GENERAL FINANCIAL RULES, 2017

(2019-Edition)
Sl. No Point Key Point
1. The Expenditure Management Commission to recommend 2014
ways in which efficiency of public expenditure could be
increased has also made several recommendations
especially with respect to Autonomous Bodies was set up in
2. GFR 2017 came into force w.e.f. 11 February 2017
3. Appropriation means The ASSIGNMENT to meet specified
expenditure, of funds included in a
primary unit of appropriation;
4. Department of the Government of India” means any of the First Schedule to the Government of
Ministries, Departments, Secretariats and Offices as notified India (Allocation of Business Rules)
from time to time and listed in the
5. Government Account means the account relating to the the Consolidated Fund, the
Contingency Fund and the Public
Account
6. “Head of Office” means a Gazetted Officer declared as such the Delegation of Financial Powers
in Rules
any other authority declared as such
under any general or special orders of
the competent
7. Local Fund” means a local fund as defined in Treasury Rule (Rule 652)
8. Primary Unit of appropriation as referred to in DFPR 1978 (Rule 8)
9. Transfer of funds from one primary unit of appropriation to Re-appropriation of Fund
another such unit is called
10. Subordinate authority” means a Department of the Central
Government or any authority
subordinate to the President;
11. Where a doubt arises as to the interpretation of any of the Ministry of Finance
provisions of GFR, the matter shall be referred to
12. The model under which the buyer to straightway purchase Capex Model (Capital Expenditure)
goods followed by procurement of consumables, arranging
comprehensive maintenance contact after warranty period
and finally disposing the product after useful life is
13. The model under which the Seller provides the goods, Opex Model (Operating Expenditure)
maintains it and also provides the consumables as required
and finally takes back the goods after useful/contracted life,
and the Buyer made payment in a staggered manner is
14. When the subject of a case concerns more than one The Cabinet
Department, no order shall be issued until all such
Departments have concurred, or, failing such concurrence, a
decision has been taken by or under the authority of
GENERAL SYSTEM OF FINANCIAL MANAGEMENT
15. All moneys received by or on behalf of the Government shall Article 150 and 283 (1)
be deposited to Government Accounts WITHOUT DELAY
under the provision of
16. All money received other than revenues or public moneys 284
raised or received by Government shall be deposited to
Public Accounts under Article
17. All moneys received by or deposited with the Supreme Court Public Accounts
of India or with any other Court, other than a High Court,
within a Union Territory, shall be paid into
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18. each Accounts Officer will send an extract from his accounts Controlling Officer concerned.
showing the amounts brought to credit in the accounts in
each month to the
19. The detailed rules and procedure, regarding the demand and Departmental regulation
recovery of rent of Government buildings and lands, are
contained in the
20. Where amounts due to Government appear to be By obtaining the orders of the
irrecoverable, their adjustment shall be made by competent authority.
21. the Finance Ministry shall be fully informed of the progress Budget Estimates
of collection of revenue by HoD under his control and of all
important variations in such collections as compared with
the
22. When the maintenance of any rentable building is entrusted HoD/Administrator concerned
to a civil department, other than the CPWD, responsible for
the due recovery of the rent thereof shall be
23. The procedure for the assessment and recovery of rent of rules applicable to buildings under the
any building hired out will be regulated by the direct charge of the CPWD
24. Responsible to watch the realization of miscellaneous Accounts Officer
demands of Government, not falling under the ordinary
revenue administration,
25. Statement of Remission to be submitted to Audit & Accounts Annually (1st June)
Officer showing remission granted under discretionary
power
26. Department exempted from submission of annual statement Department of Post
of remission is
27. individual remissions need not be included in the Annual Below ₹ 1000
statements of Remission amounting
28. Rule of GFR which provide Standards of Financial Propriety is Rule 21
29. Rules defining remissions and abandonments of revenue Departments of the Central
may be made by Government and Administrators
30. The financial powers of the Government, which have not Ministry of Finance
been delegated to a subordinate authority, shall vest in the
31. All draft memoranda for Expenditure Finance Committee or Financial Advisor
Public Investment Bureau or Committee on Establishment
Expenditure and Cabinet Committee for Economic Affairs or
Cabinet shall be circulated by the Ministry or Department
concerned after consultation with the
32. The rule of GFR 2017 dealing with Responsibility of Rule 26
Controlling Officer in respect of Budget allocation
33. The duties and responsibilities of a controlling officer in Expenditure does not exceed the
respect of funds placed at his disposal are to ensure four budget allocation.
points Expenditure is incurred for the
purpose for which funds have been
provided.
Expenditure is incurred in public
interest.
Adequate control mechanism is
functioning to guard waste and loss
37. An order involving any grant of land, or assignment of Ministry of Finance
revenue, or concession, grant, lease or licence of mineral or
forest rights, or rights to water, power or any easement or
privilege of such concessions, or involves relinquishment of
revenue in any way shall not be made without previous
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 sanction of
38. All financial sanctions and orders issued by a competent Audit Officer
authority shall be communicated to the
39. Copies of all General Financial Orders issued by a
Department of the Central Government with the
concurrence of the CAG shall be supplied to
40. Sanctions accorded by competent authority to grants of land cash payment
and alienation of land revenue, other than those in which
assignments of land revenue are treated as,
41. Sanctions accorded by competent authority to grants of land Audit Officer in monthly consolidated
and alienation of land revenue, other than those in which statement.
assignments of land revenue are communicated to
42. A sanction for any fresh charge shall if no payment in whole 12 months from the date of sanction.
or in part has been made during a period of
43. Where a sanction specifies that the expenditure would be at the close of that financial year;
met from the Budget provision of a specified financial year,
it shall lapse
44. A sanction shall not lapse, if tenders have been accepted or one year of the date of issue of that
the indent has been placed on the Central Purchase sanction,
Organization within the period of
45. Provision for remission of disallowances by Audit and writing DFPR
off of overpayments made to Government servants has been
made in
46. Any loss or shortage of public moneys, stores or other public (i) next higher authority (ii) Audit
property shall be immediately reported by the subordinate Officer and (iii) Pr. Accounts Officer
authority concerned to the whether loss has been made good
47. Petty losses need not be reported to concerned authorities Up-to ₹ 10000
involving loss of
48. Cases involving serious irregularities shall be brought to the Financial Advisor or Chief Accounting
notice of Authority of the ministry/department
AND the CGA
49. The loss which a ministry/department cannot finally dispose Ministry of Finance
of under the delegated powers shall be submitted to
50. An amount lost through misappropriations, defalcation, simple receipt pending investigation.
embezzlement, etc., may be redrawn on
51. The loss to Government on account of culpability of Central Government Department or
Government servants shall be borne by State Government concerned
52. All cases involving loss of Government money arising from The CGA
erroneous or irregular issue of cheques or irregular
accounting of receipts will be reported to the
53. All losses due to suspected fire, theft, fraud, etc., shall be above the value of ₹ 50000
invariably reported to the Police for investigation as early as
possible where the amount of loss is
54. All loss of immovable property caused by fire, flood, cyclone, Exceeding ₹ 50000
earthquake or any other natural cause, shall be reported at
once by the subordinate authority concerned to
Government through the usual channel where the amount
of loss is
55. If the contents of any file are categorized as ‘Secret’ or ‘Top be sent personally to the Head of the
Secret’ the file may Audit Office
56. Rule (s) of GFR 2017 that deal with submission of records Rule 39 to 41
and information to Audit
BUDGET FORMULATION AND IMPLEMENTATION
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57. The agency that shall arrange to lay before both the Houses Ministry of Finance
of Parliament, an Annual Financial Statement also known as
the ‘Budget’
58. Annual Financial Statement or the ‘Budget contains Estimated receipts and expenditure of
the Central Government for ensuing
financial year.
59. With the merger of Railway Budget with General Budget , 17-18
the Budget Estimates of Railways shall also be part of the
General Budget from year
60. The estimating authorities shall give Major Head break-up of 3 years
the Minor/Subhead/ Detailed wise estimate along with
actuals of the past
61. The accounting heads under which major tax and non-tax Budget Division (Ministry of Finance)
revenues are collected shall be prescribed by Administrative
Ministry in consultation with the
62. The tax revenues, non-debt capital receipts including Departments under Ministry of
disinvestments and borrowings are managed by Finance
63. The non-tax revenues are collected through Ministries/Departments
64. Type of revenue under which User charges falls is Non-Tax
65. Charges that intends recovering the current cost of providing User charges
services with reasonable return on capital investment is
66. Rates of user charges should be linked with appropriate 3 years
price indices and reviewed at least every
67. User charges is fixed through Executive orders
68. Voted expenditure has been referred to in Article 113 (2)
69. The accounting head up-to which the detailed estimates of unit of appropriation (Object head)
expenditure shall be prepared
70. Before forwarding the budgets estimate including revised Financial Advisor and Secretary
one of a Ministry/Department to the Budget Division (MoF) , concerned
they should be scrutinised and approved by
71. Number of demand for grant to be presented in respect of a Generally one. More than one for
Ministry/Department large
Ministries or Departments,
72. The number of level at which Demand for Grants shall be Two. I-Main Demand and II-Detailed
presented to Parliament is Demand
73. The demand that is placed along with Annual Financial Main Demand for Grant
Statement
74. DRSC stands for Departmentally Related Standing
Committee
75. DRSC considers Detailed demand for grant presented
by the respective Min./Departments
76. The forms for Annual Financial Statement (Budget) and Ministry of Finance
Demand for Grant shall be prescribed by
77. The heads under which provision for expenditure shall be Administrative Ministry or
made in the Demands for Grants or Appropriation shall be Department
prescribed by the Finance Ministry in consultation with the.
78. The Budget statement where outlays are linked against each Outcome Budget
scheme/project with the outputs/deliverables and medium
term outcomes in measurable/quantitative terms is called
79. Outcome Budget is prepared by Department of Expenditure in
consultation with Niti Aayog and
Ministry/Department concerned
80. MEFT stands for Medium Term Expenditure
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 Framework
81. The outputs/deliverables shall be mandatorily given in Medium Term Expenditure
measurable/quantitative terms on the basis of parameters Framework (MEFT) Statement
and deliverables decided in advance, on the basis of
projections made in the
82. To cover expenditure for a brief period pending the Vote on Account (116)
completion of the budget procedure under Article 113, the
permission given by the Parliament is called
83. Funds made available under Vote on Account are not to be A New Service.
utilized for expenditure on
84. The control of expenditure against the budget shall be HoD, Controlling Officer & DDO
exercised through
85. All DDOs shall maintain separate registers in Form GFR 5, each minor or sub-head of account
physically or electronically for allocation under with which they are concerned.
86. A copy of GFR 5 is submitted to HoD/Controlling officer by 3rd Day of following month
87. The controlling officer monitors the monthly return from GFR 6 (Broadsheet)
DDOs in
88. The Controlling Officer shall compile the data received from GFR-7
the DDOs in a statement in Form
89. A consolidated account in Form GFR 8, showing the Head of Department
complete
expenditure from the grant or appropriation at his disposal
up-to the end of the preceding month shall be prepared by
90. Responsible for the monthly reconciliation of the figures Both HoD and Accounts jointly
given in the accounts maintained by the Head of the
Department with those appearing in the Accounts Officer’s
books.
91. A Bill Register in Form TR 28-A,shall be maintained by DDO
92. The DDO shall furnish to the PAO a certificate of agreement the last day of the month following
of the figures as per his books with those indicated by the the month of accounts.
PAOs by
93. The Pr. AO/PAO of each Ministry, shall send a monthly The Head of Department
statement showing the expenditure vis-à-vis the Budget
provision under the various heads of accounts, in the
prescribed pro forma to
94. The Head of the Department shall furnish a quarterly 15th of the second following month
certificate to the Principal Accounts Officer certifying the after the quarter in question
correctness of the figures for the quarter by the
95. The Departments of the Central Govt. shall obtain from their 15th of the following month
Heads of Departments and other offices under them the
departmental figures of expenditure in Form GFR 8 by the
96. In case the Accounts Office figures are found to be higher The figure in Accounts Office as
than appropriation accounts are prepared
departmental figures, the correct figures shall be on the basis of the figures booked in
the accounts.

97. To watch the prompt receipt of the various returns from Departments of Central Govt. or each
month to a Broadsheet in Form GFR 9 shall be maintained by HoD and other authorities directly
the under them,
98. A Controlling Officer shall obtain from the spending October
authorities liability statements in Form GFR 3-A every month
starting from the month of
99. Liability Register is maintained by Controlling Officer (GFR 3)
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100. On the first appearance of any disproportionate Head of Department
expenditure, the Accounts Officer shall report immediately
to
101. The Accounts Officer shall not allow any payment against Chief Accounting Authority
sanctions in excess of the Budget provisions unless there is
specific approval of the
102. The funds provided during the financial year and not utilized stand lapsed at the close of FY.
before the close of that financial year shall
103. Adherence to the stipulated Quarterly Expenditure Plan and The Financial Advisers of the
the guidelines issued in this regard by Ministry of Finance Ministries/Departments
from time to time shall be ensured by
104. Where any excess over the allotment is apprehended, the before incurring the excess
subordinate authority shall obtain additional allotment expenditure
105. Re-appropriation is made in terms of provision of Rule 10 DFPR
106. Re-appropriation of funds shall be made only when It is known or anticipated that the
appropriation for the unit from which
funds are to be transferred shall not
be utilized in full or that savings can
be effected in the appropriation for
the said unit.
107. An application for re-appropriation of funds shall ordinarily GFR 1
be supported by a statement in Form GFR 1
108. In all orders sanctioning re-appropriation, the reasons for ₹ 1 lakh and above
saving and excess of shall be invariably stated when amount
involved is
109. Advance from Contingency Fund is obtained when expenditure in excess of the
sanctioned grant or appropriation or
on a new service not provided in
Budget and there is not sufficient time
for the voting of the Supplementary
Demand and the passing of the
connected appropriation bill before
close of the financial year,
110. The procedure for obtaining an advance from the The Contingency Fund of India Rules,
Contingency Fund and recoupment of the Fund have been 1952.
given in
111. Expenditure in excess of the provisions for the service Advance from Contingency Fund
included in Vote on Account shall be met by
112. The authority that appears before the Committee on Public Chief Accounting Authority i.e.
Accounts and any other Parliamentary Committee for Secretary of the Min/Department
examination on behalf a Ministry/Department is concerned
113. The main principles according to which the accounts of the (i) GAR, 1990 (ii) Treasury Rules (iii)
Government of India shall be maintained are contained in Account Code Volume-III
GOVERNMENT ACCOUNTS
114. The annual accounts duly certified by the CAG along with Six months of close of the Financial
CAG’s reports, shall be submitted to the President of India, Year,
preferably within
115. The numerical digits that a government transaction consists 15 (Major Head-4, Sub-Major-2,
of Minor-3, Sub-Minor, Detailed and
Object-2 each)
116. Sub-Heads and Detailed Heads as required may be opened Ministry/Departments concerned in
by consultation with the Budget Division
of MoF

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117. The object heads have been prescribed in Below Rule 8 of DFPR
118. The power to amend or modify these Object heads and to Department of expenditure i.e. CGA in
open consultation with the CAG
new Object Heads rest with
119. PFMS stands for Public Financial Management System
120. PFMS function under CGA
121. Direct Benefit Transfers under various Government Scheme Information and Communication
and Programmes have been implemented using ICT, where Technology
ICT means
122. Transfers of benefits under DBT scheme include Both cash and in kind transfers
123. The applicable transaction charges for the financial Ministry of Finance
intermediaries facilitating DBT payments shall be borne by
124. The annual accounts that is prepared showing the annual Finance Accounts
receipts and disbursements and statement of balances
under the respective Heads is called
125. Sub/Detailed Heads required under the Minor Heads falling Pr. A.O in consultation with Budget
within the Public Accounts may be opened by Division of the Ministry of Finance
126. Proforma accounts relating to Public Works shall be Accounts Offcer
prepared by
127. the Head of the units shall be required to maintain such Government and CAG
subsidiary proforma accounts in commercial form as may be
agreed between
128. A device intended to facilitate the Designated Officer thereof Personal Deposit Account
to credit receipts into and effect withdrawals directly from
the account, subject to an overall check being exercised by
the bank is called
129. No withdrawal from Public Deposit Accounts resulting in a The Designated Officer with the help
minus balance therein will be ensured by of Bank
130. The Personal Deposit Account shall be authorised to be A special order by the concerned
opened by Ministry/Department in consultation
with the CGA
131. The Government Account within which a Personal Deposit Public Accounts
Account is located is
132. In relation to Civil and Criminal Courts’ deposits, a PDA may Chief Judicial Authority concerned
be opened in favour of the
133. Loans outstanding against Public Sector Undertakings may The Parliament
be converted into equity investments in or as grants-in-aid
to the Public Sector Undertakings may be made with the
approval of
134. Loans outstanding against Public Sector Undertakings may including a token provision in the
be converted into equity investments in or as grants-in-aid relevant Demands for Grants or
to the Public Sector Undertakings may be made by Supplementary Demands for Grants
135. For capital outlay met out of specific loans raised by Government
Government, the interest shall be charged at such rate as
may be prescribed by the
136. For capital outlay provided other than out of specific loan Department of Economic Affairs,
rate of interest shall be determined each year by the Ministry of Finance.
137. The interest on capital outlays shall be calculated on the direct capital outlay at the end
of the previous year plus half the
outlay of the year itself,
138. When charges for interest during the process of construction Written back from the first charge on
of a project are temporarily met from capital, the any capital receipts or surplus revenue
capitalised interest shall be derived when opened for working.
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139. The period accepted mutually by Central and State 3 years
Governments for re-audit of past transactions involving
errors in classification is
140. The amount agreed upon between Central and State ₹ 10000/-
Government up-to which claimed shall not be preferred
141. Departments/Undertakings that fall outside the purview of Commercial Undertakings, Railways,
the proposed reciprocal arrangements between Central and Post, State Governments and the
State Governments Electrical undertakings etc.
142. If a doubt arises as to whether a particular claim would fall mutual consultation
within or outside the purview of the proposed reciprocal
arrangement amongst different Governments, it shall be
decided by
143. Central Government may entrust function to State 258
Government under Article
144. If the claims of State Government under Article 258 (3) are 5 years and shall be reviewed at the
found to be reasonable and do not exceed ₹ 50000/p.a for end of each period of five years.
any individual item or connected group of items), a contract
may be entered into for a period of
145. If the agency work involves the employment of a State open to that department to charge its
Commercial Department, the cost of the such work will be normal commercial costs.
146. The cost of regular joint establishment incurred under fixed annual sums settled in
Article 258 shall be shared on the basis of agreement with the State
Government concerned.
147. If the amount agreed upon exceeds ₹ 50000 an annual at the time of preparation of the
statement of proposed charges from the State Government Budget
shall be obtained by time
148. The Ministry/Department that should be consulted on all Ministry of Finance
matters arising under Article 258 (3) of the Constitution is
149. The expenditure connected with the construction or At first by State Govt. under Suspense
maintenance of National Highways etc. entrusted by Central Head 8658-PAO suspense and
to the State Governments shall be borne by reimbursable by the Central
150. A State function may be entrusted to the Central 258A
Government under the provision of Article
151. RBI closes its yearly accounts on 15th April of the following year.
152. Charges for maintenance of boundaries between india and 50: 50. If no share from foreign
Foreign country shall be borne in ratio of country is recovered then 100% by
Central.
153. Charges relating to demarcation of boundaries and Central Govt.
boundary disputes will be borne by the
154. The foreign country with which special arrangements The Nepal Government.
worked out in consultation with charges for maintenance of
boundary line is
155. The share of the Foreign Government for maintenance and The Bhutan Government
demarcation of and disputes over boundaries that will be
borne by the Central Government for the present is
156. All claims shall ordinarily be preferred between the same financial year and not
Departments, both commercial and non-commercial of the beyond 3 years from the date of
Central Government, within transaction.
157. Provision for the settlement of inter-departmental GAR 1990 (Chapter-4)
adjustments has been made in
158. In the case of Commercial department/undertaking 15 years of service
adjustment of Pensionary liability shall be made in the
regular accounts by charging the average rates based on the
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 monthly contribution of pension for
For other details on the chapter refers to summary on GAR
1990
WORKS
159. Classes into which works are divided into are Three-Original, Minor and Repair
works
160. Works which add capital value to existing assets but do not Minor Works
create new assets are called
161. Works that include services or goods incidental or Repair Works
consequential to the original or repair works are called
162. Site preparation, additions and alterations to existing works, Original works
special repairs to newly purchased or previously abandoned
buildings or structures, including remodelling or
replacement are come under the category of
163. A Ministry or Department at its discretion may directly ₹ 30 lakh
execute repair works estimated to cost
164. A Ministry or Department at its discretion may assign the Exceeds ₹ 30 lakh
repair works to Public Works Organisation where estimated
cost
165. A Ministry or Department at its discretion may assign the Of any value
Original works to Public Works Organisation where
estimated cost
166. As an alternative to assigning the works to PWOs are Central/State PSU
to any other Central / State Govt.
organisation /PSU which may be
notified by the Ministry of Urban
Development for such purpose
167. Grants for Civil Works are administered by CPWD
168. Works that should be included in the Grants for Civil works those which are not specifically
are allotted to any Ministry/Department
169. Estimates for works containing the detailed specifications the Schedule of Rates of CPWD/ other
and quantities of various items should be prepared on the Public Works Organisations
basis of
170. Any development of a project considered necessary while a Supplementary estimate.
work is in progress, shall have to be covered by a
171. For purpose of approval and sanctions, a group of works one work.
which forms one project, shall be considered as
172. Where a Ministry or Department executes works under its the Accounts Officer,
own arrangements, the detailed procedure relating to
expenditure on such works shall be prescribed by
departmental regulations framed in consultation with
173. Open tenders will be called for works costing ₹ 5 lakh to ₹ 30 lakh
174. Limited tenders will be called for works costing Less than ₹ 5 lakh
175. Where a Ministry or Department executes works under its only on the Personal Certificate of the
own arrangements, final payment for work shall be made Officer-in-charge of work execution.
176. Where a Ministry/Department allots works to PWO/PSU or A Memorandum of Understanding
any organisation for execution of work, it is desired that (MoU) may be drawn.
177. A Review Committee to review the progress of project ₹ 100 crore and above.
where the cost of project is
178. Review Committee is set up by Administrative Ministry/Department
179. Review Committee consists a member each from Administrative Min/Department,
Internal Finance Wing and Executing
Agency
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180. The Review Committee shall have the powers to accept 10% of the approved estimates.
variation within
181. Where the project cost is less than ₹ 100 crore, the progress Mechanism set-up at discretion of the
of work is monitored through Administrative Min/Department.
PROCUREMENT OF GOODS AND SERVICES
182. All Ministries/Departments shall prepare Annual commencement of the year (within 30
Procurement Plan and place the same on their websites days of approval of budget)
before
183. The Ministries or Departments have been delegated full Any amount.
powers to make their own arrangements for procurement of
goods costing amount
184. DGS&D shall conclude rate contracts with the registered which are not available on GeM, and
suppliers for such goods, item of common use needed on
recurring basis
185. Government e-Marketplace (GeM) will be hosted by DGS&D and any other agency
authorised by the Govt.
186. The Procurement of Goods and Services by Ministries or Mandatory
Departments for Goods or Services available on GeM will be
187. Government may buy direct on-line through any of the Up-to ₹ 50000/-
available suppliers on GeM where purchase costs
188. Purchase through the GeM Seller having lowest price Above ₹ 50000 and up-to ₹ 30 lakh
amongst the available sellers, of at least three different
manufacturers, on GeM where the cost of purchase is
189. Purchases to be made after mandatorily obtaining bids, Above ₹ 30 Lakh
using online bidding or reverse auction tool provided on
GeM in cases of purchase amounting
190. The DGS&D will register the suppliers for a fixed period the nature of the goods.
between 1 to 3 years subject to renewal on expiry of such
period depending on
191. A bidder debarred for corruption or any law in force, he or 2 years
any successor of the bidder shall not be eligible to
participate in a procurement process of any procuring entity
for a period
192. Indian agents, who desire to quote directly on behalf of their Department of Expenditure (MoF)
foreign principals, to get themselves enlisted with the
DGS&D under Compulsory Enlistment Scheme of
193. KVIC stands Khadi Village Industries Commission
194. ACASH stands for Association of Corporations and Apex
Societies of Handlooms
195. A competent authority may procure goods or services on the ₹ 25000
basis of a certificate to be recorded without inviting
quotation or bid up-to the amount of
196. Rule of GFR 2017 that deals with Purchase of goods without Rule 154
quotation is
197. Purchase of goods costing above ₹ 25,000 and up-to Rule 155
₹.2,50,000/-on each occasion may be made on the
recommendations of a duly constituted Local Purchase
Committee under GF Rule
198. A local purchase committee shall be constituted by Head of Department
199. Local Purchase Committee shall consist of 3 members of appropriate level
200. In case a Ministry or Department directly procures Central Ministry/Department concerned.
Purchase Organisation rate contracted goods from suppliers,
arrangement for inspection and testing of such goods where
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 ever required shall be made by
201. CPPP stands for Central Public Procurement Portal
202. Individual cases may be exempted from the mandatory e- Confidentiality and national security
publishing requirement on the ground of
203. The decision to exempt any case from the mandatory e- Secretary of the Min/Department with
publishing requirement should be approved by the the concurrence of the concerned FA
204. number of cases in which exemption was granted and the Department of Expenditure (MoF) on
value of the concerned contract should be intimated to quarterly basis.
205. Procurement of goods is resorted through advertised tender ₹ 25 lakh and above
enquiry when the estimated value of such procurement is
206. Ordinarily, from the date of publication of the tender notice 3 weeks
or availability of the bidding document for sale, whichever is
later the minimum time to be allowed for submission of bids
should be
207. The minimum time to be allowed for submission of bids may Bids from abroad is also obtained.
be extended to 4 weeks where
208. Procurement of goods is resorted through limited tender up-to ₹ 25 lakh and above
enquiry when the estimated value of such procurement is
209. The number of supplier firms in Limited Tender Enquiry more than 3
should be
210. Simultaneous receipt of separate technical and financial bids Two bid system
is known as
211. In two bid system, technical and financial bids are submitted in separate covers duly super-scribed
and both these sealed covers are to be
put in a bigger cover which should
also be sealed and duly super-scribed.
212. In two bid system, the bid that is opened first and on the Technical bid.
basis of acceptance of which another bid is opened later is
213. Where it is not feasible for Ministry/Department to Two Stage-bidding system
formulate detailed specifications or identify specific
characteristics for the procurement, without receiving
technical inputs from bidders, bidding system adopted is
214. In two-stage bidding system, the technical aspect invited A committee constituted by the
shall be evaluated by Ministry/Department.
215. Where a bidder invited to bid but not in a position to supply Not be forfeited.
the subject matter of procurement due to modification in
the specifications or terms and condition and withdraw from
bidding proceeding, his bid security should
216. Single tender enquiry is resorted to when a particular firm is the manufacturer
of the required goods
In a case of emergency,
standardisation of machinery or spare
parts
217. The certificate in prescribed form that to be provided by the Proprietary Article Certificate
Ministry/Department before procuring the goods in case of
Single Tender enquiry is called
218. An online real-time purchasing technique utilised by the Electronic Reverse Auction
procuring entity to select the successful bid, which involves
presentation by bidders of successively more favourable bids
during a scheduled period of time and automatic evaluation
of bids is called
219. Number of chapters in a bidding documents 7. * see footnote
220. Bid Security/Earnest Money is to be obtained from the all Micro and Small Enterprises (MSEs) as
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 bidders except defined in MSE Procurement Policy or
those registered with the Central
Purchase Organisation or the
concerned Ministry or Department.
221. Amount of bid security should ordinarily range between 2%-5% of the estimated value of the
goods to be procured.
222. The bid security should remain valid for a period of 45 days beyond the final bid validity
period.
223. Bid securities of the unsuccessful bidders should be returned on or before the 30th day after the
to them at the earliest after expiry of the final bid validity award of the contract
and latest by
224. Amount of performance security should range between 5%-10% of estimated tender value
225. The performance security should remain valid for a period of 60 days beyond contract completion.
226. Suppliers to whom advance payment may be made Having maintenance contracts for
servicing of ACs computers, other
costly equipment etc.
Having fabrication contracts, turn-key
contracts etc.
227. Where permissible advance payment to a Private firm may 30% of the contract value
be made up-to
228. Where permissible advance payment to a Central/State 40% of the contract value
Govt. Agency/PSU may be made up-to
229. In case of maintenance contract, the maximum amount of amount payable for 6 months under
advance should be the contract.
230. All government purchases to secure best value for money transparent, competitive and fair
should be made in a manner
231. If a firm quotes NIL charges/consideration in its bidding unresponsive and will not be
documents, the bid shall be treated as considered
232. Any bidder who has submitted his bid in response to the initially allotted or such extended time
original invitation shall have the opportunity to modify or as may be allowed for submission of
resubmit it within the period of bids,
233. When a limited or open tender results in only one effective single tender contract.
offer, it shall be treated as a
234. In case a purchase Committee is constituted to purchase or Exceeds ₹ 25 Lakh
recommend the procurement, no member of the purchase
Committee should be reporting directly to any other
member of such Committee in case estimated value of
procurement
235. Type of service that involves primarily non-physical project- Consulting Service
specific, intellectual and procedural processes where
outcomes/deliverables would vary from one consultant to
another is called
236. Preparation of a long list of potential consultants may be Up-to ₹ 25 Lakh
done on the basis of formal or informal enquiries from other
Ministries or Departments or Organisations involved in
similar activities, Chambers of Commerce & Industry,
Association of consultancy firms etc. where the estimated
cost of the consulting service is
237. Where the estimate cost of the consulting service exceeds ₹ an enquiry for seeking ‘Expression of
25 lakh, in addition to prepare a list of potential consultants Interest ’ from consultants should be
published on Central Public
Procurement Portal (CPPP)
238. The number of short listed consultants should Not less than 3 (Minimum 3)
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239. The document that to be used by the Ministry/Department Request for Proposal (RPF)
for
obtaining offers from the consultants for the required
service is
240. Technical bids in respect of procurement of consultancy Consultancy Evaluation Committee
services should be analysed and evaluated by (CEC).
241. Consultancy Evaluation Committee (CEC).is constituted by Concerned Ministry/Department.
242. QCBS stands for Quality and Cost Based Selection
243. QCBS is used For Procurement of consultancy
services,
244. The weight age of the technical parameters i.e. non- 80%
financial parameters under QCBS in no case should exceed
245. The System under which assignments of a standard or Least Cost System
routine nature where well established methodologies,
practices and standards exist is made is called
246. Types of service that involves physical, measurable Non-consulting service
deliverables / outcomes , where performance standards can
be clearly identified and consistently applied, other than
goods or works is called
247. The Ministry/Department should prepare a list of likely Formal and informal enquiries from
contractors for non-consulting services from other Min/Department/organisation,
scrutiny of ‘Yellow pages’, and trade
journals, web site etc.
248. The Ministry/Department will select the eligible contractor Up-to ₹ 10 lakh or less
from list of likely contractor prepared by them by issuing
limited tender enquiry when the estimate cost of non-
consulting service is
249. The number of identified contractor for limited tender More than 3
enquiry in case non-consulting service should be
250. The Ministry or Department should issue advertisement on Above ₹ 10 lakh
Central Public Procurement Portal and its own website
where the estimate cost of non-consulting service is
INVENTORY MANAGEMENT
251. The cost at which charges for hiring out the fixed assets to Historical cost
be recovered from the local bodies, contractors and others
should be calculated
252. A physical verification of all the fixed assets should be A year
undertaken at least once in
253. A physical verification of all the consumable goods and A year
materials should be undertaken at least once in
254. Complete physical verification of books should be done Not more than 20000
every year in case of libraries having books
255. Complete physical verification for libraries having more than at least once in 3 years.
20000 volumes and up-to 50000 volumes shall be conducted
256. physical verification for libraries having more than 50000 Sample verification at least once in 3
volumes shall be conducted years.
257. Reasonable loss in case of a library is 5 books/1000 books issued/consulted
in a year
258. Loss of library book shall invariably be investigated and of a book of a value exceeding ₹
appropriate action taken where loss 1,000/- and rare books irrespective of
value
259. A material should generally be considered as surplus if It remains in stock for over a year.
260. while disposing of the surplus goods, value and prices that Book value, Guiding Price and
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 should be worked out are Reserved Price.
261. The original purchase price of the goods in question may be it is not possible to work out the book
utilised, where value,
262. The mode of disposal will be determined by the competent Up-to ₹ 2 lakh
authority for surplus or obsolete or unserviceable goods
with residual value
263. The mode of disposal will be either through advertised Above ₹ 2 lakh
tender or public auction Where the residue value of surplus
or obsolete or unserviceable goods is
264. Bid security in case of disposal of surplus or obsolete or 10% of reserved price
unserviceable goods through advertised tender should be
265. If the price offered by highest bidder is not acceptable, only with that bidder
negotiation may be held
266. Where the negotiation with the highest bidder does not the reasonable or acceptable price
provide the desired result, may be counter offered to the next
highest responsive bidder(s).
267. In case the total quantity to be disposed of cannot be taken next higher bidder(s) at the price
up by the highest acceptable bidder, the remaining quantity offered by the highest acceptable
may be offered to the bidder.
268. Full payment, i.e. the residual amount after adjusting the bid releasing the goods.
security should be obtained from the successful bidder
before
269. During disposal of surplus or obsolete or unserviceable 25% of bid value.
goods through public auction, on acceptance of bid the
earnest money should be taken is
270. The composition of the auction team decided by the the Internal Finance Wing of the
competent authority will include an officer of department
271. If a Ministry/Department is unable to sell any surplus or Competent authority in consultation
obsolete or unserviceable item through permissible means, with finance division.
it may dispose of the same at its scrap value with approval of
272. In case the Ministry/Department is unable to sell the adopt any other mode of disposal
disposable items at its scrap value, it may including destruction of the item in an
eco-friendly manner.
273. Powers to write off of losses are mentioned in Delegation of Financial Powers Rules.
274. The heads under which losses due to depreciation are normal fluctuation of market prices
recorded are normal wear and tear
lack of foresight in regulating
purchases
negligence after purchase.
275. The heads under which losses not due to depreciation are losses due to theft or fraud
recorded are losses due to neglect
obsolescence of stores or purchases in
excess of requirements
losses due to damage
losses due to force majeure condition
such as flood, fire, enemy action etc.
CONTRACT MANAGEMENT
276. The article of Indian Constitution deals with provision 299 (1)
relating to contract is
277. The various classes of contracts and assurances of property, Law
which may be executed by different authorities, are issued
by the Ministry of
278. The powers of various authorities, the conditions and the Delegation of Financial Powers Rules
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 general procedure prescribed with regard to various classes (Rule 21)
of contracts and assurances of property are laid down in
279. The terms of contract must be precise, definite and without any
ambiguities
280. The modifications to the standard form of contract should financial and legal advice.
be carried out only after obtaining
281. A Ministry or Department may, by issuing purchase orders ₹ 2.5 lakh
containing basic terms and conditions, make purchases up-
to
282. The letter of acceptance will be treated as a contract where Between ₹ 1 and ₹ 10 lakh
tender documents include the General Conditions of
Contract (GCC), Special Conditions of Contract (SCC) and
scope of work in respect of Works Contracts, or Contracts
for purchases valued
283. A formal contract shall be executed where the estimated Work-₹ 10 lakh or above
cost is Purchase- above ₹ 10 lakh
284. Irrespective of amount involved Contract document should turn-key works or agreements for
be executed in cases of maintenance of equipment, provision
of services etc.
285. Contract document wherever necessary should be executed 21 days of the issue of letter of
within acceptance.

286. Where a contract document is not executed within 21 days may be forfeited.
of the issue of letter of acceptance, the earnest money of
the accepted bidder
287. A contract in which the price payable for supplies or services Cost plus contract.
under the contract is determined on the basis of actual cost
of
production of the supplies or services concerned plus profit
either at a fixed rate per unit or at a fixed percentage on the
actual cost of production is called
288. Price Variation Clause can be provided only in long-term 18 months
contracts, where the delivery period extends beyond
289. The price variations are calculated by using indices published Governments or Chambers of
by the Commerce
290. No claim for the payment from contractor shall be 3 years of arising of the claim.
entertained after the lapse of
291. Monitoring of Bank Guarantees or other Instruments should 3 months
include a monthly review of all Bank Guarantees or other
instruments expiring after
GRANTS-IN-AID AND LOANS
292. A new autonomous body should not be created without the Cabinet
approval of the
293. Thus Grants-in-aid including scholarships may be sanctioned Delegation of Financial Powers Rules
by an authority competent to do so under the provisions
mentioned there in
294. Regional Centres/Offices/Sub-Stations of any autonomous Administrative Min/Department
body can be created with prior approval of the
295. A Corpus Fund out of budgetary allocation for an Ministry of Finance
Autonomous Body may be created only with prior
concurrence of
296. A Corpus Fund out of internal resources for an Autonomous Administrative Min/Department
Body may be created with the concurrence of
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297. User charges/ sources of internal revenue generation of an Governing Body
autonomous body should be review by
298. User charges/ sources of internal revenue generation of an a year (preferably before the
autonomous body should be review at-least once formulation of Union Annual Budget)
299. Responsible for overall financial management of the Chief Executive Officer
autonomous bodies is
300. Peer review of autonomous organisations whether external 3 or 5 years depending on the size of
or internal shall be made every the autonomous body.
301. Autonomous organisations are need to enter into a More than ₹ 5 crore
Memorandum of Understanding with the Admin.
Min/Department where the budgetary support is
302. Findings of the peer review should be put up by the the Secretary
concerned programme division of the Department for
appropriate decision to
303. In the cases of the schemes where Grants are given as part the Central Financial Assistance (CFA)
of the expenditure on reimbursement basis the same will be
treated as
304. Before releasing any grant to an autonomous organisation, it 3 months of requirements
should be ensured that Cash balance at a time should
preferably not be more than
305. On finalisation of account of a grantee, all interests or other Remitted to Consolidated Fund of
earnings against Grants in aid or advances other than India
reimbursement) released should be
306. Non-Govt. or Quasi-Govt. Institutions or Organisations Grant sanctioning authority
cannot dispose of assets acquired wholly or substantially out
of Government Grants without the approval of
307. Entities desiring Grants from Govt. shall submit their September in the year preceding the
requirement with supporting details by end of the month of year for which the Grants-in-aid is
sough
308. The Admin. Min/Department should inform the result the April of the succeeding year
requests of entities for grant by
309. terms and conditions of service of their employee should be 50% of their recurring expenditure in
formulated by all Grantee entities, which receive the form of Grants-in-aid
310. Relaxation with regard to formulation of terms and the Ministry of Finance.
conditions of service of their employee, where required,
may be made in
consultation with
311. In all cases of buildings constructed with Grants- in-aid, The grantee entities.
responsibility of maintenance of such buildings shall rest
with
312. Grants-in-aid may be sanctioned to meet the bonafide 2 years prior to the date of issue of
expenditure incurred not earlier than the sanction
313. As a precondition to the sanction of Grants-in-aid to
theagencies it should be ensured that a suitable clause is
invariably included in the terms and conditions of grant, to
provide for reservation for SC/ST/OBC in posts and services
under such organizations or agencies.
314. Terms and conditions of grant, to provide for reservation for More than 20 persons on a regular
SC/ST/OBC in posts and services where the at least 50% of basis and
its recurring expenditure of grantees is met from Grants-in-
aid from Central Govt. and employs
315. Terms and conditions of grant, to provide for reservation for ₹ 25 lakh and above
SC/ST/OBC in posts and services where the grantee body is a
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 registered society or a co-operative institution and is in
receipt of a general purpose annual Grants-in-aid of
316. In respect of a voluntary organisation, the Grants-in-aid 25%. of approved administrative
should not exceed expenditure on pay and allowances of
the personnel of the voluntary
organisation concerned;
317. In case a voluntary organisation fails to comply the terms 10%
and conditions of Bond executed, the whole or a part
amount of the Grant will liable to be refunded along with
penal interest at the rate of
318. Exempted from execution of bond for grant-in-aid are Quasi Govt. institution, Central
Autonomous Organisations and
Institutions whose budget is approved
by the Government
319. The cost of stamp duty for the Bond executed between the The Government
Government and Voluntary organisation will be borne by
320. The Centrally Sponsored scheme should be designed in States and Union Territories.
consultation with
321. The release of funds under Centrally Sponsored scheme to PFMS
State Governments and monitoring further utilisation should
be undertaken through
322. A post-completion review of every Centrally Sponsored State Govt. and UT implementing the
Scheme should be undertaken by scheme
323. The sanctioning authority shall maintain a Register of Grants GFR-21
in form
324. Institutions or Organisations receiving Grants should, Accounts Officer after having utilised
irrespective of the amount involved, furnish a set of audited the grants
statement of accounts to
325. Internal audit of the accounts of a grantee institution shall Principal Accounts Office of the
be conducted by the Ministry or Department,
326. The accounts of the Grantee Institution or Organisation shall 14 of the DPC Act
be audited by the CAG under Section
327. Audit by the CAG under Section 14 is conditional Minimum grant is ₹ 25 lakh in the year
and forms 75% of entity’s total
expenditure
328. Irrespective of the percentage of entity met by the grants, Grants or loans in a FY are not less
the CAG is authorised to conduct audit u/s 14 of the DPC than ₹ 1 crore
when
329. Where the accounts are required to be audited by the CAG 2 years even if conditions are not
in a financial year, he shall continue to audit the accounts for fulfilled.
a further period of
330. CAG is empowered to scrutinise the procedure adopted by 15(1) of the DPC Act
sanctioning authority with regards to sanction grants/loans
under Section
331. Where the CAG is the sole auditor for a local Body or The auditee institution
Institution, auditing charges will be borne by
332. Approved and authenticated annual accounts to be made 30th June
available by the Autonomous Body to the concerned Audit
Office by the
333. Issue of the final SAR in English version with audit certificate 31st October
to Autonomous Body/ Government concerned by
334. Submission of the Annual Report and Audited Accounts to 31st December
the Nodal for it to be laid on the Table of the Parliament by
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335. Rule of GFR 2017 that deals with Utilisation Certificate is Rule 238
336. The Utilization Certificate should be submitted by 12 months of the closure of the FY
grantee/loanee concerned. within
337. Release of Grants-in-aid shall be done only after utilisation in excess of 75% of the total amount
certificate and the annual audited accounts when sanctioned for the subsequent FY
338. Utilization certificates need not be furnished in cases where reimbursement of expenditure
the Grants–in–aid /CFA are being made as already incurred on the basis of duly
audited accounts.
339. All the Ministries or Departments of Government of India Grants of ₹ 10 lakh and up-to ₹ 50 lakh
should include in their Annual Report a statement showing
the quantum of funds provide to Private and Voluntary
Organizations
340. The Annual Reports and accounts of Private and Voluntary 9 months of the close of the
Organizations receiving Grants-in-aid of ₹ 50 lakh and above succeeding FY.
should be laid on the Table of the House within
341. When Central Grants are given to State Governments for Administrative Secretary of the
implementation of Central Scheme, UC should be counter- Division regulating the
signed by Scheme/Finance Secretary.
342. When Central Grants are given to State Governments for The State Government
expenditure to be incurred by them through local bodies or
private institutions, the Utilization Certificates should be
furnished by
343. The Grantee Institutions or Organisations should be required 6 months after the close of the FY.
to submit performance cum achievement reports soon after
the end of the financial year, and in any case, not later than
344. performance-cum-achievement reports need not be celebration of anniversaries, conduct
obtained non-recurring Grants are meant for of special tours and maintenance
Grants
345. The sanctioning authority may dispense with the submission Not exceeding ₹ 25 lakh
of performance cum achievement reports where the grantee
receives the recurring grant-in-aid
346. Discretionary grants is applicable to Non-recurring grants only
347. Grants-in-aid for provision of amenities or of recreational or Ministry of Home Affairs
welfare facilities to the staff of the offices of the
Government are regulated under orders of
348. The Grant in aid towards amenities or of recreational or the total strength borne on regular
welfare facilities to the staff will be admissible on the basis establishment
of
349. The rate of the Grant-in-aid towards amenities or of ₹ 50 per head per annum+ Additional
recreational or welfare facilities to the eligible staff will be matching grant-in-aid up to ₹ 25.
Rupees Maximum ₹ 75/- per annum
350. Additional grant of ₹ 25 is given to match the subscriptions collected
during the previous FY by the existing
staff clubs/till the date of proposal in
case of new club.
351. The total strength of the eligible staff that is taken into 31st March of previous FY.
account as on
352. For setting up of recreational club, one time Grant may be ₹ 50000/-
sanctioned to the tune of maximum of ₹
353. The accounts of recreational clubs duly audited by an 30th April of succeeding year.
Internal Auditor should be obtained on or before
354. Powers and Procedure for sanction of loans are given in Delegation of Financial Power Rules
355. Nodal agency to finalise terms and conditions of loans by the Budget Division, Department of
18
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 Central Government is Expenditure (MoF)
356. Maximum period repayment of amount of loan and interest 30 years (Specific cases only)
due
357. The term of repayment is to be calculated from the date on Completely drawn or declared by
which the loan is competent authority to be closed.
358. Installment fixed for repayment of loan shall ordinarily be Annual installment.
359. Any instalment paid before its due date may be taken it is accompanied by payment toward
entirely towards the principal, provided interest due up-to-date of actual
payment of instalment
360. The interest for the full period shall be charged, if the 14 or less days
payment of the instalment is in advance of the due date by
361. When the due date of repayment of any instalment of The next working days.
principal or interest falls on a Sunday or a public holiday, the The previous day where due date is
revised due date will be 31st March.
362. the case of a loan sanctioned by the Central Govt. to a State 31st March
Govt. on or before 31st March, which is adjusted in the books
of the RBI in the month of April but in the accounts of the
previous year, the due date will for repayment will fall on
363. When monetary settlement is involved in loan given by the date on which amount of a loan is
Central Govt. to State Govt., the date of drawl of loan by the actually credited to the account of the
State Govt. is State Government by the RBI
364. Where no monetary settlement is involved in loan from the last date of the month of account
Central Govt. to State Govt., the date of drawl will be in which the adjustment is effected
365. A notices in Form GFR-19 to the loanees other than State the Pr. AO or PAO who maintain the
and Union Territory shall be issued in advance (a month) of detailed accounts of loans,
due date by
366. Before approving the loan, the private applicant shall be 3 years
asked to furnish the copies of profit and loss/income and
expenditure
accounts and balance sheets for the last
367. Loans to parties other than State Govt., wholly owned Govt 133.33% of the loan amount. 33.33%
Companies and Local Administration of UTs shall be more than amount of loan.
sanctioned only against adequate security which should be
at least
368. A loan should bear the interest for the period for the day of payment but not for the
day of repayment.
369. Interest for a period shorter than a year is calculated Number of days X Yearly rate of
interest
365 or 366 as the case may be
370. The repayment of principal and interest instalments may be Rupees
rounded off to the nearest
371. A suitable period of moratorium May be agreed for payment of
principal but not in respect of interest
on loan.
372. Loans to State and UT Governments, Local Bodies, Statutory Normal rate of interest.
Corporations, PSUs, etc. shall be sanctioned at
373. Concession, if any, given to normal rate of interest shall take Form of direct subsidy. interest shall
be paid in the first instance at the
normal rates and subsidy shall be
claimed separately.
374. At the time of sanctioning the loan, a written undertaking in a wholly Government-owned
Form GFR 15 shall be obtained from company
375. In case of loan to wholly owned Govt. Companies a the fixed assets of the company shall
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 Undertaking in GFR 32 is obtained to the effect that not be hypothecated without prior
approval of the Government
376. UC in respect of loan and grants-in-aid made to parties other 18 months from close of the FY in
than State Govt., wholly owned Govt. Companies and Local which loan or grant-in-aid was
Administration of UTs shall be submitted within sanctioned
377. In respect of loans the detailed accounts of which are each individual case.
maintained in the Audit Offices, the authorities sanctioning
the loan shall furnish the UC in respect of
378. Where the detailed accounts of loan is maintained by the A consolidated Utilization Certificate
departmental authorities, UC to audit officer is submitted as
379. 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
380. where various instalments drawn during a FY are allowed to For each drawl separately.
be consolidated into a single loan as at the end of that
particular financial year, interest will be calculated
381. In case of default in repayment of principal and interest, the 2.5% above the normal rate of interest
penal or the higher rate of interest, should not be less than prescribed by Govt.
382. Submission of Utilization Certificate, Reports, Statements, 256
etc. in respect of loan has been mentioned in GFR Rule.
383. Any loans owing to their irrecoverability or otherwise may competent authority with prior
be written off by approval of Ministry of Finance
384. Interest on interest-free loan is chargeable when There is default in repayment,
385. In the cases where in addition to interest free loans, subsidy the defaulted dues would be
is also provided to meet running expenses, in the event of recovered out of the subsidy payable.
any default in repayment,
386. Detailed accounts of loans to Institutions and Organizations, the Accounts Officer
etc., shall be maintained by
387. Annual Report on outstanding Central Loans borne on a 30th September
Ministry/Department’s books as on 31 st March each year
shall be submitted by the Pr. AO to concerned
Ministry/Department by
388. A copy of Annual Assessment Report on status of all 30th June
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
BUDGETING AND ACCOUNTING OF EXTERNALLY AIDED PROJECTS
389. The nodal agency to execute the legal agreement for loans Department of Economic Affairs (MoF)
or grants from external funding Agency(ies) is
390. World Bank is a Multi-lateral Funding Agency
391. Responsible for implementing the financial covenants laid The Office of the Controller of Aid
down in the agreement(s) executed by Department(s) of Accounts and Audit (CAAA)
Govt. of India and the External Funding Agency(ies) is
392. The Office of the Controller of Aid Accounts and Audit Department of Economic Affairs (MoF)
(CAAA) is located in
393. The external aid flow from the Funding Agency in foreign RBI, Mumbai. It remit the rupees
currency or Indian Rupees shall be received by the equivalent to the account of CAAA, at
RBI New Delhi
394. Type of grants that is accounted for by the CAAA is Cash grant only.
395. The concerned administrative Ministries or Departments Making provision of funds under the
may withdraw the fund received from external funding relevant head of account as ‘External
agencies by Aided Component’ in their Detailed
Demands for Grants
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396. Procedures for withdrawal of fund received from external Two. Reimbursement basis and Direct
funding agencies are Payment Basis
397. Under the Revolving Fund Scheme, the Funding Agency 4 months for the projects
disburses as initial advance to Government of India the
estimated expenditure of
398. GFT stands for Government Foreign Transaction
399. A loan wise proforma account for liquidation of advance The RBI, Mumbai.
received from funding agency shall be maintained by
400. Office of CAAA on receipt of reimbursement claims from US Dollars equivalent of the amount
Project Implementing Agency, shall send an advice to RBI, of the eligible claim.
Mumbai for debit the Special Account with the
401. Office of CAAA shall consolidate all claims and submit to replenishment of Special Account
Funding Agency for.
402. Under reimbursement outside special accounts the Funding borrower’s account with RBI, Mumbai.
Agency shall disburse the eligible expenditure to the RBI in turns passes it to CAAA
403. Under direct payment procedure, the request of project Through CAAA
implementing agency is submitted to funding agency
404. Under direct payment procedure, the funding agency contractor or supplier or consultant
releases the fund to
405. In the case of Central Projects, Centrally Sponsored Projects administrative Ministry or Department
and Public Sector or Financial Institutions, the fund to concerned
project implementing agency shall be released by
406. The consolidated details of fund flow under Reimbursement Department of Expenditure (Plan
through Special Account ” and “Reimbursement outside Finance Division)
Special Account” shall be submitted by the CAAA to
407. The Plan Finance division of Department of Expenditure shall Finance Department of State
issue sanctions for actual release of the disbursement for Government concerned.
each State and a copy of such sanction shall be endorsed to
408. The office of the CAAA, for effecting the release to the Central Accounts Section, RBI, Nagpur.
concerned State Governments, shall issue the Inter-
Government (IG) Advice to
409. The funds shall be released to Project Implementing Agency 6 weeks w.r.t expenditure incurred by
by the administrative Ministry or Department within the Project Implementing Agency.
410. where the loan is negotiated directly by a particular PSU or direct
Financial Institution, the funds from the Funding Agency
shall flow to the borrowing entity
411. In cases where the funds from externally aided Projects are administrative Ministry or Department
further passed on as loans, the recovery of the loan along concerned
with interest shall be the responsibility of
412. Major Head under which Interest on external loans shall be 2049-Interest Payment.
accounted for
413. The interest payment on external loans shall be classified as Charged expenditure (repayment is
also a charged expenditure)
414. The exchange variation in respect of foreign loans that have 8680-Miscellaneous Government
been fully repaid shall be adjusted written off to Major Head Accounts
415. In cases where foreign in kind without involving any cash concerned Ministry or Department
inflow, the funding agency issues details advice to
416. In cases where foreign in kind without involving any cash CAAA
inflow, the budget provision in regard to aid material or
equipment is made by
417. Major Head for Aid Materials and Equipment 3606
GOVERNMENT GUARANTEES
418. Power to Give and Limits on Government Guarantees has Rule 275
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 been given in GFR 2017
419. The power of the Union Government to give guarantees Article 292 of Constitution Fiscal
emanates from and is subject to such limits as may be fixed Responsibility and Budget
in terms of Management Act and Rules
420. Powers to grant Government of India Guarantee, including Budget Division (Department of
those on external borrowings, vests with Economic Affairs)
421. The proposal for Guarantee by Govt. India shall be examined the Credit Divisions (Department of
in consultation with the Financial Advisor by the Economic Affairs)
Administrative Ministry/Department or
422. After examination in the concerned Ministry or Department Budget Division (Department of
or Credit Division of DEA, all proposals for extending Economic Affairs)
guarantees shall be referred to
423. No guarantees shall be given without the approval of The Budget Division, DEA
424. BIFR stands for Board for Industrial and Financial
Reconstruction
425. While considering the Guarantee proposal of Central PSU, 3 years
the actual vis-à-vis target set by BIFR or cabinet should be
considered for preceding
426. Guarantees shall normally be restricted to The repayment of principal and
normal interest component of the
loan.
427. Government guarantees will be extended to only central public sector companies/
agencies.
428. guarantee shall not be normally given for the commercial loan components of
. such aid
429. All borrowings from the multilateral agencies by CPSUs Government of India.
would be direct on the terms as agreed mutually between
the borrower and the lender and approved by the
430. Where borrowings from the multilateral agencies by CPSUs Budget Division (DEA)
involves guarantee, the prior approval to be sought from
431. Guarantee fee is payable on the Principal amount of the loan drawn
and loan outstanding from time to
time.
432. The rates of fee on guarantees is notified by the Budget Division
433. The prescribed fee on guarantee shall be levied in respect of Ministry/Department concerned.
all cases by
434. Fee on guarantee in respect of non-fund based borrowings Leviable
or credit i.e. Letter of Credit, Bank Guarantee is
435. The guarantee fee should be levied before the guarantee is 1st April every year
given and thereafter on
436. The rate of guarantee fee is to be applied on the amount beginning of the guarantee year.
outstanding at the
437. Where the guarantee fee is not paid on the due date, fee double the normal rates for the period
should be charged at of default.
438. The maximum percentage of project loan to which the 80%
Government may extend guarantee is
439. The Government of India may guarantee 100% of the Is discharging some function on behalf
financing where the organisation concerned of the Government of India.
440. Once the guarantee is approved by Ministry of Finance, the Admin Min/Department concerned.
guarantees will be executed and monitored by the
441. Guarantee proposals approved by the Budget Division shall the same FY. Failing which proposal to
have to be executed in be re-submitted.
442. Guarantee given by Government of India shall be Non- transferrable
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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
443. Responsibility of maintenance of records and reporting Financial Advisor of Min./Department
including for the Finance Accounts and the IGAS pertaining
to Guarantee rests with
444. Financial Advisor reports to concerned authorities through Controller/Chief Controller of
Accounts
445. All Ministries or Departments shall ensure that all every year
guarantees are reviewed.
446. A copy of annual review of guarantee by Financial Advisor 30th April of the following year.
shall be submitted to Budget Division by
447. Financial Advisor shall maintain a Guarantee Register in GFR 10th April of the following year.
25 and data contain there is intimated to Budget Division
every year by
448. In respect of guarantees issued by the Ministry of Finance Credit Divisions (DEA) in consultation
for external loans, an annual review shall be conducted by with respective FA
449. where the guarantees on external loans are issued by the Ministry concerned
concerned administrative Ministry, responsible for
conducting the annual review would be
450. For the purpose of record keeping, guarantees shall be 6 categories [Rule 281(4)]
classified into
451. The rule that requires govt. to publish a disclosure Rule 6 of the FRBM Rules, 2004
statement on guarantees given by govt. at the time of
presenting the annual financial statement and demands for
grants.
452. The Statement of Disclosure on Guarantee is compiled by CGA for onwards submission to
the Admin. Min/Department and submitted to the Budget Division.
453. Indian Government Accounting Standard (IGAS) relating to IGAS-1
Government Guarantees is
454. The Government Account in which a Guarantee Redemption Public Account of India
Fund (GRF) has been established (8235-117)
455. In the event of invocation of a guarantee, the obligation may sanctioning loan to the borrowing
be discharged by entity equal to the amount of
guarantee outstanding with the
approval of Budget Division,
456. Amount of loan sanctioned in the event of invocation of a Guarantee Redemption Fund
guarantee shall be charged to maintained in the Public Accounts.
MISCELLANEOUS SUBJECTS
457. All proposals for Provision and instructions relating to DFPR (Rule 11)
additions to establishment are given in
458. An existing post beyond the specified duration will be Ministry of Finance,
continued with explicit approval of
459. All service matters from entry to exit, including leave, 285 of GFR 2017
transfer, promotion, performance appraisal should be
maintained in a digitised format as per Rule
460. The valid birth certificate in cases where the prescribed Municipal Birth Certificate or
educational qualification of a Govt. Servant is below the Certificate from the recognised school
matriculation are last attended
461. Detailed Rules for maintenance of Service Books are Supplementary Rules (SRs)
contained in
462. The service book of a government servant shall be duplicate.
maintained in
463. The Second copy of the Service Books shall be handed over 1 month of the date of appointment.
to new appointees within
464. The Second copy of the Service Books, if not already given, 6 months from the date of this rule
23
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 shall be handed over to the existing employees within becoming effective.
465. The Government servant shall handover his/her copy of the January
Service Book to his office for updation every year in
466. In case the Govt. servants’ copy is lost by the govt. servant, it ₹ 500/-
shall be replaced on payment of a sum of
467. Travelling allowance claim of a government servant shall fall The date succeeding the date of
due for payment on completion of the journey.
468. TA claim will stand forfeited if not Submitted within 60 days of its becoming due.
469. T.A. claims by retired Government servants appearing in a only when the judgement relating to
Court of Law for defending himself shall be admissible his honourable acquittal is
pronounced by the court.
470. Period for submission of T.A. claims by retired Government the date of pronouncements of the
servants appearing in a Court of Law for defending himself judgement
shall be admissible will be reckoned from
471. LTC claim of a government servant shall fall due for payment the date succeeding the date of
on completion of return journey.
472. Submission period for LTC claim is In case of Advance-30 days
When no advance-60 days
473. When LTC advance drawn by the Government Servant and Advance is recovered and allowed to
does not prefer claim within the prescribed period submit his/her claim treating as no
advance is drawn failing which claim
will be forfeited.
474. A claim for overtime allowance shall fall due for payment on 1st day of the month following the
month
475. Claim for overtime Allowance will stand forfeited if not 60 days of its becoming due
Submitted within
476. An increment may be withheld under the provision of FR 24
477. In the event of withholding an increment, the period of one the date on which it falls due
year is counted from
478. Any arrear claim of a Government servant shall be settled by 2 years of its becoming due.
the DDO or Accounts Officer, as the case may be, after usual
checks, if preferred within
479. A claim of a government servant should be investigated by exceeding 2 years,
the
Head of the Department concerned which has been allowed
to remain in abeyance for a period.
480. A time barred claim shall be paid with the express sanction Govt. issued with the previous
of the consent of the Internal Finance Wing
concerned
481. Retrospective effect relating to revision of pay or grant of Ministry of Finance
concessions to Govt. servants shall not be given without the
previous consent of the
482. A sanction to an advance or a non-refundable part 3 months
withdrawal from Provident Fund shall, unless it is specifically
renewed, lapse on the expiry of a period of
483. Remissions of revenue allowed before collection are to be reduction of demands and as refund
treated as
484. Compensation for accidental loss of property shall be paid to Ministry of Finance
an officer with the approval of
485. The public debt raised by government by issue of securities The RBI
shall be managed by
486. schedule of PLI recoveries to be attached to the bills, is a not only of those from whom the
record showing the detail recovery has actually been affected
24
Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)
 but also of those from whom recovery
was being affected previously but has
not been affected.
487. The amount of security to be obtained from a Government actual cash handled which shall not
servant shall be determined on the basis of include a/c payee cheques and drafts
488. A Government servant who is officiating against the post of be required to furnish the full amount
another cash or store handling Government servant shall of the security prescribed for the post.
489. Min/Department may exempt furnishing of security in case Not exceeding 4 months
of officiating against a short term vacancy where the period
of officiating is for a period
490. In respect of IA&AD, the competent to exempt furnishing of CAG
security in case of officiating against a short term vacancy
491. In addition to period of officiating, the other conditions for (i) No risk involved
exemption from furnishing of security in case of officiating (ii) Employees in permanent one.
492. A security deposit taken from Government servant shall 6 months from date he vacates his
generally be retained for at least post
493. no land belonging to the Government or any of its bodies, the Government.
shall be sold without previous sanction of
494. Transfer of land from a UT to a Central Government No profit no loss
Department or vice versa shall be on
495. Transfer of buildings and superstructures on land from a UT the present day cost minus
to a Central Government Department or vice versa shall be depreciation of these structure(s)
at
496. The allotment of land to, and recovery of cost of buildings Market Value'
from the Public Sector Undertakings shall be at
497. Any amount or loan not paid on due date to Government by non-statutory grant sanctioned for
a local body, may be adjusted from any. payment to it
498. Proceeds of taxes, fines or other revenues levied or collected not be appropriated direct to a local
by Government for or on behalf of local bodies shall fund without passing them through
the Consolidated Fund
499. Financial transactions between Government and local bodies Rupee.
shall be rounded off to the nearest
500. Rules relating to contingent expenditure are available at DFPR (Rule 13) & R&P (96 to 98)
Rule.
501. Permanent Advance or Imprest may be granted by HoD in consultation with the internal
financial wing
502. Procedures for maintenance of permanent imprest are given Civil Account Manual (Para 10.12)
in
503. The adjustment bill, along with balance if any, towards 15 days of its drawl.
advances for Contingent and Miscellaneous purpose shall be
submitted by the government servant within
504. The Ministry or Department may sanction the grant of an ₹ 25000/- at a time
advance to a Government Pleader in connection with law
suits up to the maximum of

216. Seven. 1-Instruction to bidders, 2- Conditions of Contract,3- Schedule of Requirements, 4- Specifications

and allied Technical Details, 5- Price Schedule (to be utilised by the bidders for quoting their prices), 6- Contract
Form and 7- Other Standard Forms, if any, to be utilised by the purchaser and the bidder

* Material on Appendix to GFR will be considered later, if required.

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Prepared by Deepak Kumar Rahi, AAO (LAD/Patna)