Indian Railway Codes and Manuals-General Financial Rules-2017-Chapter- 9 (IX) GFR-2017.
Chapter – 9
GRANTS-IN-AID AND LOANS
I.
GRANTS-IN-AID
Rule
228
As
a general principle Grants-in-aid can be given to a person or a public body or
an institution having a distinct legal entity. Thus Grants-in-aid including
scholarships may be sanctioned by an authority competent to do so under the
Delegation of Financial Powers Rules to :— (a) Institutions or Organizations
set up as Autonomous Organisations, under a specific statute or as a society
registered under the Societies Registration Act, 1860 or Indian Trusts Act,
1882 or other statutes. (b) Voluntary organizations or NonGovernment
Organisations carrying out activities which promote the welfare schemes and
programmes of the Government should be selected on the basis of well-defined
criteria regarding financial and other resources, credibility and type of
activities undertaken. (c) Educational and other institutions by way of
scholarships or stipends to the students. (d) Urban and Rural local
selfgovernment institutions (e) Co-operative societies. (f) Societies or clubs
set up by Government servants to promote amongst themselves social, cultural
and sports activities as recreational avenues.
Rule
229
General
Principles for setting up of Autonomous Organisations referred to under Rule
228(a):- (i) No new autonomous institutions should be created by Ministries or
Departments without the approval of the Cabinet. (ii) No new autonomous
institution should be created by an Autonomous Body itself, the
appraisal/approval process for creation of new autonomous bodies would apply in
such cases too. However, Regional Centres/Offices/Sub-Stations of any
autonomous body can be created with prior approval of the administrative
ministry in consultation with Ministry of Finance. (iii) Stringent criteria
should be followed for setting up of new autonomous organisations and the type of
activities to be undertaken by them. The Ministry or Department should examine
in detail: (a) whether the activities proposed to be taken up are necessary at
all; (b) whether these activities, if necessary, need to be undertaken by
setting up an autonomous organisation only or whether these could be performed
by the concerned Government agency or any other organisation already existing.
(iv) All autonomous organisations, new or already in existence should be
encouraged to maximise generation of internal resources and eventually attain
self-sufficiency. (v) The Ministry or Department may consider creating a Corpus
Fund for an Autonomous Body only with prior concurrence of Ministry of Finance
if the corpus is created out of budgetary allocation. If the corpus is created
out of internal accruals of the body, approval of the administrative Ministry
must be obtained. (vi) User Charges: Governing Body of the Autonomous Body
shall review user charges/ sources of internal revenue generation at least once
a year and inform the administrative Ministry. This exercise should preferably
be completed before the formulation of Union Annual Budget. (vii) All
Autonomous Bodies should maintain database relating to grants, income,
expenditure, investment assets and employee strength in the format prescribed
by the Department of Expenditure, Ministry of Finance. (viii)Financial advice
for Autonomous B o d i e s : E v e r y a u t o n o m o u s organisation should
designate an officer at appropriate level to render financial advice whose
concurrence should be obtained for sanction and incurring of expenditure. The
financial limits up to which such concurrence is mandatory may be drawn up by
each organisation. The Chief Executive Officer of the Autonomous body will be
responsible for overall financial management of the autonomous bodies. (ix)
Peer review of autonomous organisations: Ministry shall put in place a system
of external or internal peer review of autonomous organisations every three or
five years depending on the size and nature of activity. Such a review should
be the responsibility of the concerned administrative division of the
Ministry/Department and should focus, inter alia, on; (a) the objective for
which the autonomous organisation was set up and whether these objectives have
been or are being achieved; (b) whether the activities should be continued at
all, either because they are no longer relevant or have been completed or if
there has been a substantial failure in achievement of objectives. (c) whether
the nature of the activities is such that these need to be p e r f o r m e d o
n l y b y a n autonomous organisation. (d) whether similar functions are also
being undertaken by other organisations, be it in the Central Government or
State Governments or the Private Sector, and if so, whether there is scope for
merging or winding up the organisations under review. (e) w h e t h e r t h e t
o t a l s t a f f complement, particularly at the support level, is kept at a
minimum: whether the enormous strides in information technology and
communication facilities as also facilities for outsourcing of work on a
contract basis, have been taken into account in determining staff strength; and
whether scientific or technical personnel are being deployed on functions which
could well be carried out by non-scientific or non-technical personnel etc. (f)
whether user charges including overhead/ institutional charges / management fee
in respect of sponsored projects, wherever the output or benefit of services
are utilised by others, are levied at appropriate rates (g) the scope for
maximizing internal resources generation in the organisation so that the
dependence upon Government budgetary support is minimised. (x) An organisation
whose performance is found to be outstanding and internationally acclaimed as a
result of the review envisaged under Para (v) above should be granted greater
autonomy and increased flexibility in matters of recruitment and financial
rules thereby enabling it to devise and adopt staff structures, procedures and
rules suited to improving their productivity. (xi) Autonomous organisations as
also others with a budgetary support of more than Rupees five crores per annum,
should be required to enter i n t o a M e m o r a n d u m o f Understanding
with the Administrative Ministry or Department, spelling out clearly
performance parameters, output targets in terms of details of programme of work
and qualitative improvement in output, along with commensurate input
requirements. The output targets, given in measurable units of performance,
should form the basis of budgetary s u p p o r t e x t e n d e d t o t h e s e
organisations. The roadmap for improved performance with clear milestones
should form part of the MoU. (xii) Findings of the peer review should be
examined and put up for appropriate decision to the Secretary by the concerned
programme division of the Administrative Department. Further releases of Grant
(after three or five years, as the case may be), should be made conditional on
conduct and decisions on the findings of such peer review.
Rule
230 (1)
Principles
and Procedure for award of Grants-in-aid. Any Institution or Organisation
seeking Grants-in-aid from Government will be required to submit an application
which includes all relevant information such as Articles of Association,
bye-laws, audited statement of accounts, sources and pattern of income and
expenditure etc. enabling the sanctioning authority to assess the suitability
of the Institution or Organisation seeking Grant. The application should clearly
spell out the need for seeking Grant and should be submitted in such form as
may be prescribed by the sanctioning authority. The Institution or Organisation
seeking Grants-in-aid should also certify that it has not obtained or applied
for grants for the same purpose or activity from any other Ministry or
Department of the Government of India or State Government.
Rule
230 (2)
In
order to obviate duplication in Grants-in-aid, each Ministry or Department
should maintain a list of institutions or organisations along with details of
amount and purpose of Grants given to them. These details should also be made
available on the website of the Ministry/Department.
Rule
230 (3)
Award
of Grants should be considered only on the basis of viable and specific schemes
drawn up in sufficient detail by the institution or organisation. The budget
for such schemes should disclose, inter alia, the specific quantified and
qualitative targets likely to be attained against the outlay. In the cases of
the schemes where Grants are given as part of the expenditure on reimbursement
basis (i.e. the expenditure has already been incurred on approved
project/scheme and reimbursement from the Government in the form of
Grant/Subsidy etc. is due) the same will be treated as the Central Financial
Assistance (CFA) and no Utilization Certificate shall be required in such cases
of reimbursements.
Rule
230 (4)
Recurring
Grant is defined as one which is released periodically to the same organization
for the same purpose. Nonrecurring Grant is one time release to an organization
for a special purpose (which could be released in instalments). Every order
sanctioning a Grant shall indicate whether it is recurring or non-recurring and
specify clearly the object for which it is being given and the general and
special conditions, if any, attached to the Grant. In the case of non-recurring
Grants for specified object, the order shall also specify the time limit within
which the Grant or each instalment of it, is to be spent.
Rule
230 (5)
Central
Autonomous Organisations which receive Grants should account for capital and
revenue expenditure separately. The Government of India, Ministry of Finance
has formulated standard formats for presentation of final accounts, for all
Central Autonomous Organisations. All Grant sanctioning authorities should
enforce the condition of maintaining and presenting their annual accounts in
the standard formats on all Central Autonomous Organisations.
Rule
230 (6)
The
Grants sanctioning authorities should not only take into account the internally
generated resources while regulating the award of Grants but should consider
laying down targets for internal resources generation by the Grantee
Institutions or Organisations every financial year, particularly where Grants
are given on recurring basis every year.
Rule
230 (7)
Unspent
Balances: When recurring Grants-in-aid are sanctioned to the same Institution
or Organisation for the same purpose, the unspent balance of the previous Grant
should be taken into account in sanctioning the subsequent Grant. For this
purpose, the Programme Division of Ministries/Department shall take help of
PFMS Portal to know the bank balance of the recipients before making each
release. The instructions of Department of Expenditure regarding the use of
PFMS Portal for Central Sector Schemes issued from time to time shall be
strictly followed by all Ministries/ Departments. The principles of ‘just in
time release’, should be applied for releases in respect of all payments to the
extent possible. The following broad principles shall be adhered to: (i) Cash
balance at a time should preferably not be more than 3 months of requirements
(ii) Funds should be released as per actual requirements and that sanction may
precede the release of funds, though its validity may be limited to that
financial year.
Rule
230 (8)
All
interests or other earnings against Grants in aid or advances (other than
reimbursement) released to any Grantee institution should be mandatorily
remitted to the Consolidated Fund of India immediately after finalisation of
the accounts. Such advances should not be allowed to be adjusted against future
releases.
Rule
230 (9)
In
making Grants to Non-Government or Quasi-Government Institutions or
Organisations, a condition should be laid down that assets acquired wholly or
substantially out of Government Grants, except those declared as obsolete and
unserviceable or condemned in accordance with the procedure laid down in the
General Financial Rules, shall not be disposed of without obtaining the prior
approval of the authority which sanctioned the Grants-in-aid.
Rule
230 (10)
The
sanctioning authority may prescribe conditions regarding quantum and
periodicity for release of Grants-inaid in instalments in consultation with the
Financial Adviser. However, the release of the last instalment of the Annual
Grant must be conditional upon the Grantee Institutions providing reasonable
evidence of proper utilization of instalments released earlier. In the cases
where Central Financial Assistance (CFA) has been sanctioned, the grant will be
released in one instalment upon the Grantee Institutions/ Organisation
providing complete evidence of achieving the specified objectives and
expenditure incurred supported by Audited Statement of Expenditure. In these
cases, the grantee institutions will not be required to submit Utilization
Certificates.
Rule
230 (11)
In
order to finalize the Budgetary Estimates of Grants in aid to the Grantee
Institutions, the Ministry or Department should impress upon Institution or
Organisation desiring Grants from Government, to submit their requirement with
supporting details by the end of September in the year preceding the year for
which the Grants-in-aid is sought. The Ministry or Department should finalize
their examination of the requests with the utmost expedition and make the
necessary Budget provision where it is decided to sanction Grants. The
Institution or Organisation should be informed of the result of their requests
by April of the succeeding year.
Rule
230 (12)
(i)
A l l G r a n t e e I n s t i t u t i o n s o r Organisations which receive
more than fifty per cent. of their recurring expenditure in the form of
Grants-inaid, should ordinarily formulate terms and conditions of service of
their employees which are, by and large, not higher than those applicable to
similar categories of employees in Central Government. In exceptional cases
relaxation may be made in consultation with the Ministry of Finance. (ii)
Grantee Institutions or Organisations should be encouraged to take advantage of
the pension or gratuity schemes or Group Insurance Schemes or house buildings
loans or vehicle loans schemes etc. available in the market for employees
instead of undertaking liability on their own or Government account.
Rule
230 (13)
The
sanctioning authority, while laying down the pattern of assistance, may decide
whether the ownership of buildings constructed with Grants-in-aid may vest with
Government or the Grantee Institution or Organisation. Where the ownership is
vested in the Government, the Grantee Institution or Organisation may be
allowed to occupy the building as a lessee. In such cases suitable record of
details of location, cost, name of lessee and terms and conditions of lease
must be maintained in the records of the granting Ministry or Department. In
all cases of buildings constructed with Grants-in-aid, responsibility of
maintenance of such buildings shall be of the Grantee Institution or
Organisation.
Rule
230 (14)
Any
other special terms and conditions or procedures for transaction of business as
Government may desire to be followed by the Grantee Institution or Organisation,
shall be got incorporated in the Articles of Association or bye-laws of the
Institution or Organisation concerned before release of Grants-in-aid.
Rule
230 (15)
Grants-in-aid
may be sanctioned to meet the bonafide expenditure incurred not earlier than
two years prior to the date of issue of the sanction.
Rule
230 (16)
The
stipulation in regard to refund of the unutilised amount of Grant-in-aid with
interest thereon should be brought out clearly in the letter sanctioning the
Grant as well as in the bond so required to be executed.
Rule
230. (17)
(i)
As a precondition to the sanction of Grants-in-aid to the agencies where: (a)
the recipient body employs more than twenty persons on a regular basis and at
least fifty per cent of its recurring expenditure is met from Grants-in-aid
from Central Government; and (b) the body is a registered society or a
co-operative institution and is in receipt of a general purpose annual
Grants-in-aid of Rupees twenty lakhs and above from the Consolidated Fund of India;
the Grant sanctioning authority should ensure that a suitable clause is
invariably included in the terms and conditions under which the Grants-inaid
are given, to provide for reservation for Scheduled Castes and Scheduled Tribes
or OBC in posts and services under such organizations or agencies. The relative
provision may be on the following lines :- “ … … … … … . . ( N a m e o f
Institution or Organization etc.) agrees to make reservations for Scheduled
Castes and Scheduled Tribes or OBC in the posts or services under its control
on the lines indicated by the Government of India”. (ii) While sanctioning
Grants-in-aid to Institutions or Organisations referred to in (a) above, the
Grant sanctioning authority should keep in view the progress made by such
Institutions or Organisations in employing Scheduled Castes and Scheduled
Tribes or OBC candidates in their services.
Rule 231 (1)
Grants-in-aid to “Voluntary Organisations” Subject to the
following terms and conditions, Grants-in-aid towards administrative
expenditure may be sanctioned to voluntary organizations to ensure a certain
minimum staff structure and qualified personnel to improve their effectiveness
and expand their activities under the following conditions :- (i) The
Grants-in-aid should not exceed twenty-five per cent. of approved
administrative expenditure on pay and allowances of the personnel of the
voluntary organisation concerned; (ii) Grants-in-aid to meet administrative
expenditure to any private institutions other than the voluntary organizations
should not ordinarily be sanctioned. In exceptional cases such Grants can be
considered for sanction in consultation with Internal Finance Wing.
Rule 231 (2)
Before a Grant is released, the members of the Executive
Committee of the Grantee should be asked to Execute Bonds in a prescribed
format binding themselves jointly and severally to:- (i) abide by the
conditions of the Grantsin-aid by the target dates, if any, specified therein;
and (ii) not to divert the Grants or entrust execution of the scheme or work
concerned to another Institution(s) or Organization(s); and (iii) abide by any
other conditions specified in the agreement governing the Grants-in-aid. (iv)
In the event of the Grantee failing to comply with the conditions or committing
breach of the conditions of the Bond, the signatories to the Bond shall be
jointly and severally liable to refund to the President of India, the whole or
a part amount of the Grant with interest at ten per cent. per annum thereon or
the sum specified under the Bond. The stamp duty for this Bond shall be borne
by the Government.
Rule 231 (3)
Execution of Bond will not apply to Quasi- Government
Institutions, Central Autonomous Organisations and Institutions whose budget is
approved by the Government
Rule 232
General Principles for award of Grants-in-aid for Centrally
Sponsored Schemes. The following principles should be kept in view by
Ministries/Departments of the Central Government at the time of designing
Centrally Sponsored Schemes for implementation in State Governments or Union
Territories and approving and releasing assistance to State Governments or
Union Territories for such schemes: -(i) Every Centrally Sponsored Scheme
should have a time -bound quantifiable and measurable outcome targets with provisions
for periodic monitoring, mid-term evaluation and detailed impact studies. (ii)
The scheme should be designed in consultation with States and Union
Territories. States should be delegated adequate powers to change the details
of the schemes to suit local conditions, subject to reporting such changes to
the concerned Ministry or Department. (iii) Where schemes are in operation with
similar objectives targeting the same population, the schemes should be
converged . (iv) To ensure monitoring and effective control over such schemes,
the number of schemes should be restricted, so that the gain from the
expenditure on such schemes is maximized. The role of the Central Ministries or
Departments should be capacity building, inter-sectoral c o o r d i n a t i o n
a n d d e t a i l e d monitoring. (v) The release of funds to State Governments
and monitoring further utilisation should be undertaken through PFMS. The
Ministries or Departments should establish a mechanism to ensure that the funds
earlier released have been effectively utilised and that the data and facts
reported by the State Governments or Union Territories relating to physical and
financial performance are correct. Before releasing further funds, it should
also be ensured that the State Governments or Union Territories have the
capacity to actually spend the balance from the previous years and the releases
during the current year. (vi) The Ministries or Departments should focus
attention on the attainment of the objectives and not on expenditure only. A
mechanism for avoiding release of large part of funds towards the end of the
year should be devised and incorporated in the Scheme design itself. (vii) A
concurrent monitoring and evaluation mechanism should be built into the Scheme.
A periodic review of every Centrally Sponsored Scheme should be undertaken for
any required mid-course correction or changes in the scheme design (viii)A
post-completion review of every Centrally Sponsored Scheme should be undertaken
by the State Government(s) or Union Territories i m p l e m e n t i n g t h e s
c h e m e , highlighting the time and cost overruns, if any, and suggestions
for formulating and implementing future schemes. A copy of the review should be
obtained by the Ministry concerned and kept in view while formulating new
Centrally Sponsored Schemes.
Rule 233
Funding of Sponsored Projects or Schemes. (i) Ministries or
Departments of Government sponsor projects or schemes to be undertaken by
Universities, Indian Institute of Technology and other similar Autonomous
Organisations such as ICAR, CSIR, ICMR etc., the results from which are
expected to be in national interest. Normally the entire expenditure on such
projects or s c h e m e s i n c l u d i n g c a p i t a l expenditure, is
funded by the Ministry or Department. The funds released for such projects or
schemes in one or more installments are not treated as Grants-in-aid in the
books of the implementing agency. Apart from the requirement of submission of
technical and financial reports on completion of the project or scheme, a
stipulation should be made in such cases that the ownership in the physical and
intellectual assets created or acquired out of such funds shall vest in the
sponsor. While the Project or Scheme is ongoing, the recipients should not
treat such assets as their own assets in their Books of Accounts but should
disclose their holding and using such assists in the Notes to Accounts
specifically. (ii) On completion of the Projects or Schemes and the receipt of
technical and financial reports, the Ministries/ Departments should decide and
communicate to the implementing agencies whether the assets should be returned,
sold or retained by them. (iii) If the assets are to be sold, the proceeds
therefrom should be credited to the account of the s p o n s o r i n g D e p a
r t m e n t / Organisation. If the assets are allowed to be retained by the
Institution/Organisation, the implementing agency should include the assets at
the book value in their own accounts.
Rule 234
Register of Grants. A Register of Grants shall be maintained by
the sanctioning authority in the format given in Form GFR - 21. (i) Columns (i)
to (v) of the Register in format at Form GFR - 21 should be filled in
simultaneously with the issue of the order sanctioning each Grant. These
columns should be attested by any Gazetted Officer nominated for the purpose by
the sanctioning authority. The serial number should be recorded on the body of
the sanction at the time the item is entered in the Register as under : “Noted
at Serial No ………………in the Register of Grants”. (ii) Such a record will guard
against the possibility of double payment. Columns (vi) and (vii) should be
filled in and attested by the Gazetted Officer concerned as soon as the bill is
ready. The bill should then be submitted to the Gazetted Officer nominated to
act as Drawing and Disbursing Officer with the register for signing the bill
and to the sanctioning authority for giving dated initials in column (viii) of
Register. It should also be the duty of the sanctioning authority to verify
that the conditions, if any, attached to the Grant have been duly accepted by
the Grantee without any reservation and that no other bill for the same purpose
has already been paid before. No bill should be signed unless it has been noted
in the Register of Grants against the relevant sanction. This will also
facilitate watching of payments in instalments, if any, in the case of lump sum
sanctions. (iii) Information at column (xiii) of the Form GFR-21 above should
be used also for regulating the subsequent Grants.
Rule 235
Accounts of Grantee Institutions. Institutions or Organisations
receiving Grants should, irrespective of the amount involved, be required to
maintain subsidiary accounts of the Government grant and furnish to the Accounts
Officer a set of audited statement of accounts. These audited statements of
accounts should be required to be furnished after utilization of the
Grants-in-aid or whenever called for.
Rule 236 (1)
Audit of Accounts. The accounts of all Grantee Institutions or
Organisations shall be open to inspection by the sanctioning authority and
audit, both by the Comptroller and Auditor General of India under the provision
of CAG(DPC) Act 1971 and internal audit by the Principal Accounts Office of the
Ministry or Department, whenever the Institution or Organisation is called upon
to do so and a provision to this effect should invariably be incorporated in
all orders sanctioning Grants-in-aid.
Rule 236 (2)
(i) The accounts of the Grantee Institution or Organisation
shall be audited by the Comptroller and Auditor General of India under Section
14 of the Comptroller and Auditor General of India (Duties, Powers and
Conditions of Service) Act, 1971, if the Grants or loans to the institution in
a financial year are not less than Rupees twentyfive lakhs and also not less
than seventy-five percent of the total expenditure of the Institution. The
accounts may also be audited by the Comptroller and Auditor General of India if
the Grants or loans in a financial year are not less than Rupees one crore.
Where the accounts are so audited by the Comptroller and Auditor General of
India in a financial year, he shall continue to audit the accounts for a
further period of two years notwithstanding that the conditions outlined above
are not fulfilled. (ii) Where any Grant and /or loan is given for any specific
purpose to any Institution or Organisation or authority, not being a foreign
State or international Body/Organization, the Comptroller and Auditor General
is competent under Section 15 (1) of the CAG’s (DPC) Act, 1971, to scrutinize
the procedures by which the sanctioning authority satisfies itself as to the
fulfillment of the conditions subject to which such Grants and/or loans were
given and shall, for this purpose, have right of access to the books and
accounts of that Institute or Organisation or authority.
Rule 236 (3)
In all other cases, the Institution or Organisation shall get
its accounts audited from Chartered Accountants of its own choice.
Rule 236 (4)
Where the Comptroller and Auditor General of India is the sole
auditor for a local Body or Institution, auditing charges will be payable by
the auditee Institution in full unless specifically waived by Government
Rule 237
Time Schedule for submission of annual accounts. The dates
prescribed for submission of the annual accounts for Audit leading to the issue
of Audit Certificate by the Comptroller and Auditor General of India and for
submission of annual report and audited accounts to the nodal Ministry for
timely submission to the Parliament are listed below:- (I) Approved and
authenticated annual accounts to be made available by the Autonomous Body to
the concerned Audit Office and commencement of audit of annual accounts-30th
June (ii) Issue of the final SAR in English version with audit certificate to
Autonomous Body/ Government concerned -31st October (iii) Submission of the
Annual Report and Audited Accounts to the Nodal for it to be laid on the Table
of the Parliament -31st December
Rule 238 (1)
Utilization Certificates. In respect of non-recurring Grants to
an Institution or Organisation, a certificate of actual utilization of the
Grants received for the purpose for which it was sanctioned in Form GFR 12-A,
should be insisted upon in the order sanctioning the Grants-in-aid. The
Utilization Certificate in respect of Grants referred to in Rule230 (10) should
also disclose whether the specified, quantified and qualitative targets that
should have been reached against the amount utilised, were in fact reached, and
if not, the reasons therefor. They should contain an output based performance assessment
instead of input based performance assessment. The Utilization Certificate
should be submitted within twelve months of the closure of the financial year
by the Institution or Organisation concerned. Receipt of such certificate shall
be scrutinised by the Ministry or Department concerned. Where such certificate
is not received from the Grantee within the prescribed time, the Ministry or
Department will be at liberty to blacklist such Institution or Organisation
from any future grant, subsidy or other type of financial support from the
Government.
Rule 238 (2)
In respect of recurring Grants, Ministry or Department concerned
should release any amount sanctioned for the subsequent financial year only
after Utilization Certificate in respect of Grants of preceding financial year
is submitted. Release of Grants-in-aid in excess of seventy five per cent of
the total amount sanctioned for the subsequent financial year shall be done
only after utilisation certificate and the annual audited statement relating to
Grants-in-aid released in the preceding year are submitted to the satisfaction
of the Ministry/Department concerned. Reports submitted by the Internal Audit
parties of the Ministry or Department and Inspection Reports received from
Indian Audit and A c c o u n t s D e p a r t m e n t a n d t h e performance
reports if any received for the third and fourth quarter in the year should
also be looked into while sanctioning further Grants.
Rule 238 (3)
Utilization certificates need not be furnished in cases where
the Grants -in –aid / CFA are being made as reimbursement of expenditure
already incurred on the basis of duly audited accounts. In such cases the
sanction letters should specify clearly that the Utilization Certificates will
not be necessary.
Rule 238 (4)
In respect of Central Autonomous Organisations, the Utilization
Certificate shall disclose separately the annual expenditure incurred and the
funds given to suppliers of stores and assets, to construction agencies, to
staff for (House Building and Purchase of conveyance) which do not constitute
expenditure at that stage but have been met out of Grants and are pending
adjustments. These shall be treated as unutilized Grants allowed to be carried
forward. While recording the Grants in the subsequent year the amount carried
forward shall be taken into account.
Rule 238 (5)
In the case of Private and Voluntary Organizations receiving
recurring Grantsin-aid from Rupees ten lakhs to less than Rupees fifty lakhs,
all the Ministries or Departments of Government of India should include in
their Annual Report a statement showing the quantum of funds provided to each
of those organizations and the purpose for which they were utilized, for the
information of Parliament. The Annual Reports and accounts of Private and
Voluntary Organizations receiving recurring Grants-in-aid to the tune of Rupees
fifty lakhs and above should be laid on the Table of the House within nine
months of the close of the succeeding financial year of the Grantee
Organisations.
Rule 238 (6)
In the case of organizations receiving one-time assistance or
non recurring Grants as Grants-in-aid from Rupees ten lakhs to Rupees fifty
lakhs, all Ministries or Departments of Government of India should include in
their Annual Reports, statements showing the quantum of funds provided to each
of these organizations and the purpose for which the funds were utilized, for
the information of Parliament. The Annual Reports and Audited Accounts of
Private and Voluntary Organizations or societies registered under the
Registration of Societies Act, 1860, receiving one-time
assistance/non-recurring Grants of Rupees fifty lakhs and above should also be
laid on the Table of the House, within nine months of the close of the
succeeding financial year of the grantee Organisations.
Rule 239
State Government to submit Utilization Certificate for
Grants-in-aid relating to Scheme. When Central Grants are given to State
Governments for implementation of Central Scheme, Utilization Certificate in
format GFR 12-C may be submitted by the State Government in respect of the
Scheme. The UC should be counter-signed by the Administrative Secretary of the
Division regulating the Scheme/Finance Secretary.
Rule 240
State Government to submit Utilization Certificate when expenditure
incurred through local bodies. When Central Grants are given to State
Governments for expenditure to be incurred by them through local bodies or
private institutions, the Utilization Certificates should be furnished by the
State Government concerned.
Rule 241
Utilisation Certificate in case of Direct Benefit Transfer (DBT)
Scheme. In case of the schemes covered under Direct Benefit Transfers (DBT),
where the fund flow is directly from the Central Government to the
beneficiaries, the intimation from the bank/National Payments Corporation of
India (Aadhaar Payment Bridge) regarding deposit of the funds in the
beneficiaries’ bank accounts, generated as per procedure prescribed by the
Controller General of Accounts, may be treated as a Utilization Certificate.
The Ministry/Department releasing the Grant should keep proper record and
accounts relating to such direct releases under DBT to the beneficiaries bank
accounts.
Rule 242 (1)
Performance parameters . Performance parameters should be
clearly set to allow better oversight of the Autonomous Body.
Rule 242 (2)
Submission of Achievement-cumPerformance Reports. i. The Grantee
Institutions or Organisations should be required to s u b m i t p e r f o r m a
n c e c u m achievement reports soon after the end of the financial year, and
in any case, not later than six months after the close of the financial year.
ii. In regard to non-recurring Grants such as those meant for celebration of
anniversaries, conduct of special tours and maintenance Grants for education,
performance-cumachievement reports need not be obtained. iii. In the case of
recurring Grants, submission of achievement-cumperformance reports should
usually be insisted upon in all cases. However, in the case of Grants-in-aid
not exceeding Rupees twenty five lakhs, the sanctioning authority may dispense
with the submission of performance-cum-achievement reports and should, in that
event, refer to the Utilization Certificates and other information available
with it to decide whether or not the Grants-inaid should continue to be given.
iv. (a) The Annual Reports and Audited Statements of Accounts of Autonomous
Organisations are required to be laid on the table of the Parliament. In such
cases, the Ministries or Departments of Central Government need not incorporate
performance-cumachievement reports in the Annual Reports. (b) In all other
cases, if the Grants-inaid exceed Rupees ten lakhs but less than rupees fifty
lakhs, the Ministry or Departments of the Central Government should include a
statement in their Annual Report of their own assessment of the achievements or
performance of the Institution or Organisations. (c) In cases where the
Grants-in-aid are for Rupees fifty lakhs or more, the Ministry or Departments
of the Central Government should include in their Annual Report a review of the
utilization of the Grants-in-aid individually, specifying in detail the
achievements vis-à-vis the amount spent, the purpose and destination of Grants.
v. Where the accounts of the Grantee Institutions or Organisations are audited
by the CAG of India copies of the performance-cum-achievement reports,
furnished by the grantee Institution to the Administrative Ministry or
sanctioning authority should be made available to audit. In other cases copies
of such reports, received by the Departments of the Central Government or the
sanctioning authority should be made available to audit when local audit of s u
c h G r a n t s - i n - a i d i n t h e Administrative Ministry or Department
or sanctioning authority is conducted or when it is called for by the
Accountant General.
Rule 243
Discretionary Grants. When an allotment for Discretionary Grants
is placed at the disposal of a particular authority, the expenditure from such
Grants shall be regulated by general or special orders of the competent
authority specifying the object for which the Grants can be made and any other
condition(s) that shall apply to them. Such Discretionary Grants must be
nonrecurring and not involve any future commitment.
Rule 244
Other Grants. Grants, subventions, etc., including Grants to
States other than those dealt with in the foregoing rules, shall be made under
special orders of Government.
Rule 245
(i) Regulation of recurring Grants-in-aid for Government
employees’ welfare :– a. Grants-in-aid for provision of amenities or of
recreational or welfare facilities to the staff of the offices of the
Government are regulated under orders of the Ministry of Home Affairs issued
from time to time. The admissibility of the Grants-in-aid for the welfare of
the employees of the Government should be regulated in the following manner :-
i. The Grant in aid will be admissible on the basis of the total strength borne
on the regular strength of an organization, i.e., Ministry or Department, etc.,
and its Attached and Subordinate Offices and such statutory bodies whose budget
forms part of Consolidated Fund of India, irrespective of the fact whether any
individual is a member of the staff club, etc., or not. However, Grant-inaid in
respect of Gazetted Officers will be admissible only to that Ministry or
Department or Office where membership of recreation club is open to such
officers. Staff paid from contingencies, workcharged staff etc., will not be
taken into calculation for this purpose. Staff eligible for similar concession
under some other rule or statutory provision, e.g., industrial workers will
also not be covered by these orders. ii) Amounts of Grants-in-aid. (a) The rate
of the Grant-in-aid will be Rupees fifty per head per annum. In addition to
this, an additional Grant-in-aid up to Rupees twenty-five per head per annum to
match the subscriptions collected during the previous financial year by the
existing staff clubs will be admissible. In the case of staff clubs which are
started during the financial year in which Grant-in-aid is to be given, an
additional matching grantsin-aid up to Rupees twenty-five per head per annum,
to match the subscription collected by such clubs up to the date on which the
proposal for the Grant is mooted, may be sanctioned. The total strength of the
eligible staff will be that existing on the thirty-first March of the previous
financial year or that on the date on which proposal for Grant is mooted in the
case of new staff clubs above rates, as revised from time to time will apply.
iii) An illustrative list of items on which expenditure can be incurred out of
Grants-in-aid sanctioned by Government for provision of amenities is given
below: i) Articles of sports – Outdoor and indoor games equipment ii) Cost of
uniforms, etc., supplied to teams of players. iii) Magazines and periodicals.
iv) Entry fee for tournaments v) Hiring of playgrounds vi) Hiring and repair
for furniture, etc., vii) Purchase of furniture. viii) Conveyance expenses
incurred locally. ix) Entertainments. x) Prizes. xi) Film shows. xii) Hiring of
accommodation for Club/Association, etc. xiii) Cultural, Sports and Physical
development programme(s). xiv) Inter-Ministerial meets. xv) Inter-Departmental
meets 2. A maximum one time Grant of Rupees fifty thousand may be sanctioned
for setting up of a Recreation Club. 3. Grants-in-aid to the Ministry or
Departments of the Central Government and their Attached and Subordinate
Offices will be allocated by the concerned Ministry or Department on receipt of
formal requests in the prescribed manner. For the purposes of these
Grants-in-aid, the Departments of the Central Government and their attached and
Subordinate Offices will be treated as a single unit. It will be the responsibility
of that Ministry or Department to distribute the amount further to its Attached
and Subordinate Offices and to their different clubs. The accounts of these
clubs for the preceding year duly audited by an Internal Auditor should be
obtained immediately after the close of the financial year in any case by the
thirtieth April by the Ministry or Department before allocating funds for the
next financial year. 4. Grants-in-aid for the provision of amenities or
recreational or welfare facilities to the staff of the Indian Audit and
Accounts Department are regulated by separate orders
II. LOANS
Rule 246
The rules in this Section shall be observed by all authorities
competent to sanction loans of public moneys to State Governments, Local
Administrations of Union Territories, local bodies, foreign Government on
specific recommendation of State Government, Government institutions and other
Government bodies.
Rule 247 (1)
Powers and Procedure for sanction of loans. The powers of
Departments of the Central Government and Administrators as well as other
subordinate authorities to sanction loans are given in the Delegation of
Financial Powers Rules and other general and special orders issued under that
rule.
Rule 247 (2)
Nodal Division in Ministry of Finance. The Budget Division,
Department of Economic Affairs, Ministry of Finance shall be the nodal division
in the Ministry of Finance to finalise terms and conditions of loans by the
Central Government.
Rule 248
All sanctions of loans issued by a Department of Central
Government or an Administrator of Union Territory in exercise of their powers
under the relevant provision of Delegation of Financial Powers Rules shall
include a certificate to the effect that the same is in accordance with the
rules or principles prescribed by the Ministry of Finance and that the rate of
interest on the loan and the period of repayment thereof have been fixed with
the approval of that Ministry.
Rule 249 (1)
All sanctions to loans shall be subject to the Delegation of
Financial Powers Rules and shall specify the terms and conditions relating to
them including the terms and conditions of their repayment and payment of
interest.
Rule 249 (2)
Borrowers shall be required to adhere strictly to the terms
settled for the loans made to them. Modifications of these terms can be made
subsequently only for very special reasons and after seeking prior concurrence
of Ministry of Finance.
Rule 250 (1)
General conditions for regulating all loans : All loans shall be
regulated by the following general conditions :- (i) A specific term shall be
fixed which shall be as short as possible, within which each loan has to be
fully repaid with interest due. The terms may, in very special cases, extend to
thirty years. (ii) The term is to be calculated from the date on which the loan
is completely drawn or declared by competent authority to be closed. (iii) The
repayment of loans shall be effected by instalments, which shall ordinarily be
fixed on annual basis, and with due dates of payment being specially
prescribed. (iv) Any instalment paid before its due date may be taken entirely
towards the principal, provided it is accompanied by payment toward interest
due up-to-date of actual payment of instalment; if not, the amount of the
instalment shall first be adjusted towards the interest due for preceding and
current periods and the balance, if any, shall alone be applied towards the
principal. If, however, the payment of the instalment is in advance of the due
date by fourteen days or less, interest for the full period (half-year or full
year, as the case may be) shall be payable. (v) When the due date of repayment
of any instalment of principal or interest falls on a Sunday or a public
holiday, the payment made on the next working day following the Sunday or the
public holiday, shall be regarded as payment on the due date and no interest
shall be charged for the day or days by which the recovery is so postponed.
Exception. If an instalment of principal or interest is payable on the
thirty-first March of a year, and if that day happens to be a public holiday
the recoveries shall be made on the immediately preceding working day. In case,
the due date for the repayment of a loan or payment of interest falls on a
holiday observed by the Reserve Bank of India, at which the effective credit of
the same is to take place this shall be shifted to the next working day, except
when the due date is thirty-first March. (vi) The payment of interest and the
repayment of principal of a loan are always to be made with reference to the
calendar date on which the loan in question is paid. However, where payment of
instalment is in advance of the due date by fourteen days or less, interest for
the full year or half year (depending on the prescribed mode of recovery) shall
be charged thereon. In the case of a loan sanctioned by the Central Government
to a State Government on or before thirty-first March of a year, which is
adjusted in the books of the Reserve Bank of India in the month of April but in
the accounts of the previous year the instalment of principal and/or interest
shall fall due for payment on the thirty first March of the succeeding year and
not on the anniversaries of the calendar date in April on which the
inter-Governmental adjustment was carried out. (vii) The date of drawal of a
loan by a State Government shall be determined as indicated below – (a) When
monetary settlement is involved-Normally the calendar date on which amount of a
loan is actually credited to the account of the State Government by the Reserve
Bank is to be treated as the date of its drawal. This position shall also hold
in cases where adjustment in accounts is made in one month but date of
adjustment in the books of the Reserve Bank of India falls in the following
calendar month. The calendar date on which the credit is actually afforded to
the State Government in the books of the Reserve Bank of India in such cases
shall be treated as the date of its drawal. Exception. An exception to this
arrangement is in the case of loans for which credit is afforded to the
recipient State Government in the month of April by the Reserve Bank of India
but in the accounts of previous year. In such cases, a loan shall be deemed to
have been paid on the thirty-first March of the financial year in the accounts
for which the payment is adjusted. Consequently, payment of annual interest as
also repayment of instalment of principal in respect of such loans shall fall
due on the thirty-first March of the succeeding years and not on the
anniversaries of the calendar date in April on which inter- Governmental
adjustment on account of such loans was carried out in the books of the Reserve
Bank of India. (b) Where no monetary settlement is involved.–In regard to cases
where adjustment in the books of the Accounts Offices are only involved and
actual credit through the Reserve Bank of India is not necessary, the last date
of the month of account in which the adjustment is effected shall be taken as
the date of drawal of loan for purposes of repayment and charging interest.
(viii)In order to avoid any default in the payment of loan, the Principal
Accounts Officers or Pay and Accounts Officers who maintain the detailed
accounts of loans, shall issue notices in Form GFR-19 to the loanees (other
than State and Union Territory Governments) i.e. Public Sector Undertakings,
statutory bodies and Government institutions etc., say, a month in advance of
the due date for the repayment of any instalment of the principal and/ or
interest thereon. However, omission to give notice does not give the loanees
any claim to exemption from the consequences of default in the repayment of the
principal and/or interest thereon.
Rule 250 (2)
Before sanctioning a loan to private Institutions the lending
Ministry or Department shall examine the financial health and managerial
ability of such institutes.
Rule 250 (3)
(i) Before considering a loan application from parties other
than State Governments and Local Administrations of Union Territories, the
following requirements shall be fulfilled:- (a) it shall be seen that there is
adequate budget provision; (b) it shall be seen whether the grant of the loan
is in accordance with approved Government policy and accepted patterns of
assistance. (ii) Before approving the loan, the applicant shall be asked to
furnish the following materials and information:- (a) copies of profit and loss
(or income and expenditure) accounts and balance sheets for the last 3 years;
(b) the main sources of income and how the loan is proposed to be repaid within
the stipulated period; (c) the security proposed to be offered for the loan
together with a valuation of the security offered by an independent authority
and a certificate to the effect that the asset offered as security is not
already encumbered. (d) Details of loan or loans taken from the Central
Government or a State Government in the past, indicating amount, purpose, rate
of interest, stipulated period of repayment, date of original loan and amount
outstanding against the loan(s) on the date of the application and the assets,
if any, given as security; (e) a complete list of all other loans, outstanding
on the date of application and the assets given as security against them; (f)
the purpose for which the loan is proposed to be utilized and the economics of
the scheme. NOTE. Where the loan is to be given to Government institution on
the strength of a guarantee given by the trust managing it, similar information
should be called for in respect of the trust also. (iii) On receipt of the
information called for as mentioned in (ii) above, confidential enquiries shall
be made from the other Departments of the Central Government or State
Governments from which the party has taken loans, to judge the performance in
regard to the previous loans. If the replies indicate that the performance was
not satisfactory, the loan shall be refused. It must be analysed that the
financial position of the party is sound. It shall also be ensured that the
security offered is adequate and its value is at least thirty-three and
one-third per cent. above the amount of the loan. If possible, an independent
valuation of the security offered shall be obtained. The applicant for the loan
must satisfy both the criteria for financial soundness and adequacy of security
before a loan is sanctioned. (iv) In the case of Institutions which receive
Grants-in-aid from Government to meet a part of their deficits and the balance
is met by the State Government and the Trustees of Management, it shall be
ensured– (a) that in computing the deficit for purpose of the Grant-in-aid, the
income from the scheme, if any, earmarked for servicing the loan and the
instalment of repayment of the loan and interest (if any) is not included; (b)
that as far as possible, the scheme for which the loan is given is
selffinancing and does not throw an additional burden on the general income of
the institutions, e.g., in the case of hostels for colleges that the rents
proposed are adequate; (c) the Institution produces an undertaking from the
State Government or the Management that any shortfall towards repayment of the
loan and interest shall be made good by it. In the latter case the financial
position of the Management (Trust) shall be investigated after calling for
information on the lines of Rule 250. (3) (i) above. (v) Ministries or
Departments of the Central Government shall lay down a procedure for periodical
review of the old loans so that prompt action can be taken, if necessary, for
enforcing regular payments.
Rule 250 (4)
The detailed procedure to be followed in connection with the
Grant of loans to local bodies shall be regulated by the provisions of the
Local Authorities Loans Act and other special Acts and by rules made
thereunder.
Rule 251 (1)
Interest on Loans. Interest shall be charged at the rate
prescribed by the Government for any particular loan or for the class of loans
concerned.
Rule 251 (2)
A loan shall bear interest for the day of payment but not for
the day of repayment. Interest for any shorter period than a complete year
shall be calculated as follows, unless any other method of calculation is
prescribed in any particular case or class of cases. Number of days X Yearly
rate of interest 365 (366 in case of a leap year)
Rule 252 (1)
Procedure to be followed for recovery of loans and interest
thereon and Grant of moratorium. The instructions issued by the Ministry of
Finance from time to time prescribing the interest rates and other terms and
conditions of loans to State and Union Territory Governments, Local Bodies,
Statutory Corporations, financial, industrial and commercial undertakings in
the Public Sector shall be strictly followed.
Rule 252 (2)
The recovery of loans shall ordinarily be effected in annual
equal instalments of principal together with interest due on the outstanding
amount of principal from time to time. The repayment and interest instalments
may be rounded off to the nearest rupee subject to final adjustment at the time
of payment of last instalment of principal and/or interest.
Rule 252 (3)
A suitable period of moratorium towards repayment might be
agreed to in individual cases having regard to the projects for which the loans
are to be utilized. However, no moratorium shall ordinarily be allowed in
respect of interest payable on loans.
Rule 253 (1)
Loans to State and Union Territory Governments, Local Bodies,
Statutory C o r p o r a t i o n s , P u b l i c S e c t o r Undertakings, etc.
L o a n s s h a l l ordinarily be sanctioned at the normal rates of interest
prescribed by Government for the particular category of the loanee. In cases
where the normal rate is considered too high and a concession is justified, it
shall take the form of direct subsidy debitable to the grants of the
sanctioning authority. In such cases interest shall, however, be paid by the
borrower in the first instance at the normal rates and subsidy shall be claimed
separately.
Rule 253 ( 2 )
A g r e e m e n t s a n d o t h e r documentation. (i) In the
case of loans to parties other than State Governments and wholly owned
Government Companies, a loan agreement specifying all the terms and conditions
shall be executed. A clause shall invariably be inserted in all such agreements
enabling Government at any time to call for accounts of the applicant relating
to any accounting year with power to depute an officer specially authorized for
this purpose to inspect the applicant’s books, if necessary. (ii) A written
undertaking in Form GFR 15 shall be obtained from a wholly Government-owned
company at the time of sanctioning the loan. The sanction shall specifically
state that such an undertaking would be obtained from the loanee before the
drawal of the amount of loan and a certificate that the undertaking has been
obtained, shall be recorded by the Drawing Officer of the office of the
sanctioning authority in the bill for drawal of the amount of loan. The
sanction in respect of loans to other organizations, where a formal agreement
is required to be executed, shall also be issued in the same manner.
Rule 254
Undertaking to be obtained from w h o l l y - o w n e d G o v e
r n m e n t Companies. In the case of loans to wholly-owned Government Companies,
a written undertaking to the effect that the fixed assets of the company shall
not be hypothecated without prior approval of the Government shall be obtained
in Form GFR 32. No stamp duty need be paid on these written undertakings.
Rule 255
Loans to parties other than State Governments, wholly owned
Government Companies and Local Administration of Union Territories shall be
sanctioned only against adequate security. The security to be taken shall
ordinarily be at least thirty three and one-third per cent. more than the
amount of the loan. However, a competent authority may accept security of less
value for adequate reasons to be recorded.
Rule 256 (1)
Submission of Utilization Certificate, Reports, Statements, etc.
In cases in which conditions are attached to the utilization of loan, either in
the shape of the specification of the particular objects on or the time within
which the money must be spent or otherwise, the authority competent to sanction
the loan shall be primarily responsible for certifying to the Accounts Officer
where necessary, the fulfilment of the conditions attaching to the loan, unless
there is any special rule or order to the contrary. The loans sanctioned to the
State Governments and the Local Administration of Union Territories shall not,
however, come within the purview of this rule.
Rule 256 (2)
(i) The certificate referred to in Rule 256 (1) above shall be
furnished as in Form GFR 12-B and at such intervals as may be agreed to between
the Audit Officer and/or the Accounts Officer, as the case may be, and the
Ministry or Department concerned. Before recording the certificate, the
certifying officer shall take steps to satisfy himself that the conditions, on
which the loan was sanctioned, have been or are being fulfilled. For this
purpose, he may require the submission to him at suitable intervals of such
reports, statements, etc., which shall establish the utilization of loan for
the purpose for which it was sanctioned. The loanee institution may also be
required to furnish a certificate from its Auditors that the conditions
attaching to the loan have been or are being fulfilled. The certificate shall
give details of the breaches, if any, of those conditions. (ii) A Certificate
of Utilization of the loan shall be furnished to the Accounts Officer in every
case of loan made for specific purposes, even if of the any conditions is not
specifically attached to the grant. Such certificates are not, however,
necessary in cases where loans are sanctioned not for any specific purpose or
object but take the shape of a temporary financial aid or where the loans have
been sanctioned to the Public Sector Undertakings intended for financing of
their approved capital outlays. The repayment of loan, however, has to be
watched in the usual manner. (iii) In respect of loans the detailed accounts of
which are maintained in the Audit Offices, the authorities sanctioning the loan
shall furnish the Utilization Certificate in respect of each individual case.
(iv) Where the detailed accounts of the loans are maintained by the
Departmental authorities, a consolidated Utilization Certificate shall be
furnished to Audit by the Ministries/Departments sanctioning t h e l o a n s t
o I n s t i t u t i o n s / Organisations for the total amount of the loans disbursed
during each year for different purposes including the loans sanctioned by their
subordinate officers. This certificate shall not cover the loans to individuals
for which Utilization Certificates need not be furnished to the Accounts
Officer. The Certificate shall indicate the year-wise and object-wise break-up
of loans disbursed and the loans for which Utilizations Certificates are
furnished. The utilization certificate shall also show the loans disbursed
separately for each sub-head of account to facilitate verification by the
Accounts Officer. (v) The Utilization Certificates shall be furnished within a
‘reasonable time’ after the loan is paid to the institutions. The Department of
Central Government shall prescribe, in consultation with the Ministry of
Finance, target dates for the submission of the Utilization Certificates by the
Department concerned to the Accounts Officer. The target date shall, as far as
possible, be not later than eighteen months from the date of sanction of the
loan. (vi) In respect of loans, the detailed accounts of which are maintained
by Departmental Officers and where consolidated Utilization Certificates are to
be furnished to Accounts Officer, the period of 18 months shall be reckoned
from the expiry of the financial year in which the loans are disbursed. The
consolidated Utilization Certificates in respect of such loans paid each year
shall, therefore, be furnished not later than September of the second
succeeding financial year. (vii) The due dates for submission of the
Utilization Certificates shall be specified in the letter of sanction for loan.
The target date as specified shall be rigidly enforced and extension shall only
be allowed in very exceptional circumstances in consultation with the Ministry
of Finance under intimation to the Audit Officer and/or the Accounts Officer,
as the case may be. No further loans shall be sanctioned unless the sanctioning
authorities are satisfied about the proper utilization of the earlier loan
sanctioned to an Institution, etc.
Rule
257
Instalments
of Loans. When a loan of public money is taken out in instalments, each
instalment of the loan so drawn shall be treated as a separate loan for
purposes of repayment of principal and payment of interest thereon except where
the various instalments drawn during a financial year are, for this purpose,
allowed to be consolidated into a single loan as at the end of that particular
financial year. In the latter event, simple interest at the prescribed rate on
the various loan instalments from the date of drawal of each instalment to the
date of their consolidation shall be separately payable by the borrower.
Repayment of each loan or the consolidated loan, as the case may be, and the
payment of interest thereon shall be arranged by the borrower annually on or
before the anniversary date of drawal or consolidation of the loan in such
number of instalments as the sanctioning authority may prescribe. The
sanctioning authority may allow, in deserving cases a moratorium towards
repayment of principal but not for the payment of interest. Should it appear
that there is an undue delay on the part of the debtor in taking out the last
instalment of a loan the authority sanctioning the loan may at any time declare
that loan closed, and order repayment of capital to begin. The Accounts Officer
shall bring to notice any delay that appears to him to require this remedy and
he shall take this step whether or not there are any dates fixed for taking of
instalments.
NOTE
1. These instructions are applicable mutatis mutandis to loans, the repayments
of which are made by other than annual instalments.
NOTE
2. It must be remembered that the calculation fixing the amount of equal
periodical instalments, by which a loan is repaid with interest, presupposes
punctual payment of the instalment and that, if any instalment is not
punctually repaid, the interest amount shall need to be recalculated.
Rule
258 (1)
Defaults
in Payment. The loan sanctions in favour of State or Union Territory
Governments and the loan sanctions or undertakings or agreements in case of
wholly Government owned companies or Public Sector Undertakings shall
invariably include provision for the levy of penal interest on overdue instalments
of interest or principal and interest. The loan sanctions and agreements in all
other cases shall invariably stipulate a higher rate of interest and provide
for lower rate of interest in the case of punctual payments. The penal or the
higher rate of interest, as the case may be, shall not, except under special
orders of Government, be less than two and half per cent per annum above the
normal rate of interest prescribed by Government from time to time for the
loans advanced.
Rule
258 (2)
Any
default in the payment of interest upon a loan or in the repayment of
principal, shall be promptly reported by the Accounts Officer, to the authority
which sanctioned the loan. The responsibility of the Accounts Officer, under
this rule refers only to the loans, the detailed accounts for which are kept by
him.
Rule
258 (3)
Procedure
to be followed in case of defaults in repayment of interest free loans or loans
sanctioned at concessional rates of interest : (i) In the case of grant of
interest free loans e.g., loans to technical educational institutions for
construction of hostels, prompt repayment shall be made a condition for the
grant of interest free loans. The sanction letter in such cases shall provide
that in the event of any default in repayment, interest at rates prescribed by
Government from time to time will be chargeable on the loans. (ii) In the case
of loans sanctioned at concessional rates of interest the difference between
the normal rate and concessional rate), shall be made conditional upon prompt
repayments of principal and payment of interest thereon by the entity
concerned. (iii) In the cases where in addition to interest free loans, subsidy
is also provided to meet running expenses the sanction letter shall provide
that in the event of any default in repayment, the defaulted dues would be
recovered out of the subsidy payable.
Rule
258 (4)
On
receipt of a report of default referred to in sub-rule (2) above, the authority
concerned shall immediately take steps to get the default remedied and also
consider enforcement of penal or higher rate of interest on the overdue
amounts. Where the sanctioning authority is satisfied, having regard to the
circumstances of the case, that penal or higher interest need not be recovered,
the borrower shall ordinarily be asked to pay interest, at the normal rate
prescribed in the loan sanction, on the overdue amount (of principal and/or
interest) from the due date of payment up to the date of settlement of the
default. The recovery of additional interest shall not be waived except in
special circumstances or where the period of defaults is very short, e.g., a
few days.
Rule
259
Irrecoverable
Loans. A competent authority, after prior approval of the Ministry of Finance
may remit or write off any loans owing to their irrecoverability or otherwise.
Rule
260
Accounts
and Control. Subject to such general or specific directions as may be given by
the Comptroller and AuditorGeneral in this behalf, detailed accounts of loans
to Institutions and Organizations, etc., shall be maintained by the Accounts
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 Government, Railway or Department of Posts funds,
Central Public Sector and other Government Institutions etc. Where, however,
detailed accounts are not required to be maintained by the Accounts Office, the
statement shall contain departmental authority-wise aggregate balances of
outstanding loans.
Rule
263 (1)
Review
of Annual Statements with a view to enforce repayments of the principal and
interest due. The Administrative Ministries shall keep watch over the receipt
of the Annual Statements in Form GFR 20 regularly from the Accounts Officer and
conduct a close review of the cases of defaults in repayment of the instalments
of principal and/or interest due, as revealed from these Annual Statements and
take suitable measures for enforcing repayments of the principal and interest
due. If these statements are not received in time, the Accounts Officer shall
be reminded promptly. To facilitate a proper review of the position of
outstanding loans, the Ministries may also arrange to maintain centrally a list
of all sanctions issued relating to loans advanced to State Governments and
other entities.
Rule
263 (2)
Submission
of Annual Assessment Report. A copy of Annual Assessment Report on status of
all outstanding loans, including timely and accurate payment of principal and
interest due, shall be submitted by the Financial Advisor of the Administrative
Ministry concerned to the Ministry of Finance by 30th June of each financial
year.
Multiple choice questions:
1.To whom can Grants-in-aid be
given according to the rules?
- (a) Only to government agencies
- (b) To any individual or organization with a distinct
legal entity
- (c) Only to educational institutions
- (d) Only to individuals
Answer: (b) To any individual or organization with a distinct legal entity
2.Which of the following
organizations is eligible to receive Grants-in-aid?
- (a) Institutions set up as autonomous organizations
under a specific statute
- (b) Any private company
- (c) Foreign organizations
- (d) Private clubs not related to government activities
Answer: (a) Institutions set up as autonomous organizations under a specific statute
3.What should be the basis for
selecting voluntary organizations or NGOs for Grants-in-aid?
- (a) Their ability to generate profit
- (b) Well-defined criteria regarding financial
resources, credibility, and type of activities
- (c) Popularity in the community
- (d) Recommendations from political leaders
Answer: (b) Well-defined criteria regarding financial resources, credibility, and type of activities
4.What is required before
creating a new autonomous institution by a Ministry or Department?
- (a) Approval of the Ministry of Education
- (b) Approval of the Cabinet
- (c) Approval of the Supreme Court
- (d) Approval of the Prime Minister only
Answer: (b) Approval of the Cabinet
5.What is required before an
Autonomous Body can create a new autonomous institution?
- (a) Approval from its own Board of Directors
- (b) Approval of the administrative ministry in
consultation with the Ministry of Finance
- (c) Approval from the local government
- (d) No approval is required
Answer: (b) Approval of the administrative ministry in consultation with the Ministry of Finance
6.What should all autonomous
organizations be encouraged to do?
- (a) Maximize internal resources and attain
self-sufficiency
- (b) Rely solely on government funding
- (c) Reduce their activities to cut costs
- (d) Increase staff to enhance productivity
Answer: (a) Maximize internal resources and attain self-sufficiency
7.What must be reviewed at least
once a year by the Governing Body of an Autonomous Body?
- (a) Staff salaries
- (b) User charges and sources of internal revenue
generation
- (c) Government regulations
- (d) Annual holiday calendar
Answer: (b) User charges and sources of internal revenue generation
8.What system should be put in
place by the Ministry for reviewing autonomous organizations?
- (a) Annual tax audits
- (b) External or internal peer review every three or
five years
- (c) Monthly performance reviews
- (d) Random inspections
Answer: (b) External or internal peer review every three or five years
9.What is required for
sanctioning a Grant-in-aid to an Institution or Organization?
- (a) A simple application form
- (b) An application with all relevant information
including Articles of Association, audited statement of accounts, and
sources of income
- (c) A letter of recommendation from a government
official
- (d) A detailed project report
Answer: (b) An application with all relevant information including Articles of Association, audited statement of accounts, and sources of income
10.How should Ministries or
Departments avoid duplication in Grants-in-aid?
- (a) By collaborating with private organizations
- (b) By maintaining a list of institutions or
organizations along with details of amount and purpose of Grants
- (c) By delegating the responsibility to local
authorities
- (d) By consulting with the Prime Minister’s office
Answer: (b) By maintaining a list of institutions or organizations along with details of amount and purpose of Grants
11.What must be specified in
every order sanctioning a Grant?
- (a) The name of the officer authorizing the Grant
- (b) Whether it is recurring or non-recurring and the object
for which it is being given
- (c) The recipient’s tax identification number
- (d) The time taken to process the application
Answer: (b) Whether it is recurring or non-recurring and the object for which it is being given
12.How should Central Autonomous
Organizations account for their expenditures?
- (a) They should merge capital and revenue expenditure
- (b) They should account for capital and revenue
expenditure separately
- (c) They should not account for any expenditure
- (d) They should follow their internal policies
Answer: (b) They should account for capital and revenue expenditure separately
13.What should be considered when
regulating the award of Grants?
- (a) The personal relationship of the institution with
government officials
- (b) The internally generated resources of the
institution
- (c) The public perception of the institution
- (d) The geographic location of the institution
Answer: (b) The internally generated resources of the institution
14.What should be done with
unspent balances when sanctioning subsequent Grants?
- (a) They should be ignored
- (b) They should be taken into account
- (c) They should be refunded to the Ministry
- (d) They should be transferred to a different project
Answer: (b) They should be taken into account
15.What should happen to interest
or other earnings against Grants-in-aid or advances?
- (a) They should be retained by the Grantee institution
- (b) They should be remitted to the Consolidated Fund of
India
- (c) They should be used to offset future Grants
- (d) They should be donated to charity
Answer: (b) They should be remitted to the Consolidated Fund of India
16.What condition should be laid
down when making Grants to Non-Government Institutions?
- (a) They can dispose of assets acquired with Grants
freely
- (b) Assets acquired with Grants should not be disposed
of without prior approval
- (c) They must provide free services to the government
- (d) They must increase their staff strength
Answer: (b) Assets acquired with Grants should not be disposed of without prior approval
17.What should be considered
before releasing the last instalment of an Annual Grant?
- (a) The Grantee institution's reputation
- (b) Reasonable evidence of proper utilization of
instalments released earlier
- (c) The number of employees at the institution
- (d) The location of the institution
Answer: (b) Reasonable evidence of proper utilization of instalments released earlier
18.What is the purpose of peer
reviews for autonomous organizations?
- (a) To increase funding
- (b) To evaluate the achievement of objectives and the
relevance of activities
- (c) To determine the level of public support
- (d) To recruit more staff
Answer: (b) To evaluate the achievement of objectives and the relevance of activities
19.What should be done with the
findings of a peer review of an autonomous organization?
- (a) They should be ignored
- (b) They should be examined and put up for appropriate
decision by the Secretary of the concerned Ministry
- (c) They should be shared with the public
- (d) They should be kept confidential
Answer: (b) They should be examined and put up for appropriate decision by the Secretary of the concerned Ministry
20.What should be the basis for
awarding Grants-in-aid?
- (a) Recommendations from high-ranking officials
- (b) Viable and specific schemes drawn up in sufficient
detail
- (c) The geographic location of the institution
- (d) The size of the institution
Answer: (b) Viable and specific schemes drawn up in sufficient detail
21.How should recurring Grants be
defined?
- (a) One-time releases for special purposes
- (b) Periodic releases to the same organization for the
same purpose
- (c) Funding given to start new projects
- (d) Emergency financial aid
Answer: (b) Periodic releases to the same organization for the same purpose
22.What should Grantee
Institutions do if they receive more than fifty percent of their recurring
expenditure from Grants-in-aid?
- (a) They should increase staff salaries
- (b) They should formulate terms and conditions of
service for employees that are not higher than those for similar
categories of employees in Central Government
- (c) They should expand their activities
- (d) They should retain the freedom to set their own
rules
Answer: (b) They should formulate terms and conditions of service for employees that are not higher than those for similar categories of employees in Central Government
23.What condition should be
included in the terms and conditions of Grants-in-aid to certain agencies?
- (a) A clause for reservations for Scheduled Castes,
Scheduled Tribes, or OBCs
- (b) A clause for increasing the agency’s budget
- (c) A clause for reducing government oversight
- (d) A clause for giving bonuses to employees
Answer: (a) A clause for reservations for Scheduled Castes, Scheduled Tribes, or OBCs
24.What is required if there is a
change in the rules or regulations of a Grantee Institution?
- (a) Approval of the administrative Ministry or
Department
- (b) Approval from the general public
- (c) Approval from the Grantee Institution's board of
directors
- (d) No approval is necessary
Answer: (a) Approval of the administrative Ministry or Department
25.What should be done before
making lump sum releases of funds to Grantee Institutions?
(a)
Ensure no checks are required
(b)
Release the funds without conditions
(c)
Ensure funds are released as per a time schedule based on the need and progress
of project/scheme
(d)
Make the release conditional on the personal guarantee of the head of the
institution
Answer: (c) Ensure funds are released as per a time schedule based on the
need and progress of project/scheme
26.
What is the maximum percentage of approved administrative expenditure that can
be sanctioned as Grants-in-aid to voluntary organizations?
A) 15%
B) 20%
C) 25%
D) 30%
Answer:
C) 25%
27.
Grants-in-aid for administrative expenditure to private institutions other than
voluntary organizations can be sanctioned in which of the following cases?
A) Ordinary cases
B) Upon recommendation by the State Government
C) In consultation with the Internal Finance Wing
D) With the approval of the President
Answer:
C) In consultation with the Internal Finance Wing
28.
What must the members of the Executive Committee of the Grantee do before a
Grant is released?
A) Submit a progress report
B) Execute Bonds in a prescribed format
C) Provide a security deposit
D) Sign a non-disclosure agreement
Answer:
B) Execute Bonds in a prescribed format
29.
Which type of institutions are exempted from the requirement to execute a Bond
for Grants-in-aid?
A) Private organizations
B) Quasi-Government Institutions
C) Foreign NGOs
D) Educational institutions
Answer:
B) Quasi-Government Institutions
30.
Centrally Sponsored Schemes should be designed with which of the following
features?
A) Flexible timelines
B) No monitoring requirements
C) Time-bound, quantifiable, and measurable outcome targets
D) Independent from State Government inputs
Answer:
C) Time-bound, quantifiable, and measurable outcome targets
31.
What should be avoided in the release of funds for Centrally Sponsored Schemes?
A) Release of funds in the beginning of the year
B) Release of a large part of funds towards the end of the year
C) Providing funds in multiple installments
D) Release of funds to State Governments directly
Answer:
B) Release of a large part of funds towards the end of the year
32.
What must Ministries or Departments ensure before releasing further funds for
Centrally Sponsored Schemes?
A) Approval from the Prime Minister
B) That previous funds were effectively utilized
C) A public announcement of the funds
D) Establishment of a new monitoring committee
Answer:
B) That previous funds were effectively utilized
33.
Who is responsible for monitoring and effective control over Centrally
Sponsored Schemes?
A) State Governments
B) Ministry of Finance
C) Central Ministries or Departments
D) NITI Aayog
Answer:
C) Central Ministries or Departments
34.
What should be included in the post-completion review of Centrally Sponsored
Schemes?
A) A political assessment of the scheme
B) Suggestions for formulating and implementing future schemes
C) A summary of public opinion
D) A report on global impact
Answer:
B) Suggestions for formulating and implementing future schemes
35.
What is the requirement for the assets created under Sponsored Projects or
Schemes after the completion of the project?
A) They must be sold immediately
B) They can be retained by the implementing agency
C) They must be returned to the sponsor
D) They must be destroyed
Answer:
C) They must be returned to the sponsor
36.
How should the implementing agency treat assets created under Sponsored
Projects or Schemes in their Books of Accounts?
A) As their own assets
B) Should not be included
C) Should be disclosed in the Notes to Accounts
D) Must be reported as liabilities
Answer:
C) Should be disclosed in the Notes to Accounts
37.
What is the format in which a Register of Grants should be maintained by the
sanctioning authority?
A) GFR - 10
B) GFR - 12
C) GFR - 21
D) GFR - 25
Answer:
C) GFR - 21
38.
What should the sanctioning authority verify before signing a bill for a grant?
A) The amount has been approved by the President
B) No other bill for the same purpose has been paid before
C) The Grantee has no previous liabilities
D) The Grantee has political support
Answer:
B) No other bill for the same purpose has been paid before
39.
What must institutions receiving Grants maintain and furnish to the Accounts
Officer?
A) A list of employees
B) A strategic plan
C) A set of audited statements of accounts
D) A performance report
Answer:
C) A set of audited statements of accounts
40.
Who has the authority to audit the accounts of Grantee Institutions or
Organisations?
A) State Government
B) Comptroller and Auditor General of India (CAG)
C) NITI Aayog
D) Reserve Bank of India (RBI)
Answer:
B) Comptroller and Auditor General of India (CAG)
41.
In which case are Utilization Certificates not required for Grants-in-aid?
A) For grants below Rupees 10 lakhs
B) For non-recurring Grants
C) When Grants are made as reimbursement of expenditure already incurred
D) For Grants to State Governments
Answer:
C) When Grants are made as reimbursement of expenditure already incurred
42.
What is the last date for submission of the Annual Report and Audited Accounts
by Private and Voluntary Organizations receiving Grants-in-aid to the tune of
Rupees fifty lakhs and above?
A) 31st March
B) 31st December
C) 31st October
D) 30th June
Answer:
B) 31st December
43.When
Central Grants are given to State Governments for implementing Central Schemes,
in which format should the Utilization Certificate be submitted?
- (A) GFR 12-A
- (B) GFR 12-B
- (C) GFR 12-C
- (D) GFR 12-D
- Answer:
(C) GFR 12-C
44.Who
must countersign the Utilization Certificate submitted by the State Government?
- (A) Chief Minister
- (B) Finance Secretary
- (C) Administrative Secretary of the Division
regulating the Scheme
- (D) Both B and C
- Answer:
(D) Both B and C
45.When
Central Grants are given to State Governments for expenditure through local
bodies, who is responsible for furnishing the Utilization Certificate?
- (A) Local bodies
- (B) Private institutions
- (C) State Government concerned
- (D) Central Government
- Answer:
(C) State Government concerned
46.In
the case of DBT Schemes, what is treated as a Utilization Certificate?
- (A) Receipt from beneficiaries
- (B) Bank statement of the beneficiaries
- (C) Intimation from the bank/National Payments
Corporation of India
- (D) Statement from the Ministry
- Answer:
(C) Intimation from the bank/National Payments Corporation of India
47.Who
is responsible for keeping proper records and accounts of direct releases under
DBT to beneficiaries' bank accounts?
- (A) Beneficiaries
- (B) State Government
- (C) Local Bodies
- (D) Ministry/Department releasing the Grant
- Answer:
(D) Ministry/Department releasing the Grant
48.What
should be clearly set to allow better oversight of the Autonomous Body?
- (A) Budget
- (B) Performance parameters
- (C) Deadlines
- (D) Grant amounts
- Answer:
(B) Performance parameters
49.By
when should Grantee Institutions submit the performance-cum-achievement reports
after the financial year?
- (A) Within 3 months
- (B) Within 6 months
- (C) Within 9 months
- (D) By the end of the next financial year
- Answer:
(B) Within 6 months
50.Discretionary
Grants must be:
- (A) Recurring
- (B) Non-recurring and not involve any future
commitment
- (C) Optional
- (D) Subject to State Government approval
- Answer:
(B) Non-recurring and not involve any future commitment
51.Grants,
subventions, etc., including Grants to States, are made under:
- (A) Orders of the Finance Ministry
- (B) Special orders of the Government
- (C) Recommendations of Local Bodies
- (D) Decisions of State Governments
- Answer:
(B) Special orders of the Government
52.The
Grant-in-aid rate for the provision of welfare facilities to the staff is:
- (A) Rupees 25 per head per annum
- (B) Rupees 50 per head per annum
- (C) Rupees 75 per head per annum
- (D) Rupees 100 per head per annum
- Answer:
(B) Rupees 50 per head per annum
54. What should be done if a loan of
public money is taken out in installments?
- A) Treat each installment as a separate loan for
repayment purposes.
- B) Consolidate all installments at the end of the
financial year.
- C) No repayment is required for any installment.
- D) Interest is only charged on the final installment.
Answer: A) Treat each installment as
a separate loan for repayment purposes.
55. When can the installments of a
loan drawn during a financial year be consolidated into a single loan?
- A) After one year from the first installment.
- B) At the end of the financial year.
- C) After all installments are paid.
- D) On the borrower's request.
Answer: B) At the end of the
financial year.
56. What is payable by the borrower
when loan installments are consolidated at the end of the financial year?
- A) Only the principal amount.
- B) No payment is required.
- C) Simple interest on each installment from the date of
drawal to the date of consolidation.
- D) Compound interest on each installment.
Answer: C) Simple interest on each
installment from the date of drawal to the date of consolidation.
57. What can the sanctioning
authority allow in deserving cases regarding loan repayment?
- A) A complete waiver of the loan.
- B) A moratorium towards repayment of principal.
- C) No interest on the loan.
- D) Payment in kind instead of cash.
Answer: B) A moratorium towards
repayment of principal.
58. What should be done if there is
an undue delay in taking out the last installment of a loan?
- A) Extend the loan period indefinitely.
- B) Declare the loan closed and order repayment of
capital to begin.
- C) Increase the interest rate.
- D) Ignore the delay.
Answer: B) Declare the loan closed
and order repayment of capital to begin.
59. Who is responsible for bringing
to notice any delay in taking out loan installments?
- A) The borrower.
- B) The sanctioning authority.
- C) The Accounts Officer.
- D) The Ministry of Finance.
Answer: C) The Accounts Officer.
60. What should loan sanctions for
State or Union Territory Governments include?
- A) Waiver of interest.
- B) Provision for the levy of penal interest on overdue
installments.
- C) No penalties for overdue payments.
- D) A lower rate of interest without conditions.
Answer: B) Provision for the levy of
penal interest on overdue installments.
61. What is the minimum penal
interest rate for overdue installments unless specified otherwise by the
Government?
- A) 1% above the normal rate.
- B) 1.5% above the normal rate.
- C) 2% above the normal rate.
- D) 2.5% above the normal rate.
Answer: D) 2.5% above the normal
rate.
62. What should be done in case of
defaults in the repayment of interest-free loans?
- A) Ignore the default.
- B) Recover the defaulted dues from the subsidy payable.
- C) Increase the loan amount.
- D) Reduce the principal amount.
Answer: B) Recover the defaulted dues
from the subsidy payable.
63. What is required if any default
is made in the repayment of loans sanctioned at concessional rates of interest?
- A) Immediate payment of the defaulted amount.
- B) Charging the difference between the normal rate and
the concessional rate as interest.
- C) Waiving the remaining interest.
- D) Extending the loan term.
Answer: B) Charging the difference
between the normal rate and the concessional rate as interest.
64. What should be done on receipt
of a report of default in payment of a loan?
- A) Ignore the report.
- B) Immediately take steps to remedy the default.
- C) Wait for the borrower to respond.
- D) Cancel the loan.
Answer: B) Immediately take steps to
remedy the default.
65. Who can remit or write off any
irrecoverable loans?
- A) The borrower.
- B) The Accounts Officer.
- C) The competent authority with prior approval of the
Ministry of Finance.
- D) The Ministry of Finance only.
Answer: C) The competent authority
with prior approval of the Ministry of Finance.
66. Who is responsible for
maintaining detailed accounts of loans to institutions and organizations?
- A) The borrowing institution.
- B) The sanctioning authority.
- C) The Comptroller and Auditor General.
- D) The Accounts Officer.
Answer: D) The Accounts Officer.
67. What is the deadline for
submitting the annual statement of outstanding Central Loans?
- A) 31st March.
- B) 30th September.
- C) 31st December.
- D) 30th June.
Answer: B) 30th September.
68. What should be included in the
annual statement of outstanding Central Loans?
- A) Only the total outstanding amount.
- B) Details of defaults and the earliest period of
default.
- C) Only the principal amount due.
- D) A list of new loans sanctioned.
Answer: B) Details of defaults and
the earliest period of default.
69. What is the purpose of reviewing
the annual statements of loans?
- A) To waive off the interest.
- B) To enforce repayments of the principal and interest
due.
- C) To extend the repayment period.
- D) To reduce the loan amount.
Answer: B) To enforce repayments of
the principal and interest due.
70. Who should submit an Annual
Assessment Report on the status of all outstanding loans?
- A) The borrower.
- B) The Accounts Officer.
- C) The Financial Advisor of the Administrative
Ministry.
- D) The Ministry of Finance.
Answer: C) The Financial Advisor of
the Administrative Ministry.
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