This is short notes on General Financial Rules 2017. This information will be helpful for those who are preparing for the examination of LDCE Inspector of Posts and PSS Group B. Any suggestion please drop a message in comment section or email to " karapoorna@gmail.com"
 
 

            Chapter 2 : General System of Financial Management

Notes on General Financial Rules (GFR)-2017 | Chapter 2 | LDCE Inspector of Posts | PSS Group B

 

Rue 7

  • All moneys (Deposit, remittance, etc..) received by or on behalf of the Government shall be brought into Government Account without delay as per Articles 150 and 283 (1) of the Constitution.

 

Rule 8

  • Relating to PUBLIC ACCOUNT (Article 284 of Constitution)
  •  All moneys (other than revenues or public moneys raised or received by Government) deposited with any officer shall be paid into the Public Account
  • All moneys received by or deposited with the Supreme Court of India or with any other Court (other than High Court) shall be paid into the Public Account

       {Note:  Money deposited with High court shall be paid into Public Account of State}

 

The Head of Account to which moneys shall be credited and the withdrawal of moneys therefrom shall be governed by

  • Government Accounting Rules 1990
  • Central Government Account (Receipts and Payments) Rules, 1983
  • Or such other general or special orders issued

 

Rule 9
  • Duty of the Department of the Central Government receipts and dues are correctly and promptly assessed, collected and duly credited to the Consolidated Fund or Public Account

 

Rule 10

  • The Controlling Officer shall obtain monthly accounts and returns from his subordinate officers

 

Rule 11

  • Rules and procedure regarding assessment, collection, allocation, remission and abandonment of revenue and other receipts shall be laid down in the regulations of the Department
  • Departments in which officers are required to receive moneys on behalf of Government and issue receipts therefor in Form GAR-6 

 

 Also Read | Short Notes on Children Education Allowance and Hostel Subsidy

 

Rule 12

  • When amounts due to government appear to be irrecoverable, the orders of the competent authority shall be obtained for their adjustment.

 

Rule 13

  • No sums shall be credited as revenue by debit to a suspense head unless there is special order issued.

 

Rule 14

  • HOD/Admin shall keep Finance Ministry fully informed of the progress of collection of revenue and variations in such collections as compared with the Budget Estimates

 

Rule 15

  • The HOD or Administrator shall responsible if maintenance of any rentable building is entrusted to a civil department, other than the Central Public Works Department,.
  • Assessment and recovery of rent of any building hired out will be regulated by the rules of CPWD

 

Rule 16: Fines

Authority having the power to impose and/ or realize a fine shall ensure
  • the money is realized,
  • duly checked
  • deposited into a treasury or bank


Every authority having the power to refund fines shall ensure
  • refunds are checked
  • no double refunds of amounts
  • refunds of fines not actually paid into a treasury or bank

 

Rule 17 : Miscellaneous Demands

  •  Accounts Officers shall watch the realization of miscellaneous demands of Government, not falling under the ordinary revenue administration,

  

Rule 18 : Remission of Revenue

  • A claim to revenue can be remitted only with the sanction of the competent authority

 

Rule 19

  • Annual statements showing remission of revenue and abandonment of claims is prepared by HODs and submitted to concerned Account Officers and Audit Officers on 1st June

  Exception
  • Department of Posts not required to submit the statement
  • Individual remission below Rs.1000 need not be included in this statement

 

 Rule 20

  • Rules defining remissions and abandonment of revenue may be made by Department of Central Government and Administrators

 

Also Read | Topic wise Study Materials for LDCE Inspector of Posts

  

Rule 21: Standards of financial propriety.

  • The officer incurring or authorizing expenditure shall have the vigilance and normally expenditure should not be made for benefit of one person or particular section without prior order from court, custom or police.

 

Rule 22  Expenditure from Public Funds.

  • No authority may incur any expenditure from Public Funds unless sanctioned by a competent authority

 

Rule 23

  • Financial power have been delegated to various subordinates as per Delegation of Financial Powers Rules (DFPR)
  • The financial powers which have not been delegated shall vest in the Finance Ministry.

 

Rule 24 Consultations with Financial Advisers

  • All draft memoranda for Expenditure shall be circulated after consultation with the concerned Financial Adviser of the ministry or Department.

 

Rule 25

  • All sanctions to the expenditure shall subject to grant or appropriation wherefrom such expenditure is to be met.

 

Rule 26 Responsibility of Controlling Officer

 He shall ensure that expenditure
  •  Do not exceed budget allocation
  • Incurred in public interest
  • Incurred for the purpose for which funds are provided
  • Adequate control mechanism is functioning to guard waste and loss of public money

 

Rule 27

  •   All sanctions or orders shall come into force from the date of issue.
  •  If specified date from which they shall come into force is mentioned, then date of effect of sanction will be changed.
  • Order of creation of a temporary post should, invariably specify the date from which it is to be created in addition to the sanctioned duration.

 

Rule 28 Powers in regard to certain special matters

 Prior sanction from Finance Ministry is required for the following.

  • involves any grant of land,
  • assignment of revenue,
  • concession, grant, lease
  • licence of mineral
  • forest rights,
  • rights to water,
  • power or any easement or privilege of such concessions, or
  • involves relinquishment of revenue in any way

 

Rule 29 

  • All financial sanctions and orders issued by a competent authority shall be communicated to the Audit Officer and the Accounts Officer.
  • All orders conveying sanctions to expenditure of a definite amount should express both in words and figures the amount of expenditure sanctioned
The following types of sanctions need not be endorsed to the Audit Officers:-
  •  grant to advances
  • appointment or promotion or transfer of Gazetted and non-Gazetted Officers
  • creation or continuation or abolition of posts
  • handing over charge and taking over charge
  • payment of Advance and  withdrawal of GPF
  • Contingent expenditure incurred under the powers of Head of Offices.

 
  
Rule 30 Lapse of Sanction
  • Valid a period of twelve months from the date of issue
Exceptions
  • If period of currency of the sanction is specified in the sanction itself
  • If specified that expenditure will be met from Budget Provision of specific financial year
  • Sanction regarding an addition to a permanent establishment made from year to year under a general scheme
  • Sanction regarding an allowance for a post even if it is not drawn by concerned Officer

 

Rule 33

Any loss public moneys, revenue or receipts, stamps, opium, stores or other Government property, even if it has been made good by the party responsible, has to be reported by the concerned authority to
  • Next higher authority
  • Statutory audit officer
  • Concerned Principal Accounts Officer

The following cases need not be reported
  • Petty losses of value not exceeding Rupees ten thousand (Rs.10000/-)
  • Loss of revenue  due to
      • mistake in assessment discovered too late     
      • under assessment due to interpretation of law     
      • refund of time barred claims 


  • Cases involving serious irregularities must be report d to the financial adviser of chief accounting authority (CAA) and controller general of accounts (CGA)

 

 Report of loss shall be made at two stages

  • An initial report
  • The final report

      • Report on losses which ministry /Department (HOD) cannot finally  dispose of their own are submitted to Ministry of Finance
      • Loss due to culpability of government servants will be borne by the centre/state government department concerned with the transactions. If nay recovery is form that person in cash then it will be credited to dept who sustained the loss
      • Loss of Govt money due to erroneous irregular issue of cheques or irregular accounting receipts be reported to CGA

 

Rule 34

  • All losses above Rs.50000/- due to suspected fire, theft, fraud, etc., shall be invariably reported to the Police for investigation 

v        

       Rule 35 

  • Loss of immovable property by fire, flood etc exceeding Rs.50000/- shall be reported to Government through proper channel.
 
Rule 36 Reports to Audit and Accounts Officers

 

Rule 37 Responsibility of losses

v      

          Rule 38 Prompt disposals of cases of loss

v       

     Rule 39 Demand for information by Audit or Accounts Officer

 

Rule 40

  • A subordinate authorities shall not withhold any information, books or other documents required by the Audit Officer or Accounts Officer

 

Rule 41

  • Contents of any file are categorized as ‘Secret’ or ‘Top Secret’ the file maybe sent personally to the Head of the Audit Office

 

Also Read | Short Notes on Service Discharge Benefit Scheme 

 

Some questions on GFR 2017 Chapter 2

The following are the tips to prepare yourself by framing MCQ. Only hints given below. Try to frame as much as possible MCQ…..

 1.    Annual statements showing remission of revenue and abandonment of claims should be          submitted by ………… (May ask which authority or by which date)

      (all department except department of Posts  and by 1st June)

 
2.     In which of the following amount need not be included in the remission statement
    (below Rs.1000)

 
3.    The financial powers of the government which have not been delegated to subordinate           authority shall vest in 
       (Finance Ministry)
 
4.    Normally a sanction will be valid upto 
         (12 months from the date of issue) 
 
5.    Petty losses are need not be reported as laid in GFR 2017
    (Not exceeding Rs.10000/-) 
   
6.    Rule 21 of GFR 2017 refers to
       (Standards of financial propriety)

7.   Departments in which officers are required to receive moneys on behalf of Government           and issue receipts in the Form
        (…GAR-6…) 
 
8.    Report of loss shall be made
         (at Two stages)

 9.    Under article 284 of the constitution All moneys (other than revenues or public moneys           raised or received by Government) deposited with any officer shall be paid into the 
        (Public Account)
 
10.    Remission of revenue mentioned in the RULE of GFR 2017 
         ( RULE no.18 )
 
 
Hope, this information will help to those who are preparing for LDCE Inspector of Posts and PSS Group B. 
 
KARAPOORNA
 

 

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