the transfer, licenses, patents or other relevant international intellectual properties purchased or standards. In case of otherwise acquired for the use of Government of India funded Government but excludes books, projects abroad, the technical publications, periodicals, etc. for a specifications may be framed library. based on requirements and The term 'goods' also includes works standards of the host and services which are incidental or beneficiary Government, where consequential to the supply of such such standards exist. goods, such as, transportation, Provided that a procuring entity insurance, installation, may, for reasons to be recorded commissioning, training and in writing, adopt any other maintenance. technical specification. Rule 144 Fundamental principles of public (iv) Care should also be taken to buying (for all procurements avoid purchasing quantities in including procurement of works). excess of requirement to avoid Every authority delegated with the inventory carrying costs. financial powers of procuring goods (v) Offers should be invited in public interest shall have the following a fair, transparent and responsibility and accountability to reasonable procedure. bring efficiency, economy, and (vi) The procuring authority should transparency in matters relating to be satisfied that the selected public procurement and for fair and offer adequately meets the equitable treatment of suppliers and requirement in all respects. promotion of competition in public (vii) The procuring authority should procurement. satisfy itself that the price of the The procedure to be followed in selected offer is reasonable and making public procurement must consistent with the quality conform to the following yardsticks: - required. (i) The description of the subject (viii) At each stage of procurement, matter of procurement to the the concerned procuring extent practicable should - authority must place on record, a. Be objective, functional, in precise terms, the generic and measurable and considerations which weighed specify technical, qualitative 33with it while taking the special rules and orders issued by the procurement decision. Government on this behalf from time (ix) A complete schedule of to time. procurement cycle from date of Rule 147 Powers for procurement of goods. issuing the tender to date of [The Ministries or Departments have issuing the contract should be been delegated full powers to make published when the tender is their own arrangements for issued. procurement of goods and services, (x) All Ministries/Departments shall that are not available on GeM. prepare Annual Procurement Common use Goods and Services Plan before the commencement available on GeM are required to be of the year and the same should procured mandatorily through GeM also be placed on their website. as per Rule 149.]2 (xi) [Notwithstanding anything Rule 148 Deleted3 contained in these Rules, Rule 149. Government e-Market place (GeM). Department of Expenditure Government of India has established the may, by order in writing, impose Government e-Marketplace (GeM) for common restrictions, including prior use Goods and Services. GeM SPV will ensure registration and/ or screening, adequate publicity including periodic on procurement from bidders advertisement of the items to be procured from, or bidders having through GeM for the prospective suppliers. The commercial arrangements with Procurement of Goods and Services by an entity from, a country or Ministries or Departments will be mandatory for countries, or a class of Goods or Services available on GeM. The countries, on grounds of credentials of suppliers on GeM shall be certified defence of India, or matters by GeM SPV. The procuring authorities will directly or indirectly related certify the reasonability of rates. The GeM portal thereto including national shall be utilized by the Government buyers for security; no procurement shall direct on-line purchases as under: be made in violation of such restrictions.]1 (i) [Up to [(Rs.50,000/-)4]5 through any of the available suppliers on the GeM, Rule 145 Authorities competent to purchase meeting the requisite quality, goods. An authority which is specification and delivery period]. competent to incur expenditure may Note: In case of automobiles, sanction the purchase of goods procurement under this sub-rule is required for use in public service in permitted without any ceiling limit. accordance with provisions in the (ii) Above [Rs.50,000/- and up to Delegation of Financial Powers Rs.10,00,000/-6]7 through the GeM Rules, following the general Seller having lowest price amongst the procedure contained in the following available sellers of at least three rules. different manufacturers, on GeM, Rule 146 Procurement of goods required on meeting the requisite quality, mobilisation Procurement of goods specification and delivery period. The required on mobilisation and/ or tools for online bidding and online during the continuance of Military reverse auction available on GeM can operations shall be regulated by 1 Amended vide Department of Expenditure (DoE), Ministry of Ministry/Department, notified vide Department of Expenditure OM Finance (MoF) OM No. F.7/10/2021-PPD dated 23.02.2023. No. F. 20/42/2021-PPD dated 18.07.2024. 2 Amended vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. 6 Amended vide Department of Expenditure (DoE), Ministry of 3 Deleted vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. Finance (MoF) OM No. F/1/3/2024-PPD dated 10.07.2024. 4 Amended vide Department of Expenditure (DoE), Ministry of 7 Replace with above Rs. 1,00,000/- and up to Rs. 10,00,000/- in Finance (MoF) OM No. F/1/3/2024-PPD dated 10.07.2024. case of Scientific Ministries/Departments /Organisation of Government of India which are Department of Science and 5 Replace with upto Rs. 1,00,000/- in case of Scientific Technology, Department of Bio-technology, Department of Ministries/Departments/Organisation of Government of India which Scientific & Industrial Research, Department of Atomic Energy, are Department of Science and Technology, Department of Bio- Department of Space, Ministry of Earth Sciences, Defence technology, Department of Scientific & Industrial Research, Research and Development Organisation, Indian Council of Department of Atomic Energy, Department of Space, Ministry of Agricultural Research(ICAR), including its affiliated institutions and Earth Sciences, Defence Research and Development Organisation, Universities, Department of Health Research (DHR), including Indian Council of Agricultural Research(ICAR), including its Indian Council of Medical Research, Educational and Research affiliated institutions and Universities, Department of Health Institutes conducting post-graduate/doctoral level courses or Research (DHR), including Indian Council of Medical Research, research, under any Ministry/Department, notified vide Department Educational and Research Institutes conducting post- of Expenditure OM No. F. 20/42/2021-PPD dated 18.07.2024. graduate/doctoral level courses or research, under any 34be used by the Buyer even for on GeM as and when the item or service procurements less than [Rs gets listed on GeM.]10 10,00,000]8. (ii) Credentials, manufacturing capability, (iii) Above [Rs.10,00,000/-]9 through the quality control systems, past supplier having lowest price meeting the performance, after-sales service, requisite quality, specification and financial background etc. of the delivery period after mandatorily supplier(s) should be carefully verified obtaining bids, using online bidding or before registration. reverse auction tool provided on GeM. (iii) The supplier(s) will be registered for a (iv) The invitation for the online e- fixed period (between 1 to 3 years) bidding/reverse auction will be available depending on the nature of the goods. to all the existing Sellers or other Sellers At the end of this period, the registered registered on the portal and who have supplier(s) willing to continue with offered their goods/services under the registration are to apply afresh for particular product/service category, as renewal of registration. New supplier(s) per terms and conditions of GeM. may also be considered for registration (v) The above-mentioned monetary ceiling at any time, provided they fulfill all the is applicable only for purchases made required conditions. through GeM. For purchases, if any, (iv) Performance and conduct of every outside GeM, relevant GFR Rules shall registered supplier is to be watched by apply. the concerned Ministry or Department. (vi) The Ministries/Departments shall work The registered supplier(s) are liable to out their procurement requirements of be removed from the list of approved Goods and Services on either "OPEX" suppliers if they fail to abide by the terms model or "CAPEX" model as per their and conditions of the registration or fail requirement/ suitability at the time of to supply the goods on time or supply preparation of Budget Estimates (BE) substandard goods or make any false and shall project their Annual declaration to any Government agency Procurement Plan of goods and or for any ground which, in the opinion services on GeM portal within 30 days of the Government, is not in public of Budget approval. interest. (vii) The Government Buyers may ascertain (v) [The list of registered suppliers for the the reasonableness of prices before subject matter of procurement be placement of order using the Business exhibited on websites of the Procuring Analytics (BA) tools available on GeM Entity/ their e-Procurement portals.]11 including the Last Purchase Price on Rule 151 Debarment from bidding. GeM, Department's own Last Purchase (i) A bidder shall be debarred if he has Price etc. been convicted of an offence— (viii) A demand for goods shall not be divided (a) Under the Prevention of into small quantities to make piecemeal Corruption Act, 1988; or purchases to avoid procurement (b) The Bharatiya Nyaya Sanhita or through L-1 Buying / bidding / reverse any other law for the time being in auction on GeM or the necessity of force, for causing any loss of life or obtaining the sanction of higher property or causing a threat to authorities required with reference to the public health as part of execution estimated value of the total demand. of a public procurement contract. Rule 150 Registration of Suppliers (ii) A bidder debarred under sub-section (i) [For goods and services not available on (i) or any successor of the bidder shall GeM, Head of Ministry/ Department may not be eligible to participate in a also register suppliers of goods and procurement process of any services which are specifically required procuring entity for a period not by that Department or Office, exceeding three years commencing periodically. Registration of the supplier from the date of debarment. should be done following a fair, Department of Expenditure (DoE) will transparent and reasonable procedure maintain such list which will also be and after giving due publicity. Such displayed on the Central Public registered suppliers should be boarded Procurement Portal.12 8 Amended vide Department of Expenditure (DoE), Ministry of 10 Amended vide DoE OM No. F. 1/26/2018-PPD dated 02.04.2019 Finance (MoF) OM No. F/1/3/2024-PPD dated 10.07.2024. 11 Amended vide DoE OM No. F. 1/26/2018-PPD dated 02.04.2019 9 Amended vide Department of Expenditure (DoE), Ministry of 12 Amended vide DoE OM No. F.1/20/2018-PPD dated 02.11.2021 Finance (MoF) OM No. F/1/3/2024-PPD dated 10.07.2024. 35(iii) A procuring entity may debar a bidder etc. including Weavers having or any of its successors, from Pehchan Cards.]14 participating in any procurement (ii) Ministry of Micro, Small and process undertaken by it, for a period Medium Enterprises (MSME) not exceeding two years, if it have notified procurement determines that the bidder has policy under section 11 of the breached the code of integrity. The Micro, Small and Medium Ministry/Department will maintain Enterprises Development Ad, such list which will also be displayed 2006. on their website. (iii) The Central Government may, (iv) The bidder shall not be debarred unless by notification, provide for such bidder has been given a mandatory procurement of any reasonable opportunity to represent goods or services from any against such debarment category of bidders, or provide Rule 152 Enlistment of Indian Agents: for preference to bidders on the [Ministries / Departments if they so grounds of promotion of locally require, may enlist Indian agents, manufactured goods or locally who desire to quote directly on provided services. behalf of their foreign principals.]13 Rule 154 Purchase of goods without Ru1e 153 Reserved Items and other quotation Purchase/ Price Preference [In case a certain item is not Policy. available on GeM portal], Purchase (i) [The Central Government, of goods upto the value of [{Rs. through administrative 50,000 (Rupees fifty thousand) instructions, has reserved all only}15]16 on each occasion may be items of hand spun and hand- made without inviting quotations or woven textiles (khadi goods) for bids on the basis of a certificate to be exclusive purchase from Khadi recorded by the competent authority Village Industries commission in the following format. (KVIC). Of all items of textiles "I am personally satisfied that these required by Central goods purchased are of the requisite Government departments, it quality and specification and have shall be mandatory to make been purchased from a reliable procurement of at least 20% supplier at a reasonable price." from amongst items of Rule 155 Purchase of goods by Purchase handloom origin, for exclusive Committee. [In case a certain item is purchase from KVIC and/ or not available on the GeM portal]17, Handloom Clusters such as Co- Purchase of goods costing above Operative Societies, Self Help [{Rs.50,000 (Rupees Fifty thousand Group (SHG) Federations, Joint only) and upto Rs.5,00,000/- (Rupees Liability Group (JLG), Producer Five lakh only)}18]19 on each Companies (PC), Corporations 13 Amended vide DoE OM No. F.26/2/2016-PPD dated 25.07.2017 goods are not available on Government e-Marketplace (GeM) as 14 Amended vide DoE OM No. F.10/2/2019-PPD(Pt.) dated stipulated in this Department OM No. 6/1/2018-PPD dated 19.01.2018. 17.02.2020. 15 Amended vide Department of Expenditure (DoE), Ministry of 17 Inserted vide DoE OM No. F.1.26/2018-PPD dated 02.04.2019. Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024. 18 Amended vide DoE OM No. F.1/3/2024-PPD dated 10.07.2024 16 Replace with purchase of goods upto the value of Rs. 2,00,000/- 19 Replace with purchase of goods costing above Rs. 2,00,000/- (Rupees (Rupees Two lakh) only on each occasion in case of Scientific Two lakh) and upto Rs. 25,00,000/- (Rupees Twenty Five lakh) on each Ministries/ Departments/ Organization of Government of India which occasion in case of Scientific Ministries/ Departments/ Organization of Government of India which are Department of Science and Technology, are Department of Science and Technology, Department of Bio- Department of Bio-technology, Department of Scientific & Industrial technology, Department of Scientific & Industrial Research, Research, Department of Atomic Energy, Department of Space, Ministry Department of Atomic Energy, Department of Space, Ministry of of Earth Sciences, Defence Research and Development Organisation, Earth Sciences, Defence Research and Development Organisation, Indian Council of Agricultural Research (ICAR), including its affiliated Indian Council of Agricultural Research (ICAR), including its affiliated institutions and Universities, Department of Health Research (DHR), institutions and Universities, Department of Health Research (DHR), including Indian Council of Medical Research, Educational and Research including Indian Council of Medical Research, Educational and Institutes conducting post-graduate/ doctoral level courses or research, Research Institutes conducting post-graduate/ doctoral level under any Ministry/ Department, notified vide Department of courses or research, under any Ministry/ Department, notified vide Expenditure OM No. F.20/42/2021-PPD dated 05.06.2025. Note: These Department of Expenditure OM No. F.20/42/2021-PPD dated powers can be used for procurement of Scientific Equipment and 05.06.2025. Note: These powers can be used for procurement of consumables for research purpose only. Further, these powers are Scientific Equipment and consumables for research purpose to be used only when the required goods are not available on only. Further, these powers are to be used only when the required Government e-Marketplace (GeM) as stipulated in this Department OM No. 6/1/2018-PPD dated 19.01.2018. 36occasion may be made on the confidentiality is required, for recommendations of a duly reasons of national security, constituted Local Purchase would be exempted from the Committee consisting of three mandatory e-publishing members of an appropriate level as requirement. The decision to decided by the Head of the exempt any case on the said Department. The committee will grounds should be approved by survey the market to ascertain the the Secretary of the Ministry/ reasonableness of rate, quality and Department with the specifications and identify the concurrence of the concerned appropriate supplier. Before Financial Advisor. In the case of recommending placement of the Autonomous Bodies and purchase order, the members of the Statutory Bodies' approval of committee will jointly record a the Head of the Body with the certificate as under: concurrence of the Head of the "Certified that we, members of the Finance should be obtained in purchase committee are jointly and each such case. Statistical individually satisfied that the goods information on the number of recommended for purchase are of the cases in which exemption was requisite specification and quality, granted and the value of the priced at the prevailing market rate concerned contract should be and the supplier recommended is intimated on a Quarterly basis reliable and competent to supply the to the Ministry of Finance, goods in question, and it is not Department of Expenditure. debarred by Department of (iii) The above instructions apply to Expenditure20 or Ministry/ all Tender Enquiries, Requests Department concerned." for Proposals, Requests for Rule 156 Deleted.21 Expressions of Interest, Notice for pre-Qualification/ Rule 157 A demand for goods should not be Registration or any other notice divided into small quantities to make inviting bids or proposals in any piecemeal purchases to avoid the form whether they are necessity of obtaining the sanction of advertised, issued to limited higher authority required with number of parties or to a single reference to the estimated value of party. the total demand Rule 158 Purchase of goods by obtaining (iv) Deleted.22 bids. Except in cases covered under (v) These instructions would not Rule 154 and 155, Ministries or apply to procurements made in Departments shall procure goods terms of provisions of Rules 154 under the powers referred to in Rule (Purchase of goods without 140 above by following the standard quotations) or 155 (Purchase of method of obtaining bids in: goods by purchase committee) (i) Advertised Tender Enquiry of General Financial Rules. (ii) Limited Tender Enquiry Rule 160 E -Procurement (iii) Two-Stage Bidding (i) It is mandatory for (iv) Single Tender Enquiry Ministries/Departments to (v) Electronic Reverse Auctions receive all bids through e- Rule 159 E-Publishing procurement portals in respect (i) It is mandatory for all Ministries/ of all procurements. Departments of the Central (ii) Ministries/ Departments which Government, their attached and do not have a large volume of Subordinate Offices and procurement or carry out Autonomous /Statutory Bodies procurements required only for to publish their tender enquiries, day-to-day running of offices corrigenda thereon and details and also have not initiated e- of bid awards on the GeM- procurement through any other Central Public Procurement solution provided so far, may Portal (GeM-CPPP). use e-procurement solution (ii) Individual cases where developed by NIC. Other 20 Amended vide DoE OM No. F.1/20/2018-PPD dated 02.11.2021. 22 Deleted vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. 21 Deleted vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. 37Ministries/ Departments may Department feels that the either use e-procurement goods of the required solution developed by NIC or quality, specifications etc., engage any other service may not be available in the provider following due process. country and it is necessary (iii) Deleted.23 to also look for suitable (iv) In individual case where competitive offers from national security and strategic abroad, the Ministry or considerations demands Department may send confidentiality, Ministries/ copies of the tender notice Departments may exempt such to the Indian Embassies cases from e-procurement after abroad as well as to the seeking approval of concerned Foreign Embassies in Secretary and with concurrence India. The selection of of Financial Advisers. embassies will depend on (v) In case of tenders floated by the possibility of availability Indian Missions Abroad, of the required goods in Competent Authority to decide such countries. In such the tender, may exempt such cases e-procurement as case from e-procurement. per Rule 160 may not be Rule 161 Advertised Tender Enquiry insisted. (i) Subject to exceptions (b) No Global Tender Enquiry incorporated under Rule 154, (GTE), however shall be 155, 162 and 166, invitation to invited for tenders up to Rs tenders by advertisement 200 crore or such limit as should be used for procurement may be prescribed by the of goods of estimated value of Department of Expenditure [(Rs. 50 lakhs (Rupees Fifty from time to time. Provided Lakh) and above)24]25 that for tenders below such limit, in exceptional cases, Advertisement in such cases where the Ministry or should be given on GeM as well Department feels that as on GeM- Central Public there are special reasons Procurement Portal (GeM- for GTE, it may record its CPPP)]. An organisation having detailed justification and its own website should also seek prior approval for publish all its advertised tender relaxation to the above rule enquiries on the website. from the Competent (ii) The organisation should also Authority specified by the post the complete bidding Department of document in its website and on GeM-CPPP to enable Expenditure.]26 prospective bidders to make (v) In order to promote wider use of the document by participation and ease of downloading from the web site. bidding, no cost of tender (iii) The advertisements for document may be charged for invitation of tenders should give the tender documents the complete web address from downloaded by the bidders. where the bidding documents (vi) Ordinarily, the minimum time to can be downloaded. be allowed for submission of (iv) [Global Tender Enquiry (GTE): bids should be three weeks (a) Where the Ministry or from the date of publication of 23 Deleted vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. institutions and Universities, Department of Health Research (DHR), 24 Amended vide Department of Expenditure (DoE), Ministry of including Indian Council of Medical Research, Educational and Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 Research Institutes conducting post-graduate/ doctoral level 25 Replace with procurement of goods estimated value of Rs. courses or research, under any Ministry/ Department, notified vide Department of Expenditure OM No. F.20/42/2021-PPD dated 1,00,00,000/- (Rupees one crore) and above in case of Scientific 05.06.2025. Note: These powers can be used for procurement of Ministries/ Departments/ Organization of Government of India which Scientific Equipment and consumables for research purpose are Department of Science and Technology, Department of Bio- only. technology, Department of Scientific & Industrial Research, Department of Atomic Energy, Department of Space, Ministry of Earth Sciences, Defence Research and Development Organisation, 26 Amended vide DoE OM No. F.12/17/2019-PPD dated 15.05.2020 Indian Council of Agricultural Research (ICAR), including its affiliated 38the tender notice or availability (a) The competent authority in of the bidding document for the Ministry or Department sale, whichever is later. Where certifies that the demand is the Department also urgent and any additional contemplates obtaining bids expenditure involved by from abroad, the minimum not procuring through period should be kept as four advertised tender enquiry weeks for both domestic and is justified in view of foreign bidders. urgency. The Ministry or Rule 162 Limited Tender Enquiry Department should also (i) This method may be adopted put on record the nature of when estimated value of the the urgency and reasons goods to be procured is up to why the procurement could [Rs. 50 lakhs (Rupees Fifty not be anticipated. Lakhs)27]28. Copies of the (b) There are sufficient bidding document should be reasons, to be recorded in sent directly by speed writing by the competent post/registered post/courier/ e- authority, indicating that it mail to firms which are borne on will not be in public interest the list of registered suppliers to procure the goods for the goods in question as through advertised tender referred under Rule 150 above. enquiry. The number of supplier firms in (c) The sources of supply are Limited Tender Enquiry should definitely known and be more than three. Efforts possibility of fresh should be made to identify a source(s) beyond those higher number of approved being tapped is remote. suppliers to obtain more (iv) Sufficient time should be responsive bids on competitive allowed for submission of bids basis. in Limited Tender Enquiry Further, an organisation should cases. publish its limited tender Rule 163 Two bid system (simultaneous enquiries on [GeM as well as on receipt of separate technical and GeM- Central Public financial bids): For purchasing high Procurement Portal (GeM- value plant, machinery etc. of a CPPP). An organisation having complex and technical nature, bids its own website should also may be obtained in two parts as publish all its advertised tender under: enquiries on the website]29 (i) Technical bid consisting of all technical details along with (ii) The unsolicited bids should not commercial terms and be accepted. However, conditions; and Ministries/ Departments should (ii) Financial bid indicating item- evolve a system by which wise price for the items interested firms can register and mentioned in the technical bid in next round of tendering. bid. (iii) Purchase through Limited The technical bid and the financial bid Tender Enquiry may be adopted should be sealed by the bidder in even where the estimated value separate covers duly super-scribed of the procurement is more than and both these sealed covers are to [Rupees Fifty Lakhs]30, in the be put in a bigger cover which should following circumstances. also be sealed and duly super- 27 Amended vide Department of Expenditure (DoE), Ministry of Department of Health Research (DHR), including Indian Council of Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 Medical Research, Educational and Research Institutes conducting 28 Replace with when estimated value of goods to be procured is post-graduate/ doctoral level courses or research, under any Ministry/ Department, notified vide Department of Expenditure OM up to 1,00,00,000/- (Rupees one crore) and above in case of No. F.20/42/2021-PPD dated 05.06.2025. Note: These powers can Scientific Ministries/ Departments/ Organization of Government of be used for procurement of Scientific Equipment and India which are Department of Science and Technology, consumables for research purpose only. Department of Bio-technology, Department of Scientific & Industrial Research, Department of Atomic Energy, Department of 29 Amended vide Department of Expenditure (DoE), Ministry of Space, Ministry of Earth Sciences, Defence Research and Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 Development Organisation, Indian Council of Agricultural Research 30 Amended vide Department of Expenditure (DoE), Ministry of (ICAR), including its affiliated institutions and Universities, Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 39scribed. The technical bids are to be advertised tender opened by the purchasing Ministry or containing the technical Department at the first instance and aspects and contractual evaluated by a competent committee terms and conditions of the or authority. At the second stage proposed procurement financial bids of only these technically without a bid price; acceptable offers should be opened (b) All first stage bids, which after intimating them the date and are otherwise eligible, shall time of opening the financial bid for be evaluated through an further evaluation and ranking before appropriate committee awarding the contract. constituted by the Ministry/ Rule 164 Two-Stage Bidding (Obtain bids in Department; two stages with receipt of financial (c) The committee may hold bids after receipt and evaluation of discussions with the technical bids) bidders and if any such (i) Ministry/Department may discussion is held, equal procure the subject matter of opportunity shall be given procurement by the method of to all bidders to participate two-stage bidding, if in the discussions; (a) It is not feasible to (d) In revising the relevant formulate detailed terms and conditions of the specifications or identify procurement, the procuring specific characteristics for entity shall not modify the the subject matter of fundamental nature of the procurement, without procurement itself, but may receiving inputs regarding add, amend or omit any its technical aspects from specification of the subject bidders; or matter of procurement or (b) The character of the criterion for evaluation; subject matter of (e) In the second stage of the procurement is subject to bidding process, the rapid technological procuring entity shall invite advances or market bids from all those bidders fluctuations or both; or whose bids at the first (c) Ministry/Department seeks stage were not rejected, to to enter into a contract for present final bid with bid the purpose of research, prices in response to a experiment, study or revised set of terms and development, except conditions of the where the contract procurement; includes the production of (f) Any bidder, invited to bid items in quantities but not in a position to sufficient to establish their supply the subject matter commercial viability or to of procurement due to recover research and modification in the development costs; or specifications or terms and (d) The bidder is expected to conditions, may withdraw carry out a detailed survey from the bidding or investigation and proceedings without undertake a forfeiting any bid security comprehensive that he may have been assessment of risks, costs required to provide or and obligations associated being penalised in any with the particular way, by declaring his procurement. intention to withdraw from (ii) The procedure for two stage the procurement bidding shall include the proceedings with adequate following, namely: justification. (a) In the first stage of the Rule 165 Late Bids. In the case of advertised bidding process, the tender enquiry or limited tender enquiry, Ministry/Department shall late bids (i.e. bids received after the invite bids through specified date and time for receipt of 40bids) should not be considered. formulate a detailed Rule 166 Single Tender Enquiry. Procurement description of the subject from a single source may be matter of the procurement; resorted to in the following (b) There is a competitive circumstances: market of bidders (i) It is in the knowledge of the user anticipated to be qualified department that only a to participate in the particular firm is the electronic reverse auction, manufacturer of the required so that effective goods. competition is ensured; (ii) In a case of emergency, the (c) The criteria to be used by required goods are necessarily the procuring entity in to be purchased from a determining the successful particular source and the bid are quantifiable and reason for such decision is to can be expressed in be recorded and approval of monetary terms; and competent authority obtained. (iii) The procedure for electronic (iii) For standardisation of reverse auction shall include the machinery or spare parts, to be following, namely: compatible to the existing sets (a) The procuring entity shall of equipment (on the advice of solicit bids through an a competent technical expert invitation to the electronic and approved by the competent reverse auction to be authority), the required item is published or to be purchased only from a communicated in selected firm accordance with the Note: Proprietary Article Certificate in the provisions similar to e- following form is to be provided by the procurement; and Ministry/ Department before procuring the (b) The invitation shall, in goods from a single source under the addition to the information provision of sub-Rule 166 (i) and 166 (iii) as as specified in e- applicable. procurement, include (i) The indented goods are manufactured details relating to access to by M/s …………………… and registration for the (ii) No other make or model is acceptable auction, opening and for the following reasons: closing of the auction and ………………………………… Norms for conduct of the (iii) Concurrence of finance wing to the auction. proposal vide: Rule 168 Contents of Bidding Document ………………………………… All the terms, conditions, stipulations (iv) Approval of the competent authority and information to be incorporated in vide: the bidding document are to be (Signature with date and shown in the appropriate chapters as designation of the indenting below: officer) Chapter-1: Instructions to Bidders. Rule 167 Electronic Reverse Auction Chapter-2: Conditions of Contract. (i) Electronic Reverse Auction Chapter-3: Schedule of means an online real-time Requirements. purchasing technique utilised by Chapter-4: Specifications and the procuring entity to select the allied Technical Details. successful bid, which involves Chapter-5: Price Schedule (to be presentation by bidders of utilised by the bidders for quoting successively more favourable their prices). bids during a scheduled period Chapter-6: Contract Form. of time and automatic Chapter-7: Other Standard Forms, if evaluation of bids; any, to be utilised by the purchaser (ii) A procuring entity may choose and the bidders. to procure a subject matter of Rule 169 Maintenance Contract. Depending procurement by the electronic on the cost and nature of the goods reverse auction method, if: to be purchased, it may also be (a) It is feasible for the necessary to enter into maintenance procuring entity to contract(s) of suitable period either 41with the supplier of the goods or with the purchaser's interest in all any other competent firm, not respects. The bid security is necessarily the supplier of the normally to remain valid for a subject goods. Such maintenance period of forty-five days beyond contracts are especially needed for the final bid validity period. sophisticated and costly equipment (ii) Bid securities of the and machinery. It may, however, be unsuccessful bidders should be kept in mind that the equipment or returned to them at the earliest machinery is maintained free of after expiry of the final bid charge by the supplier during its validity and latest on or before warranty period or such other the 30th day after the award of extended periods as the contract the contract. terms may provide and the paid [However, in case of two packet maintenance should commence only or two stage bidding, Bid thereafter. securities of unsuccessful Rule 170 Bid Security bidders during first stage i.e. (i) To safeguard against a bidder's technical evaluation etc. should withdrawing or altering its bid be returned within 30 days of during the bid validity period in declaration of result of first the case of advertised or limited stage i.e. technical evaluation tender enquiry, Bid Security etc.]34 (also known as Earnest Money) (iii) In place of a Bid security, the is to be obtained from the Ministries/ Departments may bidders except Micro and Small require Bidders to sign a Bid Enterprises (MSEs) as defined securing declaration accepting in MSE Procurement Policy that if they withdraw or modify issued by Department of Micro, their Bids during the period of Small and Medium Enterprises validity, or if they are awarded (MSME) or are registered with the contract and they fail to sign the Central Purchase the contract, or to submit a Organisation or the concerned performance security before the Ministry or Department [or deadline defined in the request Startups as recognized by for bids document, they will be Department for Promotion of suspended for the period of time Industry and Internal Trade specified in the request for bids (DPIIT)]31. The bidders should document from being eligible to be asked to furnish bid security submit Bids for contracts with along with their bids. Amount of the entity that invited the Bids. bid security should ordinarily Rule 171 Performance Security range between two percent to (i) To ensure due performance of five percent of the estimated the contract, Performance value of the goods to be Security is to be obtained from procured. The amount of bid the successful bidder awarded security should be determined the contract. Unlike contracts of accordingly by the Ministry or Works and Plants, in case of Department and indicated in the contracts for goods, the need bidding documents. The bid for the Performance Security security may be accepted in the depends on the market form of [Insurance Surety conditions and commercial Bonds]32 Account Payee practice for the particular kind of Demand Draft, Fixed Deposit goods. Performance Security, Receipt, Banker's Cheque or [in respect of procurement only Bank Guarantee [including e- of Goods/ Consultancy Bank Guarantee]33 from any of Services/ Non-Consultancy Services, should be for an the Commercial Banks or amount of three to five per cent payment online in an acceptable form, safeguarding (3-5%)]35. of the value of the 31 Inserted vide DoE OM No. F.20/2/2014-PPD(Pt.) dated 34 Inserted vide DoE OM No. F.1/2/2022-PPD dated 01.04.2022. 25.07.2017. 35 Amended vide DoE OM No. F.1/2/2023-PPD dated 01.01.2024 32 Inserted vide DoE OM No. F.1/1/2022-PPD dated 02.02.2022. Amount of performance security plus security deposit/ retention money for 33 Inserted vide DoE OM No. F.1/4/2022-PPD dated 05.08.2022. procurement of works will continue to be 3% to 10%. 42contract as specified in the bid their Financial Advisers documents. Performance concerned, the ceilings Security may be furnished in the (including percentage laid form of [Insurance Surety down for advance payment Bond]36 Account Payee for private firms) mentioned Demand Draft, Fixed Deposit above. While making any Receipt from a Commercial advance payment as above, bank, Bank Guarantee adequate safeguards in the [including e-Bank Guarantee]37 form of bank guarantee etc. should be obtained from the from a Commercial bank or firm. online payment in an Rule 172 (2) Part payment to suppliers: acceptable form safeguarding Depending on the terms of delivery the purchaser's interest in all incorporated in a contract, part respects. payment to the supplier may be (ii) Performance Security should released after it dispatches the goods remain valid for a period of sixty from its premises in terms of the days beyond the date of contract. completion of all contractual Rule 173 Transparency, competition, obligations of the supplier fairness and elimination of including warranty obligations. arbitrariness in the procurement (iii) Bid security should be refunded process All government purchases to the successful bidder on should be made in a transparent, receipt of Performance competitive and fair manner, to Security. secure best value for money. This will Rule 172 (1) Advance payment to supplier also enable the prospective bidders Ordinarily, payments for services to formulate and send their rendered or supplies made should be competitive bids with confidence. released only after the services have Some of the measures for ensuring been rendered or supplies made. the above are as follows: - However, it may become necessary (i) The text of the bidding to make advance payments for document should be self- example in the following types of contained and comprehensive cases: without any ambiguities. All (i) Advance payment demanded essential information, which a by firms holding maintenance bidder needs for sending contracts for servicing of Air- responsive bid, should be conditioners, computers, other clearly spelt out in the bidding costly equipment, etc. document in simple language. (ii) Advance payment demanded The condition of prior turnover by firms against fabrication and prior experience may be contracts, turn-key contracts relaxed for Startups (as defined etc. by Department of Industrial Such advance payments should Policy and Promotion) subject not exceed the following limits: to meeting of quality & technical (a) Thirty per cent. of the specifications and making contract value to private suitable provisions in the firms; bidding document. The bidding (b) Forty per cent. of the document should contain, inter contract value to a State or alia. Central Government (a) Description and agency or a Public Sector Specifications of goods Undertaking; or including the nature, (c) In case of maintenance quantity, time and place or contract, the amount should places of delivery. not exceed the amount (b) The criteria for eligibility and payable for six months qualifications to be met by under the contract. the bidders such as Ministries or Departments of minimum level of the Central Government may experience, past relax, in consultation with 36 Inserted vide DoE OM No. F.1/1/2022-PPD dated 02.02.2022. 37 Inserted vide DoE OM No. F.1/4/2022-PPD dated 05.08.2022. 43performance, technical (c) Any bidder who has capability, manufacturing submitted his bid in facilities and financial response to the original position etc. or limitation for invitation shall have the participation of the bidders, if opportunity to modify or re- any. submit it, as the case may (c) Eligibility criteria for goods be, or withdraw such bid in indicating any legal case the modification to restrictions or conditions bidding document materially about the origin of goods etc. affect the essential terms of which may be required to be the procurement, within the met by the successful period initially allotted or bidder. such extended time as may (d) The procedure as well as be allowed for submission of date, time and place for bids, after the modifications sending the bids. are made to the bidding (e) Date, time and place of document by the procuring opening of the bid. entity: (f) Criteria for evaluation of bids Provided that the bid last (g) Special terms affecting submitted or the bid as performance, if any. modified by the bidder shall (h) Essential terms of the be considered for evaluation procurement contract. (iv) Suitable provision should be (i) Bidding Documents should kept in the bidding document to include a clause that "if a firm enable a bidder to question the quotes NIL charges/ bidding conditions, bidding consideration, the bid shall process and/ or rejection of its be treated as unresponsive bid. The reasons for rejecting a and will not be considered". tender or non-issuing a tender (ii) Any other information which the document to a prospective procuring entity considers bidder must be disclosed where necessary for the bidders to enquiries are made by the submit their bids. bidder. (iii) Modification to bidding (v) Suitable provision for settlement document: of disputes, if any, emanating (a) In case any from the resultant contract, modification is made to the should be kept in the bidding bidding document or any document. clarification is issued which (vi) The bidding document should materially affects the terms indicate clearly that the contained in the bidding resultant contract will be document, the procuring interpreted under Indian Laws. entity shall publish or (vii) The bidders should be given communicate such reasonable time to prepare and modification or clarification send their bids. in the same manner as the (viii) The bids should be opened in publication or public and authorised communication of the initial representatives of the bidders bidding document was should be permitted to attend made. the bid opening. (b) In case a clarification or (ix) The specifications of the modification is issued to the required goods should be bidding document, the clearly stated without any procuring entity shall, before ambiguity so that the the last date for submission prospective bidders can send of bids, extend such time meaningful bids. In order to limit, if, in its opinion more attract sufficient number of time is required by bidders to bidders, the specification should take into account the be broad based to the extent clarification or modification, feasible as the case may be, while (x) Pre-bid conference: In case of submitting their bids. turn- key contract(s) or 44contract(s) of special nature for exceptional circumstances procurement of sophisticated where price negotiation against and costly equipment or an ad-hoc procurement is wherever felt necessary, a necessary due to some suitable provision is to be kept unavoidable circumstances, the in the bidding documents for same may be resorted to only one or more rounds of pre-bid with the lowest evaluated conference for clarifying issues responsive bidder. and clearing doubts, if any, (xv) Deleted.38 about the specifications and (xvi) Contract should ordinarily be other allied technical details of awarded to the lowest the plant, equipment and evaluated bidder whose bid has machinery etc. projected in the been found to be responsive bidding document. The date, and who is eligible and qualified time and place of pre-bid to perform the contract conference should be indicated satisfactorily as per the terms in the bidding document. This and conditions incorporated in date should be sufficiently the corresponding bidding ahead of bid opening date. The document. However, where the records of such conference lowest acceptable bidder shall be intimated to all bidders against ad-hoc requirement is and, shall also be exhibited on not in a position to supply the full the website(s) where tender quantity required, the remaining was published. quantity, as far as possible, be (xi) Criteria for determining ordered from the next higher responsiveness are to be taken responsive bidder at the rates into account for evaluating the offered by the lowest bids such as: responsive bidder. (a) Time of delivery. (xvii) Procurement of Energy Efficient (b) Performance/ efficiency/ Electrical Appliances: environmental Ministries/ Departments while characteristics. procuring electrical appliances (c) The terms of payment and notified by Department of of guarantees in respect of Expenditure shall ensure that the subject matter of they carry the notified threshold procurement or higher Star Rating of Bureau (d) Price. of Energy Efficiency (BEE). (e) Cost of operating, (xviii) The name of the successful maintaining and repairing bidder awarded the contract etc. should be mentioned on the (xii) Bids received should be GeM-CPPP, Ministries or evaluated in terms of the Departments website and their conditions already incorporated notice board or bulletin. in the bidding documents; No (xix) Rejection of all Bids is justified new condition which was not when incorporated in the bidding a. Effective competition is documents should be brought in lacking. for evaluation of the bids. b. All Bids and Proposals are Determination of a bid's not substantially responsiveness should be responsive to the based on the contents of the bid requirements of the itself without recourse to Procurement Documents. extrinsic evidence. c. The Bids'/Proposals' prices (xiii) Bidders should not be permitted are substantially higher to alter or modify their bids after that the updated cost expiry of the deadline for receipt estimate or available of bids. budget; or (xiv) Negotiation with bidders after d. None of the technical bid opening must be severely Proposals meets the discouraged. However, in minimum technical 38 Deleted vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. 45qualifying score. bid validity must be discouraged (xx) Lack of competition in rule and resorted to only in 173(xix) shall not be determined exceptional circumstances. solely on the basis of the (iv) Deleted.40 number of Bidders. Even when Rule 175 (1) Code of Integrity only one Bid is submitted, the No official of a procuring entity or process may be considered a bidder shall act in valid provided following contravention of the codes conditions are satisfied: which includes a. The procurement was (i) Prohibition of satisfactorily advertised (a) Making offer, solicitation or and sufficient time was acceptance of bribe, given for submission of reward or gift or any bids. material benefit, either b. The qualification criteria directly or indirectly, in were not unduly restrictive; exchange for an unfair and advantage in the c. Prices are reasonable in procurement process or to comparison to market otherwise influence the values procurement process. (xxi) When a limited or open tender (b) Any omission, or results in only one effective misrepresentation that offer, it shall be treated as a may mislead or attempt to single tender contract. mislead so that financial or (xxii) In case a purchase Committee other benefit may be is constituted to purchase or obtained or an obligation recommend the procurement, avoided. no member of the purchase (c) Any collusion, bid rigging Committee should be reporting or anticompetitive behavior directly to any other member of that may impair the such Committee in case transparency, fairness and estimated value of procurement the progress of the exceeds [Rs. 50 lakhs]39. procurement process. Rule 174 Efficiency, Economy and (d) Improper use of Accountability in Public information provided by the Procurement System. Public procuring entity to the procurement procedure should bidder with an intent to gain ensure efficiency, economy and unfair advantage in the accountability in the system. To procurement process or for achieve the same, the following keys personal gain. areas should be addressed: (e) Any financial or business (i) To reduce delay, appropriate transactions between the time frame for each stage of bidder and any official of procurement should be the procuring entity related prescribed by the Ministry or to tender or execution Department. process of contract; which (ii) To minimise the time needed for can affect the decision of decision making and placement the procuring entity directly of contract, every or indirectly. Ministry/Department, with the (f) Any coercion or any threat approval of the competent to impair or harm, directly authority, may delegate, or indirectly, any party or its wherever necessary, property to influence the appropriate purchasing powers procurement process. to the lower functionaries. (g) Obstruction of any (iii) The Ministries or Departments investigation or auditing of should ensure placement of a procurement process. contract within the original (h) Making false declaration or validity of the bids. Extension of providing false information 39 Amended vide Department of Expenditure (DoE), Ministry of 40 Deleted vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 46for participation in a tender Government servant. process or to secure a Note: These Services typically contract; involve providing expert or strategic (ii) Disclosure of conflict of advice e.g., management interest. consultants, policy consultants, (iii) Disclosure by the bidder of any communications consultants, previous transgressions made Advisory and project related in respect of the provisions of Consulting Services which include, sub-clause (i) with any entity in feasibility studies, project any country during the last three management, engineering services, years or of being debarred by finance, accounting and taxation any other procuring entity. services, training and development Rule 175 (2) The procuring entity, after giving a etc. reasonable opportunity of being Rule 178 The Ministries or Departments may heard, comes to the conclusion that a hire external professionals, bidder or prospective bidder, as the consultancy firms or consultants case may be, has contravened the (referred to as consultant code of integrity, may take hereinafter) for a specific job, which appropriate measures. is well defined in terms of content Rule 176 Buy-Back Offer and time frame for its completion. When it is decided with the approval Rule 179 This chapter contains the fundamental of the competent authority to replace principles applicable to all Ministries an existing old item(s) with a new or Departments regarding and better version, the department engagement of consultant(s). may trade the existing old item while Detailed instructions to this effect purchasing the new one. For this may be issued by the concerned purpose, a suitable clause is to be Ministries or Departments. However, incorporated in the bidding the Ministries or Departments shall document so that the prospective ensure that they do not contravene and interested bidders formulate the basic rules contained in this their bids accordingly. Depending on chapter. the value and condition of the old Rule 180 Identification of Services required item to be traded, the time as well as to be performed by Consultants: the mode of handing over the old Engagement of consultants may be item to the successful bidder should resorted to in situations requiring be decided and relevant details in high quality services for which the this regard suitably incorporated in concerned Ministry/ Department the bidding document. Further, does not have requisite expertise. suitable provision should also be Approval of the competent authority kept in the bidding document to should be obtained before engaging enable the purchaser either to trade consultant(s). or not to trade the item while Rule 181 Preparation of scope of the purchasing the new one. required Consultant(s): The PROCUREMENT OF SERVICES Ministries/ Departments should A. CONSULTING SERVICES prepare in simple and concise Rule 177 "Consulting Service means any language the requirement, subject matter of procurement objectives and the scope of the (which as distinguished from 'Non- assignment. The eligibility and Consultancy Services' involves prequalification criteria to be met by primarily non-physical project- the consultants should also be specific, intellectual and procedural clearly identified at this stage. processes where outcomes/ Rule 182 Estimating reasonable expenditure: deliverables would vary from one Ministry or Department proposing to consultant to another), other than engage consultant(s) should goods or works, except those estimate reasonable expenditure for incidental or consequential to the the same by ascertaining the service, and includes professional, prevalent market conditions and intellectual, training and advisory consulting other organisations services or any other service engaged in similar activities. classified or declared as such by a Rule 183 Identification of likely sources. procuring entity but does not include (i) Where the estimated cost of the direct engagement of a retired consulting service is up to 47[Rupees Fifty lakhs]41, tasks. preparation of a long list of (iv) The support or inputs to be potential consultants may be provided by the Ministry or done on the basis of formal or Department to facilitate the informal enquiries from other consultancy. Ministries or Departments or (v) The final outputs that will be Organisations involved in required of the Consultant. similar activities, Chambers of Rule 186 Preparation and Issue of Request Commerce & Industry, for Proposal (RFP). RFP is the Association of consultancy firms document to be used by the etc. Ministry/Department for obtaining (ii) Where the estimated cost of the offers from the consultants for the consulting services is above required service. The RFP should be [Rupees Fifty lakhs]42, in issued to the shortlisted consultants to seek their technical and financial addition to (i) above, an enquiry proposals. The RFP should contain: for seeking 'Expression of Interest' from consultants (i) A letter of Invitation should be published on [GeM as (ii) Information to Consultants regarding the procedure for well as on GeM- Central Public submission of proposal. Procurement Portal (GeM- CPPP)]43. An organisation (iii) Terms of Reference (TOR). (iv) Eligibility and pre-qualification having its own website should criteria in case the same has not also publish all its advertised been ascertained through tender enquiries on the website. Enquiry for Expression of Enquiry for seeking Expression Interest. of Interest should include in (v) List of key position whose CV brief, the broad scope of work or and experience would be service, inputs to be provided by evaluated. the Ministry or Department, (vi) Bid evaluation criteria and eligibility and the pre- selection procedure. qualification criteria to be met by (vii) Standard formats for technical the consultant(s) and and financial proposal. consultant's past experience in (viii) Proposed contract terms. similar work or service. The (ix) Procedure proposed to be consultants may also be asked followed for midterm review of to send their comments on the the progress of the work and objectives and scope of the review of the final draft report. work or service projected in the Rule 187 Receipt and opening of proposals. enquiry. Adequate time should Proposals should ordinarily be asked be allowed for getting for from consultants in 'Two bid' responses from interested system with technical and financial consultants. bids sealed separately. The bidder Rule 184 Short listing of consultants. On the should put these two sealed basis of responses received from the envelopes in a bigger envelop duly interested parties as per Rule 183 sealed and submit the same to the above, consultants meeting the Ministry or Department by the requirements should be short listed specified date and time at the for further consideration. The specified place. On receipt, the number of short-listed consultants technical proposals should be should not be less than three. opened first by the Ministry or Rule 185 Preparation of Terms of Reference Department at the specified date, (TOR). time and place. The TOR should include Rule 188 Late Bids. Late bids i.e. bids received (i) Precise statement of after the specified date and time of objectives. receipt should not be considered. (ii) Outline of the tasks to be Rule 189 Evaluation of Technical Bids: carried out. Technical bids should be analysed (iii) Schedule for completion of 41 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024. 43 Amended vide Department of Expenditure (DoE), Ministry of 42 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 48and evaluated by a Consultancy (iv) The weight age of the technical Evaluation Committee (CEC) parameters i.e. non- financial constituted by the Ministry or parameters in no case should Department. The CEC shall record in exceed 80 percent. detail the reasons for acceptance or Rule 193 Least Cost System (LCS). LCS is rejection of the technical proposals appropriate for assignments of a analysed and evaluated by it. standard or routine nature (such as Rule 190 Evaluation of Financial Bids of the audits and engineering design of technically qualified bidders: The non-complex works) where well- Ministry or Department shall open the established methodologies, financial bids of only those bidders practices and standards exist. Unlike who have been declared technically QCBS, there is no weight age for qualified by the Consultancy technical score in the final evaluation Evaluation Committee as per Rule and the responsive technically 189 above for further analysis or qualified proposal with the lowest evaluation and ranking and selecting evaluated cost shall be selected. the successful bidder for placement Rule194 Single Source Selection / of the consultancy contract. Consultancy by nomination. The Rule 191 Methods of Selection/ Evaluation of selection by direct Consultancy Proposals negotiation/nomination, on the lines The basis of selection of the of Single Tender mode of consultant shall follow any of the procurement of goods, is considered methods given in Rule 192 to 194 as appropriate only under exceptional appropriate for the circumstances in circumstance such as: each case. (i) Tasks that represent a natural Rule 192 Quality and Cost Based Selection continuation of previous work (QCBS): QCBS may be used for carried out by the firm; Procurement of consultancy (ii) In case of an emergency services, where quality of situation, situations arising after consultancy is of prime concern. natural disasters, situations (i) In QCBS initially the quality of where timely completion of the technical proposals is scored as assignment is of utmost per criteria announced in the importance; and RFP. Only those responsive (iii) Situations where execution of proposals that have achieved at the assignment may involve use least minimum specified of proprietary techniques or only qualifying score in quality of one consultant has requisite technical proposal are expertise. considered further. (iv) Under some special (ii) After opening and scoring, the circumstances, it may become Financial proposals of necessary to select a particular responsive technically qualified consultant where adequate bidders, a final combined score justification is available for such is arrived at by giving single-source selection in the predefined relative weight ages context of the overall interest of for the score of quality of the the Ministry or Department. Full technical proposal and the justification for single source score of financial proposal. selection should be recorded in (iii) The RFP shall specify the the file and approval of the minimum qualifying score for competent authority obtained the quality of technical proposal before resorting to such single- and also the relative weight source selection. ages to be given to the quality (v) It shall ensure fairness and and cost (determined for each equity, and shall have a case depending on the relative procedure in place to ensure importance of quality vis-a-vis that the prices are reasonable cost aspects in the assignment, and consistent with market e.g. 70:30, 60:40, 50:50 etc). rates for tasks of a similar The proposal with the highest nature; and the required weighted combined score consultancy services are not (quality and cost) shall be split into smaller sized selected. procurement. 49Rule 195 Monitoring the Contract. The contractors on the basis of formal or Ministry/Department should be informal enquiries from other involved throughout in the conduct of Ministries or Departments and consultancy, preferably by taking a Organisations involved in similar task force approach and activities, scrutiny of 'Yellow pages', continuously monitoring the and trade journals, if available, web performance of the consultant(s) so site etc. that the output of the consultancy is Rule 200 Preparation of Tender enquiry. in line with the Ministry/Department's Ministry or Department should objectives. prepare a tender enquiry containing, Rule 196 Public competition for Design of inter alia: symbols/logos. Design competition (i) The details of the work or should be conducted in a service to be performed by the transparent, fair and objective contractor; manner. Wide publicity should be (ii) The facilities and the inputs given to the competition so as to which will be provided to the ensure that the information is contractor by the Ministry or accessible to all possible Department; participants in the competition. This (iii) Eligibility and qualification should include publication on the criteria to be met by the website of Ministry/Department contractor for performing the concerned, as also the GeM- Central required work/service; and Public Procurement Portal (GeM- (iv) The statutory and contractual CPPP). If the selection has been by obligations to be complied with a jury of experts nominated for the by the contractor. purpose, the composition of the jury Rule 201 Invitation of Bids. may also be notified. (i) For estimated value of the non- B. OUTSOURCING OF SERVICES consulting service up to Rule 197 "Non-Consulting Service" means [Rupees Fifty lakhs]44 or less: any subject matter of procurement The Ministry or Department (which as distinguished from should scrutinise the 'Consultancy Services'), involve preliminary list of likely physical, measurable deliverables/ contractors as identified as per outcomes, where performance Rule 199 above, decide the standards can be clearly identified prima facie Eligible and capable and consistently applied, other than contractors and issue limited goods or works, except those tender enquiry to them asking incidental or consequential to the for their offers by a specified service, and includes maintenance, date and time etc. as per hiring of vehicle, outsourcing of standard practice. The number building facilities management, of the contractors so identified security, photocopier service, janitor, for issuing limited tender office errand services, drilling, aerial enquiry should be more than photography, satellite imagery, three. mapping etc. (ii) For estimated value of the non- Rule 198 Procurement of Non-consulting consulting service above [Rs. Services. 50 lakhs]45: The Ministry or A Ministry or Department may Department should issue procure certain non-consulting advertisement in such cases on services in the interest of economy [GeM as well as on GeM- and efficiency and it may prescribe CPPP]46. An organisation detailed instructions and procedures having its own website should for this purpose without, however, also publish all its advertised contravening the following basic tender enquiries on the website. guidelines. The advertisements for Rule 199 Identification of likely contractors. invitation of tenders should give The Ministry or Department should the complete web address from prepare a list of likely and potential where the bidding documents 44 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 46 Amended vide Department of Expenditure (DoE), Ministry of 45 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 50can be downloaded. Rule 202 Late Bids. Late bids i.e. bids received after the specified date and time of receipt should not be considered. Rule 203 Evaluation of Bids Received. The Ministry or Department should evaluate, segregate, rank the responsive bids and select the successful bidder for placement of the contract. Rule 204 Procurement of Non-consulting services by nomination. Should it become necessary, in an exceptional situation to procure a non-consulting service from a specifically chosen contractor, the Competent Authority in the Ministry or Department may do so in consultation with the Financial Adviser. In such cases the detailed justification, the circumstances leading to such procurement by choice and the special interest or purpose it shall serve, shall form an integral part of the proposal. Rule 205 Monitoring the Contract. The Ministry or Department should be involved throughout in the conduct of the contract and continuously monitor the performance of the contractor. Rule 206 Any circumstances which are not covered in Rule 198 to Rule 205 for procurement of non-consulting services, the procuring entity may refer Rule 142 to Rule 176 pertaining to procurement of goods and not to the procurement of consulting services. 51Ch.7 - INVENTORY MANAGEMENT quality is in line with the required specifications and Rule 207 This chapter contains the basic rules there is no damage or applicable to all Ministries or deficiency in the materials. An Departments regarding inventory appropriate receipt shall also be management. Detailed instructions given to this effect by the and procedures relating to inventory indenting officer to the division management may be prescribed by sending the materials. various Ministries or Departments (ii) In the case of issue of materials broadly in conformity with the basic from stock for departmental rules contained in this chapter. use, manufacture, sale, etc., the Rule 208 (1) Receipt of goods and materials Officer-in charge of the stores from private suppliers. shall see that an appropriate (i) While receiving goods and indent, in the prescribed form materials from a supplier, the has been projected by the officer—in-charge of stores indenting officer. A should refer to the relevant written/online contract terms and follow the acknowledgement of receipt of prescribed procedure for material issued shall be receiving the materials. obtained from the indenting (ii) All materials shall be counted, officer or his authorised measured or weighed and representative at the time of subjected to visual inspection at issue of materials. the time of receipt to ensure that (iii) In case of materials issued to a the quantities are correct, the contractor, the cost of which is quality is according to the recoverable from the contractor, required specifications and all relevant particulars, including there is no damage or the recovery rates and the total deficiency in the materials. value chargeable to the Technical inspection where contractor should be got required should be carried out acknowledged from the at this stage by Technical contractor duly signed and Inspector or Agency approved dated. for the purpose. An appropriate (iv) If the Officer-in-charge of the receipt, in terms of the relevant stores is unable to comply with contract provisions may also be the indent in full, he should given to the supplier on make the supply to the extent receiving the materials. available and make suitable (iii) Details of the material so entry to this effect in the received should thereafter be indentor’s copy of the indent. In entered in the appropriate stock case alternative materials are register, preferably in an IT- available in lieu of the indented based system. The officer-in- materials, a suitable indication charge of stores should certify to this effect may be made in the that he has actually received the document. material and recorded it in the Rule 210 Custody of goods and materials. appropriate stock registers. The officer-in-charge of stores having Rule 209 Receipt/issue of goods and custody of goods and materials, materials from internal divisions especially valuable and/or of the same organisation. combustible articles, shall take (i) The indenting officer requiring appropriate steps for arranging their goods and materials from safe custody, proper storage internal division(s) of the same accommodation, including organisation should project an arrangements for maintaining indent in the prescribed form for required temperature, dust free this purpose. While receiving environment etc. the supply against the indent, Rule 211 Lists and Accounts. the indenting officer shall (i) The Officer-in-charge of examine, count, measure or stores shall maintain weigh the materials as the case suitable item-wise lists and may be, to ensure that the accounts and prepare quantities are correct, the accurate returns in respect 52of the goods and materials consumable goods and materials in his charge making it should be undertaken at least once possible at any point of time in a year and discrepancies, if any, to check the actual balances should be recorded in the stock with the book balances. The register for appropriate action by the form of the stock accounts competent authority. mentioned above shall be Rule 213 (3) Procedure for verification: determined with reference (i) Verification shall always be to the nature of the goods made in the presence of the and materials, the frequency officer, responsible for the of the transactions and the custody of the inventory being special requirements of the verified. concerned (ii) A certificate of verification along Ministries/Departments. with the findings shall be (ii) Separate accounts shall be recorded in the stock register. kept for (iii) Discrepancies, including (a) Fixed Assets such as plant, shortages, damages and machinery, equipment, unserviceable goods, if any, furniture, fixtures etc. in the identified during verification, Form GFR-22. shall immediately be brought to (b) Consumables such as the notice of the competent office stationery, authority for taking appropriate chemicals, maintenance action in accordance with spare parts etc. in the Form provision given in Rule 33 to 38. GFR-23. Rule 214 Buffer Stock. Depending on the (c) Library books in the Form frequency of requirement and GFR 18 quantity thereof as well as the pattern (d) Assets of historical/artistic of supply of a consumable material, value held by optimum buffer stock should be museum/government determined by the competent departments in the Form authority. GFR-24. Note: As the inventory carrying cost Note: These forms can be is an expenditure that does not add supplemented with value to the material being stocked, a additional details by material remaining in stock for over a Ministries/ Departments as year shall generally be considered required. surplus, unless adequate reasons to Rule 212 Hiring out of Fixed Assets. When a treat it otherwise exist. The items so fixed asset is hired to local bodies, declared surplus may be dealt as per contractors or others, proper record the procedure laid down under Rule should be kept of the assets and the 217. hire and other charges as Rule 215 Physical verification of Library determined under rules prescribed books. by the competent authority, should (i) Complete physical verification be recovered regularly. Calculation of books should be done every of the charges to be recovered from year in case of libraries having the local bodies, contractors and not more than twenty thousand others as above should be based on volumes. For libraries having the historical cost. more than twenty thousand Rule 213 (1) Physical verification of Fixed volumes and up to fifty Assets. thousand volumes, such The inventory for fixed assets shall verification should be done at ordinarily be maintained at site. least once in three years. Fixed assets should be verified at Sample physical verification at least once in a year and the outcome intervals of not more than three of the verification recorded in the years should be done in case of corresponding register. libraries having more than fifty Discrepancies, if any, shall be thousand volumes. In case such promptly investigated and brought to verification reveals unusual or account. unreasonable shortages, Rule 213 (2) Verification of Consumables: complete verification shall be A physical verification of all the done. 53(ii) Loss of five volumes per one same should be fixed. thousand volumes of books (v) Sale of Hazardous issued/consulted in a year may waste/Scrap be taken as reasonable Batteries/Electronic waste: provided such losses are not Scrap lots comprising of attributable to dishonesty or hazardous waste, batteries etc. negligence. However, loss of a shall be sold keeping in view the book of a value exceeding Rs. extant guidelines of Ministry of 1,000/- (Rupees One thousand Environment & Forest. only) and rare books Prospective bidders of such lots irrespective of value shall of hazardous waste/scrap invariably be investigated and batteries/ e-waste should be in appropriate action taken. possession of registration, valid Rule 216 Transfer of charge of goods, on the date of e-Auction and on materials etc. In case of transfer of the date of delivery, as recycler/ Officer-in-charge of the goods, preprocessor agency. materials etc., the transferred officer Rule 218 Modes of Disposal. shall see that the goods or material (i) Surplus or obsolete or are made over correctly to his unserviceable goods of successor. A statement giving all assessed residual value above relevant details of the goods, [Rupees Four Lakh]1 should be materials etc., in question shall be disposed of by: prepared and signed with date by the (a) Obtaining bids through relieving officer and the relieved advertised tender or officer. Each of these officers will (b) Public auction. retain a copy of the signed statement. (ii) For surplus or obsolete or Rule 217 Disposal of Goods. unserviceable goods with (i) An item may be declared residual value less than surplus or obsolete or [Rupees Four Lakh]2, the mode unserviceable if the same is of of disposal will be determined no use to the Ministry or by the competent authority, Department. The reasons for keeping in view the necessity to declaring the item surplus or avoid accumulation of such obsolete or unserviceable goods and consequential should be recorded by the blockage of space and, also, authority competent to deterioration in value of goods purchase the item. to be disposed of. Ministries/ (ii) The competent authority may, Departments should, as far as at his discretion, constitute a possible prepare a list of such committee at appropriate level goods. to declare item(s) as surplus or obsolete or unserviceable. (iii) Certain surplus or obsolete or unserviceable goods such as (iii) The book value, guiding price expired medicines, food grain, and reserved price, which will ammunition etc., which are be required while disposing of hazardous or unfit for human the surplus goods, should also consumption, should be be worked out. In case where it disposed of or destroyed is not possible to work out the immediately by adopting book value, the original suitable mode so as to avoid any purchase price of the goods in health hazard and/or question may be utilised. A environmental pollution and also report of stores for disposal the possibility of misuse of such shall be prepared in Form GFR- goods. 10. (iv) In case an item becomes (iv) Surplus or obsolete or unserviceable goods, unserviceable due to equipment and documents, negligence, fraud or mischief on which involve security concerns the part of a government (e.g. currency, negotiable servant, responsibility for the instruments, receipt books, 1 Amended vide Department of Expenditure (DoE), Ministry of 2 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 Finance (MoF) OM No. F.1/3/2024-PPD dated 10.07.2024 54stamps, security press etc.) assessed or reserved should be disposed of/ price of the goods. The destroyed in an appropriate exact bid security amount manner to ensure compliance should be indicated in the with rules relating to official bidding document. secrets as well as financial (d) The bid of the highest prudence. acceptable responsive Rule 219 Disposal through Advertised Tender. bidder should normally (i) The broad steps to be adopted for this be accepted. However, if purpose are as follows the price offered by that (a) Preparation of bidding documents. bidder is not acceptable, (b) Invitation of tender for the surplus negotiation may be held goods to be sold. only with that bidder. In (c) Opening of bids. case such negotiation (d) Analysis and evaluation of bids does not provide the received. desired result, the (e) Selection of highest responsive bidder. reasonable or acceptable (f) Collection of sale value from price may be counter the selected bidder. offered to the next (g) Issue of sale release order to highest responsive the selected bidder. bidder(s). (h) Release of the sold surplus (e) In case the total quantity goods to the selected bidder. to be disposed of cannot (i) Return of bid security to the be taken up by the unsuccessful bidders. highest acceptable (ii) The important aspects to be bidder, the remaining kept in view while disposing the quantity may be offered goods through advertised to the next higher tender are as under: - bidder(s) at the price (a) The basic principle for offered by the highest sale of such goods acceptable bidder. through advertised (f) Full payment, i.e. the tender is ensuring residual amount after transparency, adjusting the bid security competition, fairness and should be obtained from elimination of discretion. the successful bidder Wide publicity should be before releasing the ensured of the sale plan goods. and the goods to be sold. (g) In case the selected All the required terms and bidder does not show conditions of sale are to interest in lifting the be incorporated in the goods, the bid security bidding document should be forfeited and comprehensively in plain other actions initiated and simple language. including re-sale of the Applicability of taxes, as goods in question at the relevant, should be risk and cost of the clearly stated in the defaulter, after obtaining document. legal advice. (b) The bidding document (iii) Late bids i.e. bids received after should also indicate the the specified date and time of location and present receipt should not to be condition of the goods to considered. be sold so that the Rule 220 Disposal through Auction. bidders can inspect the (i) A Ministry or Department may goods before bidding. undertake auction of goods to (c) The bidders should be be disposed of either directly or asked to furnish bid through approved auctioneers. security along with their (ii) The basic principles to be bids. The amount of bid followed here are similar to security should ordinarily those applicable for disposal be ten per cent. of the through advertised tender so as 55to ensure transparency, losses due to revaluation, stock-taking or competition, fairness and other causes shall be duly recorded and elimination of discretion. The adjusted where necessary. Formal auction plan including details of sanction of the competent authority shall the goods to be auctioned and be obtained in respect of losses, even their location, applicable terms though no formal correction or adjustment and conditions of the sale etc. in government accounts is involved. should be given wide publicity in Powers to write off of losses are available the same manner as is done in under the Delegation of Financial Powers case of advertised tender. Rules. (iii) While starting the auction Rule 223 (2) Losses due to depreciation: process, the condition and Losses due to depreciation shall be location of the goods to be analysed, and recorded under following auctioned, applicable terms and heads, as applicable: - conditions of sale etc., (as (i) Normal fluctuation of market already indicated earlier while prices; giving vide publicity for the (ii) Normal wear and tear; same), should be announced (iii) Lack of foresight in regulating again for the benefit of the purchases; and assembled bidders. (iv) Negligence after purchase. (iv) During the auction process, Rule 223 (3) Losses not due to depreciation: acceptance or rejection of a bid Losses not due to depreciation shall be should be announced grouped under the following heads: - immediately on the stroke of the (i) Losses due to theft or fraud; hammer. If a bid is accepted, (ii) Losses due to neglect; earnest money (not less than (iii) Anticipated losses on account twenty-five per cent. of the bid of obsolescence of stores or of value) should immediately be purchases in excess of taken on the spot from the requirements; successful bidder either in cash (iv) Losses due to damage, and or in the form of Deposit-at-Call- (v) Losses due to extra ordinary Receipt (DACR), drawn in situations under 'Force Majeure' favour of the Ministry or conditions like fire, flood, enemy Department selling the goods. action, etc.; The goods should be handed over to the successful bidder only after receiving the balance payment. (v) The composition of the auction team will be decided by the competent authority. The team should however include an officer of the Internal Finance Wing of the department Rule 221 Disposal at scrap value or by other modes. If a Ministry or Department is unable to sell any surplus or obsolete or unserviceable item in spite of its attempts through advertised tender or auction, it may dispose of the same at its scrap value with the approval of the competent authority in consultation with Finance division. In case the Ministry or Department is unable to sell the item even at its scrap value, it may adopt any other mode of disposal including destruction of the item in an eco-friendly manner. Rule 222 A sale account should be prepared for goods disposed of in Form GFR 11 duly signed by the officer who supervised the sale or auction. Rule 223 (1) Powers to write off. All profits and 56Ch. 8 CONTRACT MANAGEMENT may, at its discretion, make purchases of value Rule 224 (1) All contracts shall be made by an up to Rupees two lakh authority empowered to do so by or and fifty thousand by under the orders of the President in issuing purchase orders terms of Article 299 (1) of the containing basic terms Constitution of India. and conditions: Rule 224 (2) All the contracts and assurances of (b) In respect of Works property made in the exercise of the Contracts, or Contracts executive power of the Union shall be for purchases valued executed on behalf of the President. between Rupees one The words "for and on behalf of the lakh to Rupees ten lakhs, President of India" should follow the where tender documents designation appended below the include the General signature of the officer authorized in Conditions of Contract this behalf. (GCC), Special Note 1: The various classes of Conditions of Contract contracts and assurances of (SCC) and scope of work, property, which may be executed by the letter of acceptance different authorities, are specified in will result in a binding the Notifications issued by the contract. Ministry of Law from time to time. (c) In respect of contracts for Note 2: [The powers of various works with estimated authorities, the conditions under value of Rupees ten which such powers should be lakhs or above or for exercised and the general procedure purchase above Rupees prescribed with regard to various ten lakhs, a Contract classes of contracts and assurances document should be of property are laid down in Rule 11 executed, with all of the Delegation of Financial1 necessary clauses to Powers Rules.]1 make it a self-contained contract. If however, Rule 225 General principles for contract. these are preceded by The following general principles Invitation to Tender, should be observed while entering accompanied by GCC into contracts: - and SCC, with full details (i) The terms of contract must be of scope and precise, definite and without any specifications, a simple ambiguities. The terms should one page contract can be not involve an uncertain or entered into by attaching indefinite liability, except in the copies of the GCC and case of a cost plus contract or SCC, and details of where there is a price variation scope and specifications, clause in the contract. Offer of the Tenderer and (ii) Standard forms of contracts Letter of Acceptance. should be adopted wherever (d) Contract document possible, with such should be invariably modifications as are considered executed in cases of necessary in respect of turnkey works or individual contracts. The agreements for modifications should be carried maintenance of out only after obtaining financial equipment, provision of and legal advice. services etc. (iii) In cases where standard forms (v) No work of any kind should be of contracts are not used, legal commenced without proper and financial advice should be execution of an agreement as taken in drafting the clauses in given in the foregoing the contract. provisions. (iv) (vi) Contract document, where (a) A Ministry or Department 1 Amended vide Department of Expenditure (DoE), M/o Finance (MoF) OM No.14(37)/2015-E.II.A dated 12.07.2024 57necessary, should be executed between the Base level within 21 days of the issue of and the Scheduled letter of acceptance. Non- Delivery Date should be fulfilment of this condition of included in this clause. executing a contract by the The variations are Contractor or Supplier would calculated by using constitute sufficient ground for indices published by annulment of the award and Governments or forfeiture of Earnest Money Chambers of Commerce Deposit. periodically. An (vii) Cost plus contracts should illustrative formula has ordinarily be avoided. Where been appended to these such contracts become rules at Appendix -11 for unavoidable, full justification guidance. should be recorded before (c) The Price variation entering into the contract. clause should also Where supplies or special work specify cut off dates for covered by such cost plus material and labour, as contracts have to continue over these inputs taper off well a long duration, efforts should before the scheduled be made to convert future Delivery Dates. contracts on a firm price basis (d) The price variation clause after allowing a reasonable should provide for a period to the ceiling on price suppliers/contractors to variations, particularly stabilize their production/ where escalations are execution methods and involved. It could be a processes. percentage per annum or Explanation: A cost plus contract an overall ceiling or both. means a contract in which the The buyer should ensure price payable for supplies or a provision in the contract services under the contract is for benefit of any determined on the basis of reduction in the price in actual cost of production of the terms of the price supplies or services concerned variation clause being plus profit either at a fixed rate passed on to him. per unit or at a fixed percentage (e) The clause should also on the actual cost of production stipulate a minimum (viii) percentage of variation of (a) Price Variation Clause the contract price above can be provided only in which price variations will long-term contracts, be admissible (e.g. where where the delivery period resultant increase is extends beyond 18 lower than two per cent, months. In short-term no price adjustment will contracts firm and fixed be made in favour of the prices should be provided supplier). for. Where a price (f) Where advance or stage variation clause is payments are made there provided, the price should be a further agreed upon should stipulation that no price specify the base level viz, variations will be the month and year to admissible on such which the price is linked, portions of the price, after to enable variations being the dates of such calculated with reference payment to the price levels (g) Where deliveries are prevailing in that month accepted beyond the and year. scheduled Delivery Date (b) A formula for calculation subject to levy of of the price variations that liquidated damages as have taken place provided in the Contract, 58the liquidated damages not be entered into except in (if a percentage of the cases of absolute necessity. price) will be applicable Where lump sum contracts on the price as varied by become unavoidable, full the operation of the Price justification should be recorded. variation clause. The contracting authority should (h) No price variation will be ensure that conditions in the admissible beyond the lump sum contract adequately original Scheduled safeguard and protect the Delivery Date for defaults interests of the Government. on the part of the (xi) Departmental issue of materials supplier. should be avoided as far as (i) Price variation may be possible. Where it is decided to allowed beyond the supply materials original Scheduled departmentally, a schedule of Delivery Date, by specific quantities with the issue rates of alteration of that date such material as are required to through an amendment execute the contract work to the contract in cases of should form an essential part of Force Majeure or defaults the contract. by Government. (xii) (j) Where contracts are for (a) In contracts where supply of equipment, government property is goods etc, imported entrusted to a contractor (subject to customs duty either for use on payment and foreign exchange of hire charges or for fluctuations) and/or doing further work on locally manufactured such property, specific (subject to excise duty provision for and other duties and safeguarding taxes), the percentage government property and element of duties (including insurance and taxes included in the cover) and for recovery of price should be hire charges regularly, specifically stated, along should be included in the with the selling rate of contracts. foreign exchange (b) Provision should be element taken into made in the contract for account in the calculation periodical physical of the price of the verification of the number imported item. and the physical The mode of calculation condition of the items at of variations in duties and the contractor's taxes and foreign premises. Results of exchange rates and the such verification should documents to be be recorded and produced in support of appropriate penal action claims for such variations taken where necessary. should also be stipulated (xiii) [Copies of all contracts and in the Contract. agreements for purchases of (k) The clause should also the value of Rupees Twenty-five contain the mode and Lakhs and above entered into terms of payment of the by civil departments of the price variation Government, should be sent to admissible. the Audit Officer and or the (ix) Contracts should include Accounts officer as the case provision for payment of all may be.]2 applicable taxes by the (xiv) contractor or supplier. (a) The terms of a contract, (x) "Lump sum” contracts should including the scope and 2 Amended vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. 59specification once contractor shall be entertained entered into, should not after the lapse of three years of be materially varied. arising of the claim. (b) Wherever material Rule 226 Management of Contracts. variation in any of the (i) Implementation of the contract terms or conditions in a should be strictly monitored and contract becomes notices issued promptly unavoidable, the financial whenever a breach of and other effects involved provisions occurs. should be examined and (ii) Proper procedure for safe recorded and specific custody and monitoring of Bank approval of the authority Guarantees or other competent to approve the Instruments should be laid revised financial and down. Monitoring should other commitments include a monthly review of all obtained, before varying Bank Guarantees or other the conditions. instruments expiring after three (c) All such changes should months, along with a review of be in the form of an the progress of supply or work. amendment to the Extensions of Bank Guarantees contract duly signed by or other instruments, where all parties to the contract. warranted, should be sought (xv) Normally no extensions of the immediately. scheduled delivery or Rule 227 Legal Advice. completion dates should be Wherever disputes arise during granted except where events implementation of a contract, legal constituting force majeure, as advice should be sought before provided in the contract, have initiating action to refer the dispute to occurred or the terms and conciliation and/or arbitration as conditions include such a provided in the contract or to file a suit provision for other reasons. where the contract does not include an Extensions as provided in the arbitration clause. The draft of the contract may be allowed plaint for arbitration should be got through formal amendments to vetted by obtaining legal and financial the contract duly signed by advice. Documents to be filed in the parties to the contract. matter of resolution of dispute, if any, (xvi) All contracts shall contain a should be carefully scrutinized before provision for recovery of filing to safeguard government liquidated damages for defaults interest. on the part of the contractor. Only in exceptional Rule 227A Arbitration Awards circumstances to be justified by (i) In cases where the Ministry/ procuring entity in writing, an Department has challenged an exemption from such provision arbitral award and, as a result, can be made. the amount of the arbitral award (xvii) A warranty clause should be has not been paid, 75% of the incorporated in every contract, arbitral award (which may requiring the supplier to, without include interest up to date of the charge, repair or rectify award) shall be paid by the defective goods or to replace Ministry/ Department to the such goods with similar goods contractor/ concessionaire free from defect. Any goods against a Bank Guarantee (BG). repaired or replaced by the The BG shall only be for the said supplier shall be delivered at the 75% of the arbitral award as buyer’s premises without costs above and not for the interest to the buyer. which may become payable to (xviii) All contracts for supply of goods the Ministry/ Department should should reserve the right of the subsequent court order Government to reject goods require refund of the said which do not conform to the amount. specifications. (ii) The payment may be made into (xix) No claim for the payment from a designated Escrow Account 60with the stipulation that the proceeds will be used first, for payment of lenders' dues, second, for completion of the project and then for completion of other projects of the same Ministry/ Department as mutually agreed/ decided. Any balance remaining in the escrow account subsequent to settlement of lenders' dues and completion of projects of the Ministry/ Department may be allowed to be used by the contractor/ concessionaire with the prior approval of the lead banker and the Ministry/ Department. If otherwise eligible and subject to contractual provisions, retention money and other amounts withheld may also be released against BG.]3 3 Inserted vide DoE OM No. F./1/9/2021-PPD dated 29.10.2021 61Ch.-9 - GRANTS-IN-AID AND LOANS I. GRANTS-IN-AID undertaken by them. The Ministry or Department should examine in Rule 228 As a general principle, Grants-in-aid can detail: (a) whether the activities be given to a person or a public body or proposed to be taken up are an institution having a distinct legal entity. necessary at all; (b) whether Thus, Grants-in-aid including these activities, if necessary, scholarships may be sanctioned by an need to be undertaken by setting authority competent to do so under the up an autonomous organisation Delegation of Financial Powers Rules to:- only or whether these could be (a) Institutions or Organizations set performed by the concerned up as Autonomous Government agency or any other Organisations, under a specific organisation already existing. statute or as a society registered (iv) All autonomous organisations, under the Societies Registration new or already in existence Act, 1860 or Indian Trusts Act, should be encouraged to 1882 or other statutes. maximise generation of internal (b) Voluntary organizations or Non- resources and eventually attain Government Organisations self-sufficiency. carrying out activities which (v) The Ministry or Department may promote the welfare schemes consider creating a Corpus Fund and programmes of the for an Autonomous Body only Government should be selected with prior concurrence of Ministry on the basis of well-defined of Finance if the corpus is criteria regarding financial and created out of budgetary other resources, credibility and allocation. If the corpus is created type of activities undertaken. out of internal accruals of the (c) Educational and other institutions body, approval of the by way of scholarships or administrative Ministry must be stipends to the students. obtained. (d) Urban and Rural local self- (vi) User Charges: Governing Body government institutions of the Autonomous Body shall (e) Co-operative societies. review user charges/ sources of (f) Societies or clubs set up by internal revenue generation at Government servants to promote least once a year and inform the amongst themselves social, administrative Ministry. This cultural and sports activities as exercise should preferably be recreational avenues. completed before the formulation Rule 229 General Principles for setting up of of Union Annual Budget. Autonomous Organisations referred to (vii) All Autonomous Bodies should under Rule 228(a): - maintain database relating to (i) No new autonomous institutions grants, income, expenditure, should be created by Ministries investment assets and employee or Departments without the strength in the format prescribed approval of the Cabinet. by the Department of (ii) No new autonomous institution Expenditure, Ministry of Finance. should be created by an (viii) Financial advice for Autonomous Body itself, the Autonomous Bodies: Every appraisal/approval process for autonomous organisation should creation of new autonomous designate an officer at bodies would apply in such cases appropriate level to render too. However, Regional financial advice whose Centres/Offices/Sub-Stations of concurrence should be obtained any autonomous body can be for sanction and incurring of created with prior approval of the expenditure. The financial limits administrative ministry in up to which such concurrence is consultation with Ministry of mandatory may be drawn up by Finance. each organisation. The Chief (iii) Stringent criteria should be Executive Officer of the followed for setting up of new Autonomous body will be autonomous organisations and responsible for overall financial the type of activities to be management of the autonomous 62bodies. wherever the output or (ix) Peer review of autonomous benefit of services are organisations: Ministry shall put utilised by others, are levied in place a system of external or at appropriate rates internal peer review of (g) the scope for maximizing autonomous organisations every internal resources three or five years depending on generation in the the size and nature of activity. organization so that the Such a review should be the dependence upon responsibility of the concerned Government budgetary administrative division of the support is minimised. Ministry/Department and should (x) An organisation whose focus, inter alia, on; performance is found to be (a) the objective for which the outstanding and internationally autonomous organisation acclaimed as a result of the was set up and whether review envisaged under Para (ix) these objectives have been above should be granted greater or are being achieved; autonomy and increased (b) whether the activities should flexibility in matters of recruitment be continued at all, either and financial rules thereby because they are no longer enabling it to devise and adopt relevant or have been staff structures, procedures and completed or if there has rules suited to improving their been a substantial failure in productivity. achievement of objectives. (xi) Autonomous organisations as (c) whether the nature of the also others with a budgetary activities is such that these support of more than Rupees five need to be performed only crores per annum, should be by an autonomous required to enter in to a organisation. Memorandum of Understanding (d) whether similar functions with the Administrative Ministry are also being undertaken or Department, spelling out by other organisations, be it clearly performance parameters, in the Central Government output targets in terms of details or State Governments or the of programme of work and Private Sector, and if so, qualitative improvement in whether there is scope for output, along with commensurate merging or winding up the input requirements. The output organisations under review. targets, given in measurable (e) whether the total staff units of performance, should complement, particularly at form the basis of budgetary the support level, is kept at a support extended to these minimum: whether the organisations. The roadmap for enormous strides in improved performance with clear information technology and milestones should form part of communication facilities as the MoU. also facilities for outsourcing (xii) Findings of the peer review of work on a contract basis, should be examined and put up have been taken into for appropriate decision to the account in determining staff Secretary by the concerned strength; and whether programme division of the scientific or technical Administrative Department. personnel are being Further releases of Grant (after deployed on functions which three or five years, as the case could well be carried out by may be), should be made non-scientific or non- conditional on conduct and technical personnel etc. decisions on the findings of such (f) whether user charges peer review. including overhead/ Rule230 (1) Principles and Procedure for award institutional charges / of Grants-in-aid. management fee in respect Any Institution or Organisation seeking of sponsored projects, Grants-in-aid from Government will be 63required to submit an application which Rule 230 (5) Central Autonomous Organisations includes all relevant information such as which receive Grants should account for Articles of Association, bye-laws, audited capital and revenue expenditure statement of accounts, sources and separately. The Government of India, pattern of income and expenditure etc. Ministry of Finance has formulated enabling the sanctioning authority to standard formats for presentation of final assess the suitability of the Institution or accounts, for all Central Autonomous Organisation seeking Grant. The Organisations. All Grant sanctioning application should clearly spell out the authorities should enforce the condition need for seeking Grant and should be of maintaining and presenting their submitted in such form as may be annual accounts in the standard formats prescribed by the sanctioning authority. on all Central Autonomous The Institution or Organisation seeking Organisations. Grants-in-aid should also certify that it Rule 230 (6) The Grants sanctioning authorities has not obtained or applied for grants for should not only take into account the the same purpose or activity from any internally generated resources while other Ministry or Department of the regulating the award of Grants but should Government of India or State consider laying down targets for internal Government. resources generation by the Grantee Rule 230 (2) In order to obviate duplication in Institutions or Organisations every Grants-in-aid, each Ministry or financial year, particularly where Grants Department should maintain a list of are given on recurring basis every year. institutions or organisations along with Rule 230 (7) Unspent Balances: When recurring details of amount and purpose of Grants Grants-in-aid are sanctioned to the same given to them. These details should also Institution or Organisation for the same be made available on the website of the purpose, the unspent balance of the Ministry/Department. previous Grant should be taken into Rule 230 (3) Award of Grants should be considered account in sanctioning the subsequent only on the basis of viable and specific Grant. For this purpose, the Programme schemes drawn up in sufficient detail by Division of Ministries/Department shall the institution or organisation. The budget take help of PFMS Portal to know the for such schemes should disclose, inter bank balance of the recipients before alia, the specific quantified and qualitative making each release. The instructions of targets likely to be attained against the Department of Expenditure regarding the outlay. In the cases of the schemes use of PFMS Portal for Central Sector where Grants are given as part of the Schemes issued from time to time shall expenditure on reimbursement basis (i.e. be strictly followed by all Ministries/ the expenditure has already been Departments. The principles of ‘just in incurred on approved project/scheme time release’, should be applied for and reimbursement from the Government releases in respect of all payments to the in the form of Grant/Subsidy etc. is due) extent possible. The following broad the same will be treated as the Central principles shall be adhered to: Financial Assistance (CFA) and no (i) Cash balance at a time should Utilization Certificate shall be required in preferably not be more than 3 such cases of reimbursements. months of requirements Rule 230 (4) Recurring Grant is defined as one (ii) Funds should be released as per which is released periodically to the same actual requirements and that organization for the same purpose. Non- sanction may precede the recurring Grant is one time release to an release of funds, though its organization for a special purpose (which validity may be limited to that could be released in installments). Every financial year. order sanctioning a Grant shall indicate Rule 230 (8) All interests or other earnings against whether it is recurring or non-recurring Grants in aid or advances (other than and specify clearly the object for which it reimbursement) released to any Grantee is being given and the general and institution should be mandatorily remitted special conditions, if any, attached to the to the Consolidated Fund of India Grant. In the case of non-recurring immediately after finalisation of the Grants for specified object, the order shall accounts. Such advances should not be also specify the time limit within which the allowed to be adjusted against future Grant or each installment of it, is to be releases. spent. 64Rule 230 (9) In making Grants to Non-Government cases relaxation may be made in or Quasi-Government Institutions or consultation with the Ministry of Organisations, a condition should be laid Finance. down that, assets acquired wholly or (ii) Grantee Institutions or substantially out of Government Grants, Organisations should be except those declared as obsolete and encouraged to take advantage of unserviceable or condemned in the pension or gratuity schemes accordance with the procedure laid down or Group Insurance Schemes or in the General Financial Rules, shall not house buildings loans or vehicle be disposed of without obtaining the prior loans schemes etc. available in approval of the authority which the market for employees instead sanctioned the Grants-in-aid. of undertaking liability on their Rule 230 (10) The sanctioning authority may own or Government account. prescribe conditions regarding quantum Rule 230 (13) The sanctioning authority, while and periodicity for release of Grants-in- laying down the pattern of assistance, aid in installments in consultation with the may decide whether the ownership of Financial Adviser. However, the release buildings constructed with Grants-in-aid of the last installment of the Annual Grant may vest with Government or the must be conditional upon the Grantee Grantee Institution or Organisation. Institutions providing reasonable Where the ownership is vested in the evidence of proper utilization of Government, the Grantee Institution or installments released earlier. In the cases Organisation may be allowed to occupy where Central Financial Assistance the building as a lessee. In such cases (CFA) has been sanctioned, the grant will suitable record of details of location, cost, be released in one installment upon the name of lessee and terms & conditions of Grantee Institutions/ Organisation lease must be maintained in the records providing complete evidence of achieving of the granting Ministry or Department. In the specified objectives and expenditure all cases of buildings constructed with incurred supported by Audited Statement Grants-in-aid, responsibility of of Expenditure. In these cases, the maintenance of such buildings shall be of grantee institutions will not be required to the Grantee Institution or Organisation. submit Utilization Certificates. Rule 230 (14) Any other special terms and Rule 230 (11) In order to finalize the Budgetary conditions or procedures for transaction Estimates of Grants in aid to the Grantee of business as Government may desire to Institutions, the Ministry or Department be followed by the Grantee Institution or should impress upon Institution or Organisation, shall be got incorporated in Organisation desiring Grants from the Articles of Association or bye-laws of Government, to submit their requirement the Institution or Organisation concerned with supporting details by the end of before release of Grants-in-aid. September in the year preceding the year Rule 230 (15) Grants-in-aid may be sanctioned to for which the Grants-in-aid is sought. The meet the bonafide expenditure incurred Ministry or Department should finalize not earlier than two years prior to the date their examination of the requests with the of issue of the sanction. utmost expedition and make the Rule 230 (16) The stipulation in regard to refund of necessary Budget provision where it is the un-utilised amount of Grant-in-aid decided to sanction Grants. The with interest thereon should be brought Institution or Organisation should be out clearly in the letter sanctioning the informed of the result of their requests by Grant as well as in the bond so required April of the succeeding year. to be executed. Rule 230 (12) Rule 230 (17) (i) As a precondition to the sanction (i) All Grantee Institutions or of Grants-in-aid to the agencies where: Organisations which receive (a) the recipient body employs more than fifty percent of their more than twenty persons on recurring expenditure in the form a regular basis and at least of Grants-in- aid, should fifty per cent of its recurring ordinarily formulate terms and expenditure is met from conditions of service of their Grants-in-aid from Central employees which are, by and Government; and large, not higher than those (b) the body is a registered applicable to similar categories of society or a co-operative employees in Central institution and is in receipt of a Government. In exceptional general purpose annual 65Grants-in-aid of Rupees consultation with Internal twenty lakhs and above from Finance Wing. the Consolidated Fund of Rule 231 (2) Before a Grant is released, the India; members of the Executive Committee of (c) the Grant sanctioning the Grantee should be asked to Execute authority should ensure that a Bonds in a prescribed format binding suitable clause is invariably themselves jointly and severally to:- included in the terms and (i) abide by the conditions of the conditions under which the Grants- in-aid by the target dates, Grants-in-aid are given, to if any, specified therein; and provide for reservation for (ii) not to divert the Grants or entrust Scheduled Castes and execution of the scheme or work Scheduled Tribes or OBC in concerned to another posts and services under Institution(s) or Organization(s); such organizations or and agencies. The relative (iii) abide by any other conditions provision may be on the specified in the agreement following lines: - governing the Grants-in-aid. “… … … … … (Name of (iv) In the event of the Grantee failing Institution or Organization to comply with the conditions or etc.) agrees to make committing breach of the reservations for Scheduled conditions of the Bond, the Castes and Scheduled Tribes signatories to the Bond shall be or OBC in the posts or jointly and severally liable to services under its control on refund to the President of India, the lines indicated by the the whole or a part amount of the Government of India”. Grant with interest at ten percent (ii) While sanctioning Grants-in- per annum thereon or the sum aid to Institutions or specified under the Bond. The Organisations referred to in stamp duty for this Bond shall be (a) above, the Grant borne by the Government. sanctioning authority should Rule 231 (3) Execution of Bond will not apply to keep in view the progress Quasi - Government Institutions, Central made by such Institutions or Autonomous Organisations and Organisations in employing Institutions whose budget is approved by Scheduled Castes and the Government. Scheduled Tribes or OBC Rule 232 General Principles for award of candidates in their services. Grants-in-aid for Centrally Sponsored Rule 231 (1) Grants-in-aid to “Voluntary Schemes. The following principles Organisations” Subject to the following should be kept in view by terms and conditions, Grants-in-aid Ministries/Departments of the Central towards administrative expenditure may Government at the time of designing be sanctioned to voluntary organizations Centrally Sponsored Schemes for to ensure a certain minimum staff implementation in State Governments or structure and qualified personnel to Union Territories and approving and improve their effectiveness and expand releasing assistance to State their activities under the following Governments or Union Territories for conditions: - such schemes: - (i) The Grants-in-aid should not (i) Every Centrally Sponsored exceed twenty-five percent of Scheme should have a time- approved administrative bound quantifiable and expenditure on pay and measurable outcome targets with allowances of the personnel of provisions for periodic the voluntary organisation monitoring, mid-term evaluation concerned; and detailed impact studies. (ii) Grants-in-aid to meet (ii) The scheme should be designed administrative expenditure to any in consultation with States and private institutions other than the Union Territories. States should voluntary organizations should be delegated adequate powers to not ordinarily be sanctioned. In change the details of the exceptional cases such Grants schemes to suit local conditions, can be considered for sanction in subject to reporting such 66changes to the concerned suggestions for formulating and Ministry or Department. implementing future schemes. A (iii) Where schemes are in operation copy of the review should be with similar objectives targeting obtained by the Ministry the same population, the concerned and kept in view while schemes should be converged. formulating new Centrally (iv) To ensure monitoring and Sponsored Schemes. effective control over such Rule 233 Funding of Sponsored Projects or schemes, the number of Schemes. schemes should be restricted, so (i) Ministries or Departments of that the gain from the Government sponsor projects or expenditure on such schemes is schemes to be undertaken by maximized. The role of the Universities, Indian Institute of Central Ministries or Technology and other similar Departments should be capacity Autonomous Organisations such building, inter-sectoral as ICAR, CSIR, ICMR etc., the coordination and detailed results from which are expected monitoring. to be in national interest. (v) The release of funds to State Normally the entire expenditure Governments and monitoring on such projects or schemes further utilisation should be including capital expenditure, is undertaken through PFMS. The funded by the Ministry or Ministries or Departments should Department. The funds released establish a mechanism to ensure for such projects or schemes in that the funds earlier released one or more installments are not have been effectively utilised and treated as Grants-in-aid in the that the data and facts reported books of the implementing by the State Governments or agency. Apart from the Union Territories relating to requirement of submission of physical and financial technical and financial reports on performance are correct. Before completion of the project or releasing further funds, it should scheme, a stipulation should be also be ensured that the State made in such cases that the Governments or Union ownership in the physical and Territories have the capacity to intellectual assets created or actually spend the balance from acquired out of such funds shall the previous years and the vest in the sponsor. While the releases during the current year. Project or Scheme is ongoing, (vi) The Ministries or Departments the recipients should not treat should focus attention on the such assets as their own assets attainment of the objectives and in their Books of Accounts but not on expenditure only. A should disclose their holding and mechanism for avoiding release using such assists in the Notes to of large part of funds towards the Accounts specifically. end of the year should be (ii) On completion of the Projects or devised and incorporated in the Schemes and the receipt of Scheme design itself. technical and financial reports, (vii) A concurrent monitoring and the Ministries/Departments evaluation mechanism should be should decide and communicate built into the Scheme. A periodic to the implementing agencies review of every Centrally whether the assets should be Sponsored Scheme should be returned, sold or retained by undertaken for any required mid- them. course correction or changes in [Note: In relaxation of the extant the scheme design provisions of the rule, Scientific (viii) A post-completion review of Departments are allowed to every Centrally Sponsored extend the provisions of Rule Scheme should be undertaken 233(i)&(ii) to private sector / by the State Government(s) or NGOs who are commissioned to Union Territories implementing the scheme, highlighting the time and cost overruns, if any, and 67execute projects or schemes.]1 If lump sum sanctions. the assets are to be sold, the (iii) Information at column (xiii) of the proceeds therefrom should be Form GFR-21 above should be credited to the account of the used also for regulating the sponsoring Department / subsequent Grants. Organisation. If the assets are Rule 235 Accounts of Grantee Institutions. allowed to be retained by the Institutions or Organisations receiving Institution/ Organisation, the Grants should, irrespective of the amount implementing agency should involved, be required to maintain include the assets at the book subsidiary accounts of the Government value in their own accounts. grant and furnish to the Accounts Officer Rule 234 Register of Grants. A Register of Grants a set of audited statement of accounts. shall be maintained by the sanctioning These audited statements of accounts authority in the format given in Form GFR should be required to be furnished after - 21. utilization of the Grants-in-aid or (i) Columns (i) to (v) of the Register whenever called for. in format at Form GFR - 21 Rule 236 (1) Audit of Accounts. The accounts of should be filled in simultaneously all Grantee Institutions or Organisations with the issue of the order shall be open to inspection by the sanctioning each Grant. These sanctioning authority and audit, both by columns should be attested by the Comptroller and Auditor General of any Gazetted Officer nominated India under the provision of CAG(DPC) for the purpose by the Act 1971 and internal audit by the sanctioning authority. The serial Principal Accounts Office of the Ministry number should be recorded on or Department, whenever the Institution the body of the sanction at the or Organisation is called upon to do so time the item is entered in the and a provision to this effect should Register as under: “Noted at invariably be incorporated in all orders Serial No …………………… in sanctioning Grants-in-aid. the Register of Grants”. Rule 236 (2) (ii) Such a record will guard against (i) The accounts of the Grantee the possibility of double payment. Institution or Organisation shall Columns (vi) and (vii) should be be audited by the Comptroller filled in and attested by the and Auditor General of India Gazetted Officer concerned as under Section 14 of the soon as the bill is ready. The bill Comptroller and Auditor General should then be submitted to the of India (Duties, Powers and Gazetted Officer nominated to Conditions of Service) Act, 1971, act as Drawing and Disbursing if the Grants or loans to the Officer with the register for institution in a financial year are signing the bill and to the not less than Rupees twenty- five sanctioning authority for giving lakhs and also not less than dated initials in column (viii) of seventy-five percent of the total Register. It should also be the expenditure of the Institution. The duty of the sanctioning authority accounts may also be audited by to verify that the conditions, if the Comptroller and Auditor any, attached to the Grant have General of India if the Grants or been duly accepted by the loans in a financial year are not Grantee without any reservation less than Rupees one crore. and that no other bill for the same Where the accounts are so purpose has already been paid audited by the Comptroller and before. No bill should be signed Auditor General of India in a unless it has been noted in the financial year, he shall continue Register of Grants against the to audit the accounts for a further relevant sanction. This will also period of two years facilitate watching of payments in notwithstanding that the installments, if any, in the case of conditions outlined above are not 1 Inserted vide DoE OM No. F. No. 8(1)/2021-E.IIA dated Department of Atomic Energy, Department of Space, Ministry 03.09.2021. The Scientific Ministries/ Departments are of Earth Sciences, Defence Research and Development Department of Science and Technology, Department of Bio- Organisation. technology, Department of Scientific and Industrial Research, 68fulfilled. utilization of the Grants received for the (ii) Where any Grant and /or loan is purpose for which it was sanctioned in given for any specific purpose to Form GFR 12-A, should be insisted upon any Institution or Organisation or in the order sanctioning the Grants-in-aid. authority, not being a foreign The Utilization Certificate in respect of State or international Grants referred to in Rule230 (10) should Body/Organization, the also disclose whether the specified, Comptroller and Auditor General quantified and qualitative targets that is competent under Section 15 should have been reached against the (1) of the CAG’s (DPC) Act, 1971, amount utilised, were in fact reached, and to scrutinize the procedures by if not, the reasons therefor. They should which the sanctioning authority contain an output-based performance satisfies itself as to the fulfillment assessment instead of input-based of the conditions subject to which performance assessment. The Utilization such Grants and/or loans were Certificate should be submitted within given and shall, for this purpose, twelve months of the closure of the have right of access to the books financial year by the Institution or and accounts of that Institute or Organisation concerned. Receipt of such Organisation or authority. certificate shall be scrutinised by the Rule 236 (3) In all other cases, the Institution or Ministry or Department concerned. Organisation shall get its accounts Where such certificate is not received audited from Chartered Accountants of its from the Grantee within the prescribed own choice. time, the Ministry or Department will be at Rule 236 (4) Where the Comptroller and Auditor liberty to blacklist such Institution or General of India is the sole auditor for a Organisation from any future grant, local Body or Institution, auditing charges subsidy or other type of financial support will be payable by the auditee Institution from the Government. in full unless specifically waived by Rule 238 (2) In respect of recurring Grants, Ministry Government or Department concerned should release Rule 237 Time Schedule for submission of any amount sanctioned for the annual accounts. The dates prescribed subsequent financial year only after for submission of the annual accounts for Utilization Certificate on provisional basis Audit leading to the issue of Audit in respect of Grants of preceding financial Certificate by the Comptroller and Auditor year is submitted. Release of Grants-in- General of India and for submission of aid in excess of seventy five per cent of annual report and audited accounts to the the total amount sanctioned for the nodal Ministry for timely submission to subsequent financial year shall be done the Parliament are listed below:- only after utilisation certificate and the (i) Approved and authenticated annual audited statement relating to annual accounts to be made Grants-in-aid released in the preceding available by the Autonomous year are submitted to the satisfaction of Body to the concerned Audit the Ministry/Department concerned. Office and commencement of Reports submitted by the Internal Audit audit of annual accounts-30th parties of the Ministry or Department and June Inspection Reports received from Indian (ii) Issue of the final SAR in English Audit and Accounts Department and the version with audit certificate to performance reports if any received for Autonomous Body/ Government the third and fourth quarter in the year concerned-31st October should also be looked into while (iii) Submission of the Annual Report sanctioning further Grants. and Audited Accounts to the [Note: As a special measure Scientific Nodal for it to be laid on the Table Departments are permitted to release of the Parliament-31st December subsequent Grants in aid on receipt of Rule 238 (1) Utilization Certificates. In respect of UCs confirming utilization of 75% of the non-recurring Grants to an Institution or total value of previous Grant(s) from a Organisation, a certificate of actual Grantee Body.]2 2 Inserted vide DoE OM No. F.No. 1(10)/E.IIA/2015 dated of Earth Sciences, Defence Research and Development 31.07.2017. The Scientific Ministries/ Departments are Organisation. Department of Science and Technology, Department of Bio- technology, Department of Scientific and Industrial Research, Department of Atomic Energy, Department of Space, Ministry 69Rule 238 (3) Utilization certificates need not be within nine months of the close of the furnished in cases where the Grants-in- succeeding financial year of the grantee aid / CFA are being made as Organisations. [Note: Increase in reimbursement of expenditure already monetary ceiling in laying of Annual incurred on the basis of duly audited Reports and Audited Accounts of various accounts. In such cases the sanction organisations receiving funds from Govt. letters should specify clearly that the of India]3. Utilization Certificates will not be Rule 239 State Government to submit necessary. Utilization Certificate for Grants-in-aid Rule 238 (4) In respect of Central Autonomous relating to Scheme. When Central Organisations, the Utilization Certificate Grants are given to State Governments shall disclose separately the annual for implementation of Central Scheme, expenditure incurred and the funds given Utilization Certificate in format GFR 12-C to suppliers of stores and assets, to may be submitted by the State construction agencies, to staff for (House Government in respect of the Scheme. Building and Purchase of conveyance) The UC should be counter-signed by the which do not constitute expenditure at Administrative Secretary of the Division that stage but have been met out of regulating the Scheme / Finance Grants and are pending adjustments. Secretary. These shall be treated as unutilized Rule 240 State Government to submit Grants allowed to be carried forward. Utilization Certificate when While recording the Grants in the expenditure incurred through local subsequent year the amount carried bodies. When Central Grants are given forward shall be taken into account. to State Governments for expenditure to Rule 238 (5) In the case of Private and Voluntary be incurred by them through local bodies Organizations receiving recurring Grants- or private institutions, the Utilization in-aid from Rupees ten lakhs to less than Certificates should be furnished by the Rupees fifty lakhs, all the Ministries or State Government concerned. Departments of Government of India Rule 241 Utilisation Certificate in case of Direct should include in their Annual Report a Benefit Transfer (DBT) Scheme. In statement showing the quantum of funds case of the schemes covered under provided to each of those organizations Direct Benefit Transfers (DBT), where the and the purpose for which they were fund flow is directly from the Central utilized, for the information of Parliament. Government to the beneficiaries, the The Annual Reports and accounts of intimation from the bank/National Private and Voluntary Organizations Payments Corporation of India (Aadhaar receiving recurring Grants-in-aid to the Payment Bridge) regarding deposit of the tune of Rupees fifty lakhs and above funds in the beneficiaries’ bank accounts, should be laid on the Table of the House generated as per procedure prescribed within nine months of the close of the by the Controller General of Accounts, succeeding financial year of the Grantee may be treated as a Utilization Certificate. Organisations. The Ministry/Department releasing the Rule 238 (6) In the case of organizations receiving Grant should keep proper record and one-time assistance or non-recurring accounts relating to such direct releases Grants as Grants-in-aid from Rupees ten under DBT to the beneficiaries’ bank lakhs to Rupees five crore, all Ministries accounts. or Departments of Government of India Rule 242 (1) Performance parameters. should include in their Annual Reports, Performance parameters should be statements showing the quantum of clearly set to allow better oversight of the funds provided to each of these Autonomous Body. organizations and the purpose for which Rule 242 (2) Submission of Achievement-cum- the funds were utilized, for the Performance Reports. information of Parliament. The Annual (i) The Grantee Institutions or Reports and Audited Accounts of Private Organisations should be required and Voluntary Organizations or societies to submit performance cum registered under the Registration of achievement reports soon after Societies Act, 1860, receiving one-time the end of the financial year, and assistance/non-recurring Grants of in any case, not later than six Rupees Five Crore and above should months after the close of the also be laid on the Table of the House, financial year. 3 Inserted vide DoE OM No. F.No.8(5)/2020-E.IIA dated 09.10.2020 70(ii) In regard to non-recurring Grants Government should include a such as those meant for statement in their Annual Report celebration of anniversaries, of their own assessment of the conduct of special tours and achievements or performance of maintenance Grants for the Institution or Organisations. education, performance- cum- (c) In cases where the Grants-in- achievement reports need not be aid are for Rupees five crore or obtained. more in the case of non-recurring (iii) In the case of recurring Grants, grants and Rupees fifty lakhs or submission of achievement-cum- more in the case of recurring performance reports should grants, the Ministry or usually be insisted upon in all Departments of the Central cases. However, in the case of Government should include in Grants-in-aid not exceeding their Annual Report a review of Rupees twenty five lakhs, the the utilization of the Grants- in- sanctioning authority may aid individually, specifying in dispense with the submission of detail the achievements vis-à-vis performance- cum- achievement the amount spent, the purpose reports and should, in that event, and destination of Grants. refer to the Utilization Certificates [Note: Increase in monetary and other information available ceiling in laying of Annual with it to decide whether or not Reports and Audited Accounts of the Grants-in- aid should various organisations receiving continue to be given. funds from Govt. of India]4. (iv) (a) The Annual Reports and (v) Where the accounts of the Audited Statements of Accounts Grantee Institutions or of Autonomous Organisations Organisations are audited by the receiving grants of Rupees Two CAG of India copies of the crore and above are required to performance-cum-achievement be laid on the table of the reports, furnished by the grantee Parliament. In such cases, the Institution to the Administrative Ministries or Departments of Ministry or sanctioning authority Central Government need not should be made available to incorporate performance-cum- audit. In other cases copies of achievement reports in the such reports, received by the Annual Reports. Departments of the Central (aa) In cases where these Government or the sanctioning Autonomous Organisations are authority should be made getting funds less than Rupees available to audit when local two crore, all the Departments of audit of such Grants-in-aid in the Central Government should Administrative Ministry or include in their Annual Report a Department or sanctioning Statement showing the quantum authority is conducted or when it of funds provided to each of is called for by the Accountant these organisations and the General. purpose for which they were Rule 243 Discretionary Grants. When an utilized for the information of the allotment for Discretionary Grants is Parliament. placed at the disposal of a particular authority, the expenditure from such (b) In all other cases, if the Grants shall be regulated by general or Grants-in- aid (a) exceed special orders of the competent authority Rupees ten lakhs but less than specifying the object for which the Grants rupees fifty lakhs in the case of can be made and any other condition(s) recurring grants and (b) that shall apply to them. Such exceed Rupees ten lakh but Discretionary Grants must be non- less than Rupees five crore in recurring and not involve any future the case of non-recurring commitment. grants, the Ministry or Rule 244 Other Grants. Grants, subventions, etc., Departments of the Central 4 Inserted vide DoE OM No. F.No.8(5)/2020-E.IIA Dated 09.10.2020 71including Grants to States other than on the date on which proposal for those dealt with in the foregoing rules, Grant is mooted in the case of new shall be made under special orders of staff clubs above rates, as revised Government. from time to time will apply. Rule 245 (1) Regulation of recurring Grants-in-aid (iii) An illustrative list of items on which for Government employees’ welfare: – expenditure can be incurred out of a. Grants-in-aid for provision of Grants-in-aid sanctioned by amenities or of recreational or Government for provision of welfare facilities to the staff of the amenities is given below: offices of the Government are i. Articles of sports – Outdoor regulated under orders of the and indoor games Ministry of Home Affairs issued from equipment time to time. The admissibility of the ii. Cost of uniforms, etc., Grants-in-aid for the welfare of the supplied to teams of players. employees of the Government iii. Magazines and periodicals. should be regulated in the following iv. Entry fee for tournaments manner: - v. Hiring of playgrounds (i) The Grant in aid will be admissible vi. Hiring and repair for on the basis of the total strength furniture, etc., borne on the regular strength of an vii. Purchase of furniture. organization, i.e., Ministry or viii. Conveyance expenses Department, etc., and its Attached incurred locally. and Subordinate Offices and such ix. Entertainments. statutory bodies whose budget x. Prizes. forms part of Consolidated Fund of xi. Film shows. India, irrespective of the fact whether xii. Hiring of accommodation for any individual is a member of the Club/Association, etc. staff club, etc., or not. However, xiii. Cultural, Sports and Grant-in- aid in respect of Gazetted Physical development Officers will be admissible only to programme(s). that Ministry or Department or Office xiv. Inter-Ministerial meets. where membership of recreation xv. Inter-Departmental meets club is open to such officers. (2) A maximum one-time Grant of Staff paid from contingencies, work- Rupees fifty thousand may be charged staff etc., will not be taken sanctioned for setting up of a into calculation for this purpose. Recreation Club. Staff eligible for similar concession (3) Grants-in-aid to the Ministry or under some other rule or statutory Departments of the Central provision, e.g., industrial workers will Government and their Attached also not be covered by these orders. and Subordinate Offices will be (ii) Amounts of Grants-in-aid. (a) The allocated by the concerned rate of the Grant-in-aid will be Ministry or Department on receipt Rupees fifty per head per annum. In of formal requests in the addition to this, an additional Grant- prescribed manner. For the in-aid up to Rupees twenty-five per purposes of these Grants-in-aid, head per annum to match the the Departments of the Central subscriptions collected during the Government and their attached previous financial year by the and Subordinate Offices will be existing staff clubs will be treated as a single unit. It will be admissible. In the case of staff clubs the responsibility of that Ministry or which are started during the financial Department to distribute the year in which Grant-in-aid is to be amount further to its Attached and given, an additional matching Subordinate Offices and to their grants- in-aid up to Rupees twenty- different clubs. The accounts of five per head per annum, to match these clubs for the preceding year the subscription collected by such duly audited by an Internal Auditor clubs up to the date on which the should be obtained immediately proposal for the Grant is mooted, after the close of the financial year may be sanctioned. The total in any case by the thirtieth April by strength of the eligible staff will be the Ministry or Department before that existing on the thirty-first March allocating funds for the next of the previous financial year or that financial year. 72(4) Grants-in-aid for the provision of which shall be as short as amenities or recreational or possible, within which each loan welfare facilities to the staff of the has to be fully repaid with interest Indian Audit and Accounts due. The terms may, in very Department are regulated by special cases, extend to thirty separate orders. years. (ii) The term is to be calculated from II. LOANS the date on which the loan is completely drawn or declared by Rule 246 The rules in this Section shall be competent authority to be closed. observed by all authorities competent to (iii) The repayment of loans shall be sanction loans of public moneys to State effected by installments, which Governments, Local Administrations of shall ordinarily be fixed on annual Union Territories, local bodies, foreign basis, and with due dates of Government on specific recommendation payment being specially of State Government, Government prescribed. institutions and other Government (iv) Any installment paid before its bodies. due date may be taken entirely Rule 247 (1) Powers and Procedure for sanction towards the principal, provided it of loans. The powers of Departments of is accompanied by payment the Central Government and toward interest due up-to-date of Administrators as well as other actual payment of installment; if subordinate authorities to sanction loans not, the amount of the installment are given in the Delegation of Financial shall first be adjusted towards the Powers Rules and other general and interest due for preceding and special orders issued under that rule. current periods and the balance, Rule247 (2) Nodal Division in Ministry of if any, shall alone be applied Finance. The Budget Division, towards the principal. If, Department of Economic Affairs, Ministry however, the payment of the of Finance shall be the nodal division in installment is in advance of the the Ministry of Finance to finalise terms due date by fourteen days or and conditions of loans by the Central less, interest for the full period Government. (half-year or full year, as the case Rule 248 All sanctions of loans issued by a may be) shall be payable. Department of Central Government or an (v) When the due date of repayment Administrator of Union Territory in of any installment of principal or exercise of their powers under the interest falls on a Sunday or a relevant provision of Delegation of public holiday, the payment Financial Powers Rules shall include a made on the next working day certificate to the effect that the same is in following the Sunday or the accordance with the rules or principles public holiday, shall be regarded prescribed by the Ministry of Finance and as payment on the due date and that the rate of interest on the loan and no interest shall be charged for the period of repayment thereof have the day or days by which the been fixed with the approval of that recovery is so postponed. Ministry. Exception. If an installment of Rule 249 (1) All sanctions to loans shall be subject principal or interest is payable on to the Delegation of Financial Powers the thirty-first March of a year, Rules and shall specify the terms and and if that day happens to be a conditions relating to them including the public holiday the recoveries terms and conditions of their repayment shall be made on the immediately and payment of interest. preceding working day. In case, Rule 249 (2) Borrowers shall be required to adhere the due date for the repayment of strictly to the terms settled for the loans a loan or payment of interest falls made to them. Modifications of these on a holiday observed by the terms can be made subsequently only for Reserve Bank of India, at which very special reasons and after seeking the effective credit of the same is prior concurrence of Ministry of Finance. to take place this shall be shifted Rule 250 (1) General conditions for regulating to the next working day, except all loans: All loans shall be regulated by when the due date is thirty-first the following general conditions: - March. (i) A specific term shall be fixed (vi) The payment of interest and the 73repayment of principal of a loan year. In such cases, a loan are always to be made with shall be deemed to have reference to the calendar date on been paid on the thirty-first which the loan in question is paid. March of the financial year in However, where payment of the accounts for which the installment is in advance of the payment is adjusted. due date by fourteen days or Consequently, payment of less, interest for the full year or annual interest as also half year (depending on the repayment of installment of prescribed mode of recovery) principal in respect of such shall be charged thereon. In the loans shall fall due on the case of a loan sanctioned by the thirty-first March of the Central Government to a State succeeding years and not Government on or before thirty- on the anniversaries of the first March of a year, which is calendar date in April on adjusted in the books of the which inter- Governmental Reserve Bank of India in the adjustment on account of month of April but in the accounts such loans was carried out of the previous year the in the books of the Reserve installment of principal and/or Bank of India. interest shall fall due for payment (b) Where no monetary on the thirty- first March of the settlement is involved. In succeeding year and not on the regard to cases where anniversaries of the calendar adjustment in the books of date in April on which the inter- the Accounts Offices are Governmental adjustment was only involved and actual carried out. credit through the Reserve (vii) The date of drawal of a loan by a Bank of India is not State Government shall be necessary, the last date of determined as indicated below – the month of account in (a) When monetary which the adjustment is settlement is involved- effected shall be taken as Normally the calendar date the date of drawal of loan for on which amount of a loan is purposes of repayment and actually credited to the charging interest. account of the State (viii) In order to avoid any default in Government by the Reserve the payment of loan, the Principal Bank is to be treated as the Accounts Officers or Pay and date of its drawal. Accounts Officers who maintain This position shall also hold the detailed accounts of loans, in cases where adjustment shall issue notices in Form GFR- in accounts is made in one 19 to the loanees (other than month but date of State and Union Territory adjustment in the books of Governments) i.e. Public Sector the Reserve Bank of India Undertakings, statutory bodies falls in the following and Government institutions etc., calendar month. The say, a month in advance of the calendar date on which the due date for the repayment of credit is actually afforded to any instalment of the principal the State Government in the and/ or interest thereon. books of the Reserve Bank However, omission to give notice of India in such cases shall does not give the loanees any be treated as the date of its claim to exemption from the drawal. consequences of default in the Exception. An exception to repayment of the principal and/or this arrangement is in the interest thereon. case of loans for which Rule 250 (2) Before sanctioning a loan to private credit is afforded to the Institutions the lending Ministry or recipient State Government Department shall examine the financial in the month of April by the health and managerial ability of such Reserve Bank of India but in institutes. the accounts of previous Rule 250 (3) (i) Before considering a loan 74application from parties other than State performance in regard to the previous Governments and Local Administrations loans. If the replies indicate that the of Union Territories, the following performance was not satisfactory, the requirements shall be fulfilled: - loan shall be refused. It must be analysed (a) it shall be seen that there is that the financial position of the party is adequate budget provision; sound. It shall also be ensured that the (b) it shall be seen whether the security offered is adequate and its value grant of the loan is in is at least thirty-three and one-third per accordance with approved cent. above the amount of the loan. If Government policy and possible, an independent valuation of the accepted patterns of security offered shall be obtained. The assistance. applicant for the loan must satisfy both (ii) Before approving the loan, the the criteria for financial soundness and applicant shall be asked to furnish the adequacy of security before a loan is following materials and information: - sanctioned. (a) copies of profit and loss (or (iv) In the case of Institutions which income and expenditure) receive Grants-in-aid from Government accounts and balance sheets to meet a part of their deficits and the for the last 3 years; balance is met by the State Government (b) the main sources of income and the Trustees of Management, it shall and how the loan is proposed be ensured– to be repaid within the (a) that in computing the deficit stipulated period; for purpose of the Grant-in- (c) the security proposed to be aid, the income from the offered for the loan together scheme, if any, earmarked for with a valuation of the security servicing the loan and the offered by an independent instalment of repayment of authority and a certificate to the loan and interest (if any) is the effect that the asset not included; offered as security is not (b) that as far as possible, the already encumbered. scheme for which the loan is (d) Details of loan or loans taken given is self-financing and from the Central Government does not throw an additional or a State Government in the burden on the general income past, indicating amount, of the institutions, e.g., in the purpose, rate of interest, case of hostels for colleges stipulated period of that the rents proposed are repayment, date of original adequate; loan and amount outstanding (c) the Institution produces an against the loan(s) on the date undertaking from the State of the application and the Government or the assets, if any, given as Management that any security; shortfall towards repayment (e) a complete list of all other of the loan and interest shall loans, outstanding on the date be made good by it. In the of application and the assets latter case the financial given as security against position of the Management them; (Trust) shall be investigated (f) the purpose for which the loan after calling for information on is proposed to be utilized and the lines of Rule 250. (3) (i) the economics of the scheme. above. NOTE. Where the loan is to be given to (v) Ministries or Departments of the Government institution on the strength of Central Government shall lay down a a guarantee given by the trust managing procedure for periodical review of the old it, similar information should be called for loans so that prompt action can be taken, in respect of the trust also. if necessary, for enforcing regular (iii) On receipt of the information called for payments. as mentioned in (ii) above, confidential Rule 250 (4) The detailed procedure to be followed enquiries shall be made from the other in connection with the Grant of loans to Departments of the Central Government local bodies shall be regulated by the or State Governments from which the provisions of the Local Authorities Loans party has taken loans, to judge the Act and other special Acts and by rules 75made thereunder. (i) In the case of loans to parties other Rule 251 (1) Interest on Loans. than State Governments and Interest shall be charged at the rate wholly owned Government prescribed by the Government for any Companies, a loan agreement particular loan or for the class of loans specifying all the terms and concerned. conditions shall be executed. A Rule 251 (2) A loan shall bear interest for the day clause shall invariably be inserted of payment but not for the day of in all such agreements enabling repayment. Interest for any shorter period Government at any time to call for than a complete year shall be calculated accounts of the applicant relating as follows, unless any other method of to any accounting year with power calculation is prescribed in any particular to depute an officer specially case or class of cases. authorized for this purpose to Number of days X Yearly rate of interest inspect the applicant’s books, if ------------------------------------------------- necessary. 365 (366 in case of a leap year) (ii) A written undertaking in Form GFR Rule 252 (1) Procedure to be followed for 15 shall be obtained from a wholly recovery of loans and interest thereon Government-owned company at and Grant of moratorium. The the time of sanctioning the loan. instructions issued by the Ministry of The sanction shall specifically Finance from time to time prescribing the state that such an undertaking interest rates and other terms and would be obtained from the loanee conditions of loans to State and Union before the drawal of the amount of Territory Governments, Local Bodies, loan and a certificate that the Statutory Corporations, financial, undertaking has been obtained, industrial and commercial undertakings in shall be recorded by the Drawing the Public Sector shall be strictly Officer of the office of the followed. sanctioning authority in the bill for Rule 252 (2) The recovery of loans shall ordinarily drawal of the amount of loan. The be effected in annual equal installments sanction in respect of loans to of principal together with interest due on other organizations, where a the outstanding amount of principal from formal agreement is required to be time to time. The repayment and interest executed, shall also be issued in installments may be rounded off to the the same manner. nearest rupee subject to final adjustment Rule 254 Undertaking to be obtained from at the time of payment of last installment wholly - owned Government of principal and/or interest. Companies. Rule 252 (3) A suitable period of moratorium In the case of loans to wholly-owned towards repayment might be agreed to in Government Companies, a written individual cases having regard to the undertaking to the effect that the fixed projects for which the loans are to be assets of the company shall not be utilized. However, no moratorium shall hypothecated without prior approval of ordinarily be allowed in respect of interest the Government shall be obtained in payable on loans. Form GFR 32. No stamp duty need be Rule 253 (1) Loans to State and Union Territory paid on these written undertakings. Governments, Local Bodies, Statutory Rule255 Loans to parties other than State Corporations, Public Sector Governments, wholly owned Government Undertakings, etc. Loans shall ordinarily Companies and Local Administration of be sanctioned at the normal rates of Union Territories shall be sanctioned only interest prescribed by Government for the against adequate security. The security particular category of the loanee. In to be taken shall ordinarily be at least cases where the normal rate is thirty- three and one-third per cent. more considered too high and a concession is than the amount of the loan. However, a justified, it shall take the form of direct competent authority may accept security subsidy debitable to the grants of the of less value for adequate reasons to be sanctioning authority. In such cases recorded. interest shall, however, be paid by the Rule 256 (1) Submission of Utilization borrower in the first instance at the Certificate, Reports, Statements, etc. normal rates and subsidy shall be In cases in which conditions are attached claimed separately. to the utilization of loan, either in the Rule 253 (2) Agreements and other shape of the specification of the particular documentation. objects on or the time within which the 76money must be spent or otherwise, the in the Audit Offices, the authority competent to sanction the loan authorities sanctioning the loan shall be primarily responsible for shall furnish the Utilization certifying to the Accounts Officer where Certificate in respect of each necessary, the fulfillment of the individual case. conditions attaching to the loan, unless (iv) Where the detailed accounts of there is any special rule or order to the the loans are maintained bythe contrary. The loans sanctioned to the Departmental authorities, a State Governments and the Local consolidated Utilization Administration of Union Territories shall Certificate shall be furnished to not, however, come within the purview of Audit by the this rule. Ministries/Departments Rule 256 (2) sanctioning the loans to (i) The certificate referred to in Rule Institutions / Organisations for 256 above shall be furnished as the total amount of the loans in Form GFR 12-B and at such disbursed during each year for intervals as maybe agreed to different purposes including the between the Audit Officer and/or loans sanctioned by their the Accounts Officer, as the case subordinate officers. This may be, and the Ministry or certificate shall not cover the Department concerned. Before loans to individuals for which recording the certificate, the Utilization Certificates need not certifying officer shall take steps be furnished to the Accounts to satisfy himself that the Officer. The Certificate shall conditions, on which the loan was indicate the year-wise and sanctioned, have been or are object-wise break-up of loans being fulfilled. For this purpose, disbursed and the loans for which he may require the submission to Utilizations Certificates are him at suitable intervals of such furnished. The utilization reports, statements, etc., which certificate shall also show the shall establish the utilization of loans disbursed separately for loan for the purpose for which it each sub-head of account to was sanctioned. The loanee facilitate verification by the institution may also be required Accounts Officer. to furnish a certificate from its (v) The Utilization Certificates shall Auditors that the conditions be furnished within a ‘reasonable attaching to the loan have been time’ after the loan is paid to the or are being fulfilled. The institutions. The Department of certificate shall give details of the Central Government shall breaches, if any, of those prescribe, in consultation with the conditions. Ministry of Finance, target dates (ii) A Certificate of Utilization of the for the submission of the loan shall be furnished to the Utilization Certificates by the Accounts Officer in every case of Department concerned to the loan made for specific purposes, Accounts Officer. The target date even if of the any conditions is not shall, as far as possible, be not specifically attached to the grant. later than eighteen months from Such certificates are not, the date of sanction of the loan. however, necessary in cases (vi) In respect of loans, the detailed where loans are sanctioned not accounts of which are maintained for any specific purpose or object by Departmental Officers and but take the shape of a temporary where consolidated Utilization financial aid or where the loans Certificates are to be furnished to have been sanctioned to the Accounts Officer, the period of 18 Public Sector Undertakings months shall be reckoned from intended for financing of their the expiry of the financial year in approved capital outlays. The which the loans are disbursed. repayment of loan, however, has The consolidated Utilization to be watched in the usual Certificates in respect of such manner. loans paid each year shall, (iii) In respect of loans the detailed therefore, be furnished not later accounts of which are maintained than September of the second 77succeeding financial year. periodical installments, by which a loan is (vii) The due dates for submission of repaid with interest, presupposes the Utilization Certificates shall punctual payment of the installment and be specified in the letter of that, if any installment is not punctually sanction for loan. The target date repaid, the interest amount shall need to as specified shall be rigidly be recalculated. enforced and extension shall only Rule 258 (1) Defaults in Payment. The loan be allowed in very exceptional sanctions in favour of State or Union circumstances in consultation Territory Governments and the loan with the Ministry of Finance sanctions or undertakings or agreements under intimation to the Audit in case of wholly Government owned Officer and/or the Accounts companies or Public Sector Undertakings Officer, as the case may be. No shall invariably include provision for the further loans shall be sanctioned levy of penal interest on overdue unless the sanctioning authorities installments of interest or principal and are satisfied about the proper interest. The loan sanctions and utilization of the earlier loan agreements in all other cases shall sanctioned to an Institution, etc. invariably stipulate a higher rate of Rule 257 Installments of Loans. When a loan of interest and provide for lower rate of public money is taken out in installments, interest in the case of punctual payments. each installment of the loan so drawn The penal or the higher rate of interest, shall be treated as a separate loan for as the case may be, shall not, except purposes of repayment of principal and under special orders of Government, be payment of interest thereon except where less than two and half per cent per annum the various installments drawn during a above the normal rate of interest financial year are, for this purpose, prescribed by Government from time to allowed to be consolidated into a single time for the loans advanced. loan as at the end of that particular Rule 258 (2) Any default in the payment of interest financial year. In the latter event, simple upon a loan or in the repayment of interest at the prescribed rate on the principal, shall be promptly reported by various loan installments from the date of the Accounts Officer, to the authority drawal of each installment to the date of which sanctioned the loan. The their consolidation shall be separately responsibility of the Accounts Officer, payable by the borrower. Repayment of under this rule refers only to the loans, the each loan or the consolidated loan, as the detailed accounts for which are kept by case may be, and the payment of interest him. thereon shall be arranged by the Rule 258 (3) Procedure to be followed in case of borrower annually on or before the defaults in repayment of interest free anniversary date of drawal or loans or loans sanctioned at consolidation of the loan in such number concessional rates of interest: of installments as the sanctioning (i) In the case of grant of interest authority may prescribe. The sanctioning free loans e.g., loans to technical authority may allow, in deserving cases a educational institutions for moratorium towards repayment of construction of hostels, prompt principal but not for the payment of repayment shall be made a interest. Should it appear that there is an condition for the grant of interest undue delay on the part of the debtor in free loans. The sanction letter in taking out the last installment of a loan the such cases shall provide that in authority sanctioning the loan may at any the event of any default in time declare that loan closed, and order repayment, interest at rates repayment of capital to begin. The prescribed by Government from Accounts Officer shall bring to notice any time to time will be chargeable on delay that appears to him to require this the loans. remedy and he shall take this step (ii) In the case of loans sanctioned at whether or not there are any dates fixed concessional rates of interest the for taking of installments. difference between the normal NOTE1. These instructions are rate and concessional rate), shall applicable mutatis mutandis to loans, the be made conditional upon prompt repayments of which are made by other repayments of principal and than annual installments. payment of interest thereon by NOTE 2. It must be remembered that the the entity concerned. calculation fixing the amount of equal (iii) In the cases where in addition to 78interest free loans, subsidy is Government, Railway or Department of also provided to meet running Posts funds, Central Public Sector and expenses the sanction letter shall other Government Institutions etc. provide that in the event of any Where, however, detailed accounts are default in repayment, the not required to be maintained by the defaulted dues would be Accounts Office, the statement shall recovered out of the subsidy contain departmental authority-wise payable. aggregate balances of outstanding loans. Rule 258 (4) On receipt of a report of default Rule 263 (1) Review of Annual Statements with referred to in sub-rule (2) above, the a view to enforce repayments of the authority concerned shall immediately principal and interest due. take steps to get the default remedied The Administrative Ministries shall keep and also consider enforcement of penal watch over the receipt of the Annual or higher rate of interest on the overdue Statements in Form GFR 20 regularly amounts. Where the sanctioning from the Accounts Officer and conduct a authority is satisfied, having regard to the close review of the cases of defaults in circumstances of the case, that penal or repayment of the installments of principal higher interest need not be recovered, and/or interest due, as revealed from the borrower shall ordinarily be asked to these Annual Statements and take pay interest, at the normal rate prescribed suitable measures for enforcing in the loan sanction, on the overdue repayments of the principal and interest amount (of principal and/or interest) from due. If these statements are not received the due date of payment up to the date of in time, the Accounts Officer shall be settlement of the default. The recovery of reminded promptly. To facilitate a proper additional interest shall not be waived review of the position of outstanding except in special circumstances or where loans, the Ministries may also arrange to the period of defaults is very short, e.g., a maintain centrally a list of all sanctions few days. issued relating to loans advanced to Rule 259 Irrecoverable Loans. A competent State Governments and other entities. authority, after prior approval of the Rule 263 (2) Submission of Annual Assessment Ministry of Finance may remit or write off Report. any loans owing to their irrecoverability or A copy of Annual Assessment Report on otherwise. status of all outstanding loans, including Rule 260 Accounts and Control. Subject to such timely and accurate payment of principal general or specific directions as may be and interest due, shall be submitted by given by the Comptroller and Auditor- the Financial Advisor of the General in this behalf, detailed accounts Administrative Ministry concerned to the of loans to Institutions and Organizations, Ministry of Finance by 30th June of each etc., shall be maintained by the Accounts financial year. Officer who shall watch their recovery and see that the conditions attached to each loan are fulfilled. Rule 261 The instructions contained in this Chapter relating to cost of audit of Grants-in-aid are applicable Mutatis mutandis in the case of loans as well. Rule 262 Annual Returns. Each Principal Accounts Officer shall submit to the concerned Ministry or Department of Government, a statement in Form GFR 13 showing the details of outstanding Central Loans borne on his books as on thirty-first March each year. This statement shall be submitted not later than the following thirtieth September and shall indicate the aggregate of outstanding balance of loans, details of defaults, if any, in repayment of principal and/ or interest and the earliest period to which the default pertains, against each State or Union Territory Government, foreign 79Ch.-10 - BUDGETING AND ACCOUNTING OF EXTERNALLY AIDED PROJECTS Rule 264 (1) Implementation of Projects or external sources shall be accounted for Schemes through external aid receipt. only by the office of Controller of Aid The projects or schemes of the Accounts and Audit, Department of Government of India to be implemented Economic Affairs. through external aid receipt from Rule 267 Procedure for withdrawal. The multilateral or bilateral funding agencies concerned administrative Ministries or shall be shown in the budget proposals Departments shall be required to make approved annually by the Parliament. provision of funds under the relevant Rule 264 (2) The external aid comes from bilateral head of account as ‘External Aided and multilateral sources as follows: Component’ in their Detailed Demands (i) Bilateral funding to finance for Grants for release of external aid specific project(s) by the funding amounts during the year to the respective agency(ies) under Government- Project Implementing Agencies. There to-Government agreement(s); are mainly two procedures laid down for and, withdrawal of funds from the loan or grant (ii) Multi-lateral funding by Multi- account: Lateral Funding Agencies, such Rule 267 (1) Reimbursement procedure. Under as the World Bank under the reimbursement procedure the Project agreement(s) between the Implementing Agency shall initially spend borrower (Government of India) or incur expenditure and subsequently and the Multilateral Funding claim the amount from the Funding Agency(ies). Agency through the office of the Rule 264 (3) The Department of Economic Affairs, Controller, Aid Accounts. The Ministry of Finance as the nodal agency remittances shall be accounted as shall execute the legal agreement for External Loan or Grant receipt in the loans or grants from external funding Consolidated Fund of India. There are Agency(ies). However, grant agreements two ways of dealing with the for Technical Assistance can also be reimbursement claims as given below: executed by the beneficiary Ministries or (i) Reimbursement through Departments with the approval of Ministry Special Account (Revolving of Finance, Department of Economic Fund Scheme). Under the Affairs. Revolving Fund Scheme, the Rule 264 (4) The Office of the Controller of Aid Funding Agency disburses the Accounts and Audit (CAAA) in the estimated expenditure of four Department of Economic Affairs, Ministry months for the projects as initial of Finance shall be responsible for advance to Government of India implementing the financial covenants laid under the respective loan or down in the agreement(s) executed by credit or grant agreement. Office Department(s) of Government of India of Controller of Aid Accounts & and the External Funding Agency(ies). A Audit withdraws the amount copy of all such agreements shall be sent specified in the agreement as to the Office of Controller, Aid Accounts initial deposit from the Funding and Audit, Department of Economic Agency, by sending a simple Affairs for this purpose. withdrawal application in the Rule 265 Currency of external aid. prescribed format after the loan is The external aid shall flow from the declared effective. Such initial Funding Agency in foreign currency or deposit designated in US Dollars Indian Rupees and shall be received by is received by Reserve Bank of the Reserve Bank of India, Mumbai which India, Mumbai and Rupee shall remit the rupee equivalent to the equivalent shall be passed on to account of Controller, Aid Accounts and Controller of Aid Accounts & Audit, Department of Economic Affairs at Audit through Government Reserve Bank of India, New Delhi. The Foreign Transaction (GFT) remittances shall be accounted as advice. However, Reserve Bank external loan/Grant receipts in the of India, Mumbai shall maintain a Consolidated Fund of India. loan wise proforma account for Rule 266 Accounting of Cash grants. Cash liquidation of advance received grants, as distinct from commodity grant from Funding Agency. Office of or other assistance in kind received from Controller of Aid Accounts and 80Audit, on receipt of the payment made. Office of Controller of reimbursement claims from Aid Accounts and Audit shall work out the Project Implementing Agency, rupee equivalent of the foreign currency shall send an advice to Reserve payment. This rupee equivalent shall be Bank of India, Mumbai advising it recovered by office of Controller of Aid to debit the Special Account with Accounts and Audit from the Project the US Dollars equivalent of the Implementing Agencies or State amount of the eligible claim. Governments which have availed of the Office of Controller, Aid Accounts Direct Payment Procedure. and Audit shall consolidate all Note: In the case of Central Projects, such claims and submit to Centrally Sponsored Projects and Public Funding Agency for Sector or Financial Institutions, the replenishment of Special concerned administrative Ministry or Account. This shall be Department shall release the fund to the accompanied by a statement of Project Implementing Agency with the debits and credits made during instruction to deposit rupee equivalent of the period by Reserve Bank of the foreign currency that have been India, Mumbai and supporting availed of under Direct Payment documents received from the Procedure by them to the account of Project Implementing Agency. Controller of Aid Accounts and Audit at (ii) Reimbursement outside Reserve Bank of India, New Delhi or Special Account: Under the Branch of SBI so authorised. reimbursement procedure Rule 268 (1) Fund Flow for State Projects (where there is no provision in financed from external aid source. The the loan or credit agreement for respective Departments of the State the Special Account or the Government shall provide in the Budget balance in the Special Account is such expenditure proposed to be incurred ‘Nil’) office of Controller of Aid under Plan Schemes during the financial Accounts and Audit shall send year by the Project Implementing the reimbursement claims Agencies. These shall be in respect of received from the Project State projects to be financed from Implementing Agency direct to external aid sources both under loan or the Funding Agency after credit and grants and eligible for checking the eligibility aspect. disbursement from Funding Agency The Funding Agency shall under Reimbursement or Direct Payment disburse the eligible expenditure Procedure. to the borrower’s account with Rule268 (2) Fund flow for State Projects under Reserve Bank of India, Mumbai, Reimbursement Procedure. The who shall pass on the Rupee disbursements under the equivalent to the account of the “Reimbursement through Special Controller of Aid Accounts and Account” and “Reimbursement outside Audit at Reserve Bank of India, Special Account”, referred to in Rule New Delhi by issue of 267(i), shall be consolidated at periodical Government Foreign Transaction intervals under each loan or credit State- (GFT) advice. wise by the office of the Controller of Aid Rule 267 (2) Direct Payment Procedure. Under Accounts and Audit. The details of the this procedure adopted in some cases same shall be sent to Plan Finance the Funding Agency, on the request of Division of the Department of the Project Implementing Agency Expenditure in the Ministry of Finance for (received through Controller of Aid release of funds to the respective State Accounts and Audit), duly supported by Governments. The Plan Finance division relevant documents, shall directly pay to of Department of Expenditure in the the contractor or supplier or consultant Ministry of Finance shall issue sanctions from the loan or credit or grant account. for actual release of the disbursement for The Funding Agency, after satisfying each State. A copy of such sanction shall itself as to the eligibility of the expenditure be endorsed to the Finance Department etc. remits the amount directly to the of the concerned State Government for account of the payees as per the information. The office of the Chief payment instructions. The Funding Controller of Accounts, Ministry of Agency apprises the office of Controller Finance shall issue the Inter-Government of Aid Accounts and Audit and the Project (IG) Advice to Reserve Bank of India, Implementing Agency of the particulars of Central Accounts Section, Nagpur, for 81effecting the release to the concerned Project Implementing Agency within six State Governments. The account of the weeks by the administrative Ministry or State Government maintained at Reserve Department with reference to expenditure Bank of India, Central Accounts Section, incurred by the Project Implementing Nagpur, shall be credited with the amount Agency. so released, thus, completing the cycle of Rule 270 Fund flow for Public Sector or funds from the expenditure incurred from Financial Institutions. When the Project the Budget of the State till receipt of funds Implementing Agency under Loan or of such expenditure from Government of Credit Agreement is a Public Sector or India to the State. Financial Institution or Autonomous Body Rule 268 (3) Fund flow for State Projects under and Government of India is the Borrower, Direct Payment Procedure. Under the Administrative Ministry concerned Direct Payment Procedure the claims shall provide in its budget funds required shall be processed as mentioned in Rule to be passed on to the Project 267 (ii). Office of Controller of Aid Implementing Agency for the expenditure Accounts and Audit shall work out the incurred by the latter under the externally Rupee equivalent of such Direct Payment aided project. The Project Implementing based on Reserve Bank of India buying Agency shall submit claims under rate applicable for the value date on reimbursement or direct payment which the Direct Payment was made. procedures to the office of the Controller Office of Controller of Aid Accounts and of Aid Accounts and Audit, Department of Audit shall consolidate such Economic Affairs. The disbursement of disbursement in Rupees, and send a list the claims by the Funding Agency shall of such disbursement State- wise to Plan be similar as explained in Rule 267. The Finance Division of Department of concerned administrative Ministry or Expenditure at periodical intervals Department releases the amount to requesting them to release the amount to Project Implementing Agency based on the State concerned notionally and the certification of disbursement received recover the same for credit to Controller from the Funding Agency as certified by of Aid Accounts and Audit’s account. The the office of the Controller of Aid Plan Finance Division shall issue a Accounts and Audit. separate sanction for the amount to be However, where the loan is negotiated released to the State concerned and for directly by a particular Public Sector simultaneous recovery and credit back to Undertaking or Financial Institution, the the account of the Controller of Aid funds from the Funding Agency shall flow Accounts and Audit. A copy of such direct to the borrowing entity. sanction shall also be endorsed to the Rule 271 Repayment of loans. Office of Controller Finance Department of the State of Aid Accounts and Audit shall be Government concerned. The office of the responsible for prompt repayment of Chief Controller of Accounts, Ministry of principal on the due date as per the Finance shall advise Reserve Bank of agreements. The remittance of foreign India, Central Accounts Section, Nagpur, currency is arranged through designated for making necessary adjustment entries Public Sector Commercial Banks and in the accounts of the State concerned Reserve Bank of India. The Rupee under intimation to the Finance equivalent and the amount of foreign Department of the State and Controller of currency remitted shall be intimated by Aid Accounts and Audit. This completes the Banks to Controller of Aid Accounts the cycle of funds flow in the case of and Audit. The Rupee equivalent of the direct payment claims. foreign currency remitted is credited to Rule 269 Fund flow for Central or Central the respective Banks’ account sponsored Projects. Under the Central maintained at Reserve Bank of India, or Central sponsored project financed New Delhi, by debit to Controller of Aid from external aid, whether loan or grant, Accounts and Audit’s account as per the process of disbursement of such standing arrangement. On the receipt of claims by the Funding Agency shall be the advice from Reserve Bank of India, the same as explained in Rule 267. The New Delhi, Controller of Aid Accounts respective Ministry or Department get and Audit shall debit the concerned loan EAP funds under a separate budget head account in the Consolidated Fund of when Demands for Grants are passed in India. The repayment of loans shall be the Parliament and advised by the classified as charged expenditure. In Budget Division of the Ministry of cases where the funds from externally Finance. The funds shall be released to aided Projects are further passed on as 82loans, the recovery of the loan along with interest shall be the responsibility of the respective administrative Ministry or Department. Rule 272 Interest Payments. Interest on external loans shall be paid on the due date as stipulated in the loan or credit agreements against the budget provision made for this purpose. Interest payments shall be accounted for as debit under the Major Head ‘2049-Interest Payments’ for external loans in the Consolidated Fund of India. The procedure for transfer of amount shall be the same as followed in the case of repayment of loans, referred to in Rule 271 above. The interest payment shall be classified as charged expenditure. Rule 273 Accounting of exchange variation. The exchange variation in respect of foreign loans that have been fully repaid shall be adjusted written off to “8680- Miscellaneous Government Accounts - Write off in terms of Government Accounting Rules and the procedures prescribed by CGA in consultation with CAG. Rule 274 Aid in form of materials and equipment. In cases where materials, equipment and other commodities, without involving any cash inflow, are received as aid from foreign countries, the Funding Agency issues an advice to the concerned Ministry or Department giving details of materials supplied along with the value thereof. The Ministry or Department concerned in turn shall intimate the details to the office of the Controller of Aid Accounts and Audit, Department of Economic Affairs for making the budget provision in regard to aid material or equipment. Note: Refer to Para 4.8.1 of Civil Accounts Manual and Note (1) below Major Head ‘3606-Aid Materials and Equipment’ of List of Major and Minor Heads of Account of Union and States for detail procedure of adjustment of value of the materials etc. received 83Ch.-11 - GOVERNMENT GUARANTEES Rule 275 (1) Power to Give and Limits on manner as a proposal for loan. Government Guarantees. The power of While examining the proposal the the Union Government to give following considerations shall be guarantees emanates from and is subject kept in view: - to such limits as may be fixed in terms of (a) Public interest which the Article 292 of the Constitution of India, the guarantee is expected to Fiscal Responsibility and Budget serve. Management Act and Rules framed there (b) Credit worthiness of the under as amended from time to time. borrower to ensure that no Rule 275 (2) In terms of the Fiscal Responsibility undue risk is involved. and Budget Management Act and Rules (c) Terms of the borrowing shall framed thereunder, the Central take into account the yields Government shall not give guarantees as applicable on aggregating the amount prescribed Government paper of similar therein. maturity. Rule 275 (3) Powers to grant Government of India (d) The conditions prescribed in Guarantee, including those on external the guarantee borrowings, vests with the Budget order/agreement in order to Division, Department of Economic Affairs ensure continued credit (DEA). worthiness of the borrower. Rule 276 Objectives of Government (iii) Risk associated with assumption Guarantees: The sovereign guarantee is of a new contingent normally extended for the purpose of liability/guarantee proposal, achieving the following objectives: including the probability of future (i) To improve viability of projects or payouts should be thoroughly activities undertaken by central assessed by the concerned entities with significant social and Administrative economic benefits; Ministry/Department or Credit (ii) To enable central public sector Divisions of Department of companies to raise resources at Economic Affairs recommending lower interest charges or on more the proposal. Such assessment favourable terms; should ideally be entrusted to an (iii) To fulfill the requirement in cases independent unit and should be where sovereign guarantee is a undertaken even when it has precondition for concessional already been decided by a higher loans from bilateral/ multilateral authority to provide guarantees. agencies to central public sector The assessment should reveal companies/agencies. an accurate picture of the Rule 277 Guidelines for grant of Government of financial condition of the entity to India Guarantee: The following be guaranteed; risks associated guidelines should be followed by the with implementation of the Ministries or Departments of the project/ scheme, etc. This Government of India for recommending information would be useful to guarantee or counter guarantee: - estimate the funds needed to (i) A proposal for guarantee by meet associated contingent Government must be justified in liabilities if the need should arise, public interest such as in the in current or future budgets. case of borrowings by central (iv) After examination in the public sector institutions for concerned Ministry or approved development purposes Department or Credit Division of or borrowings by central public DEA, all proposals for extending sector undertakings from Banks guarantees shall be referred to for working capital and other Budget Division, DEA for purposes. approval. No guarantees shall be (ii) The Administrative Ministry/ given without the approval of Department or the credit Budget Division, DEA. Divisions of Department of (v) With a view to enable the Ministry Economic Affairs shall examine of Finance to examine cases of the proposal in consultation with Government of India guarantees the Financial Adviser in the same and extension thereto, all 84Ministries or Departments should Government etc. Even if fee, furnish to that Ministry, data of representation and mortgage are certain operational parameters of not considered necessary, the the Public Sector Undertaking or right to verify the continued Entity, as given in GFR26. In credit–worthiness of the borrower case the accounts of the Central should be ensured. Public Sector Undertaking or (xiii) Guarantees may not be Entity have been audited by the proposed for pursuing low priority Comptroller & Auditor General of objectives or programmes. India, the effect of the comments Proposal for grant of guarantee of the Comptroller & Auditor as an off-budget support should General of India on the Central also be examined Public Sector Undertaking’s comprehensively by the profitability should be brought proposing Ministry/Department out. Further, where BIFR targets against other alternative forms of have been assigned or Cabinet support which may be more directions issued to the appropriate and cost- effective. Company, the actuals vis-à-vis For example, in the case of targets for the preceding three provision of credit guarantees to years should be indicated. The enterprises that continually incur data should be furnished in the losses as a result of Form GFR 26 along with the government's pricing policy, proposal for guarantee. budgetary subsidies or direct (vi) Guarantees shall normally be government loans may be a more restricted to the repayment of effective and less costly option. principal and normal interest (xiv) Guarantees may not be component of the loan. Other proposed in respect of Central risks shall not form part of the Public Sector Enterprises whose guarantee. strong financial credentials and (vii) Government guarantees will be high credit rating would indicate extended to only central public inherent ability to directly raise sector companies/ agencies. the required resources without (viii) Government guarantees shall not the support of government be provided to the private sector. guarantee. (ix) Government guarantees should Rule 278 Borrowings from multilateral agencies normally not be extended for by Central Public Sector external commercial borrowings. Undertakings. (x) Government guarantees may be (i) All borrowings from the given on all soft loan components multilateral agencies by Central of the bilateral/ multilateral aid. Public Sector Undertakings However, guarantee shall not be would be direct (without normally given for the Government of India’s commercial loan components of intermediation) on the terms as such aid. agreed mutually between the (xi) Government of India guarantee borrower and the lender and will not be given in cases of approved by the Government of grants. However, if the donor India. However, where such insists on ensuring performance, terms involve guarantee of the same may be listed as a Government of India, prior negotiating condition for getting approval of the Budget Division the grant. of the Ministry of Finance may be (xii) Appropriate conditions, may be obtained. made by Government while (ii) The borrowing should relate to giving the guarantee e.g. period the Projects approved by the of guarantee, levy of fee to cover prescribed competent authority risk, representation for of the Central Government. Government on the Board of (iii) Wherever guarantee is to be Management, Mortgage or lien given by Government of India, on the assets, submission to the borrower shall enter into an Government of periodical reports agreement with the Government and accounts, right to get the of India for the payment of accounts audited on behalf of guarantee fee on the principal 85amount of the loan drawn and Government of India. loan outstanding from time to Rule 280 Execution of Government Guarantees. time. (i) Once the guarantee is approved (iv) The Government of India by Ministry of Finance, the Guarantee would only cover the guarantees will be executed and principal amount and the normal monitored by the Administrative interest. All other risks including Ministries concerned, who are the exchange rate risk would be also required to report the status shared between the borrower in this regard on an annual basis and lender as per terms and till they are invoked or are conditions prescribed in the loan obliterated. The following agreement. guidelines need to be kept in Rule 279 (1) Levy of Guarantee Fees. The rates view while issuing guarantees- of fee on guarantees would be as notified (a) The obligations of the by the Budget Division, Department of borrower to service the loan Economic Affairs, Ministry of Finance and the guarantee, and the from time to time. The rates of guarantee monitoring of the utilization fee are given in Appendix - 12. Ministries of the guaranteed loans, and or Departments shall levy the prescribed adherence to the terms and fee in respect of all cases. The fees are conditions of the guarantee also to be levied in respect of non-fund by the Borrower shall be based borrowings or credits (viz. letters of ensured by the credit, Bank guarantees etc.). In case of Administrative Ministry/ any doubt with regard to the Department through a back- categorisation of any particular to- back agreement with the undertaking or organization or the nature borrower which may be of borrowing for the purpose of levy of drawn up and implemented fee, the matter may be referred to the to the satisfaction of the Budget Division for clarification. The Administrative Ministry Ministries or Departments should also concerned. For this take adequate steps to ensure prompt purpose, necessary records recovery of the prescribed fees. to monitor the guarantee, Rule 279 (2) The guarantee fee should be levied including servicing of before the guarantee is given and guarantee fee shall be thereafter on first April every year. The maintained by the Line rate of guarantee fee is to be applied on Ministries / Departments the amount outstanding at the beginning concerned. of the guarantee year. (b) Administrative Ministry Rule 279 (3) Where the guarantee fee is not paid should ensure that there are on the due date, fee should be charged at no inconsistencies between double the normal rates for the period of the guarantee approval default. given by the Ministry of Rule 279 (4) The Government may guarantee no Finance and the guarantee more than 80% of the project loan, agreement signed by it with depending on the conditions imposed by the borrower. The the lender. This would incentivize the obligations enforced by the lenders to make proper analysis of the Government as guarantor project, credit worthiness of the would be duly factored in. borrower(s), and build strategies for risk (c) Deviations / modifications / management. In such cases, bankers/ amendments on the main lenders may be asked to share the risk by conditions of the guarantee, bearing a minimum of 20% of the net loss particularly with reference to associated with any default. The the rate of interest on the arrangement would ensure that the loan to be guaranteed and lenders undertake a more rigorous obligations of the assessment of the risk exposure. Government to be covered, Provided further that in certain should not be referred in a exceptional circumstances, the routine manner to Budget Government of India may guarantee Division for clarification/ 100% of the financing where the change. The Administrative organisation concerned is discharging Ministry concerned shall some function on behalf of the make out a separate case, 86fully justifying the need for IGAS, through the office of considering any proposed Controller/Chief Controller of modifications / Accounts. amendments, after thorough Rule 281 (1) Review of Guarantees. All Ministries scrutiny of the request of the or Departments shall ensure that all borrower for the same, guarantees are reviewed every year. The before placing these monitoring or review undertaken should proposals before the Budget examine whether the borrower is Division for a final decision. discharging repayment obligations or (d) In respect of bilateral and interest obligations as per terms of the multilateral credit, Standard loan agreement, whether the repaying format of Guarantee of the capacity for the loan and guarantee lending institutions may be amount is imposed in any manner, and examined with a view that whether all covenants and conditions are the same are not in being religiously followed. The Financial contradiction with the Advisers of the Ministries or Departments conditions of sovereign should undertake these reviews. A copy guarantee prescribed in this of the review report including on timely chapter, before signing by and correct payment of guarantee fees, the Administrative Ministry/ shall be forwarded by the Finance Department. The guarantee Advisor to the Budget Division by 30th agreement may also not April every year for the previous financial omit any conditions as year. brought out in this Chapter. Rule 281 (2) The Financial Adviser of the Ministries New conditions or or Departments would be responsible for covenants, and differences, ensuring that the annual reviews are if any, shall be referred to carried out by the Ministries or Budget Division of the Departments concerned. They shall also Department of Economic ensure that a register of guarantees in Affairs (DEA) for Form GFR 25 is maintained: - concurrence. (i) to keep a record of guarantees; (e) Guarantee proposals (ii) to retain information required approved by the Budget from time to time in respect of Division shall have to be guarantees; executed in the same (iii) to keep record of the annual financial year. If the reviews to see that these are guarantee/ loan agreement carried out regularly; is not signed in the same (iv) to keep record of levy and financial year as that of the recovery of guarantee fee; approval of the guarantee (v) to send data as contained in proposal, the guarantee Form GFR 25, duly updated proposal shall have to be every year to the Budget Division submitted again. in the Ministry of Finance, (f) The guarantee shall hold Department of Economic Affairs only for the specific purpose by tenth of April. agreed to by the Budget Rule 281 (3) In respect of guarantees issued by the Division. Ministry of Finance for external loans, the (g) Guarantee given by respective credit divisions of Department Government of India shall of Economic Affairs shall conduct an be non - transferrable and annual review in consultation with the would cease to exist in case Financial Adviser (DEA). For this the ownership of the entity is purpose, the Financial Adviser (DEA) transferred from shall ensure the maintenance of the Government of India, unless required registers, as well as ensure that the Guarantee is re- the annual reviews are carried out by the confirmed by the Budget concerned credit divisions, and report Division. forwarded to the Budget Division in Form (ii) The Financial Advisers in GFR 25. In cases, where the guarantees Ministry/ Department will perform on external loans are issued by the the responsibility of maintenance concerned administrative Ministry, that of records and reporting including Ministry would be responsible for for the Finance Accounts and the conducting the review. 87Rule 281 (4) Classification of guarantees. For the Controller General of Accounts, purpose of record keeping, guarantees for onward submission to Budget shall be classified as under: - Division. Based upon the inputs, (i) guarantees given to the RBI, a statement of Guarantees given other banks and industrial and by the Central Government is financial institutions for depicted as an annexure in the repayment of principal and Receipt Budget. payment of interest, cash credit (ii) While furnishing the Statement of facility, financing seasonal guarantees to the Ministry of agricultural operations and/or Finance, the Administrative providing working capital to Ministries or Departments should companies, corporations, ensure and certify that the cooperative societies and banks; amounts shown tally with the (ii) guarantees given for repayment total figures in the statement to of share capital, payment of be included in the Detailed minimum annual dividend and Demands for grants. repayment of bonds or loans, (iii) While furnishing the summary debentures issued or raised by statements, the Ministries or the statutory corporations and Departments should also certify central public sector that the information tallies with undertakings; the material furnished to the (iii) guarantees given in pursuance of Controller General of Accounts agreements entered into by the for the purpose of inclusion in the Government of India with Finance Accounts of the relevant international financial institutions, year and is compliant with Indian foreign lending agencies, foreign Government Accounting governments, contractors, Standard-1 (IGAS-1) relating to suppliers, consultants etc., Government Guarantees. towards repayment of principal, Rule283 (1) Invocation of Guarantee. A interest and/ or commitment Guarantee Redemption Fund (GRF) has charges on loans etc., and /or for been established in the Public Account of payment against supplies of India for redemption of guarantees given material and equipment; to CPSEs, Financial Institutions, etc., by (iv) counter guarantees to banks in the Central Government whenever such consideration of the banks guarantees are invoked. The funding to having issued letters of credit or the Guarantee Redemption Fund is to be authority to foreign suppliers for done through budgetary appropriations, supplies made or services as considered appropriate, under the rendered. head 'Transfer to Guarantee Redemption (v) guarantees given to Railways for Fund' through the Demands for Grants of due and punctual payment of the Department of Economic Affairs. dues by Central Government Rule283 (2) The Administrative Ministries/ companies or corporation; Departments should inform any case of (vi) Others guarantees not covered impending/likely invocation, well in under above five classes. advance, to the Budget Division, along Rule 282 Accounting for Guarantees. In order to with the proposed corrective measures. ensure greater transparency in its fiscal Rule283 (3) In the event of invocation of a operations in the public interest, Rule 6 of guarantee, the obligation may be the FRBM Rules, 2004 requires discharged by sanctioning loan to the government to publish a disclosure borrowing entity equal to the amount of statement on guarantees given by guarantee outstanding with the approval government, at the time of presenting the of Budget Division, Ministry of Finance. annual financial statement and demands However, any payment on this account for grants. This statement covers, inter will finally be charged to the Guarantee alia, details regarding the class and Redemption Fund maintained in the number of guarantees, amounts Public Accounts. guaranteed, outstanding, invocations, guarantee fee payable and other material details. (i) The statement is to be compiled by the Administrative Ministries / Departments and submitted to 88Ch.-12 - MISCELLANEOUS SUBJECTS period and no formal I. ESTABLISHMENT appointment or officiating arrangement is made in his Rule 284 (1) Proposal for additions to place. Establishment. (iii) Where due to administrative All proposals for additions to exigencies a government servant establishment shall be submitted to is required to move to another sanctioning authority in accordance with post relinquishing his post the instructions issued by Department of against local arrangement. Expenditure in this regard time to time.1 Rule 286 (2) In cases in which the transfer of Rule 284 (2) All proposals for creation of new posts charge involves assumption of or a revision in an existing establishment responsibility for cash, stores, etc., the should contain, inter alia: - following instructions should be (i) the present cost of the observed: - establishment in existence; (i) The Cash Book or imprest (ii) cost implications of the change account should be closed on the proposed giving details of pay date of transfer and a note and allowances of post(s) recorded in it over the signatures proposed; of both the relieved and the (iii) expenditure in respect of claim to relieving Government servants, pension or gratuity or other showing the cash and imprest retirement benefits that may arise balances and the number of in consequence of the proposals; unused cheques/receipt books, if (iv) details on how the expenditure is any, made over and received by proposed to be met including them respectively. proposed re-appropriations. (ii) The relieving Government Rule 284 (3) Continuation of an existing post servant should bring to notice beyond the specified duration will be with anything irregular or explicit approval of Ministry of Finance, objectionable in the conduct of based on functional justification. business that may have come Rule 284 (4) All proposals for increase in officially to his notice to the emoluments for an existing post(s) shall incoming officer. be referred to the Ministry of Finance for (iii) In the case of any sudden approval. casualty occurring or any Rule 285 All service matters from entry to exit, emergent necessity arising for a including leave, transfer, promotion, Government servant to relinquish performance appraisal should be his charge, the next senior officer maintained in a digitised format. of the department present shall Rule 286 (1) Transfer of Charge. A report of take charge. When the person transfer of a Gazetted Government who takes charge is not a servant duly made in Form GFR 16 and Gazetted Government servant, signed both by the relieved and relieving he must at once report the Government servants, shall be sent on circumstances to his nearest the same day to the Head of the departmental superior and obtain Department or other Controlling Officers orders as to the cash in hand, if concerned except in the following types any. of cases in respect of which report of Rule 286 (3) The additional procedure to be transfer of charge need not be signed followed by an Audit Officer or Accounts both by the relieving and relieved Officer, etc., in making over charge of his Government servants simultaneously functions in connection with the and may be sent independently:- Charitable Endowments and other Trust (i) Where a Gazetted Government Accounts is laid down in Appendix – 8. servant assumes charge of a Rule 287 Date of Birth. Every person newly newly created or vacant post or appointed to a service or a post under relinquishes charge of a post Government shall, at the time of the which has been abolished. appointment, declare the date of birth by (ii) Where a Gazetted government the Christian era with confirmatory servant vacates a post for a short documentary evidence such as a 1 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. 14(37)/2015-E.II.A dated 12.07.2024. 89Matriculation Certificate, where forfeited. prescribed qualification for appointment Rule 291 Reckoning the date in case of T.A. claims is Matriculation or above. In other cases by retired Government servants Municipal Birth Certificate or Certificate appearing in a Court of Law for defending from the recognised school last attended himself. - Retired Government servants shall be treated as a valid document. become eligible for reimbursement of Rule 288 (1) Service Book. Detailed Rules for Travelling expenses in respect of maintenance of Service Books are travel(s) for appearing in court of law for contained in SRs. Service Books defending himself only when the maintained in the establishment should judgement relating to his honorable be verified every year by the Head of acquittal is pronounced by the court. In Office who, after satisfying himself that such cases the date of pronouncements the services of Government servants of the judgement shall be the reference concerned are correctly recorded in each point for submission and reimbursement Service Book shall record the following of his T.A claim. certificate “Service verified from ……(the Rule 292 Due date of Leave Travel Concession date record from which the verification is claim. Leave Travel Concession claim of made) ........................................upto a government servant shall fall due for …….................(date)…………” payment on the date succeeding the date Rule 288 (2) The service book of a government of completion of return journey. The time servant shall be maintained in duplicate. limit for submission of the claims shall be First copy shall be retained and as under :- maintained by the Head of the Office and (i) In case advance drawn: Within the second copy should be given to the thirty days of the due date. government servant for safe custody as (ii) In case advance not drawn: indicated below:- Within sixty days of the due date. (i) To the existing employees - In case of (i) above if the claim is not within six months of the date on submitted within one month of the due which these rules become date, the amount of advance shall be effective, if not already given. recovered but the Government employee (ii) To new appointees - within one shall be allowed to submit the claim as month of the date of under (ii) above. In case of failure to appointment. submit the claim in both the cases within Rule 288 (3) In January each year the Government the prescribed time lines, the claim shall servant shall handover his copy of the stand forfeited. Service Book to his office for updation. Rule 293 Due date of Over Time Allowance The office shall update and return it to the claims. A claim for overtime allowance Government Servant within thirty days of shall fall due for payment on first day of its receipt. the month following the month to which Rule 288 (4) In case the Government servants’ the overtime allowance relates. The claim copy is lost by the government servant, it shall stand forfeited if not submitted shall be replaced on payment of a sum of within 60 days of the due date. Rs. 500/-. Rule 294 Due date of a withheld increment. In Rule 288 (5) All Service Books should be digitised the absence of any specific order for easy reference and to avoid problems withholding an ordinary increment under in case of loss of Service Books. FR 24 before the date on which it falls due Rule 289 Retrospective claim due from date of for payment, the period of one year sanction. In the case of sanction should be counted from the date on which accorded with retrospective effect the it falls due and not with reference to the charge does not become due before it is date on which the Increment Certificate is sanctioned. In such cases the time-limit signed by the competent authority. Even specified in Rule296 (1) should be where an increment is withheld, the time- reckoned from the date of sanction and limit should be reckoned from the date on not from the date on which the sanction which it falls due after taking into account takes effect. the period for which it is withheld. Rule 290 Due date of T. A. claim. Travelling Rule 295 (1) Arrear Claims. Any arrear claim of a allowance claim of a government servant Government servant which is preferred shall fall due for payment on the date within two years of its becoming due shall succeeding the date of completion of the be settled by the Drawing and Disbursing journey. He shall submit the travelling Officer or Accounts Officer, as the case allowance claim within sixty days of its may be, after usual checks. becoming due failing which it shall stand 90Rule 295 (2) For the purpose of the above withdrawal from Provident Fund shall, provisions, the date on which the claim is unless it is specifically renewed, lapse on presented at the office of disbursement the expiry of a period of three month. This should be considered to be the date on will, however, not apply to withdrawals which it is preferred. effected in installments. In such cases the Rule 295 (3) sanction accorded for non-refundable (i) A claim of a government servant withdrawals from Provident Fund will which has been allowed to remain valid up to a particular date to be remain in abeyance for a period specified by the sanctioning authority in exceeding two years, should be the sanction order itself. investigated by the Head of the Department concerned. If the II. REFUND OF REVENUE Head of Department is satisfied about the genuineness of the Rule 300 Sanctions of refunds of revenue. All claim on the basis of the sanctions to refunds of revenue shall be supporting documents and there regulated by the orders of an are valid reasons for the delay in Administrator or of the departmental preferring the claims, the claims authority, as the case may be, according should be paid by the Drawing to the provisions of the rules and orders and Disbursing Officer or contained in the departmental manuals Accounts Officer, as the case etc. may be, after usual checks. Rule 301 (1) Communication of refund (ii) A Head of Department may sanctions to audit. The sanction to a delegate the powers, conferred refund of revenue may either be given on on him by sub rule (i) above to the the bill itself or quoted therein and a subordinate authority competent certified copy of the same attached to the to appoint the Government bill in the latter case. servant by whom the claim is Rule 301 (2) Suitable note of refund to be made made. in original Cash Book entry and other Rule 296 (1) Procedure for dealing with time- documents. Before a refund of revenue barred claims. is made, the original demand or Even a time barred claim of a realization, as the case may be, must be Government servant, shall be entertained linked and a reference to the refund by the concerned authority provided that should be recorded against the original the concerned authority is satisfied that entry in the Cash Book or other the claimant was prevented from documents so as to make the submitting his claim within the prescribed entertainment of a double or erroneous time limit on account of causes and claim impossible. circumstance beyond his control. Rule 301 (3) Remission of revenue before Rule 296 (2) A time barred claim referred to in collection is not refund. Remissions of Rule296 (1) shall be paid with the revenue allowed before collection are to express sanction of the Government be treated as reduction of demands and issued with the previous consent of the not as refunds. Internal Finance Wing of the Ministry or Rule 301 (4) Refunds not regarded as Department concerned. expenditure for allotment. Refunds of Rule 297 Time barred claims of persons not in revenues are not regarded as Government service. The provisions of expenditure for purposes of grants or Rule 289 to Rule 296 shall apply mutatis appropriation. mutandis to arrear claims preferred Rule 301 (5) Competent authority in case of against Government by persons not in credits wrongly classified. In cases Government service. where revenue is credited to a wrong Rule 298 Retrospective sanctions. head of account or credited wrongly Retrospective effect shall not be given by under some misapprehension, the competent authorities to sanctions authority competent to order refund of relating to revision of pay or grant of revenue shall, in such cases, be the concessions to Government servants, authority to whom the original receipts except in very special circumstances with correctly pertain. the previous consent of the Ministry of Rule 302 Compensation for accidental loss of Finance. property. No compensation for Rule 299 Currency of sanction of Provident accidental loss of property shall be paid Fund advance/withdrawal. A sanction to an officer except with the approval of to an advance or a non-refundable part the Ministry of Finance. Compensation 91will not ordinarily be granted to an officer before the submission of the bill for any loss to his property which is for payment. caused by floods, cyclone, earthquake or (vi) Similar provisions shall also be any other natural calamity or which is due made towards subscribers to to an ordinary accident, which may occur New Pension System (NPS). to any citizen, for example, loss by theft Rule 304 (2) Crediting of Interest. The deposit or as a result of a railway accident or fire accounts of these funds on the etc. The mere fact that at the time of the Government book will be credited with accident, the Government servant is interest at such rates and at such technically on duty or is living in intervals as may be prescribed by Government quarters in which he is Ministry of Finance in each case. forced to reside for the performance of his Rule 305 (1) Maintenance of a register for duties will not be considered as a recovery of Postal Life Insurance sufficient ground for the grant of Premia. All drawing officers should compensation. maintain in Form (GFR 20) record of Postal Life Insurance policy (PLI) holders. III. DEBT AND MISCELLANEOUS Rule 305 (2) The register should be kept upto date, OBLIGATIONS OF GOVERNMENT the names of the policy holders should be noted in alphabetical order according to Rule 303 Public Debt. The public debt raised by surnames, leaving sufficient space government by issue of securities shall between two entries to enable new- be managed by the Reserve Bank. The comers names being inserted in the right Reserve Bank shall also manage place. securities created and issued under any (i) A separate entry should be made in the other law or rule having the force of law, register for each policy in the case of a policy provided such law or rule provides holder having more than one policy. specifically for their management by the (ii) On receipt of an intimation from the Director, Reserve Bank. Postal Life Insurance, Kolkata, about the issue Rule 304 (1) Provident Funds. The procedure of a policy in favour of a subscriber authorizing relating to the recovery of, subscriptions the Drawing Officer to commence recovery to and withdrawals from, the Provident from pay, or on receipt of a Last Pay Funds established under accordance Certificate in respect of the subscriber with the provisions of the respective transferred from another office, the Drawing Provident Fund Rules. Following Officer should make a note of the particulars instructions should be carefully observed of the policy in the register. The name of the by the Head of the Offices for correct office from which the subscriber has been preparation of the Provident Fund transferred should invariably be noted in the schedules: - remarks column. Wherever a subscriber is (i) A complete list of subscribers to transferred to another office or his policy is each fund should be maintained discharged, his name should be scored out in each disbursing office in the from the register giving necessary remarks. form of the schedule. (iii) After the preparation of the monthly pay bill, (ii) Each new subscriber should be the amount of recovery on account of PLI brought on this list and any premium shown in the bill should be posted in subsequent changes resulting the monthly column in the register with proper from his transfer or in the rate of reference to the bills or the vouchers. The fact subscription etc. clearly indicated of excess or non-recovery should be briefly in the schedule. noted in the remarks column. Extracts should (iii) When a subscriber dies, quits be attached to the relevant bills in support of service or is transferred to the recoveries. While taking extracts it should another office, full particulars be seen that the names of those insurants should be duly recorded in the from whom recoveries were made in previous list. months but no recoveries have been made (iv) In the case of transfer of a during the current month either on account of subscriber to another office, the transfer or discharge of that policy or on necessary note of transfer should account of leave salary being not drawn or the be made in the list of both the official being on leave without pay, should be offices. included in the current month's schedule and (v) From this list the monthly necessary remarks noted against their names. schedule to be appended to the (iv) Similarly, the remarks 'New Policy' or pay bill should be prepared and Transferred from tallied with recoveries made ……………………………Office should be 92given in the schedule against the names of (ii) such exemption is granted only in insurant entered for the first time in current the case of a permanent month. Reasons for short or excess recovery Government servant; and should be noted briefly in the remarks column. (iii) the period of officiating In short, schedule of Postal Life Insurance arrangement does not exceed recoveries to be attached to the bills, would be four months. a record not only of those from whom the Rule 307 Notwithstanding anything contained in recovery has actually been affected but also Rule 306, security need not be furnished of those from whom recovery was being in cases of – affected previously but has not been affected. (a) Government servants who are entrusted with the custody of IV. SECURITY DEPOSITS stores, which in the opinion of the competent authority are not Rule 306 (1) Furnishing of security by considerable. Government servants handling cash. (b) Government servants, who are Subject to any general or special entrusted with the custody of instructions prescribed by Government in office furniture, stationery and this behalf, every Government servant, other articles required for office who actually handles cash or stores shall management, if the Head of be required to furnish security, for such Office is satisfied about the amount and in such form as Central safeguards against loss through Government or an Administrator may pilferage. prescribe according to circumstances (c) Librarian and Library Staff. and local conditions in each case, and to (d) Drivers of Government vehicles. execute a security bond setting forth the Rule 308 Retention of Security. A security conditions under which Government will deposit taken from Government servant hold the security and may ultimately shall be retained for at least six months refund or appropriate it. from the date he vacates his post, but a Rule 306 (2) The amount of security to be obtained security bond shall be retained from a Government servant shall be permanently or until it is certain there is determined on the basis of actual cash no further necessity for keeping it. handled which shall not include account payee cheques and drafts. V. TRANSFER OF LAND AND BUILDINGS Rule 306 (3) Security should be furnished in the form of a Fidelity Bond in GFR 17, the Rule 309 Save as otherwise provided in any law, security bond should be executed in rule or order relating to the transfer of Form GFR 14. The Administration shall Government land, no land belonging to see that the government servant pays the the Government or any of its bodies, premia necessary to keep the Bond alive, including autonomous bodies, PSUs, etc. for which the government servant shall shall be sold without previous sanction of submit premium receipt in time. If the the Government. government servant fails to submit the Rule 310 (1) Transfer of Land. Transfer of land premium receipt he shall not be allowed from a Union Territory to a Central to perform the duties of his post and he Government Department (i.e. Ministry or shall be dealt with in accordance with the Department of the Union Government terms of his appointment. including Defence, Railways, and Posts Rule 306 (4) A Government servant who is and Telegraphs) or vice versa shall be on officiating against the post of another 'no profit no loss' basis. cash or store handling Government Rule 310 (2) Transfer of land from one Department servant shall be required to furnish the full of the Government (as defined in Rule amount of the security prescribed for the 309) to another shall be on 'no profit no post. The Ministry or Department of loss' basis. Central Government, Administrators and ‘No profit no loss’ as indicated at rules the Comptroller and Auditor General in 310(1) and 310(2) above does not respect of persons serving in Indian Audit necessarily mean transfer being effected and Accounts Department may, however, with ‘zero cost’. Transfer can be on the exempt a Government servant officiating basis of mutually agreeable terms and in such a short-term vacancy from conditions or in exchange for equal value furnishing security if the circumstances land or payment of value of land or cost warrant such exemption provided that - of acquisition. (i) they are satisfied that there is no Rule 310 (3) Transfer of buildings and risk involved; superstructures on land shall be treated 93similar to transfer of land. Transfer of collected by Government for or on behalf buildings and superstructures on land of local bodies shall not be appropriated vide above shall be at the present day direct to a local fund without passing cost minus depreciation of these them through the Consolidated Fund structure(s) standing on the land. unless expressly authorised by law. Valuation for this purpose shall be Rule 315 Payments to Local Bodies. Subject to obtained from the Central Public Works provision of relevant act and rules, Department at the time of transfer. payments to local bodies in respect of Rule 310 (4) The allotment of land to, and recovery revenue and other moneys raised or of cost of buildings from the Public Sector received by Government on their behalf Undertakings shall be at 'market value' as will be made in such manner and on such defined in paragraph - 2 of Appendix - 7. date, as may be authorized by general or Rule 310 (5) The transfer of land and building special orders of Government. between the Union and State Rule 316 Audit of Account of Local Bodies. Governments shall be regulated by the Subject to the provisions of any law made provisions of Articles 294, 295, 298 under Article 149 of the Constitution, the and299 of the Constitution and subsidiary accounts of local bodies, other non- instructions issued by the Union Government bodies, or institutions will be Government which are reproduced as audited by the Indian Audit and Accounts Appendix - 7. Department under such terms and conditions as may be agreed upon VI. CHARITABLE ENDOWMENTS AND between the Government and the OTHER TRUSTS Comptroller and Auditor General of India. Rule 317 Audit Fees. Audit fees on the basis of Rule 311 Detailed instructions relating to daily rates prescribed by Government in Charitable Endowments and other Trusts consultation with the Comptroller and are embodied in Appendix -8. Auditor General of India from time to time shall be charged by the Indian Audit and VII. LOCAL BODIES Accounts Department for the audit of local and other non-Government funds, Rule 312 (1) Financial arrangements between excluding funds for the audit of which the Central Government and Local rates of fees recoverable are prescribed Bodies. Unless any one of the following by law or by rules having the force of law. arrangements is authorized by specific Provided that nothing contained in this orders of Government, a local body will rule shall be held to override any special be required to pay, in advance, the instructions of Government exempting estimated amount of charges to be any particular local body or institution incurred or cost of services to be wholly or partially from the payment of rendered, by Government on account of audit fees. the fund: - Rule 318 In the case of Government Companies, (i) payments made by Government the recovery of the cost of Supplementary are debited to the balances of the Audit conducted under Section 143(6) of deposits of the local fund with Companies Act, 2013 as amended from government; or time to time, should be waived in those (ii) payments are made as advances cases where the audit is done by the from public funds in the first Comptroller and Auditor General through instance pending recovery from his own departmental staff but should be the local funds. enforced in cases where the Comptroller Rule 312 (2) Notwithstanding the provision and Auditor General employs contained in Rule 312 (1) in case of professional auditors for the emergency such as epidemics pre- Supplementary Audit. payment will not be insisted upon from Rule 319 Financial transactions between local bodies for supply of medicines from Government and local bodies shall be Medical Stores Depots of the Ministry of rounded off to the nearest Rupee. Health. Rule313 Any amount or loan not paid on due date VIII. MAINTENANCE OF RECORDS to Government by a local body, may be adjusted from any non-statutory grant Rule320 (1) Destruction of Records. Subject to sanctioned for payment to it. any general or special rules or orders Rule 314 Taxes etc. collected by Government applicable to particular departments as on behalf of Local Bodies. Proceeds of prescribed in their departmental manuals, taxes, fines or other revenues levied or no Government record connected with 94accounts shall be destroyed except in balance if any, shall be submitted by the accordance with the provisions of government servant within fifteen days of Appendix -9. the drawal of advance, failing which the Rule 320 (2) All the records prescribed for retention advance or balance shall be recovered in Appendix - 9, if maintained in electronic from his next salary(ies). form should mandatorily have a back up Rule 324 The Ministry or Department may sanction and adhere strictly to the retention period the grant of an advance to a Government and the prescribed formats. The Pleader in connection with law suits, to responsibility for verification and which Government is a party, up to the certification on a monthly/annual basis as maximum limit of Rupees twenty-five prescribed under relevant rules should thousand at a time. The amount so also be ensured. advanced should be adjusted at the time of settlement of Counsel’s fee bills. IX. EXPENDITURE FOR CONTINGENT AND MISCELLANEOUS PURPOSE2 Rule 321 Rules relating to incurring contingent expenditure are available under Section III of Subsidiary Instructions to Central Government Account (Receipt & Payment) Rules 2022.3 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 Wing, keeping the amount of advance to the minimum required for smooth functioning. Procedures for maintenance of permanent advance or Imprest are available in para 10.12 of the Civil Accounts Manual. 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, subject to the following conditions: - (i) The amount of expenditure being higher than the Permanent Advance available, cannot be met out of it. (ii) The purchase or other purpose cannot be managed under the normal procedures, envisaging post- procurement payment system. (iii) The amount of advance should not be more than the power delegated to the Head of the Office for the purpose. (iv) The Head of the Office shall be responsible for timely recovery or adjustment of the advance. Rule 323 (2) The adjustment bill, along with 2 Amended vide Department of Expenditure (DoE), Ministry of 3 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. 14(37)/2015-E.II.A dated 12.07.2024. Finance (MoF) OM No. 14(37)/2015-E.II.A dated 12.07.2024. 95APPENDIX– 1 [See Rule 37] INSTRUCTIONS FOR REGULATING THE ENFORCEMENT OF RESPONSIBILITY FOR LOSSES, ETC. 1. The cardinal principle governing the assessment of responsibility is that, every Government officer should exercise the same vigilance in respect of expenditure from public fund generally as a person of ordinary prudence would exercise in respect of the expenditure and the custody of his own money. While, the competent authority may, in special cases, condone an officer's honest errors of judgement involving financial loss if the officer can show that he has acted in good faith and done his best up to the limits of his ability and experience, personal liability shall be strictly enforced against all officers who are dishonest, careless or negligent in the duties entrusted to them. 2. In cases where loss is due to delinquencies of subordinate officials and where it appears that this has been facilitated by laxity of supervision on the part of a superior officer, the latter shall also be called strictly to account and his personal liability in the matter carefully assessed. 3. (a)The question of enforcing pecuniary liability shall always be considered as well as the question of other forms of disciplinary action. In deciding the degree of an officer's pecuniary liability, it will be necessary to look not only to the circumstances of the case but also to the financial circumstances of the officer, since it should be recognized that the penalty should not be such as to impair his future efficiency. (b)In particular if the loss has occurred through fraud, every endeavour should be made to recover the whole amount lost from the guilty persons and if laxity of supervision has facilitated the fraud, the supervising officer at fault may properly be penalized either directly by requiring him to make good in money a sufficient proportion of the loss or indirectly by reduction or stoppage of his increments of pay. (c)It should always be considered whether the depreciated value of the Government property or equipment lost, damaged or destroyed by the carelessness of individuals entrusted with their care should be recovered from the delinquent official. The depreciated value of the stores may be calculated by applying the 20% of depreciation in the case of vehicles, including cycles, and 15% in the case of calculating machines, on the reduced balance every year. The amount to be recovered may be limited to the Government servant's capacity to pay. 4. When a pensionable Government servant is concerned in any irregularity or loss, the authority investigating the case shall bear in mind the provisions contained in Central Civil Services (Pension) Rules 1972 as amended from time to time and immediately inform the Audit Officer and/or the Accounts Officer, as the case may be, responsible for reporting on his title to Pension or Death-Cum-Retirement Gratuity, and the authority competent to sanction Pension or Death-Cum-Retirement Gratuity and it will be the duty of the latter to make a note of the information and see that the Gratuity or Death-Cum-Retirement Gratuity is not paid before a conclusion is arrived at as regards the Government servant's culpability and final orders are issued thereon. 5. The fact that Government servants who were guilty of frauds or irregularities have been demobilized or have retired and have thus escaped punishment, should not be made a justification for absolving those who are also guilty but who still remain in service. 6. It is of the greatest importance to avoid delay in the investigation of any loss due to fraud, negligence, financial irregularity, etc. Should the administrative authority require the assistance of the Audit Officer and/or the Accounts Officer, as the case may be, in pursuing the investigation, he may call on that officer for all vouchers and other documents that may be relevant to the investigation; and if the investigation is complex and he needs the assistance of an expert Audit Officer/ Accounts Officer to unravel it, he should apply forthwith for that assistance to Government which will then negotiate with Audit Officer and/or the Accounts Officer concerned for the services of an investigating staff. Thereafter, the administrative authority and the Audit /Accounts authority shall be personally responsible within their respective spheres, for the expeditious conduct of the enquiry. In any case in which it appears that recourse to judicial proceedings is likely, the Special Police Establishment or the State Police should be associated with the investigation. 7. Depending upon the results of the inquiry, departmental proceedings and/or prosecution shall be instituted at the earliest moment against the delinquent officials concerned and conducted with strict adherence to the Central Civil Services (Classification, Control and Appeal) Rules, 1957, and other instructions prescribed in this regard by Government. APPENDIX– 2 [See Rule 52] 96PROCEDURE FOR PREPARATION OF DETAILED ESTIMATES OF RECEIPTS 1. Revenue receipts. - These comprise (i) Central taxes, duties and cesses administered by the Central Board of Direct Taxes and the Central Board of Excise and Customs; (ii) local taxes and duties and other receipts in relation to the Union Territories without Legislature; (iii) interest receipts of loans and advances by the Central Government as also interest charged to commercial departments, etc., (iv) notional receipts from adjustments based on principles of accounting like grant assistance from foreign Governments or International institutions; and (v) all other revenue receipts including dividends on equity investments of the Central Government, cesses collected by the Ministries and Departments, etc. 2. Capital Receipts. These comprise (i) Internal debt (market loan, treasury bills, etc.); (ii) External debt; (iii) Repayment of loans and advances made by the Central Government; (iv) Disinvestment Receipts (v) Other Liabilities. 3. (1) Estimates of receipts of Central Taxes and Duties and External Aid receipts are prepared within the Ministry of Finance by the Central Board of Direct Taxes, the Central Board of Excise and Customs and the Controller of Aid Accounts and Audit. Estimates of internal debt (market loans) receipts are framed by the Budget Division. (2) Estimates of revenue receipts of the Union Territory Administrations will be furnished to the Ministry of Finance by the concerned Audit Officer / Accounts Officer wherever departmentalization of accounts has not taken place and by the Controller of Accounts of the Union Territory Administrations where departmentalization of accounts has been introduced. (3) Estimates of receipts in all other cases will be prepared by Controller of Accounts of each Department after obtaining necessary data by the 30th November from the various organizations / field units and such scrutiny as may be necessary in the light of policy decisions and other post Budget developments. 4. Estimates will be furnished to the Ministry of Finance in prescribed forms (GFR 2, 2-A and 2-B) by the prescribed date, each year for the ensuing Budget. 5. (1) In preparing the Revised Estimates, while previous year's actuals and current year's trends will be material factors to review the original Budget Estimates, special attention should be devoted to making as realistic an estimate as possible of receipts which are likely to materialize during the rest of the financial year. (2) In framing the Budget Estimates for the ensuing year, the estimating authorities should exercise utmost care. While all receipts which can be foreseen in the light of latest trends, decisions and developments must be provided for, care should be taken to ensure that undue optimism does not influence these estimates. Similarly, where the receipts have a seasonal character, due note should be taken thereof in preparing the estimates. (3) Receipts by way of recoveries from Central Government Ministries / Departments, are to be excluded in preparing Receipt Estimates. Other recoveries (from the State and Union Territory Governments, foreign Governments, companies and statutory bodies, individuals, etc.) will, however, be included in the Receipt Estimates. (4) Estimates of receipts by way of interest on loans and advances will be based on the terms of the loans sanctioned, as entered in the Loan Registers, including defaults, if any. The estimates should be realistic; that is to say, that the estimates should reflect not merely what is due but what is likely to be realized during the year together with the reasons for non-recovery of the difference between receipts due and assumed in the estimates. In the case of Public Sector Units, interest receipts expected from their internal resources should be distinguished from notional recoveries offset by corresponding expenditure provisions in the form of subsidies and loans. Similarly, where repayments due are refinanced by further loans or by conversion of past loans into equity, the details should be furnished. (5) In reporting estimates of receipts by way of foreign grant assistance in cash or in kind, care should be taken to classify foreign grant receipts in cash under the Major Head '1605 External Grant Assistance' and those in the form of commodities under the Major Head '1606 Aid Materials and Equipment'. In the case of commodities grants, identical provision will be made in expenditure estimates under the Major head '3606 Aid Materials and Equipment's' (both as debits to represent the notional payment therefor and as credits - recoveries in reductions of expenditure - to reflect the counter-balancing entries), as well as under the final functional Head of Account showing the final destination and use of the aid materials and equipment.(Refer to Form GFR 2A). NOTE. For utilization of cash grants, provision in expenditure estimates under the final functional Heads of Account will be necessary. (6) In reporting the estimates, the estimating authorities should confine their estimates to those items of receipts which are to be accounted for finally in their own accounts and ultimately in the accounts of the Ministry/ Department to which they are subordinate. All other receipts/recoveries entering the accounts of another Ministry/ Department should be communicated to the concerned Ministry/Department for consolidation in their estimates (e.g., receipts of CGHS contributions and rent recoveries in respect of Government 97accommodation). 98APPENDIX– 3 [See Rule 52] INSTRUCTIONS FOR PREPARATION OF DETAILED ESTIMATES OF EXPENDITURE FROM THE CONSOLIDATED FUND 1. For purpose of Budget Estimates, expenditure from the Consolidated Fund –with the merger of Plan and Non- Plan from Budget 2017-18 will comprise of expenditure on revenue account and on capital account including loans and advances, and shown in the separate categories as applicable, comprising of I. Central Expenditure: (i) Secretariat Expenditure; (ii) Central Sector Schemes and (iii) Other Central Expenditure and II. Transfers: (i) Centrally Sponsored Schemes (ii) Finance Commission Transfers and (iii) Other Transfers. A. GENERAL GUIDELINES FOR PREPARING EXPENDITURE ESTIMATES 2. To facilitate appropriate scrutiny and consolidation of Expenditure Estimates for reporting to the Ministry of Finance, the Financial Adviser in each Ministry / Department will obtain detailed estimates and other supporting data from each of the estimating authorities under the control of the Ministry / Department, in appropriate forms, sufficiently in advance. 3. The framing of the Revised Estimates for the current year should always precede estimation for the ensuing year. The Revised Estimates should be framed with great care to include only those items which are likely to materialize for payment during the current year, in the light of (i) actuals so far recorded during the current year, compared with the actuals for corresponding period of the last and previous years, (ii) seasonal character or otherwise of the nature of expenditure, (iii) sanctions for expenditure and orders of appropriation or re- appropriation already issued or contemplated and (iv) any other relevant factor, decision or development. The Budget Estimate for the ensuing year should likewise be prepared on the basis of what is expected to be paid, under proper sanction, during the ensuring year, including arrears of previous years, if any. Due attention to considerations of economy must be paid and while all inescapable and foreseeable expenditures should be provided for, care should be taken that the estimate is not influenced by undue optimism. 4. No lump sum provision will be made in the Budget except where urgent measures are to be provided for meeting emergent situations or for meeting preliminary expenses on a project/scheme which has been accepted in principle for being taken up in the financial year. In latter cases Budget provision will be limited to the requirements of preliminary expenses and for such initial outlay, as, for example, on collection of material, recruitment of skeleton staff, etc. Provision for a 'token' demand should not be made in the Budget Estimates for the purpose of seeking approval in principle for big schemes without the full financial implications being worked out and got approved by the appropriate authorities. In accordance with instructions contained in Paragraph (viii) of Appendix (5), a 'token' demand can be made during the course of a year for a project / scheme when the details thereof are ready and funds are also available for undertaking it but it cannot be started without Parliament's approval, it being in the nature of a 'New Service/New Instrument of Services'. 5. All estimates should be prepared on gross basis and 'voted' and 'charged' portions must be shown separately; even expenditure met partly or fully from receipts taken in reduction of such expenditure or those counterbalanced by receipts credited as revenue to the Consolidated Fund, must be reported in such estimates on gross basis. Care should also be taken to ensure that all notional receipts reported in 'Receipt Estimates' (such as interest receipts fully or partly subsidized, loan repayment receipts partly or fully refinanced through further loans or conversions into equity, receipts of foreign grant assistance in the form of commodities or material, etc.) are properly matched by adequate provisions in expenditure estimates. 6. The estimates of expenditure should include all items which are fully accounted for in the accounts of the Ministry/Departments to which the estimating authority is subordinate; they shall also cover expenditure, if any, in Union Territories without Legislature, whether provided for in the demands of the said Ministry / Department or in the 'Area' demand of the concerned Union Territory. Estimates of 'Works Expenditure', if any, against the provisions in the demands of the Ministry of Urban Development, as well as expenditure on pensions (including commutation payments, gratuity payments, pension contributions, etc.) interest payments, loans and advances to Government servants, etc., which are provided for in the centralized Grants/Appropriations controlled by the Ministry of Finance should be furnished to the Ministry of Urban Development and the Ministry of Finance. 7. The estimate of establishment charges should be framed taking into account the trends over preceding three years and other relevant factors like changes in rates of pay, allowances, number of posts and their filling and the economy instructions issued by the Ministry of Finance from time to time. 8. Expenditure estimates will be prepared with full accounts classification, i.e., Major/Sub-Major Head, Minor 99Head, Sub-Head, Detailed Head and Object Head of Account. The correctness of accounts classification must be ensured by the Principal Chief Controller / Chief Controller/ Controller of Accounts in each case. Doubts, if any, may be clarified beforehand in consultation with the Ministry of Finance, Budget Division and Controller General of Accounts. The relevant Grant number and title of Appropriation should also be mentioned to facilitate identification of the provision in Budget Estimates for the current year. 9. Unless otherwise indicated by the Ministry of Finance, estimates (both Revised Estimates for the current year and Budget Estimates for the ensuing year) should reach the Ministry of Finance, Department of Economic Affairs, Budget Division, by the date prescribed by the Ministry of Finance, each year, in triplicate in Form GFR 4, a separate form being used for each Major Head of Account. 10. To facilitate appreciation and scrutiny of the estimates, any major variations between the Budget and Revised Estimates for the current year and also between the Revised Estimates for the current year and Budget Estimates for the ensuing year should be explained cogently. In particular, all provisions for subsidy, capital investment or loan to a Public Sector Undertaking, must be explained by indicating their purpose and the extent to which they are intended to cover losses, working capital needs, debt or interest liabilities of the undertaking. 11. Wherever the proposed estimates attract the limitations of 'New Service/New Instrument of Service', the fact must be specifically highlighted. The guidelines to be followed in this regard are indicated in Annexure - I to this Appendix. For all 'new' schemes, other than purely 'works' projects, the estimates proposed should be supported by details set out in Annexure - II to this Appendix. In the case of provisions of 'Grants-in-aid' to non- Government entities, the full purpose thereof and the nature of the grants, whether recurring or non- recurring, should also be indicated. 12. All provisions for transfer of Government assets to Public Sector Undertaking and other non-Government entities must also be highlighted, indicating whether the transfer is by way of grants or by way of equity investment or loan. Similarly, in the case of nationalization or take-over of any private sector assets, the related provisions in estimates must be supported by full details, such as the effective date of take-over, the agreed compensation amount and the manner of its payment, etc. In cases of takeover, where the assets are simultaneously transferred to a Public Sector Undertaking, it must be ensured that the estimates provide for (i) payment of compensation for the take-over, (ii) for transfer of assets to the Public Sector Undertaking, by means of recovery of compensation payment to be taken in reduction of expenditure, and (iii) provisions for equity or loan to the Public Sector Undertaking. B. SCHEME RELATED EXPENDITURE ESTIMATES 13. The Budget Division through the yearly Budget Circular will prescribe the form and the manner in which proposals are required to be submitted to them for determining the scheme allocations,(both Central Sector Schemes and Centrally Sponsored Schemes) for the ensuing year. The Financial Adviser in each Ministry / Department of the Central Government will accordingly call for requisite data from the estimating authorities, public sector and other enterprises under the control of the Ministry / Department, etc. The approved allocations for Central Sector and Centrally Sponsored Schemes will be communicated by the Ministry of Finance to the Central Ministries / Department. Ministries/ Departments will finalize the Statement of Budget Estimates, indicating the total outlay approved for each scheme / organization and the extent to which it is to be met from extra-budget resources and from provisions in the Demands for Grants. 14. Subject to such directions as may be issued by the Ministry of Finance from time to time, the Revised Estimates for the current year and Budget Estimates of the ensuing year, in respect of Scheme provisions, are to be sent to the Ministry of Finance in Form GFR 7. For furnishing these estimates, instructions for preparation and submission of Other than scheme Expenditure Estimates will apply to the extent relevant; in addition, the following points should also be borne in mind :- (i) Such part of the approved budgetary support for Scheme outlay as relates to 'works expenditure' and has been accepted by the Ministry of Urban Development for inclusion in their Demands for Grants should be excluded by the other Ministries / Departments in reporting the estimates to the Ministry of Finance in Form GFR 4. (ii) In the case of, provisions for equity investments and loans to public sector and other enterprises, as well as those for grants-in-aid, specific schemes, for which the outlay is provided and the extent for each of them is also to be indicated clearly. (iii) Provisions for Scheme expenditure on Central Sector Schemes and Centrally Sponsored Schemes, including such expenditures in Union Territories, are to be included in the relevant demand of the Administrative Ministry/ Department and not in 'Area' Demand of the concerned Union Territory. 100ANNEXURE –I TO APPENDIX-3 (Refer: Ministry of Finance, Budget Division's OM No. F.1(22)-B(AC)/2022 dated 23.02.2024 and Ministry of Finance, Department of Expenditure OM no. 01(14)/2016-E.II(A)(Vol.III) dated 01.04.2024 [ See Paragraph 11 of Appendix – 3/Rule 63 ] FINANCIAL LIMITS TO BE OBSERVED DETERMINING CASES RELATING TO “NEW SERVICE”/NEW INSTRUMENT OF SERVICE New Service (NS) 1. All new services [except for the new ‘Works’ under Capital section] shall be considered as ‘New Service’ as defined in Article 115 of the Constitution and shall accordingly need prior approval of the Parliament; 2. In case of services falling under the category of new works under Capital section (currently classified as Land/Building/Machine in line with Rule 8 of the Delegation of Financial Powers as amended through Ministry of Finance Gazette Notification dated 16.12.2022), the financial limits for the ‘New Service’ shall be as under: Object Heads Reporting Limit Prior Approval of Parliament 1 2 3 1. Machinery & Equipment; Above ₹ 50 crore but not exceeding ₹ Above ₹ 100 crore, subject to 2. ICT Equipment; 100 crore, subject to savings within savings within same section of 3. Building and Structure; same section of the Grant the Grant 4. Infrastructural Assets; 5. Arms and Ammunitions; and 6. Land New Instrument of Service (NIS) 3. The financial limits for the ‘New Instrument of Service’ shall be as under: Object Heads Reporting Limit Prior Approval of Parliament 1. 2. 3. 1. Investment; upto 20% of the original appropriation* Above 20% of the original 2. Loans and advances; appropriation (15-digit line item) 3. Subsidies; OR 4. Machinery and equipment; OR 5. ICT Equipment; upto ₹ 100 crore whichever is higher 6. Building and Structures; [subject to savings within same section Above ₹ 100 crore, whichever is 7. Infrastructure assets; of the Grant] higher 8. Arms and ammunitions [subject to savings within same 9. Land; section of the Grant] 10. GIA Capex; 11. GIA General; 12. GIA Salary All other Object Heads Each case to be decided on merits (see para 2 & 3 of the OM No. 1(22)-B(AC)/2022 dated 23.02.2024) * refers to the 15-digit numeric code in respect of civil Ministries or final unit of appropriation available in the Detailed Demand for Grants in respect of non-civil Ministries 101ANNEXURE - II TO APPENDIX - 3 [ See Paragraph 11 of Appendix - 3/Rule 63 ] MEMORANDUM FOR PROPOSALS INVOLVING EXPENDITURE ON NEW SERVICE OR NEW INSTRUMENT OF SERVICE Government of India Ministry of....................................... Department of................................. New Delhi, the................................ MEMORANDUM 1. Statement of proposal: (a) Title of the proposal / scheme. (b) Description of the proposal / scheme and its objects. (c) Justification for the proposal / scheme and what alternatives have been considered. (d) Description of the manner in which the proposal / scheme is proposed to be implemented including mention of agency through which the scheme will be executed. (e) Schedule of programme and target date of completion. 2. Financial implications of the proposal: (a) Nature of the scheme (Central Sector Scheme or Centrally Sponsored – or Others.) (b) Total outlay (recurring and non-recurring separately), its broad details and its year-wise phasing. (c) (i) Budget allocation, in a scheme; and (ii) Budget provision in the current financial year; if no Budget provision exists, how is the expenditure proposed to be met? (d) Foreign exchange component of the outlay and how it is proposed to be met. (e) Component of grant, loan and subsidy, if any, in the total outlay involved and their proposed terms. (f) Number of posts, their pay scales and the basis adopted for staffing (Statement attached). (g) Broad details of construction works, their justification and basis of estimates (Statement attached). (h) Requirement of stores and equipment together with justification and cost (Statement attached). (i) Achievement / return expected and other economic implications, if any. 3. (a) Comments, if any, of the NITI Aayog (for Schemes only). (b) Comments, if any, of other Ministries / Departments which may have been consulted. 4. Supplementary information, if any. 5. Points on which decision / sanctions are required. Secretary to the Government of India. Ministry of........................................ Department of.................................. 102APPENDIX – 4 [See Note below Rule 52] PROCEDURE FOR COMPILATION OF DETAILED DEMANDS FOR GRANTS 1. The Demand for Grants are presented to Parliament at two levels. The Main Demands for Grants are presented to Parliament by the Ministry of Finance along with the Annual Financial Statement while the Detailed Demands for Grants are laid on the Table of the Lok Sabha by the concerned Ministries a few days in advance of the discussion of the respective Ministries Demands in that House. Both the Main Demands for Grants as also the Detailed Demands for Grants comprise three parts each, viz.- Part - I shows the Service for which the Demand (or Appropriation) is intended and the estimates of the gross amount, separately for Voted and Charged Expenditure, under Revenue and Capital (including Loan) sections required in the ensuing year in respect of that Service. Part - II shows break up of the estimates separately. In the Main Demands for Grants, the break up is exhibited up to the level of Major Heads of Account which correspond to functions of the Government. In the Detailed Demands for Grants the break up in respect of activities/schemes/organization up to the object head level is given. The Detailed Demands for Grants also exhibit actuals of the previous year in Part - II. Both in the Main Demands for Grants as well as in the Detailed Demands for Grants, the details of recoveries taken in reduction of expenditure provided for in the Demand or Appropriation are also depicted. 2. All Detailed Demands for Grants of a Ministry / Department are consolidated in a single volume and presented to Lok Sabha by the concerned Ministry / Department. The Detailed Demands show ‘actual expenditure’ as per accounts in the previous year, Budget and Revised Estimates for the current years and Budget Estimates for the ensuing year. (i) The process of compilation should start in July / August with the preparation of a manuscript skeleton. Manuscript skeletons of Detailed Demands for the ensuing year should be prepared by using the printed Detailed Demands for the current year by making necessary alterations therein. New sub-heads sanctioned by the Ministry of Finance, if any, and those expected to be required should also be added in the manuscript at appropriate places. The manuscript should then be sent to the designated press for a proof. Where necessary, a second proof may be obtained. The printed skeletons should be available with the Ministries/ Departments preferably by the 15th October each year. (ii) Two copies of the Demand skeleton may then be sent to the Principal Accounts Officer, as the case may be, for filling the ‘Actuals’ column for the previous year and to return one copy duly filled in. (iii) In the master copy of the Demand, the Ministry / Department will then post (1) the figures of actuals as reported by the Principal Accounts Officer / Accountant-General; (2) Revised Estimates for the current year and the Budget Estimates for the ensuing year from the office copy of the SBEs /Demands for Grants sent to Ministry of Finance. While posting these entries, care should be taken to ensure that – (a) “Charged” items are shown in italics and are not mixed up with “Voted” provisions; (b) posting is done accurately against the proper item / head of account including “recoveries”, if any, taken as reduction of expenditure; (c) new items are inserted at the proper place under the relevant minor head; (d) totals of sub-heads, minor heads, major heads, etc., are correctly worked out and posted; that totals of Revenue section and Capital section as well as the grand totals are correct and show “Charged” and “Voted” figures distinctly; and (e) new sub-head (opened through Supplementary Demands) or otherwise or any change in the numbering and nomenclature sanctioned by the Budget Division since the proof of the skeleton should also be incorporated in the Master Copy. NOTE:–A sub-head should appear in the Demand only when there is provision thereunder, either in the current year(Budget or Revised) or the ensuing year. Wherever only actuals of the previous year pertaining to a sub-head are to be exhibited, this should be done by inserting suitable footnote on the relevant page. (iv) The process of compilation and printing of the Demands should be undertaken in stages. 3. The first proof of individual Demands may be obtained after posting actuals of previous year and other than Scheme estimates (by 15th December). The second proof may be similarly obtained (by 15th January) after ”Scheme” Revised estimates are posted in the first proof. As soon as “Scheme” provisions for the ensuing year are finalized and communicated by the Ministry of Finance, they should be posted in the second proof. Before obtaining the third proof, the following material may also be added. 103(A) Main Demands for Grants: (i) Notes on the Demands for Grants highlighting the following: - (a) The objectives of the concerned Ministry / Department, how the programmes undertaken or contemplated contribute towards attainment of such objectives and the agencies entrusted with the execution of such programmes; (b) Details of important provisions included in Demands for Grants with particular emphasis on Scheme provisions and new items of expenditure; (c) Cogent reasons for significant variations between the Budget Estimates and Revised Estimates for the current year and between the Revised Estimates, for the current year and the Budget Estimates for the ensuing year; (d) Provisions for subsidy in lieu of interest on loans by the Government or token provisions for concessional rate of interest along with number of likely cases involved and financial implications, if determinable; and (e) Complete details of the estimated cost of a project together with its economics and financial implications (whenever these estimates are revised and the cost of escalation exceeds 20 per cent of the sanctioned cost or Rs. 3 crores, whichever is more, full reasons therefor and the effect thereof on the economics of the projects should also be included in the Notes on Demands). (ii) A statement giving details of provisions in the Budget which attract limitations of “New Service”/”New Instrument of Service”. (B) Detailed Demands for Grants: The Detailed Demands for Grants will be accompanied by the following schedules/ statements: - (i) Schedule showing the estimated strength of establishment and provision therefor. (ii) Statement showing project-wise provision for expenditure on externally aided projects in the Central Schemes. (iii) Schedule showing provision for payment of grants in aid to non-Government bodies. (iv) Statement showing details of individual works and projects costing Rs. 5 crore or above. (v) Statement showing revised cost estimates of projects of public sector enterprises and departmental undertakings. (vi) Statement showing transfer or gift of Government properties of value exceeding Rs. 5 lakhs to non- Government bodies. (vii) Statement showing contributions to international bodies. This statement will include only items of contribution, membership fees to international bodies, which constitute revenue expenditure. Subscriptions to international bodies, which represent investments and are accounted for in the Capital section, are to be excluded from it. (viii)Statement showing guarantees given by the Central Government and outstanding as on 31st March of the preceding year. (ix) Statement showing grants-in-aid exceeding Rs. 5 lakhs (recurring) or Rs. 10 lakhs (non-recurring) actually sanctioned to private institutions/organizations/ individuals. 4. In addition, the Detailed Demands for Grants will also include where necessary, “Notes on Important Projects and Schemes”, e.g., where the Ministry / Department do not bring out performance Budgets. 5. The third proof on receipt from the press should be thoroughly checked for accuracy of all estimates and other data, as these must necessarily conform with the main Demands for Grants. Therefore, for obtaining page proof, all pages should be serially numbered and table of contents prepared. The page proof received from the Press should be fully scrutinized. 6. A sample printed copy of the Demands should be scrutinized on receipt from Press and where necessary an errata may be prepared, got printed and pasted by the Press in individual copies of the Printed Demands. 7. The Demands of smaller Departments like Lok Sabha, Rajya Sabha, Department of Parliamentary Affairs, Staff, Household and Allowances of the President, Secretariat of the Vice-President and Union Public Service Commission which are clubbed in a single volume are to be prepared and presented by the Ministry of Finance. 104APPENDIX – 5 [Rule 66] PROCEDURE TO BE FOLLOWED IN CONNECTION WITH THE DEMANDS FOR SUPPLEMENTARY GRANTS An excess over the sanctioned Grant or Appropriation may arise owing to either – (a) an unforeseen emergency; or (b) under-estimated or insufficient allowance for factors leading to the growth of expenditure. In the case of an excess of either type the Head of the Department or the Controlling Officer concerned should proceed as follows: - (i) He should, in the first place, examine the allotments given to other Disbursing Officers under the same detailed head within the unit of appropriation, and transfer to the Disbursing Officer who requires an additional allotment such sum as can be permanently or temporarily spared. Since appropriation audit is ordinarily conducted against total allotments for a unit, re-appropriation in the technical sense of the word is not involved in such cases. The process amounts only to redistribution which the Controlling Officer can ordinarily effect without reference to any other authority. (ii) Should he find such redistribution impossible he should examine the allotments against other detailed heads inside the primary units of appropriation, with the object of discovering probable savings and effecting a transfer. Where such redistribution is feasible, he should if he has been vested with the necessary powers, carry it out. Otherwise, he should obtain the sanction of the competent authority. (iii)If the provision of funds from within the primary units proves to be impossible, an examination of the whole grant should be undertaken to see whether there are likely to be savings under any of the other units of grant or appropriation which can be utilized to meet it. If so, he should proceed as indicated in Clause (ii) above. (iv)If such savings are not available, it should be seen whether special economies can be effected under other primary units of appropriation. If funds cannot be provided by either of these methods, it will have to be considered whether the excess should be met by postponement of expenditure or whether an application for supplementary grant or appropriation should be made. (v) The Supplementary Demand for Grants shall be presented to the Parliament in a number of batches as decided by the Ministry of Finance, Department of Economic Affairs. The first batch shall normally consist of requirements of the following nature: - (a) Cases where advances from Contingency Fund of India have been granted, which are required to be recouped to the Fund. (b) Payment against a court decree, which cannot be postponed; and (c) Cases of additional requirement of funds for making immediate payments, which can be met by re- appropriation of savings in the Grant but attract the limitation of New Service / New Instrument of Service. (vi) All applications for supplementary grants or appropriations should be submitted by the Department of the Central Government administratively concerned to the Ministry of Finance on such dates and in such forms / batches as may be prescribed by the latter from time to time. (vii) On receipt of an application for a supplementary grant, the Ministry of Finance will review the position of the grant of appropriation as a whole with reference to the known actuals of the year to date and the actuals and estimates for previous years. If after this examination, the Ministry of Finance comes to the conclusion that it should be possible for the Administrative Department to meet the expenditure from within the sanctioned grant either from normal savings or by special economies or in the last resort by judicious postponement of other expenditure or in the last resort by judicious postponement of other expenditure, the Administrative Department will be so informed and no supplementary demand will be presented to Parliament. If, on the other hand, the Ministry of Finance considers that a supplementary grant will be necessary, a demand will be placed before Parliament. (viii) If during the course of the year it is found necessary to incur expenditure on a ‘New Service’ not provided for in the annual budget the Administrative Department shall explain to the Ministry of Finance why the expenditure was not provided for in the original budget and why it cannot be postponed for consideration in connection with the next budget. The Ministry of Finance, if satisfied on these points, will consider whether it would not be reasonable to ask the department concerned to curtail its other expenditure so as to keep the total within the grant. Ordinarily, no “new service” or item will be accepted by the Ministry of Finance, unless the department concerned can guarantee that the extra expenditure will be met from normal savings or by special economies within the grant. Cases which involve additional grant will normally be accepted by the Ministry of Finance only if they relate to matters of real imperative necessity or to the earning or safeguarding of revenue. The demand for a supplementary grant of appropriation or a token vote in respect of a “new service” will be presented to Parliament as soon as practicable after the need arises. NOTE. –The expression ‘New Service’ wherever used in this Appendix includes – ‘New Instrument of Service’. 105APPENDIX – 6 [Rule 67. (4)] THE CONTIGENCY FUND OF INDIA RULES SRO 1358. - In exercise of the powers conferred by Section 4 of the Contingency Fund of India Act, 1950 (XLIXof 1950), the Central Government hereby makes the following rules: - CONTINGENCY FUND OF INDIA RULES 1. These rules may be called the Contingency Fund of India Rules. 2. The Contingency Fund of India shall be held on behalf of the President by the Secretary to the Government of India, Ministry of Finance, Department of Economic Affairs. 3. An amount equivalent to forty per cent of the Fund corpus shall be placed at the disposal of the Secretary, Ministry of Finance, Department of Expenditure for the purpose of meeting unforeseen expenditure, and beyond this limit, all further Contingency Fund releases shall be made with the approval of Secretary to the Government of India, Department of Economic Affairs, after the approval of Secretary to the Government of India, Department of Expenditure. 4. Subject to the provisions of Rule 5 below, all applications for advances from the Fund shall be made to the Secretary to the Government of India, Ministry of Finance, Department of Expenditure. The applications shall give - (i) brief particulars of the additional expenditure involved, (ii) the circumstances in which provision could not be included in the budget, (iii) why its postponement is not possible, (iv) the amount required to be advanced from the Fund with full cost of the proposal for the year or part of the year, as the case may be, and (v) the grant or appropriation under which supplementary provision will eventually have to be obtained. 5. Applications for advances required shall be made to the Secretary to the Government of India, Department of Expenditure and applications for advances of new loans shall be made to the Secretary to the Government of India, Department of Economic Affairs, in the manner provided for in Rule 4. 6. Advances from the Fund shall be made for the purpose of meeting unforeseen expenditure including expenditure on a new service not contemplated in the annual financial statement. 7. A copy of the order sanctioning the advance, which shall specify the amount, the grant or appropriation to which it relates and give brief particulars by sub-heads and units of appropriation of the expenditure for meeting which it is made, shall be forwarded by the Ministry of Finance to the Audit and Accounts Officers concerned. 8. (1) All expenditure so financed shall be regularized through the Supplementary Estimates presented to Parliament unless such advance has been resumed to the Contingency Fund in accordance with the provisions of sub-rule (2). NOTE 1. -While presenting to Parliament Estimates for expenditure financed from the Contingency Fund, a note to the following effect shall be appended to such Estimates: - ‘A sum of Rs………………………… has been advanced from the Contingency Fund in ………………………and an equivalent amount is required to enable repayment to be made to that Fund.’ NOTE 2. -If the expenditure on a new service not contemplated in the Annual Financial Statement can be met, ‘wholly or partly’ from savings available within the authorized appropriation, the note appended to the Estimates submitted shall be in the following form: - ‘The expenditure is on a new service. A sum of Rs…………………… has been advanced from Contingency Fund in……………….. and an equivalent amount is required to enable repayment to be made to that Fund.’ The amount, viz., Rs…………………….. can be found by re-appropriation. ‘A part of that amount, viz., Rs…………………………..of savings within the grant and a token vote only is now required, viz., Rs…………………………. only. a vote is required for the balance (2) As soon as Parliament has authorized additional expenditure by means of a Supplementary Appropriation Act, the advance or advances made from the Contingency Fund, whether for meeting the expenditure incurred before the Supplementary Estimates were presented to the Parliament or after they were so presented, shall be resumed to the Fund to the full extent of the appropriation made in Act. 8. A. If in any case, after the order sanctioning an advance from the Contingency Fund has been issued in 106accordance with Rule 7 and before action is taken in accordance with Rule 8, it is found that the advance sanctioned will remain wholly or partly unutilized, an application shall be made to the sanctioning authority for cancelling or modifying the sanction, as the case may be. 8. B. All advances sanctioned from the Contingency Fund to meet expenditure in excess of the provision for the service included in an Appropriation (Vote on Accounts) Act shall be resumed to the Contingency Fund as soon as the Appropriation Act in respect of the expenditure on the service for the whole year, including the excess met from the advances from the Contingency Fund has been passed. 8. C. If during an Election year, two Budgets are presented to the Parliament, all advances, sanctioned from the Contingency Fund of India during the period between the presentation of first and second Budgets or during the period between the presentation of the second Budget and the passing of the connected Appropriation Act to meet expenditure on a service not included in an Appropriation (Vote on Account) Act and the advances outstanding at the end of the preceding financial year being advances the estimates for which are included in the second Budget, shall be resumed to the Contingency Fund as soon as the Appropriation Act in respect of the expenditure on the service for the whole year has been passed. NOTE. -A suitable explanation regarding the advance and the recoupment thereof shall be incorporated in the “Notes on Demands for Grants”. Wherever required, such a case will be included in the statement of ‘New Service’ / ‘New Instrument of Service’ appended at the end of the demands. 9. A copy of the order resuming the advance, which shall give a reference to the number and date of the order in which the original advance was made and to the Supplementary Appropriation Act referred to in Rule 8, shall be forwarded by the Ministry of Finance and the Financial Officers concerned, in addition, to the Audit and Accounts Officers concerned. In addition, the Ministry of Finance shall forward copies of such orders to the Accountant General, Central Revenues, and the Director of Railways Audit if pertaining to the Railways. 10. An account of the transactions of the Fund shall be maintained by the Ministry of Finance in Form ‘A’ annexed to these rules. 11. Actual expenditure incurred against advances from the Contingency Fund shall be recorded in the account relating to the Contingency Fund in the same details as it would have been shown if it had been paid out of the Consolidated Fund. [Updated vide DoE’s OM No.8(18)/2021/E.II.A dated 06.05.2022 in view of DEA OM F.No.4(13)-B(SD)/2021 dated 18.04.2022] 107ANNEXURE FORM ‘A’ [See Paragraph 10 of Appendix-6] CONTINGENCY FUND OF INDIA Amount of the Fund Rs........................................................ SI. Date of Number and Number Number Amount Supplementary Amount of Balance Initials of Remarks No. transaction name of and and of Appropriation advance after each Officer-in- Grant of date of the date of advance act providing resumed transaction charge appropriation application the resumed for the for order Additional advance making Expenditure the advance (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) NOTE1.-Thebalance should be struck after each transaction. NOTE2.-The amount of the advances should be entered in Black ink when made and in red ink when resumed. 108APPENDIX - 7 [See Rule 310 (4) and 310 (5)] TRANSFER OF LAND AND BUILDINGS BETWEEN THE UNION AND STATE GOVERNMENTS 1. These rules apply to the transfer of land and buildings between the Union and the State Governments and also to the surrender to the State Governments of land belonging to Railways. The general position under Article 294 of the Constitution is that as from the commencement of the Constitution - (a) all property and assets which immediately before such commencement were vested in His Majesty for the purposes of the Government of the Dominion of India and all property and assets which immediately before such commencement were vested in His Majesty for the purpose of the Government of each Governor’s Province, shall vest respectively in the Union and the corresponding State; and all rights, liabilities and obligations of the Government of the Dominion of India and of the Government of each Governor’s Province, whether arising out of any contract or otherwise, shall be the rights, liabilities and obligations respectively of the Government of India and the Government of each corresponding State subject to any adjustment made or to be made by reason of the creation before the commencement of the constitution of the Dominion of Pakistan or of the Province, of West Bengal, West Punjab and East Punjab. Article 294, as is evident, relates to succession to property, assets, rights, liabilities and obligations in certain cases only; Article 295 of the Constitution which relate to succession to property, assets, rights, liabilities and obligations in other cases, provides that - (i) As from the commencement of the Constitution: (a) all property and assets which immediately before such commencement were vested in any Indian State corresponding to a State specified in Part -B of the First Schedule shall vest in the Union, if the purpose for which such property and assets were held immediately before such commencement will thereafter be purposes of the Union relating to any of the matters enumerated in the Union List; and (b) all rights, liabilities and obligations of the Government of any Indian State corresponding to a State specified in Part -B of the First Schedule, whether arising out of any contract or otherwise, shall be the rights, liabilities and obligations of the Union Government, if the purposes for which such rights were acquired or liabilities or obligations were incurred before such commencement will thereafter be purposes of the Union Government relating to any of the matters enumerated in the Union List: subject to any agreement entered into in that behalf by the Union Government with the Government of that State. (ii) Subject as aforesaid, the Government of each State specified in Part ‘B’ of the First Schedule shall, as from the commencement of the Constitution, be the successor of the Government of the corresponding Indian State as regards all property and assets and all rights, liabilities and obligations, whether arising out of any contract or otherwise, other than those referred to in Clause (1). All property and assets, which include land and buildings, and which vest in the State Government under Articles 294 and 295 of the Constitution or otherwise shall be at the disposal of the respective State Governments, who will be at liberty to dispose them of by sale, mortgage, etc., and the proceeds thereof shall be credited to the revenues of the respective State Governments. From the commencement of the Constitution, the transfer of land between the Union and the State Government shall be regulated by mutual agreement except when they are acquired under some Act. The Union Government have laid down the following principles to be observed in regard to certain points :- (i) (a) When land belonging to a private party has to be acquired on behalf of the Union Government acquisition shall be at the expense of that Government. (b) In cases where the Union Government require any land, which is in occupation of the State Government, to be transferred to them, the amount payable by the Union Government will ordinarily be the market value of the land and buildings, if any, thereon. (c) The amount payable will include the capitalized value of land revenue assessable on the land when the transfer causes actual loss of land revenue to the State Government. (d) Solatium of 15 per cent payable under the Land Acquisition Act will not apply to such transfers. (ii) Land surplus to the requirements of the Union Government:- When the Union Government no longer required land in their possession, the Government of the State in which it is situated will be given the option of assuming possession of the whole or any portion thereof subject to the following conditions:- (a) the Union government themselves shall be the judges of whether they require to retain any particular land or not; (b) if the State Government desire to assume possession of the land, the option to do so shall be exercised within six months of the date on which the Union Government signify their intention of surrendering the 108land; (c) the amount payable for the land will in all cases be its market value at the date of transfer; (d) when the State Government desire to assume possession of only a portion of the land surrendered, they shall be entitled to do so only if the value of the land as a whole is not materially reduced by the division; and (e) if the State Government do not desire to assume possession of any land on the foregoing terms, the Union Government will be free to dispose it of to a third party. Before, however, so disposing of the land, the Union Government will consult the State Government as to the levy of ground rent or assessment and the conditions, if any, subject to which it should be sold and they will, as far as possible, dispose of the land subject to the conditions which the State Government may desire to impose. The Union Government are not, however, bound to obtain the concurrence of the State Government in all cases, and in cases of disagreement the Union Government shall be the sole judge of the terms and conditions to be imposed. (iii) Determination of Disputes as to Titles. - Disputes as to title between the Union Government and a State Government shall be determined by the Supreme Court. 2. Market value defined. -Market value when applied to land may be defined as the price which the land would fetch if sold in the open market subject to the ground rent or assessment shown against it in the revenue registers, or, if no ground rent or assessment shown against it in the revenue registers, subject to a ground rent or assessment levied at the rate at which ground rent or assessment is actually being levied on similar lands in the neighbourhood excluding all cases in which such similar lands in the neighbourhood are held free of ground rent or assessment at favourable or unfavourable rates of ground or assessment. This is the market value which has to be credited or debited, as the case may be, in the case of all transactions between the State Governments and the Union Government or between the Union Government and State Governments or the Railways. 109APPENDIX - 8 [See Rule 286. (3) and Rule311] CHARITABLE ENDOWMENTS AND OTHER TRUSTS I. CHARITABLE ENDOWMENTS 1. The duties of the Treasurer of Charitable Endowments for India are prescribed in the Charitable Endowments Act, 1890 (Act VI of 1890), and the rules framed thereunder, which are printed as an Annexure hereto. 2. Under sub-section (1) of Section 3 of the Charitable Endowments Act, the Deputy Secretary/Director (Budget) in the Ministry of Finance, Department of Economic Affairs, nominated for the purpose, has been appointed ex officio to be the Treasurer of Charitable Endowments for India with effect from the 1st April, 1954. All the property of Charitable Endowments, the objects of which extend beyond a single State or which are objects to which the executive authority of the Central Government extend, vest in him. The Treasurer of Charitable Endowments for India is authorized to employ the agency of the Treasurer of Charitable Endowments of a State, with the consent of the State Governments, for discharging any of the functions assigned to him under the rules referred to in Paragraph 1 above. 3. When a copy of a vesting order is received by the Treasurer of Charitable Endowments for India, he should at once place himself in communication with the persons who appear from the order to be the holders of the documents of title relating to the property or of the securities mentioned in the order, and request them to forward the Title Deeds, or securities in a registered cover and to insure the cover for Rs. 100. These do not require to be endorsed, as the vesting order operates to transfer the securities to the Treasurer. 4. At every change of Office of the Deputy Secretary/Director (Budget) in the Ministry of Finance, Department of Economic Affairs nominated for the purpose, a formal transfer of charge of the Treasurer of Charitable Endowments for India should also take place and as separate charge report, supported by a statement of the total of the balances of the Funds vested in the Treasurer, duly signed by the relieved and the relieving Treasurers should be sent to Government. A list of receipts granted by the Reserve Bank in acknowledgement of the securities forwarded to it for safe custody as also of the securities kept in the custody of the Treasurer should also be prepared and signed by the relieved and the relieving Treasurers, and sent to Government along with the charge report. NOTE. -Whenever there is a change in the Office of a Treasurer of Charitable Endowments of a State who has been acting as an agent of the treasurer of Charitable Endowments for India, a charge report prepared in the manner indicated in this paragraph should be furnished to the latter. II. MISCELLANEOUS TRUST ACCOUNTS 5. If, under any general or special orders of Government, an Audit Officer / Accounts Officer or any other Government officer is required to act in his official capacity as a Trustee or Depository of any public or quasi- public fund, which does come within the scope of the accounts of Government, or of any Charitable Endowment and is not a Government security held in trust under the rules in Chapter IX of the Government Securities Manual, such an officer should endeavour to have the trust vested, if possible, in the Treasurer of Charitable Endowments for India; but, if that course is not possible, he should open an account with the State Bank of India, or with any other approved Bank, for the deposit of moneys received by him on account of Trust. Full and clear record of all transactions relating to the trust fund should be kept in the books of accounts in his personal custody in a form complying with the terms and conditions of the Trust. The securities, if any, deposited with him should be dealt with in accordance with the instructions contained in Chapter IX of the Government Securities Manual. 6. The books of accounts should be supported by a short statement descriptive of the nature and obligation of the Trust, with reference to the documents bearing upon it, so that any other Government officer on receiving charge may know by reference to it exactly what his obligations are in the matter. NOTE. -The receipt and disposal of interest should be recorded in these accounts which are meant for the principal of the Trusts only. 7. The accounts should be balanced and closed every 31st day of March. They should also be balanced and closed when the Government officer acting as the Trustee makes over charge of his office to a successor or substitute, a balance sheet being appended to the charge report and signed both by the officer receiving and the officer giving over charge. 8. The accounts will be subject to such audit check as may be prescribed by Government. 110ANNEXURE [See Paragraph 1 of Appendix -8] In exercise of the powers conferred by Section 13 of the Charitable Endowments Act, 1890 (VI of 1890), and in supersession of the late Home Department Notification No. 1569 - Judicial, dated the 24th October, 1890, the Central Government is pleased to make the following rules and forms :- THE CHARITABLE ENDOWMENTS (CENTRAL) RULES, 1942 1. Short Title. - (1) These rules may be called the Charitable Endowments (Central) Rules, 1942. (2) They apply to charitable endowments the objects of which extend beyond a single State or are objects, to which the executive authority of the Central Government extends. 2. Interpretation. - In these rules - (a) “the Act” means the Charitable Endowments Act, 1890; (b) “Treasurer” means the Treasurer of Charitable Endowments for India for the time being, appointed under sub-section (1) of Section 3 of the Act, and includes such other officer as the Treasurer may appoint to discharge any of the functions assigned to him under these rules; (c) “Form” means a form appended to these rules. 3. Previous publication of vesting orders and schemes.-On cases in which private persons apply for a vesting order or a scheme or modification of a scheme, and in all cases in which it is proposed to depart in any respect from the ascertained wishes or presumable intentions of the founder of an endowment, there shall ordinarily, and unless the Central Government otherwise directs, be precious publication of the proposed vesting order or scheme or modification. 4. Mode of previous publication. (1) Unless the Central Government is of opinion that a proposed vesting order or proposed scheme or modification of a scheme may be made or settled without previous publication, it shall publish a draft of the proposed order, scheme or modification or a sufficient abstract thereof, for the information of persons likely to be affected thereby. (2) The publication shall be made in the Official Gazette and in such other manner as the Central Government may direct. (3) A notice specifying a date on or after which the proposed order, scheme or modification will be taken into consideration by the Central Government should be published with the draft or abstract. (4) The Central Government shall consider any objection or suggestion which it may receive from any person with respect to the proposed order, scheme or modification thereof before the date specified in the notice under sub-rule (3). 5. Costs. The cost of the previous publication under Rule 4 of any proposed order, scheme or modification of a scheme, and any other costs incurred or which may be incurred in the making of the orders or in the settlement of a scheme or modification of a scheme, shall be paid by the applicant for the order, scheme or modification, as the case may be, and, if the Central Government so directs may be paid by him out of any money in his possession pertaining to the trust to which his application relates. 6. Securities which may vest in the Treasurer.-No securities for money except the securities mentioned in Clauses (a), (b), (bb), (c) and (d) of Section 20 of the Indian Trusts Act, 1882 (II of 1882), shall be vested in the Treasurer. 7. Accounts of trusts consisting of immovable property.-In the case of property vested in the Treasurer other than securities for money, the person acting in the administration of the trust and having, under sub-section (3) of Section 8 of the Act, the possession, management and control of the property and the application of the income thereof, shall in books to be kept by him, regularly enter or cause to be entered full and true accounts of all moneys received and paid respectively on account of the trust, and shall, on the demand of the Central Government, submit annually to such public servant as the Central Government may appoint in this behalf, in such form and at such time as the Central Government may prescribe, an abstract of those accounts and such returns as to other matters relating to the administration of the trust as the Central Government may from time to time see fit to require. 8. Fees. (1) The following are prescribed as the fees to be paid to the Central Government in respect of any property vested under the Act in the Treasurer :- (i) In the case of property other than securities for money, the actual charge incurred by the Treasurer in the discharge of his functions in respect of the property. (ii) In the case of securities for money, at the rate of one Paisa for every rupee of interest collected. The fee shall be charged on interest by rounding off the amount to the nearest rupee, fractions of a 111rupee below fifty Paisa or more being reckoned as one rupee. (2) The Treasurer may deduct any fees payable to the Central Government under this rule on account of any endowment from any money in his hands on account of such endowment. If he holds no such moneys the amount shall be claimed form the administrators of the endowment. 9. Vesting orders how filed. - All copies of vesting orders received by the Treasurer shall be filed together and shall be numbered in consecutive order of their receipt; when a sufficient number have been received they shall be bound in volumes. A note shall be made on each vesting order of any entries in the registers prescribed under these rules relating to the property vesting in the Treasurer under the order. 10. Registers of securities. - On the receipt of any securities for money, or on their purchase by himself, the Treasurer shall record their receipt in a register in Form 1. He shall also keep a separate account for each endowment in Form 2, in which he shall record all receipts including any amount sent for investment, and all disbursements. In the cash account in Part - II of Form 2 the Treasurer shall record only his own transactions (such as the payment of the money to the administrator), and not the transactions of the administrators of the endowment fund. 11. Stock Disposal Register. - The Treasurer shall enter all securities returned or sold by him in a register in Form 3. Returns shall also be entered in Form 2, where the amount returned will be deducted from the capital of the endowment concerned. 12. Custody of Securities. - On the issue of a vesting order under Section 4 of the Act in respect of any securities for money, the person authorized under Section 6 of the Act to make the application for such vesting order shall, as soon as practicable, forward to the Treasurer the said securities. The Treasurer shall, after recording the receipt of the said securities in the registers kept under Rule10, take steps, as soon as practicable, to have them converted into stock and keep the stock certificate in his custody. After conversion, entries shall be made in the Treasurer’s Stock Register in Form 7. A consolidated register showing the securities (e.g., Promissory Notes and the Stock Certificates) in the custody of the Treasurer shall also be maintained in Form 8. 13. Accounting of Interest. - The Treasurer, on receipt of any interest securities, shall pass it through his General Trust Interest Account under a special Sub-Head “Interests on Charitable Endowments under Act VI of 1890”. The interest will then be distributed to the various ledger accounts in the register in Form 2, in which the gross amounts shall be shown, any deductions for fees, etc., being shown as a charge, and the payment of the balance to the administrators being shown as a disbursement. The Treasurer shall maintain personal, ledger account in the Reserve Bank and shall make payment to the administrators by cheques. The entries in the ledger of interest received shall be taken out and agreed annually with the total amount of the interest drawn. 14. Balance Sheet. -The registers in Form 1 shall show all securities vested in the Treasurer as such. In order to prove the balance actually held by the Treasurer in his own hands, a balance sheet in Form 4 shall be made out actually and agreed with the actual securities in the Treasurer’s possession. Such agreement shall be certified on the balance sheet. 15. Publication of accounts. -A list of all properties vested in the Treasurer and an abstract of the accounts of the interest and the annual agreement of balance shall be published in the Official Gazette on the 15th June of each year. 16. Register of property other than securities. -The Treasurer shall enter in a register in Form 5 any property other than securities which becomes vested in him, and shall record in the same register against the original entry a note of any property of which he is divested. 17. Form of publication of list and abstract. -The list of properties vested in the Treasurer to be published annually under Rule 15 shall be in Form 6. Part - I will relate to properties other than securities; Part - III will relate to securities and will also contain the abstract of accounts required by the Act to be published. The Treasurer shall demand and receive acknowledgements of the correctness of the balances when so published, from the administrators of endowment funds or from any one or more of their body who may have been authorized by the administrators to give such acknowledgements and such acknowledgements shall be furnished within 3 months from the date of publication of accounts in the Official Gazette. 18. Audit. -Arrangements for annual audit of the Treasurer’s accounts shall be made by the Comptroller and Auditor General. 112FORM 1 REGISTER OF SECURITIES HELD UNDER ACT VI OF 1890 Particulars of Securities received SI. Date of Number or brief From whom No. and date Nature of Distinguishing Nominal Total nominal Ledger Remarks No. Receipt description of received of forwarding Securities, e.g. number of value of value of each Folio Charitable letter Government each security each separate Endowments securities security endowment 3 ½ per cent Loan of 1865, Guaranteed Railway Debentures, etc. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 113FORM 2 LEDGER ACCOUNT OF SECURITIES HELD UNDER ACT VI OF 1890. 1. Name of Endowment………… 2. Particulars of vesting order………… 3. When vested in Treasurer………… 4. Name of Administrators………… 5. To whom interest is to be sent………… PART – I Account of Capital Sl. Particulars Details of Value of each Amount Date to Initials of No. (e.g. securities security (separate of half which Treasurer Form received (distinguishing column for each kind) yearly interest or 1 or number, etc.) interest has Assistant- 3 ½ per Guaranteed returned) been in-Charge cent Railway paid Loan of Debentures on 1865 receipt 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. NOTE. - The balance of the value columns must be worked out on every day on which there is a new entry. 114FORM 2 PART-II-CASH ACCOUNT RECEIPTS EXPENDITURE Date Particulars Amount Date Particulars Amount NOTE. To be closed annually to balance. The transactions will not be numerous. A few pages of the ledger (rule only for the Cash Account) may be left for each account, so that the account may be carried on for several years without opening a fresh Ledger Account. 115FORM 3 STOCK DISPOSAL REGISTER SI. Date of Name of the No. of entries in Amounts How GO’s Official No. entry Fund or Trust Stock Register disposed of disposed of initials Designation of Officer 116FORM 4 BALANCE SHEET OF SECURITIES HELD UNDER ACT VI OF 1890 3 ½ per cent Loan (A pair of columns for each Total Particulars of 1865 different kind of security held) No. Value No. Value Opening Balance (from last year) ...........Securities received.................. ...........Stock Certificates received ..... .................... GRAND TOTAL Deduct - Sent to the PDO Reserve Bank of India for conversion into stock........... BALANCE Deduct - Returned or sold............................... BALANCE Add - Sent for conversion out of which stock certificates have not been received .............................. CLOSING BALANCE Certified that the above closing balance has been compared with the Securities in Treasurer’s possession and has been found to be agree both as to number and value. 117FORM 5 REGISTER OF PROPERTIES OTHER THAN SECURITIES HELD UNDER ACT VI OF 1890 Particulars of vesting order Property held SI. Name of Administrators of No. No. Date endowment property Description Value Annual income if known 1 2 3 4 5 6 7 8 Title Deeds held Description Initials of Treasurer or Date of Where Date of To whom Authority for Assistant-in-Charge Remarks receipt deposited return returned return 9 10 11 12 13 14 15 16 118FORM 6 LIST AND ABSTRACT ACCOUNT OF PROPERTIES HELD UNDER ACT VI OF 1890 PART - I - LIST OF PROPERTIES, OTHER THAN SECURITIES SI. Particulars of vesting order Name of Administrators of Property held No. No. Date endowment property Description Value Annual Remarks income if known 1 2 3 4 5 6 7 8 9 LISTOFABSTRACTPARTACCOUNT-II-OFSECURITIES Case No. Name of Persons in Particulars of Total Cash Receipts Cash Balance in Remarks endowment whose behalf Securities of expenditure cash held Securities Interest or Other Cash Total cash Payments* dividend Receipts* Receipts realised 1 2 3 4 5 6 7 8 9 10 11 * Enter details in these columns 119FORM 7 TREASURER’S STOCK REGISTER OF per cent loan of No. of Serial No. Date of To what fund To whom Amount of Amount of (Pair of Remarks Case in entry or trust the interest is investment half-yearly columns for Form No. investment to be interest noting interest belongs remitted payment order 1 2 3 4 5 6 7 8 9 Rs. P. Rs. P. Rs. P. 120FORM 8 REGISTER OF CLEAN GOVERNMENT PROMISSORY NOTES AND STOCK CERTIFICATES HELD BY THE TREASURER OF CHARITABLE ENDOWMENTS FOR INDIA Particulars A pair of SI. Date of In conversion Receipts Disposals columns for No. entry of noting interest Remarks for half-year No. Amounts No. Amounts ending 1 2 3 4 5 6 7 8 9 121APPENDIX - 9 [ See Rule320] DESTRUCTION OF OFFICE RECORDS CONNECTED WITH ACCOUNTS The destruction of records (including correspondence) connected with accounts shall be governed by the following Rules and such other subsidiary rules consistent therewith as may be prescribed by Government in this behalf with the concurrence of the Comptroller and Auditor-General. 1. The following shall on no account be destroyed: - (i) Records connected with expenditure, which is within the period of limitation fixed by law. (ii) Records connected with expenditure on projects, schemes or works not completed, although beyond the period of limitation. (iii) Records connected with claims to service and personal matters affecting persons in the service except as indicated in the Annexure to this Appendix. (iv) Orders and sanctions of a permanent character, until revised. (v) Records in respect of which an audit objection is outstanding. 2. The following shall be preserved for not less than the period specified against them :- Description of records Sl. No. Main-Head Sub-Head Retention Period Remarks (1) (2) (3) (4) (5) 1. Payments (I)Expenditure Sanctions not 2 years, or one year after and covered by Paragraph 1 completion of audit, whichever recoveries. above (including sanctions is later. Subject to: Relating to grants-in-aid) (a)Original nomination being placed in Vol. II (ii)Cash Books maintained by 10years. of the Service Book of the Drawing and Disbursing Group ‘D’ Government Officers under Central servants; Government Account and (Receipts and (b)Nomination in Payments) Rules,1983. original or an (iii)Contingent expenditure. 3 years, or one year after authenticated copy completion of audit, thereof being placed Whichever is later. in Vol. II of the Service Book/Personal File in (iv)Arrear claims (including 3 years, or 1 year after case of other sanction for investigation, completion of audit, Government servants. Where necessary). Whichever is later. Subject to an Papers relating to: authenticated copy of (v)GPF Membership. 1year. the sanction being placed on the (vi)GPF Nomination. 1year-afterfinal personal file. Settlement of GPF Account. (vii)Adjustment of missing credits 1year. in GPF Accounts. 122Description of records Sl. No. Main-Head Sub-Head Retention Period Remarks (1) (2) (3) (4) (5) (viii) Final withdrawal from 1 year. GPF, e.g., for house building, higher technical education of children, etc. (ix) GPF annual 1 year. statements. (x)T.A./Transfer T.A. 3 years, or one year after claims completion of audit, whichever is later. 2. Budget 3 years. The retention period Estimates / here related to the Revised Budget / Revised Estimates. Estimates as 3. Service compiled by the Books of: 3 years after issue of final Budget / Accounts (a) Officials pension/ gratuity payment Section for the entitled to order. Department as a retirement / whole. terminal benefits. (b) Other 3 years after they have employees. ceased to be in service. 4. Leave of: Account (a) Officials 3 years after issue of final entitled to pension/ retirement / gratuity payment order. terminal benefits. (b) Other 3 years after they have employees. ceased to be in service. 5. Service (a) Nomination relating to 1 year - after settlement of Subject to the records family pension in and DCR benefits. nomination in gratuity. original or an (b) Civil List Gradation/ authenticated copy Seniority list- 3 years. thereof (where (i) in the case of original kept with the Departments preparing . audit) as the may be bringing out the being placed in Vol. compilation. II of the Service Book/ Personal File. (ii) In the case of other 1 year after issue of Departments (i.e., those relevant compilation. supplying information for such compilation) 123Description of records Sl. No. Main-Head Sub-Head Retention Period Remarks (1) (2) (3) (4) (5) (c)Alteration in the date of 3years. Subject to suitable entry birth. being made in the appropriate service record and an authenticated copy of the order being kept in Vol. II of Service Book/Personal file (d) Admission of previous 3 years; or 1year after – do – Service not supported by Completion of Authenticated service Audit, whichever is later record, e.g., through collateral Subject to a suitable evidence. record being kept (e)Verification of service. 5years. somewhere, e.g., in the Service Book or History Sheet. 6. Expenditure (a) In respect of lower To be weeded out at the statements. formations. end of financial year. (b)In respect of To be weeded out after the Department itself. Appropriation Accounts for the year have been finalized (c)Register of monthly To be weeded out Expenditure (Form GFR9) the Appropriation Accounts for the year have Been finalized. 7. Surety Bonds 3yearsafter the Bond executed in Ceases to enforceable. be favour of a temporary or a retiring Govern- ment servant. 8. (a) Pay Bill . 35 years register (b) Office copies 35 years of Establishment pay bills and related schedules (in respect of period for which pay bill register is not maintained). (c) Schedules to 3 years, or one year after the Establishment the completion of audit, pay bills for the whichever is later period for which pay bill register is maintained. (d) Acquaintance 3 years, or one year after Roll. the completion of audit, whichever is later. 124Description of records Sl. No. Main-Head Sub-Head Retention Period Remarks (1) (2) (3) (4) (5) 9. Muster Rolls. Such period as may be prescribed in this behalf in the departmental regulations subject to a minimum of three financial years of payment excluding the financial year of payment 10. Bill Register 5 years. Maintained in 5 years FormTR-28-A 11. Paid cheques The counter foils of Returned by the paid cheques Bank to the Audit/ should be preserved Accounts Office. for the same period as prescribed for preservation of paid cheques, viz., 5 years. However, in cases where the counter foils are required to be preserved in connection with settlement of some 5 years after the contract/ agreement is fulfilled or enquiry, etc., these 12. Files, papers and terminated. In cases where should not be Documents audit objections have been destroyed unless Relating to raised, however, the relevant otherwise advised by contracts, files and documents shall not, the authorities agreements, etc. under any circumstances, be conducting the enquiry. allowed to be destroyed till The other such time as the objections instructions contained have been cleared to the in this Appendix will satisfaction of the audit continue to be authorities or have been applicable in this case reviewed by the Public before the counterfoils Accounts Committee. which are more than 3 years after the expiry of the five years old are financial year in which the actually destroyed. expenditure was incurred, 13. Sub-vouchers subject to completion of administrative audit and issue Relating to the of audit certificate by the Secret Service nominated Controlling Officer. Expenditure. 125INSTRUCTIONS 1. The retention period specified in Column (4), in the case of a file, is to be reckoned form the year in which the file is closed (i.e., action thereon has been completed) and not necessarily from the year in which it is recorded. 2. In the case of records other than files, e.g., registers, the prescribed retention period will be counted from the year in which it has ceased to be current. 3. In exceptional cases, a record may be retained for a period longer than that specified in the schedule, if it has certain special features or such a course is warranted by the peculiar needs of the department. In no case, however, will a record be retained for a period shorter than that prescribed in the schedule. 4. If a record is required in connection with the disposal of another record, the former will not be weeded out until after all the issues raised in the latter have been finally decided, even though the retention period marked on the former may have expired in the meantime. In fact, the retention periods initially marked on such records should be consciously reviewed and, where necessary, revised suitably. NOTES. - (1) Before any pay bills/pay registers are destroyed, the service of the Government servants concerned should be verified under Rule257 in accordance(1) with. (2) The periods of preservation of account records in Public Works Offices are prescribed separately by Government. (3) Where a minimum period after which any record may be destroyed has been prescribed, the Head of a Department or any other authority empowered by him to do so, may order in writing the destruction of such record in their own and subordinate offices on the expiry of that period counting from the last day of the latest financial year covered by the record. (4) Heads of Departments shall be competent to sanction the destruction of such other records in their own and subordinate offices as may be considered useless, but a list of such records as property appertain to the accounts audited by the Indian Audit and Accounts Departments shall be forwarded to the Audit Officer and or the Accounts Officers, as the case may be, for his concurrence in their destruction before the destruction is ordered by the Head of Department. (5) Full details shall be maintained permanently, in each office, of all records destroyed from time to time. 126ANNEXURETOAPPENDIX–9 Destruction of records referred to in Para. 1(iii)of this Appendix Description of records Sl. Main-Head Sub-Head Retention Period Remarks No. (1) (2) (3) (4) (5) 1. Creation & (I) Continuance / revival of 1 year Subject to particulars Classification of posts. of sanction being noted in posts. Establishment/ Sanction Register. (ii) Conversion of 10 years – do – temporary posts. (iii) Creation of posts. 10 years – do – (iv) Revision of scales of Permanent in the case of – do – pay. Departments issuing orders and Departments concerned; other Departments need keep only the standing orders, weeding out superseded ones as and when they become obsolete. (v) Upgrading of posts. 10 years – do – 2. Review for Establishment / Permanent. Where, for any reason the determining Sanction Register. register is suitability of re-written, the old volume employees for will be kept for 3 years. continuance in service. 3 years Subject to: 3. Arbitration and (a) the file not being litigation cases. closed until the award/ judgment become final in all respects by limitation or final decision in appeal/ revision; and (b) cases involving important issues or containing material of a high precedent / reference value being retained for an appropriately longer period either initially or at the time of review. 127Description of Records Sl. Main-Head Sub-Head Retention Period Remarks No. (1) (2) (3) (4) (5) 4. Notices under 1year If such a notice is Section 80 of followed up by a civil suit, Civil Procedure it would become Code. arbitration/ litigation case and would, therefore, need to be retained for 3 years. 5. Recruitment. Condonation of break in 5years Subject to a suitable service. entry being made in the appropriate service record and an authenticated copy of the order being kept in Vol. II of Service Book Personal File. 6. Advance. housebuilding (i) Car Advance Rules (ii) Conveyance Advance Rules. (iii) Cycle Advance Rules Permanent in the case (iv) Festival Advance of Departments issuing Rules the rules, orders and (v) GPF Advance Rules instructions; other (vi) House Building Departments need keep Advance Rules only the standing rules, (vii) Motor Cycle/ etc., weeding out the Scooter Advance superseded ones as Rules and when they become (viii) Pay Advance Rules obsolete. (ix) T. A. Advance Rules (x) Travel Concession Rules (xi) Other Advance Rules (xii) Grant of car Advance (xiii) Grant of Subject to: conveyance (i) suitable entries being allowance 1year made in pay bill register; and (ii) in case of motor car/motor cycle / scooter and house building advances. 128Description Of records Sl. Main-Head Sub-Head Retention Period Remarks No. (1) (2) (3) (4) (5) (a)copies of sanction (xiv) Grant of 1 year Being placed on cycle advance Personal files; and (xv) Grant of festival (b)mortgage deeds and advance Other agreements (xvi) Grant of Executed being kept GPF advance Separately in safe (xvii) Grant of Custody for the period motor cycle/scooter They are valid. advance 1 year (xviii) Grant of pay advance (xix) Grant of T. A. advance (xx) Grant of LTC advance (xxi) Grant of other advance 7. Surety Bonds 3 years after the Bond executed in favor Ceases to be of a temporary enforceable. or a retiring Government servant. 8. Pension / (i) Rules and Orders Permanent in the case of retirement. (General aspects.) Departments issuing the rules, orders and (ii) In respect of Groups instructions; other Departments need keep only ‘A’, ‘B’ and ‘C’ the standing rules and Government servants. orders weeding out the superseded ones as and (a) Pre-verification of when they become obsolete. pension cases. 3years (b) Invalid pension Till one year after the (c) Family pension last beneficiary of the (d) Other pensions family pension ceases to been titled to receive or 5 years whichever is later. (e) Gratuity 5years (f) Commutation of 15years pension after the Bond ceases to be enforceable. 129Note – The principle to be adopted in respect of files having financial implications and hence liable to be called by audit for inspection is that such files should be retained for a period of five years after they have been recorded. If, at any time during the period of five years, an audit objection having reference to the transaction dealt with in that file arises, is received, the file will not be destroyed until after the audit objection has been settled to the satisfaction of the audit. Also, if local audit does not take place within the period of five years, the Head of the Office should ascertain from the audit authorities whether they have any objection to the files relating to the earlier years, due for weeding out by the application of the five year formula, being destroyed or retained for a further period for scrutiny by the audit party and, if so, for what period. While records may be reviewed and weeded out at periodical intervals in the light of the retention periods prescribed to avoid their build-up, the attempt should be to make a continuous and conscious effort throughout the year to weed out unnecessary records. In other words, the working rules should be “weed as you go”. INSTRUCTIONS: 1. The retention period specified in Column (4) in the case of a file, is to be reckoned from the year in which the file is closed (i.e., action thereon has been completed) and not necessarily from the year in which it is recorded. 2. In the case of records other than files, e.g., registers, the prescribed retention period will be counted from the year in which it has ceased to be current. 3. In exceptional cases, a record may be retained for a period longer than that specified in the Schedule, if it has certain special features or such a course is warranted by the peculiar needs of the Department. In no case, however, will a record be retained for a period shorter than that prescribed in the schedule. 4. If a record is required in connection with the disposal of another record, the former will not be weeded out until after all the issues raised on the latter have been finally decided, even though the retention period marked on the former may have expired in the meantime. In fact, the retention periods initially marked on such records should be consciously “reviewed and where necessary revised suitably”. 130APPENDIX - 10 [See Rule 61 and Rule 69] “CHECK AGAINST PROVISION OF FUNDS” The pre-check to be applied to all payments by the departmentalized Accounts Officers includes a check against provision of funds also. It is an important part of the functions of the Accounts Office to see that no payment is made in excess of the budget allotment. In order to exercise an effective check in this behalf, a separate register (DDO- wise Bill Passing-cum-Expenditure Control Register –Form CAM –9) should be maintained in the Accounts Officer for each Drawing Officer and by sub-heads and units of appropriation so as to ensure at the time of passing each bill that the amount of the bill under check is covered by Budget allotment. If the amount of any bill leads to excess over the Budget allotment or is not covered by an advance from the Contingency Fund, the Accounts Officer should decline payment under advice to the authority controlling the grant so that the latter could arrange for additional funds. An Appropriation Audit Register (Form CAM – 62) shall be maintained. NOTE. – In cases where payment of a bill/claim would lead to excess over the provision under any unit of appropriation the payment may be made by the Pay and Accounts Office only on receipt of an assurance in writing from the Ministry/Head of Department controlling the grant that the expenditure involved is not on a New Service, or New Instrument of Service; that necessary funds to accommodate the expenditure will be provided for in time by issue of re- appropriation order, etc., that a note to the effect has been kept for further action, and that the grant as a whole (i.e., separately under Revenue and Capital Sections) is not likely to be exceeded. This applies in respect of any new item of expenditure, provision for which does not exist in the Budget (as distinct from expenditure on “New Service” or “New Instrument Service” not provided in the Budget) as well as in cases where the existing provisions is not sufficient to cover the payments. In case of an urgent requirement of expenditure attracting the provisions of New Service/New Instruments of Service and thereby supplementary demands through theapproval of Parliament, the same should be referred to Ministry of Finance. The excess expenditure in such cases can be allowed by the concerned Financial Advisers only on the specific approval of Secretary (Expenditure) that the necessary funds will be made available through the next batch of supplementary demands for grant. If such a contingency in regard to inevitable payment of a bill should arise towards the close of financial year and the grant as a whole is likely to get exceeded thereby, order of the FA on behalf of the Chief Accounting Authority would have to be sought. In case the additional funds required are to be made available merely by reallocation (and not by re- appropriation) of savings, if any, under the same sub-head of appropriation, the related claim will be passed for payment only after additional funds therefor are allocated in writing by the Controlling Officer. 131APPENDIX - 11 [See Rule 225 (viii) (b)] FORMULA FOR PRICE VARIATION CLAUSE The formula for Price Variation should ordinarily include a fixed element, a material element and a labour element. The figures representing the material element and the labour element should reflect the corresponding proportion of input costs, while the fixed element may range from 10 to 25%. That portion of the price represented by the fixed element will not be subject to variation. The portions of the price represented by the material element and labour element alone will attract Price variation. The formula for Price variation will thus be: P1 =P0 F+a - P0 M0 Where P1 is the adjustment amount payable to the supplier (a minus figure will indicate a reduction in the Contract Price) P0 is the Contract Price at the base level. F is the Fixed element not subject to Price variation. a is the assigned percentage to the material element in the Contract price. b is the assigned percentage to the labour element in the Contract Price. L0 and L1 are the wage indices at the base month and year and at the month and year of calculation respectively. M0 and M1 are the material indices at the base month and year and at the month and year of calculation respectively. If more than one major item of material is involved, the material element can be broken up into two or three components such as Mx, My & Mz. Where price variation clause has to be provided for services (with insignificant inputs of materials) as for example in getting technical assistance normally paid in the form of per diem rates, the price variation formula should have only two elements viz. a high fixed element and a labour element. The fixed element can in such cases be 50% or more, depending on the mark-up by the supplier of the Periderm rate vis-à- vis the wage rates. 132APPENDIX - 12 [See Rule 279 (1).] RATES OF GUARANTEE FEE Guarantee fees based on credit score and tenor for Domestic as well as external borrowings Less than or equal to 5 years More than 5 years Category A 0.5 0.6 Category B 0.7 0.9 Suggested Framework for Risk assessment of Guarantee proposals Ministries/Departments are required to undertake risk assessment of the proposals received from CPSUs before sending them to Ministry of Finance. Following ratios may be calculated for assessing the risk: i) Debt Service Coverage Ratio: It indicates the ability of a company to use its operating income to repay all its debt obligations, including repayment of principal and interest on both short-term and long-term debt. Earnings before Interest, Tax, Depreciation & Amortization (EBITDA) Interest + Principal Category A Category B More than or equal to 1.25 Less than 1.25 ii) Current Ratio (CR): It depicts the ability to meet short-term liabilities from selling short-term assets, and calculated as under: Current assets Current liabilities Category A Category B More than or equal to 1.5 Less than 1.5 iii) Debt to Equity Ratio (D/E): It depicts the ability to pay off debt in future and calculated as under: Total liabilities Shareholders’ equity Category A Category B Less than or equal to 1 More than 1 Overall Risk Rating Less than or equal to 1.5 More than 1.5 Category A Category B Example: The above framework has been illustrated as under: 133DSCR* D/E* CR* Calculation= Overall risk Average of rating (Ratings Assigned) Company 1 1.75 0.25 2.10 = 1 (1+1+1)/3) Category A Company 2 1.20 1.20 1.50 = 1.67(2+2+1)/3) Category B Company 3 0.90 1.80 0.80 = 2 (2+2+2)/3) Category B Note: Overall Risk Rating shall be calculated by taking simple mean of all the ratios by assigning 1 and 2 values to ‘A or ‘B’ category. *Three years’ average ratio may be considered for calculating the overall risk rating. **** [Updated vide DoE’s OM No.8(18)/2021/E.II.A dated 20.07.2022 in view of DEA OM F.No.12(13)-B(SD)/2020- Parl dated 10.06.2022] 134FORM GFR 1 [ Rule 65 (4) ) ] APPLICATION FOR AN ADDITIONAL APPROPRIATION, YEAR……………………………… FOR DEPARTMENT Budget Head Original Expenditure Additional Expenditure during the past three Major and Appropriation appropriation Amount Necessary Minor Heads as years applied for up for of Account modified 20 20 20 20 to the remaining and Primary by competent month month unit of authority Appropriation Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. No…………………………………., dated…………………………… 20. Explanation of insufficiency of grant, recommendations and proposals for re-appropriation by - (1) Disbursing Officer: (2) Controlling Officer: (3) Head of Department: (4) Secretary to Government in Administrative Department. No…………………………………. , dated ……………………………… 20. Order of sanction with details Additional appropriation of Rs………………………………………………… of source of appropriation Sanctioned. The amount will be met by re-appropriation form ……………………………………………………….............…… Signature ………………………………………………. Designation ……………………………………………. 135GFR2 FORM GFR 2 [See Paragraph 4 of Appendix - 2] REVENUE RECEIPTS Ministry / Department / Union Territory : Major Head : (In thousands of Rupees) First Month Last Month ACCOUNTS Total Third Eight Seven Five Four Last year Second Last year Last year Current Budget Year Revised Ensuing Budget Year Accounts 7 months Accounts Current year Ensuing Minor Heads Year Last year Current year Third Second Last Budget Revised Budget Last Year Last Year Year Estimate Estimate Estimate Explanation for increase / decrease (Minor Headwise) Signature …………………...................................... Designation ………………...............................…… Date ………………………...............................…… 136FORM GFR 2-A [See Paragraph 4 of Appendix - 2] ESTIMATES OF FOREIGN GRANTS CONCERNING THE MINISTRY / DEPARTMENT ……......................................... (In thousands of Rupees) Date of aid Receipt Amounts to be provided in Name of the agreement Particulars of Total Major Current Current Ensuring Manner of grant or assistance to assistance Head Year BE Year RE Year BE utilization country/ body be received expected of aid* 1 2 3 4 5 6 7 8 9 Signature ……………………………. Designation …………………………. Date .…………………………………. * A brief note may be added indicating the project on which aid is to be utilized. In the case of material and equipment, the relevant grant and expenditure Heads of Account under which (i) utilization of material by Central Government Departments / Projects, (ii) transfer of material to States, Union Territories and other Bodies will be adjusted and also whether the utilization on transfer will be on Central Sector Scheme or Centrally Sponsored Schemes should also be indicated. In cases where the aid material is proposed to be sold the Receipt Major Head under which the proceeds will be credited should be indicated. NOTE: Cash grants and assistance in the form of material and equipment should be indicated separately in Columns 3 to 8. 137FORM GFR 2 - B [See Paragraph 4 of Appendix - 2] ESTIMATES OF INTEREST RECEIPTS AND LOAN REPAYMENTS Ministry / Department ………….................……………………. (In thousands of Rupees) Interest Receipts Loan Repayments BE RE BE BE RE BE Current Current Ensuing Current Current Current Year Year Year Year Year Year 1. State Governments*. 2. Union Territory Governments*. 3. Interest on Capital Outlay in departmental commercial undertakings. 4. Foreign Governments*. 5. Industrial/Commercial/Financial undertakings (undertaking-wise details to be given) : (a) Public Sector Undertakings. (b) Private Sector Undertakings. 6. Statutory Bodies (Port Trusts, Municipalities, KVIC, Tea/Coffee Boards, etc.) 7. Railways / P&T Reserve Funds. 8. Other parties (Co-operatives, Educational Institutions, displaced persons and other individual loanees except Governments servants)* 9. Government servants. Total * Estimates for each State / Union Territory / Foreign Government /Statutory Body or Institution should be separately appended to the Annexure. No........................................................................................ Ministry / Department ………......………………..........…..… Date the ………....……………………………….........…….... Forwarded in duplicate to the Ministry of Finance, Budget Division. Signature ….……………...…………............…...........….….. Designation………………………………....……...........….… 138FORM GFR 3 [ See Rule 58 and Rule 64(1)) ] Office of ………………………… Grant No ……………………… LIABILITY REGISTER FOR THE YEAR …………… SI. Designation Month Serial Nature No. & date Agency Estimated Permissible Total No. of Disbursing of number in of of indent or on which Cost excess over Liability Officer Report Liability Liability connected indent is the (Cols. 8+9) Statement letter placed estimated cost, in any 1 2 3 4 5 6 7 8 9 10 139Probable month and year Record of Payment Balance commitments in which the expenditure [Col. 10 minus Col. 14(b)] will be accounted for in Initials (a) (b) (a) (b)* the departmental of the Initials of Month Amount Amount Year(s) in expenditure statement Branch the Remarks and which it is Officer Branch Month Amount of year likely to be Officer and expenditure discharged year to be incurred 11 12 13 14 15 16 17 18 19 NOTE: - Cols. 2, 3 and 4 will be operated upon only in the Register of Liabilities maintained by the Controlling Officers in respect of the case reported by their Disbursing Officers. * If the balance of commitment is to be discharged during more than one financial year, the year-wise break- up of the amount should be indicated. 140FORM GFR 3-A [See Rule58] Office of ………………………… Grant No ……………………… LIABILITY STATEMENT FOR THE MONTH OF ………………………….. Part - I - Statement of Liabilities incurred during the month of report SI. Nature of No. and Agency on Estimated Permissible Total Probable month in No. liability date which cost excess over liability which the expenditure Remarks of indent indent is the (Col. 5 + will be accounted for or placed or estimated Col. 6) in the departmental connected demand is cost, if any expenditure statement letter made Month Expenditur e likely to be incurred 1 2 3 4 5 6 7 8 9 10 141Part - II - Payments made against Liabilities and Liabilities cancelled or finally paid off Record of payment Balance commitment Remarks Month in Serial (a) (b) (a) (b)* which No. Liability was Month Amount Amount Year(s) in which reported and year the balance of Commitments is likely to be discharged. 1 2 3 4 5 6 7 NOTE 1-In Col. 2, the number to be entered will be the serial number of the liability in the Liability Statement in which it was first reported. NOTE 2 - In the Remarks column, the following information should also be given :- (i) If payment against a liability is likely to be made, not in the month originally indicated, but in some other month, the latter should be indicated. If change in the month of payment is the only information to be given in respect of a liability, the Columns to be used will be 1, 2 and 5. (ii) Similarly, if the whole or part of a liability has been cancelled or otherwise extinguished, the fact may be mentioned and brief reasons given. * If the balance of commitments is to be discharged during more than one financial year, the year -wise break- up of the amount should be indicated. 142Part - III - Progressive amount of outstanding Month in Serial Balance commitments which No. (a) (b)* liability was Amount Year(s) in which the balance of reported commitments is likely to be discharged 1 2 3 4 Total NOTE. 1 - This is a list of liabilities which are pending, that is, those which have not been paid off or otherwise extinguished or cancelled. NOTE. 2 - In Column 2, the number to be entered will be the serial number of the liability in the Liability Statement in which it was first reported. * If the balance of commitments is to be discharged during more than one financial year, the year -wise break- up of the amount should be indicated. 142FORM GFR 4 [See Paragraph 9 of Appendix - 3] STATEMENT OF PROPOSALS FOR PRE-BUDGET DISCUSSION Demand No. STATEMENT OF BUDGET ESTIMATES (in crores of Rupees) Sl. Description as Actuals Actuals B.E. Actuals upto R.E. B.E No. shown in the For the last two current September of current current year Exp.Bud.Vol.2 Preceding years year current year year (SBE) 1 2 3 4 5 6 7 8 APPENDIX I Expenditure SBE (See Paragraph3.5) Ministry/ Department Demand No. (Rs.in crore) Actuals BE RE BE For the last two (current year) (current year) (next year) Preceding years Revenue Capital Revenue Capital Revenue Capital Revenue Capital A CENTRE'S EXPENDITURE I. Establishment Expenditure II. Central Sector Schemes III. Other Central Expenditure B. TRANSFERS TO STATES IV. Centrally Sponsored Schemes V. Finance Commission Transfers VI. Other Transfers to States 143FORM GFR 4 [See Paragraph 3.5] OBJECT HEAD WISE SUMMARY EXPENDITURE PART C-OBJECT HEADWISE SUMMARY Demand No. (Rs.in crore) Object Object Actual BE Actual RE BE Head Head 2015-16 Expenditure Code Name till September Revenue Capital Revenue Capital Revenue Capital 144FORM GFR 5 [See Rule 57 (4) (ii) and Rule 57 (5) (iii)] REGISTER SHOWING EXPENSES BY HEADS OF ACCOUNT Office of ................................................. Head of Account.................................... Major Head................................................. Minor Head................................................ Sub-Head ................................................... Month Year (Unit of Appropriation) Allotment Sub-Head of Grants Deduction, if Net amount any of SI. No. Voucher No./Token No. & Date/Serial the bill No. in Bill Register* 1. 2. 3. 4. Add adjustment communicated by PAO Total for the month Total from 1st April Balance of the appropriation NOTE 1. If an allotment is changed, necessary correction in the register should be made in red ink. NOTE 2. Allotment of expenditure under ‘Charged’ portion should be indicated distinctly. NOTE 3.- This account should be dispatched on the 3rdof the following month. * Serial No. in Bill Register to be entered only in respect of bills passed by Cheque Drawing DDOs under their cheque-drawing powers. Signature..................................................... Designation................................................. Date............................................................ 145FORM GFR 6 [ See Rule 57 (4) (iv) ] BROADSHEET FOR WATCHING RECEIPT OF ACCOUNT FROM DISBURSING OFFICERS Office of .................................................................. Major Head.............................................................. Minor Head ............................................................. Sub-Head ................................................................ Serial Names of Disbursing District Date of receipt of account No. Officers March April May NOTE: 1. Districts are to be arranged according to alphabetical order. NOTE: 2. Dates of receipts should be noted in monthly columns. Reminder should be sent if not received by the 7th of the month. 146FORM GFR 7 [See Rule 57 (4) (vi)] COMPILATION SHEET Major Head.................................................... Minor Head.................................................... Sub-Head....................................................... Month Serial No. of the Disbursing Officers Total for Remarks each officer Total expenditure .............................. Add Adjustment communicated by Accounts Officer and not reckoned by DDOs .............................................. ...................................................... Grand Total....................................... Add Total up to previous month........... …………………................................ Progressive Total up-to-date ............... ........................................................ 147FORM GFR 8 [ See Rule 57 (4) (viii), (5) (iv) & (6)] CONSOLIDATED ACCOUNTS Name of Office........................................................ Grant No................................................................. Appropriation.......................................................... Financial Year........................................................... Units of Grants Grants Proportionate Grant Actual appropriation sanctioned distributed from April to date Expenditure April (Part -III of Demands for Grants) 1 2 3 4 5 (i) Salaries Charged Voted Charged Voted Charged Voted Charged Voted (ii) Total of all units of appropriation Units of Actual Expenditure appropriation May Progressive June Progressive (Part -III of Demands expenditure expenditure for Grants) upto end of May 6 7 8 9 (i) Salaries Charged Voted Charged Voted Charged Voted Charged Voted (ii) Total of all units of appropriation NOTE 1. Subsequent charges, if any, under Column 2 are to be made in red ink. NOTE 2. Figures under Column 4 may be entered in pencil for facility of updating from month to month. NOTE 3. Wherever, variations between actual expenditure and proportion grant are large, suitable explanations should be given in a “Remarks” column. 148FORM GFR 9 [See Rule 57 (8)] BROADSHEET FOR WATCHING RECEIPT OF THE RETURNS FROM THE HEADS OF DEPARTMENTS UNDER A DEPARTMENT OF THE CENTRAL GOVERNMENT SI. Grant Date of receipt of returns No. No. April May June July August Sep. Oct. Nov. Dec. Jan. Feb. March NOTE 1. Date of receipts should be noted in monthly columns. Reminders should be sent if returns are not received by the prescribed date. NOTE 2. Returns relating to the Secretariat proper should also be maintained in the above form. 149FORM GFR 10 [See Rule 217 (iii)] REPORT OF SURPLUS, OBSOLETE AND UNSERVICEABLE STORES FOR DISPOSAL Item No. Particulars of Quantity/ Book Value/ Condition and Mode of disposal Remarks stores Weight Original year of purchase (sale, public purchase price auction or otherwise) 1 2 3 4 5 6 7 Signature........................................................... Designation....................................................... Date.................................................................. 150FORM GFR 11 [ See Rule 222] SALE ACCOUNT Item Particulars Quantity/ Name Highest Highest Earnest Date on Whether the Auctioneer’s No. of Weight And bid bid money Which the Articles were Commission Stores Full accepted rejected realized complete actually and address on Amount is Handed over Acknowled- Of The spot realized On the spot. gement purchaser and If not, the For credited Actual date Its into Of handing Payment treasury Over of the Articles with quantities 1 2 3 4 5 6 7 8 9 10 Signature........................................................... Designation....................................................... Date.................................................................. 151GFR 12 – A [(See Rule 238 (1)] FORM OF UTILIZATION CERTIFICATE FOR AUTONOMOUS BODIES OR THE GRANTEE ORGANIZATION UTILIZATION CERTIFICATE FOR THE YEAR………….. in respect of recurring/non-recurring GRANTS-IN-AID/SALARIES/CREATION OF CAPITAL ASSETS 1.Name of the Scheme...................................................................................... 2. Whether recurring or non-recurring grants....................................................... 3. Grants position at the beginning of the Financial year (i) Cash in Hand/Bank (ii) Unadjusted advances (iii) Total 4. Details of grants received, expenditure incurred and closing balances: (Actuals) Unspent Interest Interest Grant received during the year Total Expenditure Closing Balances of Earned deposited Available incurred Balances Grants received thereon back to the funds (5-6) years [figure as Government (1+2-3+4) at Sl. No. 3 (iii)] 1 2 3 4 5 6 7 Sanction Date Amount No. (ii) (iii) (i) Component wise utilization of grants: Grant-in-aid– Grant-in-aid– Salary Grant-in-aid–creation of capital Total General assets Details of grants position at the end of the year (i) Cash in Hand/Bank (ii) Unadjusted Advances (iii) Total 152Certified that I have satisfied myself that the conditions on which grants were sanctioned have been duly fulfilled/are being fulfilled and that I have exercised following checks to see that the money has been actually utilized for the purpose for which it was sanctioned: (i) The main accounts and other subsidiary accounts and registers (including assets registers) are maintained as prescribed in the relevant Act/Rules/Standing instructions (mention the Act/Rules) and have been duly audited by designated auditors. The figures depicted above tally with the audited figures mentioned in financial statements/accounts. (ii) There exist internal controls for safeguarding public funds/assets, watching outcomes and achievements of physical targets against the financial inputs, ensuring quality in asset creation etc. & the periodic evaluation of internal controls is exercised to ensure their effectiveness. (iii) To the best of our knowledge and belief, no transactions have been entered that are in violation of relevant Act/Rules/standing instructions and scheme guidelines. (iv) The responsibilities among the key functionaries for execution of the scheme have been assigned in clear terms and are not general in nature. (v) The benefits were extended to the intended beneficiaries and only such areas/districts were covered where the scheme was intended to operate. (vi) The expenditure on various components of the scheme was in the proportions authorized as per the scheme guidelines and terms and conditions of the grants-in-aid. (vii) It has been ensured that the physical and financial performance under…………….(name of the scheme has been according to the requirements, as prescribed in the guidelines issued by Govt. of India and the performance/targets achieved statement for the year to which the utilization of the fund resulted in outcomes given at Annexure – I duly enclosed. (viii) The utilization of the fund resulted in outcomes given at Annexure – II duly enclosed (to be formulated by the Ministry/Department concerned as per their requirements/specifications.) (ix) Details of various schemes executed by the agency through grants-in-aid received from the same Ministry or from other Ministries is enclosed at Annexure –II (to be formulated by the Ministry/Department concerned as per their requirements/specifications). Date: Place: Signature: Signature: Name.......................................................... Name....................................................... Chief Finance Officer Head of the Organisation (Head of the Finance) (Strike out inapplicable terms) 153GFR 12 – B [See Rule 256 (2)] FORM OF UTILIZATION CERTIFICATE (1) Certified that out of the Loan of Rs. …….........…....……. SANCTIONED under…………………………………... dated…………………….…..,in favour of ………….....………….during the year……………………......an amount of Rs…………………………...has been utilized for the purpose for which it was sanctioned, and that the balance of Rs. ………...................remaining unutilized at the end of the year…………………….has been surrendered to the Government (vide No. ……….………., dated…………………..) / will be adjusted towards the loan payable during the next financial year. (2) Certified that I have satisfied myself that the conditions on which the loan was sanctioned have been duly fulfilled/are being fulfilled and that I have exercised the following checks to see that the money was actually spent for the purpose for which the loan was made. Kinds of checks exercised 1. 2. 3. 4. Signature…….….……………………. Designation …………………………. Date ………………………………….. 154GFR 12 – C [(See Rule 239)] FORM OF UTILIZATION CERTIFICATE (FOR STATE GOVERNMENTS) (Where expenditure incurred by Govt. bodies only) Sl. Amount No. Letter Certified that out of Rs……………………………………………...........Of No. and date grantssanctionedduringtheyear.................................infavourof ..........................................................undertheMinistry/Department Letter No. given in the margin and Rs…………………………..on Account of unspent balance of the previous year, a sum of Rs…………………………….has been utilized for the propose of ............................................for which it was sanctioned and that The balance of Rs…………………………..remaining unutilized At the end of the year has been surrendered to Government (vide No. Total ...........................dated.......................)/will be adjusted towards the grants payable during the next year........................................ 2. Certified that I have satisfied myself that the conditions on which the grants-in-aid was sanctioned have been duly fulfilled/ are being fulfilled and that I have exercised the following checks to see that the money was actually utilized for the propose for which it was sanctioned. Kinds of checks exercised 1. 2. 3. 4. 5. Signature……………………………………… Designation…..……………………………….. Date…………………………………………… PS: The UC shall disclose separately the actual expenditure incurred and loans and advances given to suppliers of stores and assets, to construction agencies and like in accordance with scheme guidelines and in furtherance to the scheme objectives, which do not constitute expenditure at the stage. These shall be treated as utilized grants but allowed to be carried forward. 155FORM GFR 13 [ See Rule 262] STATEMENT OF AGGREGATE BALANCE OF LOAN(S) OUTSTANDING AS ON 31ST MARCH, 20… AND DETAILS OF DEFAULTS PAO / Pr. AO Ministry of ………………………………………Major Head……………………… Sub-Major Details of defaults Amount of default Head Earliest SI. Minor Head Name of the Aggregate Original letter Amount of Principal Interest date to No. borrower outstanding which the of Account No(s). and loan(s) balance of Date(s) sanctioned default loan(s) sanctioning the Rs. Rs. Rs. pertains loan(s) 1 2 3 4 5 6 7 8 9 NOTE. - Statements may be prepared on separate sheets for each Major Head, with Minor Head-wise break-up. Parties having aggregate outstanding balances of less than Rs. 5 lakhs each and which are not defaulters may be grouped together with a common descriptive head such as “Regional Engineering Colleges”, etc., if possible or “parties with small outstanding balance” under Column 3. 156FORM GFR 14 [ See Rule306 (3) ] FORM OF SECURITY BOND (FIDELITY BOND DEPOSITED AS SECURITY) KNOW ALL MEN BY these presents that I, A.B……………………… of……………………........and held and firmly bound unto the President of India, his successors and assigns (hereinafter referred to as “Government”) in the sum of Rs………………(Rupees………….) to be paid to the Government for which payment, well and truly to be made, I bind myself, my heirs, executors, administrators, and legal representatives by these presents. Singed and dated this ……………………… day of……………….20 2. WHEREAS the above bounden A.B.........................................was on the day of........................................... 20…………………… appointed to and now holds the office of ……………in the office of…………………… AND WHEREAS the said A.B………… by virtue of holding such office is bound to collect………………………… (here describe the nature of Cashier’s/ Storekeeper’s/Sub-storekeeper’s/Sub-ordinate’s duties) ………………………… and to keep and render true and faithful accounts of his dealings with all property and money which may come into his hands or possession under his control such accounts to be kept in the form and manner that may, from time to time, be prescribed by duly constituted authority, and also to prepare and submit such returns, accounts and other documents as may from time to time be required of him. 3.AND WHEREAS the said A.B…………………...has, in pursuance of Rule 270 of the General Financial Rules, 1963, delivered to and deposited with ……………… a Fidelity Bond issued by……………………Company for the sum of Rs………………… (Rupees………………….) as Security for the due and faithful performance by the said A.B……………………of the duties of his said office and of any other office requiring security to which he may be appointed at any time and of other duties which may be required of him while holding any office as aforesaid and for the purpose of securing and indemnifying the Government against all loss, injury, damage, costs, or expenses which the Government may, in any way, suffer, sustain or pay by reason of misconduct, neglect, oversight or any other act of omission of the said A.B……………………………or of any person or persons acting under him or for whom he may be responsible. 4. AND WHEREAS the said A.B……………………………………..has entered into the above Bond in the sum of ……………………… conditioned for the due performance by him the said A.B……………………...of the duties of the said office and of other duties appertaining thereto or which may lawfully be required of him and to indemnify the Government against loss from or by reason of the acts or defaults of the said A.B……………………………… and of all and every person and persons aforesaid. 5.NOW THE CONDITION of the above written Bond is such that of the said A.B……………………has whilst he has held the said office of………………………...as aforesaid always duly performed and fulfilled the duties of his said office and if he shall, whilst he shall hold the said office or any other office requiring security to which he may be appointed, or in which he may act, always duly perform and fulfil all and every duties thereof respectively and other duties which may from time to time be required of him while holding any such office as aforesaid, and shall duly pay into the Government Treasury at ………………………… all such money and securities for money as are payable or deliverable to Government and shall come into his possession or control by reason of the said office and shall duly account for and deliver up all moneys, papers and other property which shall come into his possession or control by reason of the said office and if the said A.B………….his heirs, executors, administrators or legal representatives shall pay or cause to be paid unto the Government the amount of any loss and /or defalcation in the accounts of the said ……………………………………………………. within 24 hours after the amount of such loss and /or defalcation shall have been demanded from the said A.B…………… by the………………………………such demand to be in writing and left at the office or last known place of residence of the said A.B…………………………and shall also at all times indemnify and save, and keep harmless the Government from all and every loss, injury, damage, actions, suits, proceedings, costs, charges and expenses which has been or shall or may at any time or times hereafter during the service or employment of the said A.B……………………… in such office as aforesaid, or any such offices aforesaid, be sustained, incurred, suffered brought, sued or commenced or paid by the Government by reason of any act, embezzlement, defalcation, mismanagement, neglect, failure, misconduct, default, disobedience, omission, or insolvency of the said A.B…………………………….or of any person or persons acting under him or for whom he may be responsible, then the above written Bond shall be void and of no effect, otherwise the same shall be and remain in full force. 6.PROVIDED ALWAYS and it is hereby declared and agreed by and between the parties hereto that the said Fidelity Bond No…………….delivered and deposited as aforesaid shall be and remain at the disposal of the said officer for the time being or the Government as and for part and additional security over and above the above written Bond to the Government, for the indemnity and other purposes aforesaid with full power to the Government or an 158officer duly authorized in that behalf to obtain and receive payment of the sum or sums of money recoverable or to be received, upon or by virtue of the said Fidelity Bond or a sufficient portion thereof and all benefits and advantages thereof and to apply the same in and towards the indemnity as aforesaid of the Government. 7.AND it is hereby further agreed and declared by and between the parties hereto that the said A.B……………………….shall keep the said Fidelity Bond issued by the said company in full force by payment of The premia and as when they fall due and by otherwise conforming to the rules of the said company relating thereto. 8.PROVIDED ALWAYS that cancellation or lapse at any time of the said Fidelity Bond shall not be deemed to affect or prejudice the right of the Government to take proceedings upon or under this said Bond against the said……………………… in case any breach of the condition of this Bond shall be discovered after the cancellation or lapse of the said Fidelity Bond but the responsibility of the A.B…………………….shall at all times continue and but the Government shall be fully indemnified against all such loss or damage as aforesaid at any time. 9. PROVIDED FURTHER that nothing herein contained nor in the Fidelity Bond so deposited shall be deemed to limit the liability of the said A.B…………………..in respect of matters aforesaid to the forfeiture of the said sum of Rupees………………… or part or parts thereof and that if the said sum be found insufficient to indemnify the Government in full for any loss or damage sustained by them in respect of matters aforesaid or any of them the said A.B……………………………………………shall pay to Government on demand such further sum as shall be deemed by…………………… to be necessary in addition to the said Fidelity Bond of Rs…………………………… to cover such loss or damage as aforesaid and that the Government shall be entitled to recover such further sum payable as aforesaid in any manner open to them. 10. The stamp duty, if any, on this Bond shall be borne by the Government. Signature 1. Signed and delivered by the above named A.B…………….. in the presence of ………………….. 2. Signed for and on behalf of the President of India by ……………… the……………….being the person directed or authorized by him in that behalf in the presence of …………………… 159FORM GFR 15 [ See Rule 253 (2) (ii) ] FORM OF WRITTEN UNDERTAKING TO BE EXECUTED BY AN UNDERTAKING / CORPORATION WHOLLY OWNED BY THE CENTRAL GOVERNMENT AT THE TIME OF SANCTIONING OF A LOAN Memorandum of written undertaking given on the ……………… day of…………………………...two thousand and ……………………… by a company incorporated under the Indian Companies Act, 1913 /the Companies Act, 1956,/ the Companies Act, 2013, having its registered office………………………….a body corporate incorporated under the same name and style and by under ……………… (Act No…………… of……………) having its office at ……………………a society registered under the Societies Registration Act (21 of 1860) having its office at………………(hereinafter called ‘the Company / Corporation’ which expression shall include its successors and assigns) to the President of India (hereinafter called ‘the President’ which expression shall include his successors and assigns). WHEREAS the said Company / Corporation, etc., applied to the President for a loan of Rs………………………… (Rupees………………………) only. AND WHEREAS the President has agreed to lend an amount of Rs………… (Rupees………………………… only) to the said Company / Corporation, etc., on the terms and conditions prescribed in the Government of India, Ministry of ……………………… (Department of…………………….. ……..) Letter / Office Memorandum No……………………, dated…………………. (annexed). Now IT IS HEREBY AGREED by the said Company / Corporation, etc., that, in consideration of the sum of Rs……………… (Rupees………………… only) lent by the President to the Company / Corporation etc., the Company / Corporation, etc., hereby agree in accordance with the said terms and conditions – (i)To repay the loan in…………………………..annual equal instalments the first instalment repayable from the …………………… anniversary of the date of drawal; (ii)To pay interest at the rate or ………….……% per annum on the principal payable on each anniversary; and (iii)In case of default in the payment of the instalment of the loan in accordance with (i) above and / or interest in accordance with (ii) above, pay interest at penal rate of……………………………...% per annum on such overdue payments. IT IS HEREBY FURTHER AGREED AND DECLARED that the said Company / Corporation, etc., shall not, without the written consent of the President, encumber or alienate, create, any mortgage lien or charge by way of hypothecation, pledge otherwise, or create other encumbrances of any kind whatsoever any part of its land or buildings or other structure, and / or plant, machinery or any other fixed assets owned by them. AND IT IS HEREBY AGREED that the said principal amount lent by the President as aforesaid shall be used by the Company / Corporation, etc., only for the purpose or purposes for which the aforesaid amount was sanctioned and for no other purpose whatsoever. IN WITNESS WHEREOF these presents have been executed by the said Company / Corporation the day and year first above written. THE PRESIDENT of India has agreed to bear the stamp duty, if any, chargeable on this document. Signed for and on behalf of…………….Company / Corporation, etc., by Shri…………………………………….(Name and Designation) in the presence of 1………………………………………..Seal of the Company / Corporation 2. ……….……………………………… 160FORM GFR 16 [see Rule 286 (1)] CERTIFICATE OF TRANSFER OF CHARGE Certified that I /we have in the forenoon / afternoon of this day respectively made over and received charge of the Office………………………… in pursuance of Order No…………………......dated ………..……………....……... Received Officer ………………………… Relieving Officer ………………………… Signature ………………………………… Signature ………………………………… (Name in Block Letters) (Name in Block Letters) Designation……………………………… Designation………………………………… Station …………………………………… Station ……………………………………… Date ……………………………………… Date ………………………………………… (For use in Audit Office / PAO only) Noted in A/R at page ………………………… SO/AAO/AO/PAO Noted in A/R at page…………………………… SO/AAO/AO/PAO Forwarded ………………………………………………………………………………… NOTE :- Separate certificate (as per Form appended) also to be used where transfer / assumption of charge involves responsibilities for Cash, Stores etc. 161FORM GFR 16 (APPENDIX) [See Rule 286(1)] CERTIFICATE OF TRANSFER OF CHARGE IN RESPECT OF TRANSFER / ASSUMPTION OF RESPONSIBILITIES FOR CASH, STORES, ETC. Certified that I/we have in the forenoon / afternoon of this day……………[date to be indicated] respectively made over and assumed charge and responsibility of the following: - Cash Rs………………………………… Permanent advance Rs………………… Others…………………………………… Relieved Officer………………………….. Reliving Officer…………………………… 161FORM GFR 16A “Ministry / Department of …………………………. JOINING REPORT I hereby report myself for duty this day…………………………….forenoon/afternoon after availing of leave from …………........…… to …………….....……… sanctioned vide Ministry / Department of………………………..Order No……………, dated ………….…………… Signature …………………………… (Name in Block Letters) Designation…………………………. 162FORM GFR 17 [See Rule 306 (3)] GENERAL INSURANCE CORPORATION OF INDIA AND ITS SUBSIDIARIES FIDELITY GUARANTEE POLICY POLICY No. IN CONSIDERATION OF the first premium shown in the First Schedule and subject to the terms and conditions contained herein or endorsed herein which are to be deemed conditions precedent to any liability on the part of the Life Insurance Corporation of India (hereinafter called “Corporation”) so far as they relate to anything to be done or complied with by the Employer, the Corporation agrees and binds itself to make good and reimburse to the Employer all such direct pecuniary loss not exceeding the amount of guarantee, as the Employer shall sustain by any act or acts of dishonesty, default or negligence committed by the employed / any of the employed (a) during the currency of this insurance and (b) during the uninterrupted continuance of employment of such employed and (c) in connection with his occupation and duties AND DISCOVERED during the currency of this insurance or within a reasonable time thereafter or within twelve months after determination of such employment whichever event shall first happen. The proposal for this insurance made by or on behalf of the Employer together with any correspondence relative thereto shall be incorporated herein and be the basis of this contract and of every renewal. THE FIRST SCHEDULE N a m e The Employer Business THE PRESIDENT OF INDIA The Employed: Address through The amount of Guarantee Rs. Occupation and duties: The first premium Rs. The renewal date The ………day of ……… in each year. The currency of this insurance: The period or periods from the date written against the respective names of the Employed to the then next renewal date and any year thereafter in respect to which the Corporation shall agree to accept and Employer or Employed shall pay the annual premium specified in the Second Schedule hereto. THE SECOND SCHEDULE Period of Name Occupation Amount of Annual Actual Risk and duties Guarantee Premium Premium Rs. Rs. P. Rs. P. In witness whereof this Bond has been signed at …………......…… this day of ……………………20......... For1 …………………………........… Prepared by ………………………… Examined by………………………… N.B.-For your own protection it is incumbent upon you to read your policy and its conditions to ascertain that it is made out in accordance with your intentions. 1 The name of the Company to be inserted in ink at the time of execution of this form. 163CONDITIONS In this policy the expression shall bear the respective meanings attached to them in the First Schedule hereto 1. The Corporation shall not be liable to make any payment hereunder if the nature of the business of the Employer of the duties or conditions of service shall be changed or the remuneration or any of the Employed reduced without the sanction of the Corporation or if the precautions and checks for securing accuracy of accounts shall not be duly observed. 2. Notice in writing shall be given to the Corporation’s office as soon as possible after any act or acts of dishonesty, default or negligence on the part of any of the employed or of reasonable cause of suspicion thereof or any improper conduct shall have come to the knowledge of the Employer or of any representatives of the employer to whom is entrusted the duty of superintendence over any of the Employed and no amount shall be payable under this policy in respect of that Employed by reason of any act committed after such knowledge shall have come to the Employer or his said representatives. Within three months after such notice the Employer shall deliver to the Corporation full details of his claim and shall furnish proof of the correctness of such claim. All books of accounts of the Employer or any Accountant’s report thereon shall be open to the inspection of the Corporation and the Employer shall give all information and assistance to enable the Corporation to sue for and obtain reimbursement by any one of the Employed or by his estate of any moneys which the Corporation shall have paid or become liable to pay under this Policy. Provided always that the Corporation shall not be entitled to the disclosure of any record or information in respect of which the Employer is entitled to claim privilege in a Court of Law under Sections 123 and 124 of the Indian Evidence Act. 3. Any moneys of any one of the Employed in respect of whom a claim is made in the hands of the Employer and any money which but for any act of fraud or dishonesty committed by such one of Employed would have been due to that Employed from the Employer shall be deducted from the amount otherwise payable under the Policy. Provided that the Employee is entitled under the law to make such deduction. Provided further that in cases in which the loss to the Employer is in excess of the maximum amount payable under the policy, the moneys aforesaid will be applied in the first place to make good the amount of such excess and the balance, if any, shall be deducted as herein provided. The Employer and the Corporation shall share any other recovery (excluding insurance and reinsurance and any counter security taken by Corporation) made by either on account of any loss in the proportions that the amount of the loss borne by each bears to the total amount of the loss. 4. Notwithstanding anything herein contained to the contrary it is also agreed that the Corporation guarantees to the Employer that the Employed shall honestly and faithfully account to the Employer for all moneys or valuables or property which they shall receive or be entrusted with on account of the Employer either in their personal or individual capacity or as member of group working conjointly with other members and that the Corporation will make good and reimburse to the Employer such loss not exceeding the amount of guarantee as the Employer may sustain by any act or acts of default or dishonesty or negligence of the Employed in the capacity and employment aforesaid and that when individual liability cannot be brought home to the Employed the amount to be made good shall be that which falls to the share of the Employed calculating from the total number of men forming such group, i.e., the total loss divided by the total number of men employed on the particular work. 5. The Corporation also agrees that during the period in which the guarantee shall be in force the particulars contained in the Second Schedule shall be with the consent of Employer and on previous notice to and on payment to the Corporation of any additional proportionate premium that may become payable in consequence of any change in the employed by reason of promotion or otherwise be varied as circumstances may require and such additional persona as may be taken into the employment of the employer referred to in the Schedule hereof during such period shall with such consent aforesaid and on previous notice to and on payment to the Corporation of a further proportionate premium at the rate for the time being applicable be added to and included in the said Schedule and the expression Employed used throughout this policy shall as from the respective date on which the names shall be included in the said schedule be deemed to include all persons whether previously named in the said Schedule or subsequently added thereto as aforesaid. 6. If any question or difference shall arise between the parties hereto or their respective representatives touching these presents or the construction hereof or as to the rights, duties or obligations of any persons hereunder or as to any other matter in anywise arising out of or connected with the subject-matter of these presents, the same shall be referred to a single Arbitrator to be named by the Government of India. The Arbitrator so named shall be an officer of Government and shall have all the powers conferred on Arbitrators under the Indian Arbitration Act. The costs of the reference and award shall be in the discretion of the Arbitrator. The making of an award in such reference shall be a condition precedent to any liability of the Corporation or any right of action against the Corporation in respect of such difference. If the Corporation shall disclaim liability for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provision herein contained then the claim shall for all purpose be deemed to have been abandoned and shall not thereafter be recoverable hereunder. 7. The expression "Government of India" for the purpose of Clause 6 above shall mean the Secretary to the Government of India in the Administrative Ministry/ Head of Department under which the employed is working. 164FORM GFR 18 [ See Rule 211. (ii) (c) ] ACCESSION REGISTER Date Acces Author Title Vol. Place Year Pages Sourc Class Book Cost Bill With Re- sion and of e No. No. No. drawn marks Num- Publi- Publi- and date ber sher cation date (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) 166FORM GFR 19 [See Rule250. (1) (viii)] NOTICE TO BORROWER ABOUT THE DUE DATE FOR REPAYMENT OF LOAN AND INTEREST THEREON No……………………… Office of the Controller of Accounts, Ministry / Department of ………….......…… New Delhi, dated the…….......…. To …………………………… …………………………...….. Subject: -Repayment of loan and payment of interest thereon. Dear Sir, According to the terms of the loan of Rs………………………….sanctioned to you, vide the Ministry / Department ………………………… Letter No……………………, dated………………………… the annual repayment instalment and / or interest thereon, detailed below, will become due on………………………… (i) Repayment ……………………… Rs…………………(in words and figures) (ii) Interest …………………………… Rs………………..(in words and figures) 2. Please arrange the payment by the due date. It should be noted that the amount of interest has been calculated on the assumption that payment will be arranged promptly; otherwise it will be revised upwards in accordance with the terms of the loan. 3. The amounts due should be tendered, on or before the due date at the………………………...(New Delhi Head Office / Main Office of the Public Sector Bank (PSB) accredited to the Ministry / Department in cash or by cheque or draft drawn on any Scheduled Bank / New Delhi, in favour of the aforesaid PSB Branch. The payment should be accompanied by a memorandum or challan, in duplicate, giving the following details :- (i) Name of the Ministry / Department……………………………… (ii) Name of the Borrower ………………………………………… (iii) No. and date of loan sanction letter with the loan amount sanctioned …………………………. (iv) Amount due for payment, separately for interest and payment………………………… (v) Due date of payment…………………………… (vi) The head of the account indicated below, to which the amounts will be adjusted in Government accounts, should be included in the challan: (i) Instalment of Principal. Head of Account (ii) Interest. 4. Separate cheque / draft and challans should be submitted for payment of principal and interest. 5. For outstation loanees, payment of dues together with memorandum / challans is to be arranged through theirBank to the aforesaid PSB Branch in New Delhi by the due date. Yours faithfully Accounts Officer 167FORM GFR 20 [See Rule 305 (1)] REGISTER OF POLICY HOLDER 1 Sl. No 2 Policy No. 3 Name of Policy Holder 4 Designation 5 Monthly Premium rate 6 April 7 May 8 June 9 July 10 August 11 September 12 October 13 November 14 December 15 January 16 February 17 March 18 Remarks 168 Amount actually recoveredFORM GFR 21 [See Rule 234] REGISTER OF GRANTS TO BE MAINTAINED BY THE SANCTIONING AUTHORITY (i) Serial Number. (ii) Number and date of sanction letter. (iii) Purpose of grant. (iv) Conditions, if any, attached to the grant. (v) Amount sanctioned. (vi) Amount of the Bill. (vii) Whether conditions attached to the grant have been accepted by the grantee without reservation. (viii) Dated initials of the sanctioning authority. (ix) Date by which statements of accounts along with utilization certificate, etc., are required to be furnished by the grantee. (x) Date by which utilization certificate is required to be furnished by sanctioning authority to the Accounts Officer, as the case may be. (xi) Date by which the statements of accounts, etc., are actually received. (In case there has been delay in the receipt of these statements, the reasons therefor as well as efforts made by the sanctioning authority to expedite submission of such statements may be clearly indicated). (xii) Date of submission of utilization certificate to PAO (in case there has been delay in submission of utilization certificate, the reasons therefor may be clearly indicated). (xiii)Unspent balance, if any, also indicating whether the unspent balance has been surrendered by the grantee Institution / Organisation. 169FORM GFR - 22 [See Rule211 (ii) (a)] REGISTER OF FIXED ASSETS Name and description of the Fixed Assets.......................................... Date Particulars Particulars of supplier Cost of Location of the Remarks of Asset the Asset Asset Name and Bill No. address and date 1 2 3 4 5 6 7 NOTE: The items of similar nature but having significant distinctive features (e.g. study table, office table, computer table, etc.) should be accounted for separately in stock. 170FORM GFR 23 [See Rule211 (ii) (b)] STOCK REGISTER OF CONSUMABLES SUCH AS STATIONERY, CHEMICALS, SPARE PARTS ETC. Name of Article............................................ Unit of Accounts ......................................... Date Particulars Suppliers Receipt Issue Issue Balance Unit Invoice No. Voucher Price and Date No. 1 2 3 4 5 6 7 8 NOTE: User’s indent in original shall be treated as issue voucher. Issue voucher number shall be in consecutive order, financial year wise and it should be noted on each indent. 171FORM GFR 24 [See Rule211 (ii) (d)] REGISTER OF ASSETS OF HISTORICAL / ARTISTIC VALUE Name of Asset....................................... Date of Source of Cost price, Particulars which Particulars of Location Remarks acquisition acquisition if any make it an asset of the custodian of the historic /artistic value of the asset asset NOTE 1 : The custodian shall take appropriate measures for preservation of the assets. NOTE 2 : The present value of the asset should be ascertained by obtaining appropriate valuation from an expert agency and the same is indicated in Column 3, every five years. 172FORM GFR 25 [See Rule 281. (2) & (3)] GOVERNMENT GUARANTEES Name of Ministry / Department [Rs. In crore] SI. Beneficiary Loan Authority Period of Purpose Class Sector Details Details Amount No. [Name of Holder / for validity of Loan of of of Loan the PSU etc Entity Guarantee [ MOF ID ReschedulSecuritie in whose giving [MoF No., e s favour Loan approval & date pledged guarantee No. & through is given] Date] which the guarantee was last extended] 1 2 3 4 5 6 7 8 9 10 11 Extent of Additions Deletions Invoked Outstanding Rate of Guarantee Fee/ Other Guarantee Principal, Guarantee Commission conditions interest etc Fee/ & at the end of Commi- compli- the period ssion ance 173 lapicnirP tseretnI latoT Dis- Not Receiv- Recei- charged dis- able ved charged 12 13 14 15 16 17 18 19 20 21 22 23 NOTES - 1: For the purpose of Column - 8 the sectors are as under: - (i) Power (ii) Cooperative (iii) Irrigation (iv) Roads & Transport (v) Urban Development & Housing (vi) Other Infrastructure (vii) Any other. 2: For the purpose of Column - 7 the classification is indicated in Rule 281 (4).FORM GFR 26 [See Rule277(v).] FURNISHING OF DATA REGARDING GUARANTEES TO MINISTRY OF FINANCE Name of the Ministry/Department: Name of Public Sector Undertaking / entity: Year Turnover Profit Sundry Current If audited by In case of After tax Debtors Ratio CAG, profit after targets set tax, taking into by BIFR the account the same for comments of Turnover and CAG Profit. X-2 X-1 X* Where ‘X’ is the immediately preceding financial year. 2. In case of proposal seeking extension of guarantee it may specifically be indicated whether the guarantee fee for the preceding financial year has been paid or not. The amount paid and date of payment should be indicated. In case of default in payment it may be indicated whether default fee in terms of Rule 279 (3) has been levied. 174