Indian Railway Codes and Manuals-General Financial Rules-2017-Chapter- 3 (III) GFR-2017.
Chapter – 3
BUDGET FORMULATION AND
IMPLEMENTATION
Rule
42
Financial
Year. Financial year of the Government shall commence on the 1st day of April
of each year and end on the 31st day of March of the following year.
Rule
43
(1)Presentation
of Budget to Parliament. In accordance with the provisions of Article 112 (1)
of the Constitution, the Finance Minister shall arrange to lay before both the
Houses of Parliament, an Annual Financial Statement also known as the ‘Budget’
showing the estimated receipts and expenditure of the Central Government in
respect of a financial year, before the commencement of that year.
Rule
43
(2)
The receipts and expenditure of the Railways being a departmental commercial
organization form part of the Government’s receipts and expenditure and are
included in the Annual Financial Statement. With the merger of Railway Budget
with the General Budget, the Demands for Grants and the Statement of Budget
Estimates of Railways shall also be part of the General Budget with effect from
2017-18.
Rule
43
(3)
The provisions for preparation, formulation and submission of budget to the
Parliament are contained in Articles 112 to 116 of the Constitution of India.
Rule
43
(4)
The Ministry of Finance, Budget Division, shall issue guidelines for
preparation of budget estimates from time to time. All the
Ministries/Departments shall comply in full with these guidelines.
Rule
44
The
budget shall contain the following :- (i) Estimates of all revenues expected to
be raised during the financial year to which the budget relates ; (ii)
Estimates of all expenditure for each programme, scheme and project in that
financial year; (iii) Estimates of all interest and debt servicing charges and
any repayments on loans in that financial year; (iv) Any other information as
may be prescribed.
Rule
45
Receipt
Estimates. The detailed estimates of receipts shall be prepared by the
estimating authorities separately for each Major Head of Account in the
prescribed form. For each Major Head, the estimating authority shall give the
break-up of the Minor/Subhead/ Detailed wise estimate along with actuals of the
past three years. While doing the head wise classification, it may be ensured
that item wise break-up of all major items of tax and non-tax revenues are
clearly identified and depicted in the receipt estimates. This is required to
highlight all individual items of significance. Any major variation in
estimates with reference to past actuals or/and Budget Estimates shall be
supported by cogent reasons. The accounting heads under which major tax and
non-tax revenues are collected shall be prescribed by the administrative
Ministry in consultation with the Budget Division in the Finance Ministry.
Rule
46
Non-Tax
Revenues. While the tax revenues, non-debt capital receipts including
disinvestments and borrowings are managed by the various Departments of the
Ministry of Finance, the non-tax revenues are collected through all
Ministries/Departments and other autonomous bodies and implementing agencies
and comprise an important source of revenue for the Government.
Rule
47
User
Charges. ‘User Charges’ is an important component of the non-tax revenues. Each
Ministry/Department may undertake an exercise to identify the ‘user charges’
levied by it and publish the same on its website. (i) While fixing the rates of
user charges, the Ministries/Departments must ensure that the user charges
recover the current cost of providing services with reasonable return on
capital investment. (ii) Any deviation from these principles shall be
specifically recorded with reasons justifying the setting of user charges lower
than the cost recovery norms, if any. (iii) The rates of user charges should be
linked with appropriate price indices and reviewed at least every three years.
(iv) In order to enable ease of revision of user charges, the rate of user
charges shall be fixed, whereever possible through Rules or executive orders
and not through a statute.
Rule
48
Dividends
and Profits. Dividends and profits including the transfer of surplus from
Reserve Bank of India is a major component of the non-tax revenues. The payment
of dividends/profits etc. by the Central Public Sector Enterprises shall not be
delayed and must be paid within an appropriate time frame immediately after the
decision on dividend is taken in the AGM. Ministries or Departments shall
monitor timely payments of dividends and profits. The dividend shall be payable
as per the guidelines issued by DIPAM in this regards.
Rule
49
Receipts
Portal. The Government has provided a public portal for online collection of
various non-tax revenues including various fees and user charges through
eReceipts. All Ministries/Departments,shall take prompt measures for migration
to eReceipts, to ensure customer convenience and immediate credit of receipts
to the Government account.
Rule
50
(1)
Expenditure estimates. The expenditure estimates shall show separately the sums
required to meet the expenditure Charged on the Consolidated Fund under Article
112 (3) of the Constitution and sums required to meet other expenditure for
which a vote of the Lok Sabha is required under Article 113(2) of the
Constitution.
Rule
50
(2)
The estimates shall also distinguish provisions for expenditure on revenue
account from capital account, including on loans by the Government and for
repayment of loans, treasury bills, cash management bills and ways and means
advances.
Rule
50
(3)
The detailed estimates of expenditure shall be prepared by the estimating
authorities up to the final unit of appropriation (Object head) under the
prescribed Major and Minor Heads of Accounts for both Revenue and Capital
expenditure. Estimates shall include suitable provision for liabilities of the
previous years that is to be discharged during the year.
Rule
50
(4)
The estimates of scheme related and other expenditures shall be processed in
consultation with the Budget Division, Ministry of Finance in accordance with
the instructions issued by it. Rule 50 (5) The Revised and Budget Estimates of
both Revenue and Capital expenditure after being scrutinized by the Financial
Advisers and approved by the Secretary of the Administrative Ministry or
Department concerned shall be forwarded to the Budget Division in the Ministry
of Finance in such manner and forms as may be prescribed by it from time to
time.
Rule
51
(1)
Demands for Grants. The estimates for expenditure for which vote of Lok Sabha
is required shall be in the form of Demand for Grants.
Rule
51
(2)
Generally, one Demand for Grant is presented in respect of each Ministry or
Department. However, in respect of large Ministries or Departments, more than
one Demand may be presented. Each Demand normally includes provisions required
for a service, i.e. provisions on account of revenue expenditure, capital
expenditure, grants to the State and Union Territory Governments and also Loans
and Advances relating to the service.
Rule
51
(3)
The Demand for Grants shall be presented to Parliament at two levels. The main
Demand for Grants shall be presented to Parliament by the Ministry of Finance,
Budget Division along with the Annual Financial Statement while the Detailed
Demands for Grants, for consideration by the “Departmentally Related Standing
Committee” (DRSC) of the Parliament, are laid on the Table of the Lok Sabha by
the concerned Ministries/ Departments, as per dates approved from time to time.
Rule
52
(1)
Form of Annual Financial Statement and Demands for Grant. The form of the
Annual Financial Statement and Demands for Grants shall be laid down by the
Finance Ministry and no alteration of arrangement or classification shall be
made without the approval of that Ministry.
Rule
52
(2)
The heads under which provision for expenditure shall be made in the Demands
for Grants or Appropriation shall be prescribed by the Finance Ministry in
consultation with the Administrative Ministry or Department. The authorized
heads for expenditure in a year shall be as shown in the Detailed Demands for
Grants passed by Parliament and no change shall be made therein without the
formal approval of the Finance Ministry.
Rule
52
(3)
The major head wise provisions in the Detailed Demands for Grants shall match
with the provision made in the Demands for Grants presented by Budget Division,
as the appropriations are sought on the basis of Demands for Grants. NOTE:
Detailed instructions for preparation of the budget are available in Appendix
2, 3 and 4.
Rule
53
(1)
Acceptance and inclusion of estimates. The estimates of receipts and
expenditure of each Ministry/Department shall be scrutinized in the Budget
Division of the Ministry of Finance. Secretary (Expenditure) may hold meetings
with Secretaries or Financial Advisers of Administrative Ministries or
Departments to discuss the totality of the requirements of funds for various
programmes and schemes, along with receipts of the Ministries or Departments.
Rule
53
(2)
The estimates initially submitted by the Departments may undergo some changes
as a result of scrutiny in the Budget Division, Ministry of Finance and
deliberations in the pre-budget meetings between the Secretary (Expenditure)
and the Secretary or Financial Adviser of the Department concerned. The final
estimates arrived at on the basis of scrutiny and pre-budget meetings shall be
incorporated in the Budget documents.
Rule
54
Outcome
Budget. After finalization of the estimates for budgetary allocations, the
Department of Expenditure in consultation with NITI Aayog and the concerned
Ministries shall prepare an Outcome Budget statement linking outlays against
each scheme/project with the outputs/deliverables and medium term outcomes. The
outputs/deliverables s h a l l b e m a n d a t o r i l y g i v e n i n measurable/quantitative
terms on the basis of parameters and deliverables decided in advance, on the
basis of projections made in the Medium Term Expenditure Framework (MTEF)
Statement. Allocations for each scheme/project shall be against a firm set of
deliverables which shall be adhered to. The performance against specified
outcomes would form the basis of deciding on the continuation of the scheme and
the quantum of budget allocation.
Rule
55
Vote
on Account. If the Appropriation Bill seeking authorization of the Parliament
to make expenditure in consonance with the Budget proposal is likely to be
passed after the start of the financial year to which it corresponds then
pending the completion of the procedure prescribed in Article 113 of the
Constitution for the passing of the Budget, the Finance Ministry may need to
obtain a ‘Vote on Account’ to cover expenditure for abrief period in accordance
with the provisions of Article 116 of the Constitution. Funds made available
under Vote on Account are not to be utilized for expenditure on a ‘New
Service’.
Rule
56
Communication
and distribution of grants and appropriations. After the Appropriation Bill
relating to Budget is passed, the Ministry of Finance shall communicate the
same to the Ministries / Departments which, in turn, shall distribute the same
to their subordinate formations. The distribution so made shall also be
communicated to the respective Pay and Accounts Officers who shall exercise
check against the allocation to each subordinate authority.
II. CONTROL OF EXPENDITURE AGAINST BUDGET
Rule
57(1)
Responsibility
for control of Expenditure. The Departments of the Central Government shall be
responsible for the control of expenditure against the sanctioned grants and
appropriations placed at their disposal. The control shall be exercised through
the Heads of Departments and other Controlling Officers, if any, and Disbursing
Officers subordinate to them.
Rule
57(2)
A
Grant or Appropriation can be utilised only to cover the charges (including
liabilities, if any, of the past year) which are to be paid during the
financial year of the Grant or Appropriation and adjusted in the account of the
year. No charges against a Grant or Appropriation can be authorized after the
expiry of the financial year.
Rule
57(3)
No
expenditure shall be incurred which may have the effect of exceeding the total
grant or appropriation authorized by Parliament by law for a financial year,
except after obtaining a supplementary grant or appropriation or an advance
from the Contingency Fund. Since voted and charged portions as also the revenue
and capital sections of a Grant/Appropriation are distinct and re-appropriation
inter se is not permissible, an excess in any one portion or section is treated
as an excess in the Grant/Appropriation.
Rule
57(4)
To
have effective control over expenditure by the Departments, Controlling and
Disbursing Officers subordinate to them shall follow the procedure as given
below :- (i) For drawal of money the Drawing and Disbursing Officer shall (a)
Prepare and present bills for “charged” and “voted” expenditure separately. (b)
Enter on each bill the complete accounts classifications from major head down
to the object head of account. When a single bill includes charges falling
under two or more object heads, the charges shall be distributed accurately
over the respective heads. (c) Enter on each bill the progressive total of
expenditure up-to-date under the primary unit of appropriation to which the
bill relates, including the amount of the bill on which the entry is made. (ii)
All drawing and disbursing officers shall maintain separate registers in Form
GFR 5, physically or electronically for allocation under each minor or sub-head
of account with which they are concerned. (iii) On the third day of each month,
a copy of the entries made in this register during the preceding month shall be
sent by the officer maintaining it, to the Head of the Department or other
designated Controlling Officer. This statement shall also include adjustment of
an inward claim, etc., communicated by Pay and Accounts Officer directly to the
DDO (and not to his Grant Controlling Officer). If there are no entries in the
register in any month, a ‘nil’ statement shall be sent. (iv) The Controlling
Officer will maintain a broadsheet in Form GFR 6 to monitor the receipt of the return
prescribed in the foregoing subclause (v). On receipt of the returns from
Disbursing Officers, the Controlling Officer shall examine them and satisfy
himself :- (a) that the accounts classification has been properly given; (b)
that progressive expenditure has been properly noted and the available balances
worked out correctly; (c) that expenditure up-to-date is within the grant or
appropriation; and (d) that the returns have been signed by Disbursing
Officers. Where the Controlling Officer finds defects in any of these respects,
he shall take steps to rectify the defect. (vi) When all the returns from the
Disbursing Officers for a particular month have been received and found to be
in order, the Controlling Officer shall compile a statement in Form GFR 7, in
which he shall incorporate - (a) the totals of the figures supplied by
Disbursing Officers; (b) the totals taken from his own registers in Form GFR 5;
(c) the totals of such adjustments under the various detailed heads as
communicated to him by the Accounts Officer on account of transfer entries and
expenditure debited to the grant as a result of settlement of inward account
claims and not reckoned by his DDOs. (vii). If any adjustment communicated by
the Accounts Officer affects the appropriation at the disposal of a subordinate
Disbursing Officer, the fact that the adjustment has been made shall be
communicated by the Controlling Officer to the Disbursing Officer concerned.
(viii). On receipt of all the necessary returns, the Head of the Department shall
prepare a consolidated account in Form GFR 8, showing the complete expenditure
from the grant or appropriation at his disposal upto the end of the preceding
month. Rule 57 (5) The Head of the Department and the Accounts Officer shall be
jointly responsible for the monthly reconciliation of the figures given in the
accounts maintained by the Head of the Department with those appearing in the
Accounts Officer’s books. The procedure for reconciliation shall be as follows
:- (I). DDOs shall maintain a Bill Register in Form TR 28-A, and note all bills
presented for payment to the PAO in the register. As soon as cheques for the
bills presented for payment are received, and/or status of e-payments are
verified from the reports available with DDO on PFMS portal these shall be
noted in the appropriate column of the Bill Register and the DDOs shall ensure
that the amounts of cheques tally with the net amount of the bills presented.
In case any retrenchment is made by the PAO, a note of such retrenchments shall
be kept against the bill in the remarks column in TR 28-A. (ii) The PAOs shall
furnish to each of the DDOs including Cheque –drawing DDOs, an extract from the
expenditure control register or from the Compilation Sheet every month
indicating the expenditure relating to grants controlled by him classified
under the various major-minor detailed head of accounts. The statements for May
to March shall also contain Progressive Figures. (iii). On receipt of these
extracts from the PAOs, the DDOs shall tally the figures r e c e i v e d , e x
c l u d i n g b o o k adjustments, with the expenditure worked out for the
month in the GFR 5 register. Discrepancies, if any, between the two sets of
figures shall be promptly investigated by the DDO in consultation with the PAO.
He shall also note in the GFR 5 register particulars of book adjustments
advised by the PAO through the monthly statement. Thereafter, the DDO shall
furnish to the PAO a certificate of agreement of the figures as per his books
with those indicated by the PAOs by the last day of the month following the
month of accounts. (iv). The Principal Accounts Officer (or PAO wherever
payments, relating to a grant are handled wholly by a PAO) of each Ministry,
shall send a monthly statement showing the expenditure vis-à-vis the Budget
provision under the various heads of accounts, in the prescribed pro forma, to
the Heads of Departments responsible for overall control of expenditure against
grant of the Ministry as a whole. The figures so communicated by the Principal
Accounts Officer (or the PAO concerned) shall be compared by the Heads of
Departments with those consolidated in Form GFR 8 and differences, if any,
shall be taken up by the Heads of Departments with the Principal Accounts
Officers (or the PAO concerned) for reconciliation. The Head of the Department
shall furnish a quarterly certificate to the Principal Accounts Officer
certifying the correctness of the figures for the quarter by the 15th of the
second following month after the end of quarters April-June, July-September,
October-December and JanuaryMarch. Rule 57 (6) The Departments of the Central
Government shall obtain from their Heads of Departments and other offices under
them the departmental figures of expenditure in Form GFR 8 by the 15th of the
month following the month to which the returns relate. The figures relating to
Revenue and Capital expenditure shall be separately shown in these returns. The
information so obtained shall be posted in register(s) kept for watching the
flow of expenditure against the sanctioned grant or appropriation. Progressive
totals of expenditure shall be worked out for the purpose. If the departmental
figures obtained in Form GFR 8 and posted in the register(s), require
correction in a subsequent month, Heads of Departments or other offices shall
make such corrections by making plus or minus entries in the progressive
totals. In case the Accounts Office figures which subsequently become available
are found to be higher than departmental figures, the former shall be assumed to
be the correct figures, as appropriation accounts are prepared on the basis of
the figures booked in the accounts. Rule 57 (7) The Departments of Central
Government shall also obtain from the Heads of Departments and other
authorities under them, statements showing the details of the physical progress
of the schemes for which they are responsible. This statement shall show the
name of the scheme, the Budget provision for each scheme, the progressive
expenditure on each scheme, the progress of the scheme in physical terms and
the detailed reasons for any shortfalls or excess, both against physical and
financial targets. Rule 57 (8) A Broadsheet in Form GFR 9 shall be maintained
by the Departments of Central Government or each Head of Department and other authorities
directly under them, to watch the prompt receipt of the various returns
mentioned above from month to month and to take necessary measures for
rectifying any defaults noticed.
Rule 58
Maintenance
of Liability Register for effecting proper control over expenditure. In order
to maintain proper control over expenditure, a Controlling Officer shall obtain
from the spending authorities liability statements in Form GFR 3- A every
month, starting from the month of October in each financial year. The Controlling
Officer shall also maintain a Liability Register in Form GFR 3.
Rule
59 Personal attention of the Head of Department /Controlling Officer required
to estimate savings or excesses. A Head of Department or Controlling Officer
shall be in a position to estimate the likelihood of savings or excesses every
month and to regularize them in accordance with the instructions laid down in
Rule 62.
Rule
60 Control of expenditure against grant/appropriation and ultimate
responsibility of the authority administering it. The Accounts Officer shall
report to the Head of the Department concerned immediately on the first
appearance of any disproportionate expenditure, particularly in respect of
recurring items of expenditure under any grant or appropriation or a primary
unit of appropriation thereof. However, the authority administering a grant/
appropriation is ultimately responsible for the control of expenditure against
the grant/appropriation and not the Accounts Officer.
Rule
61 Excess Expenditure. 1. The Accounts Officer shall not allow any payment
against sanctions in excess of the Budget provisions unless there is specific
approval of the Chief Accounting Authority. 2. The Financial Advisers and Chief
Accounting Authority, before according concurrence for excess under any Head,
shall ensure availability of funds through Reappropriation/ Supplementary D e m
a n d s f o r G r a n t s . (Refer Appendix 10)
Rule
62 (1) Surrender of savings. Departments of the Central Government shall
surrender to the Finance Ministry, by the dates prescribed by that Ministry
before the close of the financial year, all the anticipated savings noticed in
the Grants or Appropriations controlled by them. The Finance Ministry shall
communicate the acceptance of such surrenders as are accepted by it to the
Accounts Officer, before the close of the year. The funds provided during the
financial year and not utilized before the close of that financial year shall
stand lapsed at the close of the financial year.
Rule
62 (2) The savings as well as provisions that cannot be profitably utilised
shall be surrendered to Government immediately they are foreseen without
waiting till the end of the year. No savings shall be held in reserve for
possible future excesses.
Rule
62 (3) Rush of expenditure, particularly in the closing months of the Financial
year, shall be regarded as a breach of financial propriety and shall be
avoided. The Financial Advisers of the Ministries/Departments shall ensure
adherence to the stipulated Monthly Expenditure Plan and the guidelines issued
in this regard by the Budget Division, Department of Economic Affairs, from
time to time.
Rule
62 (4) The Financial Advisers of the Ministries/ Departments shall ensure
adherence to the stipulated Quarterly Expenditure Plan and the guidelines
issued in this regard by Ministry of Finance from time to time.
Rule
63
Expenditure
on New Service. No expenditure shall be incurred during a financial year on a
“New Service” not contemplated in the Annual Budget for the year except after
obtaining a supplementary grant or appropriation or an advance from the
Contingency Fund during that year. The guidelines to determine cases of “New
Service”/”New Instrument of Service” are contained in Annexure-1 to Appendix
-3.
Rule64
(1)
Additional Allotment for excess expenditure. A subordinate authority incurring
the expenditure shall be responsible for seeing that the allotment placed at
its disposal is not exceeded. Where any excess over the allotment is
apprehended, the subordinate authority shall obtain additional allotment before
incurring the excess expenditure. For this purpose, the authorities incurring
expenditure shall maintain a ‘Liability Register’ in Form GFR 3.
Rule
64
(2)
A Disbursing Officer may not, on his own authority, authorize any payment in
excess of the funds placed at his disposal. If the Disbursing Officer is called
upon to honour a claim, which is certain to produce an excess over the
allotment or appropriation at his disposal, he shall take the orders of the
administrative authority to which he is subordinate before authorizing payment
of the claim in question. The administrative authority shall then arrange to
provide funds either by reappropriation or by obtaining a Supplementary Grant
or Appropriation or an advance from the Contingency Fund. Instructions
contained in Note below Appendix 10 may also be kept in view.
Rule
65
(1)
Re-appropriation of Funds. Subject to the provisions of Rule 10 of the
Delegation of Financial Powers Rules, and also subject to such other general or
specific restrictions as may be imposed by the Finance Ministry in this behalf,
re-appropriation of funds from one primary unit of appropriation to another
such unit within a grant or appropriation, may be sanctioned by a competent
authority at any time before the close of the financial year to which such
grant or appropriation relates. The Primary unit in this regard shall be the
final unit of appropriation i.e. the Object head of account.
Rule
65
(2)
Re-appropriation of funds shall be made only when it is known or anticipated
that the appropriation for the unit from which funds are to be transferred
shall not be utilized in full or that savings can be effected in the
appropriation for the said unit.
Rule
65
(3)
Funds shall not be re-appropriated from a unit with the intention of restoring
the diverted appropriation to that unit when savings become available under
other units later in the year.
Rule
65
(4)
An application for re-appropriation of funds shall ordinarily be supported by a
statement in Form GFR 1 or any other special form authorized by departmental
regulations showing how the excess is proposed to be met. In all orders,
sanctioning reappropriation, the reasons for saving and excess of Rupees 1 lakh
or over and the primary units (secondary units, wherever necessary), affected
shall be invariably stated. The authority sanctioning the reappropriation shall
endorse a copy of the order to the Accounts Officer.
Rule
66
Supplementary
Grants. If savings are not available within the Grant to which the payment is
required to be debited, or if the expenditure is on “New Service” or “New
nstrument of Service” not provided in the budget, necessary Supplementary Grant
or Appropriation in accordance with Article 115 (1) of the Constitution shall
be obtained before payment is authorized (Refer to Appendix 5).
Rule
67
(1)
Advance from Contingency Fund. When a need arises to incur unforeseen
expenditure in excess of the sanctioned grant or appropriation or on a new
service not provided in Budget and there is not sufficient time for the voting
of the Supplementary Demand and the passing of the connected appropriation bill
before close of the financial year, an advance from the Contingency Fund set up
under Article 267 (1) of the Constitution shall be obtained before incurring
the expenditure.
Rule
67
(2)
An advance from the Contingency Fund shall also be obtained to meet expenditure
in excess of the provisions for the service included in an Appropriation (Vote
on Account) Act.
Rule
67
(3)
The application for an advance from the Contingency Fund shall indicate inter
alia the particulars of the additional expenditure involved and the sanction to
the advance has also to indicate the sub-head and the primary unit of the Grant
to which the expenditure appropriately relates. In case, however, any
difficulty is felt, the matter shall be referred to the Finance Ministry for
clarification. Rule
67
(4)
The procedure for obtaining an advance from the Contingency Fund and recoupment
of the Fund shall be as laid down in the Contingency Fund of India Rules, 1952,
as amended from time to time. For ready reference, rules have been placed at
Appendix - 6 to this volume.
Rule
68
Inevitable
Payments. (i) Subject to the provisions of Article 114 (3) of the Constitution,
money indisputably payable by Government shall not ordinarily be left unpaid.
(ii) Suitable provision for anticipated liabilities shall invariably be made in
Demands for Grants to be placed before Parliament.
Rule
69
For
easy reference an extract relating to procedures followed in the Accounts
Office for check against provision of funds as a part of pre-check of bills has
been placed at Appendix 10.
Rule
70
Duties
and Responsibilities of the Chief Accounting Authority. The Secretary of a
Ministry/Department who is the Chief Accounting Authority of the Ministry/
Department shall: — (i) be responsible and accountable for financial management
of his Ministry or Department. (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 costeffective 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.
Multiple choice questions:
1. According to Rule 42, when does
the financial year of the Government commence and end?
(a) 1st January to 31st December
(b) 1st April to 31st March
(c) 1st July to 30th June
(d) 1st October to 30th September
Answer: (b) 1st April to 31st March
2. Which Article of the Constitution
requires the Finance Minister to present an Annual Financial Statement before
Parliament?
(a) Article 110
(b) Article 112
(c) Article 113
(d) Article 115
Answer: (b) Article 112
3. With effect from which financial
year was the Railway Budget merged with the General Budget?
(a) 2015-16
(b) 2016-17
(c) 2017-18
(d) 2018-19
Answer: (c) 2017-18
4. What does the Annual Financial
Statement, also known as the Budget, show?
(a) Estimated receipts and
expenditures of the State Governments
(b) Estimated receipts and
expenditures of the Central Government
(c) Only the expenditure of the
Central Government
(d) Only the receipts of the Central
Government
Answer: (b) Estimated receipts and expenditures of the Central
Government
5. Which Ministry issues guidelines
for the preparation of budget estimates?
(a) Ministry of Home Affairs
(b) Ministry of External Affairs
(c) Ministry of Finance, Budget
Division
(d) Ministry of Commerce and
Industry
Answer: (c) Ministry of Finance, Budget Division
6. What must the budget estimates
include according to Rule 44?
(a) Estimates of only tax revenues
(b) Estimates of all revenues,
expenditures, interest, debt servicing charges, and any other prescribed
information
(c) Estimates of only capital
expenditures
(d) Estimates of only non-tax
revenues
Answer: (b) Estimates of all revenues, expenditures, interest, debt
servicing charges, and any other prescribed information
7. Which authority is responsible
for preparing the detailed estimates of receipts?
(a) Ministry of Finance
(b) Administrative Ministries
(c) Estimating authorities
(d) Reserve Bank of India
Answer: (c) Estimating authorities
8. What is the importance of ‘User
Charges’ in the context of non-tax revenues?
(a) They are a minor source of
revenue
(b) They are to be set below the
cost of providing services
(c) They are an important component
of non-tax revenues and must cover the cost of services
(d) They are fixed by the Parliament
through statutes
Answer: (c) They are an important component of non-tax revenues and
must cover the cost of services
9. What is required for fixing the
rates of ‘User Charges’?
(a) They must be fixed through
statutes only
(b) They must ensure cost recovery
with a reasonable return on capital investment
(c) They should be reviewed every
ten years
(d) They must be fixed by the
Finance Ministry alone
Answer: (b) They must ensure cost recovery with a reasonable return
on capital investment
10. According to Rule 49, what
measure must all Ministries/Departments take regarding non-tax revenues?
(a) Collect non-tax revenues in cash
only
(b) Publish non-tax revenues on a
public portal
(c) Ensure migration to eReceipts
for online collection of non-tax revenues
(d) Set user charges without
consulting the Budget Division
Answer: (c) Ensure migration to eReceipts for online collection of
non-tax revenues
11. Under Rule 50, how must the
expenditure estimates be shown?
(a) As a single consolidated amount
(b) Separately for sums required to
meet expenditure charged on the Consolidated Fund and for sums requiring a vote
of the Lok Sabha
(c) Only for revenue expenditure
(d) Only for capital expenditure
Answer: (b) Separately for sums required to meet expenditure
charged on the Consolidated Fund and for sums requiring a vote of the Lok Sabha
12. What is included in the Demand
for Grants as per Rule 51?
(a) Only revenue expenditure
(b) Only capital expenditure
(c) Provisions on account of revenue
expenditure, capital expenditure, grants to State and Union Territory
Governments, and Loans and Advances
(d) Only grants to State and Union
Territory Governments
Answer: (c) Provisions on account of revenue expenditure, capital
expenditure, grants to State and Union Territory Governments, and Loans and
Advances
13. Which rule outlines the
guidelines for the acceptance and inclusion of estimates in the Budget?
(a) Rule 42
(b) Rule 50
(c) Rule 53
(d) Rule 55
Answer: (c) Rule 53
14. What is the purpose of the
Outcome Budget as stated in Rule 54?
(a) To provide a detailed account of
past expenditures
(b) To link outlays against each
scheme/project with outputs/deliverables and medium-term outcomes
(c) To only estimate future non-tax
revenues
(d) To determine the financial
year's start and end dates
Answer: (b) To link outlays against each scheme/project with
outputs/deliverables and medium-term outcomes
15. Under Rule 55, what is a ‘Vote
on Account’ used for?
(a) To authorize the complete annual
budget before the financial year starts
(b) To cover expenditure for a brief
period if the Appropriation Bill is delayed
(c) To replace the annual budget
process
(d) To fund new services for the
financial year
Answer: (b) To cover expenditure for a brief period if the
Appropriation Bill is delayed
16.
Who is responsible for controlling expenditure against the sanctioned grants
and appropriations?
- a) Finance Ministry
- b) Department of Revenue
- c) Departments of the Central Government
- d) Parliament
Answer: c) Departments of the Central Government
17.
What is the limitation on the use of a Grant or Appropriation as per Rule
57(2)?
- a) It can be used for charges of the current year only.
- b) It can be used for charges of the past and next
financial year.
- c) It can be used for charges of any future financial
year.
- d) It can be used indefinitely.
Answer: a) It can be used for charges of the current year only.
18.
Which of the following is NOT allowed without obtaining a supplementary grant
or appropriation?
- a) Incurring expenditure that exceeds the total grant
or appropriation authorized by Parliament.
- b) Utilizing a grant for past year liabilities.
- c) Spending under revenue account.
- d) Making payments for capital expenditures.
Answer: a) Incurring expenditure that exceeds the total grant or
appropriation authorized by Parliament.
19.
What must a Drawing and Disbursing Officer (DDO) enter on each bill as per Rule
57(4)(i)(b)?
- a) The total amount allocated for the year
- b) The complete accounts classifications from major
head down to the object head of account
- c) The date of payment
- d) The details of previous payments
Answer: b) The complete accounts classifications from major head
down to the object head of account
20.
In which form should all drawing and disbursing officers maintain separate
registers?
- a) Form GFR 8
- b) Form GFR 6
- c) Form GFR 5
- d) Form GFR 7
Answer: c) Form GFR 5
21.
Which of the following statements should the Controlling Officer compile after
receiving all returns from Disbursing Officers?
- a) A statement in Form GFR 8
- b) A broadsheet in Form GFR 6
- c) A statement in Form GFR 7
- d) A summary in Form TR 28-A
Answer: c) A statement in Form GFR 7
22.
What is the purpose of the Bill Register maintained by DDOs in Form TR 28-A?
- a) To track receipts of grants
- b) To note all bills presented for payment and track
cheques received
- c) To keep records of non-tax revenue
- d) To reconcile figures with the Budget Division
Answer: b) To note all bills presented for payment and track
cheques received
23.
By when should the Head of the Department furnish a quarterly certificate to
the Principal Accounts Officer certifying the correctness of figures?
- a) By the last day of the month following the quarter
- b) By the 15th of the second following month after the
end of quarters
- c) By the 1st of the next quarter
- d) By the end of the financial year
Answer: b) By the 15th of the second following month after the end
of quarters
24.
What form is used by the Departments of the Central Government to obtain
departmental figures of expenditure?
- a) Form GFR 8
- b) Form GFR 6
- c) Form GFR 5
- d) Form GFR 7
Answer: a) Form GFR 8
25.
Which form should be maintained by the Departments of Central Government to
track the prompt receipt of various returns?
- a) Form GFR 5
- b) Form GFR 7
- c) Form GFR 8
- d) Form GFR 9
Answer: d) Form GFR 9
Would you like to continue with more
questions?
26. Which form should be used by the Controlling Officer to
maintain the Liability Register for effecting proper control over expenditure?
a) Form GFR 5
b) Form GFR 3
c) Form GFR 6
d) Form GFR 8
Answer: b) Form GFR 3
27. When should the Controlling Officer start obtaining
liability statements from the spending authorities?
a) From the beginning of the financial year
b) From the month of October in each financial year
c) From the end of the financial year
d) From the month of January in each financial year
Answer: b) From the month of October in each financial year
28. Who is ultimately responsible for the control of
expenditure against a grant or appropriation?
a) Accounts Officer
b) Financial Adviser
c) Chief Accounting Authority
d) Authority administering the grant/appropriation
Answer: d) Authority administering the grant/appropriation
29. What action should be taken if savings or provisions
that cannot be profitably utilized are foreseen?
a) Hold the savings in reserve for future excesses
b) Surrender them to the government immediately
c) Re-appropriate the funds
d) Wait until the end of the financial year
Answer: b) Surrender them to the government immediately
30. According to Rule 62(3), what is regarded as a breach
of financial propriety?
a) Re-appropriation of funds
b) Rush of expenditure, particularly in the closing months of the financial
year
c) Maintenance of Liability Register
d) Excess expenditure without approval
Answer: b) Rush of expenditure, particularly in the closing
months of the financial year
31. What is required before incurring expenditure on a
"New Service" not contemplated in the Annual Budget?
a) Re-appropriation of funds
b) Supplementary grant or appropriation or an advance from the Contingency Fund
c) Surrender of savings
d) Liability statement
Answer: b) Supplementary grant or appropriation or an advance
from the Contingency Fund
32. Which form is ordinarily used to support an application
for re-appropriation of funds?
a) Form GFR 1
b) Form GFR 3
c) Form GFR 5
d) Form GFR 8
Answer: a) Form GFR 1
33. Under which Article of the Constitution is an advance
from the Contingency Fund set up?
a) Article 115(1)
b) Article 114(3)
c) Article 267(1)
d) Article 280
Answer: c) Article 267(1)
34. What is the Secretary of a Ministry/Department
responsible for as the Chief Accounting Authority?
a) Ensuring that public funds are used for their intended purpose
b) Appearing before the Committee on Public Accounts
c) Reviewing and monitoring program performance
d) All of the above
Answer: d) All of the above
35. Which of the following is NOT a responsibility of the
Chief Accounting Authority?
a) Preparation of expenditure and other financial statements
b) Collection of all moneys due to the Government
c) Ensuring adherence to government procurement procedures
d) Allocation of grants and appropriations
Answer: d) Allocation of grants and appropriations
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