General Financial Rules 2017 - Chapter 3: Budget Formulation and

Implementation
1. Financial Year covers the period
A. From 01 Jan to 31 Dec
B. From 01 April to 31 March next year
C. From 01 July to 30 June next year
D. 01 September to 31 August next year
2. Presentation of Budget/ Annual Financial Statement to Parliament is
made under the provision of Article
A. 112 (1)
B. 112 (2)
C. 113 (1)
D. 113 (2)
3. Who shall arrange to lay Budget/ Annual Financial Statement before both
the Houses of Parliament
A. Concerned Ministry/Department
B. CGA
C. Finance Minister
D. Public Account Committee
4. The provisions for preparation, formulation and submission of budget to
the Parliament are contained in Articles
A. 112 to 116 of the Constitution of India.
B. 112 to 115 of the Constitution of India
C. 110 to 114 of the Constitution of India
D. 111 to 117 of the Constitution of India
5. The budget shall contain the following: -
A. Estimates of all revenues expected to be raised during the financial
year to which the budget relates
B. Estimates of all expenditure for each programme, scheme and
project in that financial year;

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 C. Estimates of all interest and debt servicing charges and any
repayments on loans in that financial year;
D. All of the above
6. State whether true or false The accounting heads under which major tax
and non-tax revenues are collected shall be prescribed by the
administrative Ministry in consultation with the Budget Division in the
Finance Ministry.
A. True
B. False
7. The rates of user charges should be linked with appropriate price indices
and reviewed at least
A. every year
B. every two years
C. every three years
D. every five years
8. The expenditure Charged on the Consolidated Fund and expenditure for
which a vote of the Lok Sabha is required have been provisioned in
A. Article 112 (1) and Article 112 (2) respectively
B. Article 112 (2) and Article 113(3) respectively
C. Article 112 (3) and Article 113(3) respectively
D. Article 112 (3) and Article 113(2) respectively
9. The estimates for expenditure for which vote of Lok Sabha is required
shall be in the form of
A. Vote on Account
B. Demand for Grants
C. Vote for Grants
D. Vote on Demand
10.The final unit of appropriation is
A. Major Head
B. Minor Head
C. Primary Head
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 D. Object head
11.State whether One Demand for Grant is presented in respect of each
Ministry or Department and under no circumstances more than one
Demand for Grant in respect of a single Ministry or Department shall be
presented
A. True
B. False
12.The Demand for Grants shall be presented to Parliament at
A. single level
B. two levels
C. three level
D. four levels
13.Pick the incorrect one
A. The Demand for Grants shall be presented to Parliament at two
levels.
B. The main Demand for Grants shall be presented to Parliament by
the Ministry of Finance, Budget Division along with the Annual
Financial Statement
C. The Detailed Demands for Grants, for consideration by the
“Public Account Committee (PAC) of the Parliament, are laid
on the Table of the Lok Sabha by the concerned Ministries/
Departments, as per dates approved from time to time.
D. None the above
14.The heads under which provision for expenditure shall be made in the
Demands for Grants or Appropriation shall be prescribed by the Finance
Ministry in consultation with the
A. CGA
B. CAG
C. Public Account Committee
D. Administrative Ministry or Department.
15.DRSC stands for
A. Disaster Relief Standing Committee

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 B. Departmentally Related Standing Committee
C. Demand Reviewing Standing Committee
D. Demand Review & Structure Committee
16.Outcome Budget Statement is prepared by Department of Expenditure in
consultation with the concerned Ministries and
A. Union Cabinet
B. Finance Commission
C. NITI Aayog
D. Public Account Committee
17.The budget statement linking outlays against each scheme/project with
the outputs/deliverables and medium term outcomes is known as
A. Performance Budget
B. Output Budget
C. Deliverable Budget
D. Outcome Budget
18.MTEF Statement stand for
A. Medium Term Expenditure Framework
B. Most Tolerable Efficiency Factor
19.If the Appropriation Bill seeking authorization of the Parliament to make
expenditure in consonance with the Budget proposal is likely to be passed
after the start of the financial year to which it corresponds then pending
the completion of the procedure prescribed in Article 113 of the
Constitution for the passing of the Budget, to cover expenditure for a
brief period the Finance Ministry may need to obtain a
A. Vote on Credit
B. Vote on Demand
C. Vote on Account
D. Credit on Demand
20.Vote on Account’ has been referred to in
A. Article 113 of the Constitution.
B. Article 114 of the Constitution.
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 C. Article 115 of the Constitution.
D. Article 116 of the Constitution.
21.State whether true or false Funds made available under Vote on Account
may be utilized for expenditure on a ‘New Service’.
A. True
B. False
22.A copy of the entries made in GFR 5 during the preceding month shall be
sent by the officer maintaining it, to the Head of the Department or other
designated Controlling Officer on
A. 1 st day of next month
B. 3 rd day of next month
C. 7 th day of next month
D. 15th day of next month
23.State whether true or false This statement shall also include adjustment of
an inward claim, etc., communicated by Pay and Accounts Officer
directly to the DDO (and not to his Grant Controlling Officer). If there
are no entries in the register in any month, a statement need not be sent.
A. True
B. False
24.To monitor the receipt of the returns from DDOs, the Controlling Officer
will maintain a broadsheet in Form
A. GFR 3
B. GFR 4
C. GFR 5
D. GFR 6
25.Pick the correct one regrading examining the point by the Controlling
Officer on receipt of the returns from DDOs.
(i) that the accounts classification has been properly given (ii) that progressive
expenditure has been properly noted and the available balances worked out
correctly (iii) that expenditure up-to-date is within the grant or appropriation
(iv) that the returns have been signed by Disbursing Officers. Where he finds
defects in any of these respects, he shall take steps to rectify the defect.

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 A. i, ii and iii
B. i, ii and iv
C. ii, iii and iv
D. All of the above
26.When all the returns from the Disbursing Officers for a particular month
have been received and found to be in order, the Controlling Officer shall
compile a statement in Form
A. GFR 5
B. GFR 6
C. GFR 7
D. GFR 9
27.On receipt of all the necessary returns, the Head of the Department shall
prepare a consolidated account showing the complete expenditure from
the grant or appropriation at his disposal upto the end of the preceding
month in Form
A. GFR 7
B. GFR 8
C. GFR 9
D. GFR 10
28.Who shall be responsible for the monthly reconciliation of the figures
given in the accounts maintained by the Head of the Department with
those appearing in the Accounts Officer’s books?
A. DDO & Accounts Officer jointly
B. DDO & Head of Department jointly
C. Head of Department & Accounts Officer jointly
D. All of the above jointly.
29.Pick the incorrect one
A. DDOs shall maintain a Bill Register in Form TR 28-A, and note all
bills presented for payment to the PAO in the register. Payment
details shall be noted in the appropriate column of the Bill
Register.

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 B. The PAOs shall furnish to each of the DDOs including Cheque –
drawing DDOs, an extract from the expenditure control register or
from the Compilation Sheet every month. statements for May to
March shall also contain Progressive Figures.
C. The DDO shall furnish to the PAO a certificate of agreement of
the figures as per his books with those indicated by the PAOs
by the 15th day of the month following the month of accounts.
D. The Principal Accounts Officer (or PAO wherever payments,
relating to a grant are handled wholly by a PAO) of each Ministry,
shall send a monthly statement showing the expenditure vis-à-vis
the Budget provision under the various heads of accounts to the
Heads of Departments responsible for overall control of
expenditure against grant of the Ministry as a whole.
30.The Head of the Department shall furnish a quarterly certificate to the
Principal Accounts Officer certifying the correctness of the figures
relating to Grant for the quarter by
A. the 15th of the following month after the end of quarters
B. the 15th of the second following month after the end of
quarters
C. the last day of following month after the end of quarters
D. the last day of second following month after the end of quarters
31.The Departments of the Central Government shall obtain from their
Heads of Departments and other offices under them the departmental
figures of expenditure in Form GFR 8 by
A. the 7th of the following the month
B. the 10th of the following the month
C. the 15th of the following the month
D. the last day of the following the month
32.A Broadsheet shall be maintained by the Departments of Central
Government or each Head of Department and other authorities directly
under them, to watch the prompt receipt of the various returns from
month to month in Form
A. GFR 9
B. GFR 10

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 C. GFR 11
D. GFR 11
33.In order to maintain proper control over expenditure, a Controlling
Officer shall obtain from the spending authorities liability statements in
Form GFR 3-A every month, starting from the month of
A. April
B. June
C. September
D. October
34.The Controlling Officer maintains a Liability Register in Form
A. GFR 2
B. GFR 3
C. GFR 3A
D. GFR 6
35.Ultimately responsible for the control of expenditure against the
grant/appropriation is
A. Head of Department
B. Accounts Officer
C. Authority administering the grant/appropriation
D. Head of Department & Accounts Officer jointly.
36.The Accounts Officer shall not allow any payment against sanctions in
excess of the Budget provisions unless there is specific approval of the
A. Head of Department
B. Chief Controller of Account
C. Controller General of Accounts
D. Chief Accounting Authority.
37.State whether true or false The savings as well as provisions even though
that cannot be profitably utilised shall not be surrendered to Government
before the end of the year. No savings shall be held in reserve for possible
future excesses.
A. True
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 B. False
38.Re-appropriation of Funds has been referred to in
A. Rule 10 of the Delegation of Financial Powers Rules
B. Rule 10 of GFR 2017
C. Rule 10 of R & P 1983
D. Rule 10 of GAR 1990
39.Re-appropriation of fund involves transfer of fund from
A. One department to another
B. One major head to another
C. Capital to Revenue or vice versa
D. One primary unit to another.
40.An application for re-appropriation of funds shall ordinarily be supported
by a statement in Form
A. GFR 1
B. GFR 2
C. GFR 3
D. GFR 4
41.In all orders sanctioning re-appropriation, the reasons saving and excess
and affected primary units (secondary units, wherever necessary shall be
invariably Stated for amount of
A. Rupees 50 thousand or over
B. Rupees 1 lakh or over
C. Rupees 2 lakh or over
D. Rupees 5 lakh or over
42.Supplementary Grant has been mentioned in Article
A. 113 of the Constitution
B. 114 of the Constitution
C. 115 of the Constitution
D. 116 of the Constitution

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43.Expenditure in excess of the provisions for the service included in an
Appropriation (Vote on Account) Act shall be met
A. By Supplementary Grant
B. By Excess Grant
C. By an advance from Consolidated Fund
D. By an advance from Contingency Fund
44.Contingency Fund of India has been set up under Article
A. 266 (1)
B. 267 (1)
C. 266 (2)
D. 267 (2)
45.The procedure for obtaining an advance from the Contingency Fund and
recoupment of the Fund shall be as laid down in the
A. Contingency Fund of India Rules 1952
B. Contingency Fund of India Rules 1955
C. Treasury Rule
D. GAR 1990
46.Who appears before the Committee on Public Accounts and any other
Parliamentary Committee for examination of accounts?
A. Head of Department
B. CCA
C. CAA
D. Financial Advisor

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