PAPER-III

QUICK OVERVIEW OF IMPORTANT TOPICS

GENERAL FINANCIAL RULES, 2017 (GFR)

General System of Financial Management (Rule 7 to 41)
 Standards of financial propriety (Rule 21) -
 Every officer incurring or authorizing expenditure from public
moneys should be guided by high standards of financial propriety.
 Every officer should also enforce financial order and strict economy
and see that all relevant financial rules and regulations are observed,
by his own office and by subordinate disbursing officers.
 Among the principles on which emphasis is generally laid are the
following:-
 i) Every officer is expected to exercise the same vigilance in
respect of expenditure incurred from public moneys as a person
of ordinary prudence would exercise in respect of expenditure of
his own money.
 (ii) The expenditure should not be prima facie more than the
occasion demands.
 (iii) No authority should exercise its powers of sanctioning
expenditure to pass an order which will be directly or indirectly to
its own advantage.
 (iv) Expenditure from public moneys should not be incurred for
the benefit of a particular person or a section of the people,
unless – (a) a claim for the amount could be enforced in a Court of
Law, or (b) the expenditure is in pursuance of a recognized policy
or custom.
 Any expenditure from public money should be utilized in a manner
by any official or officer assuming he is using that from his own
pocket
 Works (Rule 130 to 141)
 Original Works (Rule 130) -- Means all new constructions, site
preparation, additions and alterations to existing works, special repairs
to newly purchased or previously abandoned buildings or structures,
including re-modelling or replacement.
 Minor works mean works which add capital value to existing
assets but do not create new assets.
 Repair works means works undertaken to maintain building and
fixtures. Works will also include services or goods incidental or
consequential to the original or repair works. Rule 131
Administrative control of work

 Rule 133 (1) - A Ministry or Department at its discretion may

directly execute repair works estimated to cost up to Rupees Thirty
Lakhs after following due procedure indicated in Rule 139, 159 &
160.
 Rule 133 (2) --- A Ministry or Department may, at its discretion,
assign repair works estimated to cost above Rupees thirty Lakhs and
original/minor works of any value to any Public Works Organisation
(PWO)

Procurement of Goods & Services (Rule 142 to 206)

Rule 149 to 155 are important *
 Rule 143 - Definition of Goods - The term 'goods' includes all
articles, material, commodity, livestock, furniture, fixtures, raw
material, spares, instruments, machinery, equipment, industrial
plant, vehicles, aircraft, ships, medicines, railway rolling stock,
assemblies, subassemblies, accessories, a group of machineries
comprising of an integrated production process or such other
category of goods or intangible products like software, technology
transfer, licenses, patents or other intellectual properties purchased
or otherwise acquired for the use of Government but excludes
books, publications, periodicals, etc. for a library.
  The term 'goods' also includes works and services which are
incidental or consequential to the supply of such goods, such as,
transportation, insurance, installation, commissioning, training
and maintenance.

 Rule 144 (Fundamental principles of public buying) -- (for all

procurements including procurement of works)-
 Every authority delegated with the financial powers of procuring
goods in public interest shall have the responsibility and
accountability to bring efficiency, economy, and transparency in
matters relating to public procurement and for fair and equitable
treatment of suppliers and promotion of competition in public
procurement.
 Rule 149- Government e-Market place (GeM) - Government of
India has established the Government e-Marketplace (GeM) for
common use Goods and Services.
 GeM SPV will ensure adequate publicity including periodic
advertisement of the items
 GeM is mandatory for Procurement of Goods and Services by
Ministries or Departments
 The credentials of suppliers on GeM shall be certified by GeM
SPV.
 The procuring authorities will certify the reasonability of rates.
 The GeM portal shall be utilized by the Government buyers for
direct on-line purchases
 (i) Up to Rs.25,000/-6 through any of the available suppliers on
the GeM, (Note: In case of automobiles, procurement under this
sub-rule is permitted without any ceiling limit)
 (ii) Above Rs.25,000/- and up to Rs.5,00,000/- through the GeM
Seller having lowest price amongst the available sellers, of at least
03 different manufacturers, on GeM,
  (iii) Above Rs.5,00,000/- through the supplier having lowest price
meeting the requisite quality, specification and delivery period
after mandatorily obtaining bids, using online bidding or reverse
auction tool provided on GeM (excluding Automobiles where
current limit of 30 lakh will continue)
 (iv) The invitation for the online ebidding/reverse auction will be
available to all the existing Sellers or other Sellers registered on
the portal and who have offered their goods/services under the
particular product/service category, as per terms and conditions
of GeM.
 (v) The above mentioned monetary ceiling is applicable only for
purchases made through GeM. For purchases, if any, outside
GeM, relevant GFR Rules shall apply.

 Rule 154 (Purchase of goods without quotation) - Purchase of

goods upto the value of Rs. 25,000/- on each occasion may be made
without inviting quotations or bids on the basis of a certificate to be
recorded by the competent authority
 Rule 155 Purchase of goods by Purchase Committee - In case a
certain item is not available on the GeM portal, Purchase of goods
costing above Rs.25,000/- and upto Rs.2,50,000/- , on each occasion
may be made on the recommendations of a duly constituted Local
Purchase Committee consisting of three members of an appropriate
level as decided by the Head of the Department.
 The committee will survey the market to ascertain the
reasonableness of rate, quality and specifications and identify the
appropriate supplier.
 Before recommending placement of the purchase order, the
members of the committee will jointly record a certificate
 Rule 158 (Purchase of goods by obtaining bids) - Except in cases
covered under Rule 154, 155, and 156(1), Ministries or Departments
shall procure goods under the powers referred to in Rule 147 above
by following the standard method of obtaining bids in:
 (i) Advertised Tender Enquiry
 (ii) Limited Tender Enquiry
 (iii) Two-Stage Bidding
 (iv) Single Tender Enquiry
 (v) Electronic Reverse Auction

Inventory Management (Rule 207 to 223)

 Rule 211 Lists and Accounts - The Officer-in-charge of stores shall
maintain suitable item-wise lists and accounts and prepare accurate
returns in respect of the goods and materials in his charge making it
possible at any point of time to check the actual balances with the
book balances. (STOCK REGISTER WITH CT CELL)
 (a) Fixed Assets such as plant, machinery, equipment, furniture,
fixtures etc. in the Form GFR-22
 (b) Consumables such as office stationery, chemicals,
maintenance spare parts etc. in the Form GFR-23
 (c) Library books in the Form GFR 18
 (d) Assets of historical/artistic value held by museum/government
departments in the Form GFR-24.
CENTRAL CIVIL SERVICES (CONDUCT) RULES, 1964
3B - Observance of Government’s policies
3-C  Prohibition of sexual harassment of working women
5  Taking part in politics and election
9  Criticism of Government
18 (2)  Immovable property
18 (3)  Movable property
Central Civil Services (Classification, Control & Appeal) Rules 1965
For each cadre Appointing Authority is Disciplinary Authority
 The protection granted by Clause 2 of the Article 311 relates as to
how a Government servant can be dismissed, or removed from
service or reduced in rank. It provides that no one can be dismissed
or removed from service or reduced in rank except after an inquiry.
The same article also indicates that the above mentioned inquiry
must satisfy the following two conditions:
 (a) The individual concerned must be informed of the charges
 (b) Must be granted a reasonable opportunity of being heard in
respect of these charges.
 Penalties (Rule -7) that can be imposed on the Government Servant
have been classified as Major and Minor Penalties.
 As per Rule 11 of the CCA Rules, the competent authority may, for
good and sufficient reasons, impose on a Government Servant any of
the following penalties:
 Minor Penalties –
 (i) censure
 (ii) withholding of his promotion
 (iii) recovery from his pay of the whole or part of any pecuniary
loss caused by him to the Government by negligence or breach of
orders
 (iv) withholding of increments with or without cumulative effect

 Major Penalties –
 (v) save as provided for in clause (iii) (a), reduction to a lower
stage in the timescale of pay for a specified period, with further
directions as to whether or not the Government servant will earn
increments of pay during the period of such reduction and
 whether on the expiry of such period, the reduction will or will
not have the effect of postponing the future increments of his pay
 (vi) reduction to lower time-scale of pay, grade, post which shall
be a bar to the promotion to the employee to the time-scale of
pay, grade, post from which he was reduced, with or without
further directions regarding conditions of the restoration to that
grade pay or post from which the employee was reduced and his
seniority and pay on such restoration to that grad or post
 (vii) compulsory retirement;
 (viii) removal from service which shall not be a disqualification for
future employment under Central Board
 (ix) dismissal from service which shall ordinarily be a
disqualification for future employment under the Central Board
 Rule 10 – Procedure for imposing Major Penalties
 Rule 12 – Procedure for imposing Minor Penalties

Suspension and Subsistance Allowance

Suspension Temporary withdrawal of duties from
during pending inquiry
It is not a penalty
Review of suspension Before expiry of 90 days
Extension of suspension should be more than
180 days
Subsistence Allowance It is half average pay or half pay in addition
DA if admissible on the basis of such leave
salary
Review of subsistence After 03 months and may be increased by up
Allowance to 50% or may reduced up to 50%
LTC Suspended employee can not avail LTC
Promotion during Promotion would be considered by DPC but
Suspension Promotion would be deemed to have been
placed in the sealed cover
Leave Travel Concession (LTC)

Eligibility Any employee with 01 year continuous service

If Home Town is No Home Town LTC admissible
Headquarter
Leaves LTC can availed with any period of leave but not
allowed in weekends (at least one leave
required)
Types of LTC Home Town and All India
Fresh Recruits Staring 8 Years regular LTC granted
After 8 Year Srevice 2 LTC in a block (01 Home Town and 01 All India
Blocks 04 year Block (Current 2022-2025
(Other than fresh 2022-2023 (Extended up to 31.12.2024) (H.T.)
recruits) 2024-2025 (Extended up to 31.12.2026) (A.I.)
01 Home Town & 01 All India LTC allowed
In a block the Home Town LTC can be converted visit North East, J&K
and Andman Nicobar Islands

Illustration for fresh recruits :

Carry forward of LTC is not allowed for fresh recruits
Eligibility For employees joined in2021 w.e.f.2022 after
completing of 01 year
2022 Home Town LTC Out 03 any Home Town LTC can be
2023 Home Town LTC converted to visit North East, J&K
2024 Home Town LTC and Andman Nicobar Islands
2025 All India LTC
2026 Home Town LTC Out 03 any Home Town LTC can be
2027 Home Town LTC converted to visit North East, J&K
2028 Home Town LTC and Andman Nicobar Islands
2029 All India LTC

 From the block year i.e.2030 to 2033,the above batch will be

shifted normal block years ( 01 Home Town and 01 All India)
 Employee who is not entitled to travel by Air are allowed to travel by
Air in Economy Class by any airlines subject to maximum fare limit of
LTC-80 fare in following sectors :-
 Between Kolkata/Guwahati and any place in NER
 Between Kolkata/Chennai/Visakhapatnam and Port Blair
 Between Delhi/Amritsar and any place in J&K and Ladakh
 Submission of LTC bills

If advance taken (Max Within 30 days of return journey

advance 90% allowed)
No advance has taken Within 90 days of return journey

National Pension System

 Applicable w.e.f. 01.01.2004
Contribution 10% of Basic + DA by employee
14% contribution by the Central Board
Benefits of On completion of 20 years (VRS)
retirement
Partial Minimum 3 years required
Withdrawal Amount not exceed 25% of contribution of own
share
Purpose of Higher Education or Marriage of children
Partial
Withdrawal Purchase/construction of house or flat
Maximum 03 times during entire tenure
Advances
Exit/Withdrawal Superannuation At least 40% of investment
has to be utilized in Annuity for further
pension.
Balance will be paid as lumpsum
Exit/Withdrawal Upon Death - At least 80% of investment has
to be utilized in Annuity for monthly pension.
Balance will be paid as lumpsum
Leave Encashment during LTC
 60 days in entire service is allowed
 One occasion maximum 10 EL can be encased
 After deduction leaves for encasement, the balance should not be
less than 30 days
 Leave Encasement for 10 days is equal to (for example)
= (Basic + D.A.) X 10
---------------------------
30

*Time limit for submission of claims for T.A. has been reduced to
60 days succeeding the date of completion of the journey

Travelling Allowance DA on Tour

Pay Level Entitlement
14 & above Rs. 7500/- per day for Hotel
Food Bill Rs. 1200/-
AC Taxi charges within city
12,13 Rs. 4500/- per day for Hotel
Food Bill Rs. 1000/-
AC Taxi charges up to 50 Km per day within city
9 to 11 Rs. 2250/- per day for Hotel
Food Bill Rs. 900/-
Non- AC Taxi charges up to Rs. 338/- per day within city
6 to 8 Rs. 750/- per day for Hotel
Food Bill Rs. 800/-
Non- AC Taxi charges up to Rs. 225/- per day within
city
5 and below Rs. 450/- per day for Hotel
Food Bill Rs. 500/-
Non- AC Taxi charges up to Rs. 113/- per day travel
within city

*For Level below 8 - The amount of claim up to ceiling need

any vouchers
 T.A. on Tour
Pay Level Entitlement
14 & above Business/Club class by air or AC-I by Train
12 and 13-A Economy class by air or AC-I by Train
6 to 11 Economy class by air or AC-II by Train
5 and below First Class/AC-III/AC Chair Car by train
 Between Duty point/residence at Headquarter to duty point at
distant station and vice versa
 Fare for journey by Rail/Road/Air/Sea

T.A. on Training :-
 Entitlements for TA & DA are same as T.A./DA on tour
 When Loading & Boarding not provided
 1st 180 days ------- Full Daily Allowance
 Beyond 180 days - Nil

 T.A. on Transfer :-
 Transfer :- Movement of an employee from one headquarter
station to another such station
 If transfer made in public interest/administrative ground not
at own request

Transfer T.A. entitlement

Composite Equal to 80% of last month’s basic pay
Transfer Grant (Not admissible if no residence change)
100% at Andman and Lakshdeep
Travel For Self and family- Rail/Road/Steamer/Air
Entitlement
Road Mileage Places not connected by rail
Transport Cost of transportation of personal effects from
residence to new residence
Conveyance Cost of transportation of conveyance possessed
by the employee
 Composite Transfer Grant (CTG) and T.A.
At same station No T.A. & CTG if no change in residence
transfer
If residence changed
Actual cost of conveyance limited to road mileage ,
actual cost of transportation
&
CTG equal to one third of 80% of basic
Distance below No T.A. & CTG if no change in residence
20 Km
If residence changed
Full transfer T.A. will be allowed
&
CTG equal to one third of 80% of basic

 T.A. on Retirement :- Identical to T.A.on transfer

T.A. on Temporary Transfer :-

 If transfer not exceeding 180 - Entitlements for TA & DA are
same as T.A./DA on tour and will be granted for 180 days
 No joining time will be admissible and No advance pay
Definition of Family :-
 Spouse residing with employee
 Children and Stepchildren residing with employee & wholly
dependent
 Married daughter, if divorced, abandoned, separated from her
husband residing with employee & wholly dependent
 Widow daughter residing with employee & wholly dependent
 Parents, Stepmother, unmarried sisters, Minor brothers residing
with employee & wholly dependent
 Widow sister residing with employee & wholly dependent
 Step father is not included in the definition of family