General Financial Rules 2017 Vocabulary

General Financial Rules 2017: Introduction and General System of Financial Management

• Rule 1 - Short Title and Commencement:

  • These rules are designated as the General Financial Rules, 2017.
  • They come into force immediately upon notification and apply to all Central Government Ministries, Departments, and attached and subordinate bodies.
  • Provisions are deemed applicable to Autonomous Bodies except to the extent that the bye-laws of an Autonomous Body provide for separate Financial Rules approved by the Government.

• Rule 2 - Key Definitions:

  • Accounts Officer: Head of an Office of Accounts or Head of a Pay and Accounts Office (PAO) under the departmentalization of accounts scheme.
  • Administrator: Administrator of a Union Territory, by whatever designation called.
  • Appropriation: Assignment of funds included in a primary unit of appropriation to meet specified expenditure.
  • Audit Officer: Head of an Office of Audit.
  • Competent Authority: President of India or any authority delegated powers under these Rules, Delegation of Financial Power Rules (DFPR), or general/special orders of the Government of India.
  • Comptroller and Auditor General (CAG): Comptroller and Auditor General of India.
  • Consolidated Fund: Consolidated Fund of India established under Article 266(1) of the Constitution.
  • Contingency Fund: Contingency Fund of India established under the Contingency Fund of India Act, 1950, pursuant to Article 267(1) of the Constitution.
  • Controlling Officer: Officer entrusted by a Central Government Department with controlling expenditure and/or collecting revenue; includes Heads of Departments and Administrators.
  • Drawing and Disbursing Officer (DDO): Head of Office or Gazetted Officer authorized by a Department, Head of Department, or Administrator to draw bills and make payments on behalf of the Central Government.
  • Financial Year: Year beginning on 1st April and ending on 31st March following.
  • Government Account: Account relating to Consolidated Fund, Contingency Fund, and Public Account of India.
  • Head of Department: Authority or person (not below the rank of Deputy Secretary to the Government of India) declared by a Department to exercise delegated financial powers for identifiable establishments.
  • Head of Office: Gazetted Officer declared under DFPR or general/special orders of competent authority.
  • Local Body / Local Fund: Authority empowered to administer a local fund as defined in Rule 652 of Treasury Rules.
  • Non-Recurring Expenditure: Expenditure incurred other than recurring expenditure.
  • Public Account: Public Account of India referred to in Article 266(2) of the Constitution.
  • Public Works: Civil/electrical works including public buildings, public services, and transport infrastructure (original and repair works) for general public use.
  • Re-appropriation: Transfer of funds from one primary unit of appropriation to another.
  • Recurring Expenditure: Expenditure incurred at periodical intervals for the same purpose.
  • Reserve Bank: Reserve Bank of India (RBI) or its agencies under the RBI Act, 1934.
  • CAPEX Model: Model where Capital expenditure is used by the buyer to straightway purchase goods, followed by procurement of consumables, arranging Comprehensive Maintenance Contracts (CMC) post-warranty, and final product disposal after useful life.
  • OPEX Model: Model where the Seller provides goods, maintains them, supplies consumables, and takes back goods after useful/contracted life; expenditure by buyer is staggered as per contract terms.

• Rules 3 to 6 - General Interdepartmental & Administrative Principles:

  • Rule 3 (Interdepartmental Consultations): When a case concerns more than one Department, no order shall issue until all concerned Departments concur, or a Cabinet decision is taken. Any decision in one Department likely to affect business in another is deemed to concern multiple Departments.
  • Rule 4 (Departmental Regulations): Departmental regulations embodying financial orders or instructions must be made by or with the approval of the Ministry of Finance.
  • Rule 5 (Removal of Doubts): Matters involving interpretation of GFR provisions must be referred to the Ministry of Finance.
  • Rule 6 (Modifications): Systems and procedures established by GFR are subject to Ministry of Finance instructions and cannot be modified by any other authority without express Finance Ministry approval.

• Rules 7 to 20 - Receipt and Management of Government Money:

  • Rule 7: All moneys received by or on behalf of Government as dues, deposits, or remittances must be brought into Government Account without delay pursuant to Articles 150 and 283(1) of the Constitution.
  • Rule 8: Moneys received by/deposited with Union officers in official capacity (other than general revenues) or by Courts (including Supreme Court, excluding UT High Courts) must be paid into Public Account under Article 284. Crediting and withdrawal are governed by Government Accounting Rules 1990 and Central Government Account (Receipts and Payments) Rules 1983.
  • Rule 9: Departments must ensure Government receipts and dues are correctly and promptly assessed, collected, and credited to Consolidated Fund or Public Account.
  • Rule 10: Controlling Officers must obtain monthly accounts/returns from subordinate officers and compare them with credit extracts provided by Accounts Officers.
  • Rule 11: Departmental regulations must govern assessment, collection, allocation, remission, and abandonment of revenue. Receipt books issued in Form GAR-6 must be strictly accounted for and verified upon return.
  • Rule 12: Government dues shall not remain outstanding without sufficient reason. Irrecoverable amounts require competent authority orders for adjustment.
  • Rule 13: Crediting revenue by debit to a suspense head is prohibited unless specially authorized; credit must follow actual realization.
  • Rule 14: Administrators and Heads of Departments responsible for revenue collection must keep the Ministry of Finance informed of collection progress and variations against Budget Estimates.
  • Rule 15 (Rents): Civil departments managing rentable buildings/lands are responsible for rent recovery following CPWD rules and procedures.
  • Rule 16 (Fines): Authorities imposing fines must ensure realization, checking, deposit, and prevent double/unauthorized refunds.
  • Rule 17 (Miscellaneous Demands): Accounts Officers must watch realization of non-ordinary revenue demands (e.g., contributions from State Governments, Local Funds, contractors for establishment charges).
  • Rule 18 & 19 (Remission of Revenue):
    • Revenue claims cannot be remitted or abandoned without competent authority sanction.
    • Annual statements of remissions/abandonments sanctioned under discretionary powers during the preceding year must be submitted by 1st June to Audit and Accounts Officers.
    • Exemption: Individual remissions below $\text{Rs. } 1,000$ need not be included in annual statements.
    • Statements must classify remissions by grounds and include brief explanatory circumstances for each class.

• Rules 21 to 32 - Standards of Financial Propriety and Expenditure Principles:

  • Rule 21 (Standards of Financial Propriety): Every officer incurring or authorizing expenditure must exercise the same vigilance as a person of ordinary prudence exercising care over their own money. Key tenets:
    1. Expenditure must not prima facie exceed what the occasion demands.
    2. No authority shall exercise sanctioning powers to pass orders directly or indirectly to its own advantage.
    3. Public funds must not be spent for the benefit of a particular person or section unless enforceable in a Court of Law or pursuant to recognized policy/custom.
  • Rule 22: Expenditure, liabilities, or investment/deposit transfers from public funds require prior sanction of a competent authority.
  • Rule 23: Financial powers not explicitly delegated under DFPR vest in the Ministry of Finance.
  • Rule 24: Draft memoranda for EFC, PIB, CEE, CCEA, or Cabinet must be circulated only after mandatory consultation with the Financial Adviser (FA).
  • Rule 25 (Provision of Funds): Sanctions must indicate grant/appropriation details. Sanctions issued before fund communication must explicitly state that expenditure is subject to funds being communicated in the budget.
  • Rule 26: Controlling Officers are responsible for ensuring expenditure stays within budget allocations, serves public interest, complies with designated purposes, and operates robust error/fraud prevention systems.
  • Rule 27: Sanctions come into force on the date of issue unless specified otherwise. Orders for temporary posts must explicitly specify the creation date.
  • Rule 28: Without prior Finance Ministry consent, subordinate authorities cannot grant land, assign revenue, concede mineral/forest/water rights, or relinquish revenue.
  • Rule 29 (Communication of Sanctions): All financial sanctions must be communicated to Audit and Accounts Officers. Sanctions expressing definite amounts must state figures in both words and numbers. Routine contingent expenditure, staff appointments/promotions, GPF advances, and land/building transfers follow specific simplified communication/return paths.
  • Rule 30 & 31 (Lapse of Sanctions):
    • A sanction lapses if no payment (in whole or part) is made within 12 months from issue date, unless specific currency is prescribed, or tied to a specific financial year's budget.
    • Store purchase sanctions do not lapse within 1 year if tenders are accepted (local purchase) or indents placed on Central Purchase Organizations (central purchase).
    • Rule 31 Exception: Sanctions for additions to permanent establishments made year-to-year or post allowances do not lapse.

• Rules 33 to 38 - Losses, Defalcation, and Personal Responsibility:

  • Rule 33 (Reporting Losses):
    • Losses/shortages of public money, revenue, stamps, stores, or property must be immediately reported to the next higher authority, Statutory Audit Officer, and Principal Accounts Officer.
    • Exceptions: Mistakes in assessments discovered late, under-assessments overruled after time-limit, time-barred refunds, and petty losses not exceeding $\text{Rs. } 10,000$.
    • Serious irregularities must be reported to the FA, Chief Accounting Authority, and Controller General of Accounts (CGA).
    • Reporting stages: Initial report upon suspicion; Final report after full investigation (detailing nature, extent, rule neglect, and recovery prospects).
    • Redrawal of lost amounts via misappropriation/embezzlement is permitted on a simple receipt pending investigation with approval of write-off authority.
  • Rule 34 & 35 (Losses from Fire, Theft, Fraud, Natural Calamities):
    • Losses exceeding $\text{Rs. } 50,000$ due to suspected fire, theft, or fraud must be mandatorily reported to Police immediately, and formal police reports obtained.
    • Losses of immovable property exceeding $\text{Rs. } 50,000$ caused by natural calamities (flood, cyclone, earthquake) must be reported at once to Government.
  • Rule 37 (Personal Responsibility): Officers are held personally responsible for losses sustained by Government through their own fraud or negligence, as well as lax supervision contributing to fraud/negligence by subordinates. Departmental proceedings must strictly follow Appendix 1 procedures.

• Rules 39 to 41 - Information Access for Audit:

  • Subordinate authorities must furnish full facilities, information, books, and documents to Audit and Accounts Officers.
  • Files categorized as 'Secret' or 'Top Secret' must be delivered personally to the Head of the Audit Office.

Budget Formulation, Implementation, and Expenditure Control

• Rules 42 to 52 - Budget Preparation and Structure:

  • Financial Year: Commences on 1st April and ends on 31st March of the following year.
  • Rule 43: Annual Financial Statement ('Budget') is presented to both Houses of Parliament under Article 112(1). Railway Budget is merged with the General Budget starting from financial year 2017-18.
  • Rule 44 (Budget Contents): Estimates of revenues, program/scheme expenditures, interest/debt servicing charges, loan repayments, and prescribed details.
  • Rule 45 (Receipt Estimates): Prepared by estimating authorities for each Major Head, detailing Minor/Subhead/Detailed breakdowns along with actuals of the past 3 years.
  • Rule 46 to 49 (Non-Tax Revenues & User Charges):
    • User charges must recover full current service delivery costs with a reasonable return on capital investment; deviations must be explicitly recorded. Rates must be linked to price indices and reviewed at least every 3 years via executive rules/orders.
    • CPSE dividends/profits must be paid promptly after AGM decisions as per DIPAM guidelines.
    • Online collection of non-tax revenues must transition to e-Receipts public portal.
  • Rule 50 (Expenditure Estimates): Distinguishes 'Charged' expenditure (Article 112(3)) from 'Voted' expenditure (Article 113(2)), and Revenue account from Capital account (including loans, treasury bills, and ways & means advances). Prepared down to the primary unit of appropriation (Object Head).
  • Rule 51 & 52 (Demands for Grants):
    • Presented at two levels: Main Demands for Grants presented by Ministry of Finance alongside Annual Financial Statement; Detailed Demands for Grants laid on Lok Sabha table by respective Ministries for Departmentally Related Standing Committees (DRSC).
    • Form and classification heads are prescribed exclusively by the Ministry of Finance.

• Rules 53 to 56 - Outcome Budget, Vote on Account, and Fund Distribution:

  • Rule 54 (Outcome Budget): Formulated by Department of Expenditure in consultation with NITI Aayog, mapping budgetary outlays to measurable output/deliverables and medium-term outcomes based on Medium-Term Expenditure Framework (MTEF).
  • Rule 55 (Vote on Account): Obtained under Article 116 if the Appropriation Bill is delayed beyond 1st April. Cannot be used for expenditure on a 'New Service'.
  • Rule 56 (Distribution of Grants): Communicated to Ministries/Departments upon passing of Appropriation Bill, which then distribute funds to subordinate formations and Pay & Accounts Officers.

• Rules 57 to 70 - Expenditure Control Mechanisms:

  • Rule 57 (Control Responsibilities & Procedures):
    • No expenditure exceeding sanctioned grants/appropriations is permitted without Supplementary Grants or Contingency Fund advances. Voted vs. Charged and Revenue vs. Capital sections are distinct; inter-se re-appropriation across these divisions is strictly prohibited.
    • DDO Requirements: Bills for Charged and Voted expenditure must be presented separately, detailing major head to object head classifications and cumulative up-to-date expenditure totals.
    • Register Maintenance: DDOs maintain GFR 5 registers (physically or electronically) and submit monthly extracts to Controlling Officers by the 3rd of each month.
    • Controlling Officers: Maintain GFR 6 broadsheet, scrutinize returns, compile GFR 7 monthly statements, and Heads of Departments consolidate GFR 8 accounts.
    • Reconciliation Process: DDOs maintain TR 28-A Bill Register, tallying figures monthly against PAO extracts. Heads of Departments and PAOs/Principal Accounts Officers perform monthly/quarterly reconciliations, submitting quarterly correctness certificates by the 15th of the second following month (e.g., Q1 certificate due by 15th August).
    • Broadsheet Monitoring: Form GFR 9 maintained to watch prompt submission of monthly returns.
  • Rule 58 (Liability Register): Spending authorities furnish GFR 3-A liability statements monthly starting October; Controlling Officers maintain Form GFR 3 Liability Register.
  • Rule 61 (Excess Expenditure): Accounts Officers shall not permit payments exceeding budget provisions without specific Chief Accounting Authority approval. FAs must ensure fund availability via Re-appropriation or Supplementary Grants.
  • Rule 62 (Surrender of Savings & Rush of Expenditure):
    • Unutilized funds must be surrendered immediately when foreseen, without holding reserves for prospective excesses. Unused funds lapse at the close of the financial year.
    • Rush of expenditure in closing months is deemed a breach of financial propriety. FAs must strictly enforce Monthly Expenditure Plans (MEP) and Quarterly Expenditure Plans (QEP).
  • Rule 63 & 66 (New Service & Supplementary Grants):
    • No expenditure on a 'New Service' or 'New Instrument of Service' is permitted without Supplementary Grants (Article 115(1)) or Contingency Fund advances.
  • Rule 64 (Additional Allotments): Subordinate authorities apprehending excess expenditure must obtain additional allotments beforehand via Liability Registers (Form GFR 3).
  • Rule 65 (Re-appropriation Rules):
    • Permitted only between Object Heads (final unit) within a grant before financial year close.
    • Prohibited from a unit with the intent to restore diverted funds later in the year.
    • Re-appropriation orders supported by Form GFR 1 must state reasons for savings/excesses of \text{Rs. } 1 \n\text{ Lakh} or over.
  • Rule 67 (Contingency Fund Advances):
    • Regulated by Contingency Fund of India (Amendment) Rules, 2021 (G.S.R. 721(E) dated 4th October 2021).
    • $40\%$ of the Fund corpus is placed at the disposal of Secretary, Department of Expenditure; advances beyond this require approval of Secretary, Department of Economic Affairs.
  • Rule 70 (Chief Accounting Authority Duties): The Secretary of a Ministry/Department acts as Chief Accounting Authority, held accountable for total financial management, efficient/economical resource utilization, PAC appearances, procurement adherence, internal controls, and prevention of wasteful expenditure.

Government Accounting Framework, Classification, and Banking Arrangements

• Rules 71 to 87 - Structure of Accounts and System Rules:

  • Rule 71 & 72 (Presentation & Form): Annual accounts prepared by CGA, certified by CAG, and submitted to the President (preferably within 6 months of financial year close) to be laid before Parliament. Form of accounts is prescribed by CGA on behalf of the President under Article 150 on CAG advice.
  • Rule 73 & 74 (Cash-Based Accounting): Accounts maintained on cash basis; transactions represent actual cash receipts and disbursements within the financial year running 1st April to 31st March.
  • Rule 76 (Currency): All accounts maintained in Indian Rupees ($\text{INR}$). Foreign transactions converted to $\text{INR}$.
  • Rule 77 (Three Main Divisions):
    • Part I - Consolidated Fund: Divided into Revenue Division (Receipt/Expenditure Heads) and Capital Division (Receipt Heads, Expenditure Heads, Public Debt/Loans & Advances).
    • Part II - Contingency Fund: Single Major Head recording emergency advances under Article 267 or UT Act Section 48.
    • Part III - Public Account: Records debt (outside Part I), reserve funds, deposits, advances, suspense, remittances, and cash balances.
  • Rule 78 (Tier Structure & Numeric Coding): 6-tier classification represented by a unique 15-digit numeric code:         $\text{Major Head (Function)} \rightarrow \text{Sub-Major Head} \rightarrow \text{Minor Head (Programme)} \rightarrow \text{Sub-Head (Scheme)} \rightarrow \text{Detailed Head (Sub-scheme)} \rightarrow \text{Object Head (Primary Unit)}$
  • Rule 79 (Authority to Open Heads): CGA opens Major/Minor Heads on CAG advice. Administrative Ministries open Sub-Heads/Detailed Heads in consultation with Budget Division. Department of Expenditure modifies Object Heads on CAG advice.
  • Rule 83 & 84 (Charged vs. Voted & Capital vs. Revenue):
    • Capital Expenditure: Significant outlays for acquiring permanent tangible assets or enhancing existing asset utility. Temporary assets or grants-in-aid cannot be classified as Capital unless specifically authorized by President on CAG advice.
    • Revenue Expenditure: Maintenance, repairs, upkeep, working expenses, and day-to-day administrative running expenses.
  • Rule 85 (Banking Arrangements): RBI acts as banker to Government. RBI in consultation with CGA nominates Accredited Banks for Ministries/Departments. PAOs and Cheque-drawing DDOs maintain assignment accounts with identified Accredited Bank branches.
  • Rule 86 (Public Financial Management System - PFMS):
    • Mandatory platform for sanction preparation, bill processing, payments, e-receipts, DBT, fund flow tracking, and reporting.
    • All implementing agencies down to the last level must be registered on PFMS. Approved Detailed Demands for Grants (DDG), re-appropriations, surrenders, and Utilization Certificates (UCs) must be processed through PFMS.
  • Rule 87 (Direct Benefit Transfer - DBT):
    • Direct cash/in-kind benefit transfers to beneficiaries using ICT via PFMS platform.
    • Includes honorariums/transfers to enablers (e.g., community workers).
    • Implementing Agencies generate online Electronic Utilisation Certificates (E-UCs) on PFMS.

• Rules 88 to 97 - Annual Accounts, Proforma Accounts, and Personal Deposit Accounts:

  • Rule 88 (Appropriation Accounts): Prepared annually by Principal Accounts Officers (signed by Secretaries), consolidated by CGA into Union Government Appropriation Accounts (Civil) for Parliament. Railways accounts signed by Chairman, Railway Board; Posts and Defence by respective Secretaries.
  • Rule 89 (Finance Accounts): Annual accounts of receipts and disbursements signed by CGA and countersigned by Secretary (Expenditure).
  • Rule 91 (PPP & Joint Venture Disclosures): Financial stakes in PPPs, PSCs, JVs, and subsidiaries must be explicitly disclosed in Administrative Ministry Annual Reports.
  • Rule 92 to 95 (Proforma Accounts): Commercial/quasi-commercial departmental undertakings maintain commercial subsidiary accounts (Manufacturing, Trading, Profit & Loss, Balance Sheet) agreed upon with CAG. Costs deduced must be accurate and validated.
  • Rule 96 & 97 (Personal Deposit - PD Accounts):
    • Special device located in Public Account enabling Designated Officers to credit receipts and withdraw funds directly, subject to bank ledger checks preventing negative balances.
    • Authorized only by special order of Ministry/Department in consultation with CGA.
    • Allowed for: Wards/attached estates, Civil/Criminal Court deposits (Chief Judicial Authority), statutory funds with no outgo from Consolidated Fund, special enactment liabilities, and Defence unit command public funds.

• Rules 98 to 107 - Capital/Revenue Allocations and Interest Rules:

  • Allocation Principles: Capital bears first construction, equipment, and intermediate maintenance costs. Revenue bears working upkeep, repairs, and renewals. Renewal/replacement allocation guards against over-capitalization. Disasters: New assets = Capital; Repairs = Revenue.
  • Rule 101 & 102 (Capital Receipts & Recoveries): Receipts/recoveries accruing during project construction reduce capital expenditure rather than crediting revenue.
  • Rule 103 (Conversion of Loans into Equity/Grants): Restructuring PSU loan balances into equity/grants requires Parliament approval via a token provision in Demands for Grants, followed by proforma ledger corrections.
  • Rules 104 to 107 (Interest on Capital):
    • Charged on Commercial Department capital outlays.
    • For specific open-market loans: Interest charged based on actual rate paid plus raising/managing incidental charges.
    • General outlays: Interest rate determined annually by Department of Economic Affairs.
    • Calculation formula: Interest calculated on direct capital outlay at end of previous year plus half the outlay of current year:             $\text{Interest Basis} = \text{Capital Outlay}_{t-1} + \frac{1}{2} \left( \text{Capital Outlay}_t \right)$
    • Capitalized interest during construction forms the first charge on project capital receipts/surplus revenues upon opening.

• Rules 108 to 129 - Inter-Governmental and Inter-Departmental Adjustments:

  • Rule 108 (State Adjustments): Governed by GAR 1990 Appendix-5 reciprocal arrangements binding all States (covering Pay/Allowances, Leave Salaries, Pensions, Audit/Accounts costs, Railway Police costs, Forest Surveys).
  • Rule 109 & 111 (Re-audit & Petty Claims Thresholds):
    • Re-audit limit for past classification errors: 3 years.
    • Reciprocal non-preference threshold for petty and isolated claims between Central and State Governments: Claims not exceeding $\text{Rs. } 10,000$ are waived (covers services rendered, excludes store supplies or commercial undertakings like Railways/Posts).
  • Rule 115 (Article 258 Agency Function Claims):
    • Public Works agency costs charged at agreed percentage rates.
    • Claims $\le \text{Rs. } 50,000$ per annum: Fixed sum paid under a 5-year renewable contract.
    • Claims $> \text{Rs. } 50,000 per annum: Settled via annual budget statements.\n * **Rule 116 (Agency Function Accounting)**: Extra staff/contingencies provided in State Budget initially, reimbursed in lump sum under sub-head "Amounts paid to other Governments". Execution of Central works (National Highways, Defence works) adjusted directly in Central accounts via "8658 - Suspense Accounts - PAO Suspense".\n * **Rule 117 (Closure Date)**: Inter-Governmental adjustments close on 10th April (or date specified by CGA/RBI) for March accounts.\n * **Rule 122 (Boundary Demarcation Charges)**:\n * Maintenance: Central Govt bears \frac{1}{2}$,$\frac{1}{2} recovered from foreign country (if unrecoverable, Central Govt bears full). Special exceptions for Nepal and Bhutan.\n * Demarcation & Disputes: Central Govt bears full under Entry 10 of Union List.\n * Watercourses: Median line principle; each side maintains its survey marks.\n * **Rules 123 to 129 (Inter-Departmental Adjustments)**:\n * Service Departments do not charge other departments for standard duties.\n * Commercial Departments charge for supplies/services rendered.\n * Claims must be preferred within the same financial year and not beyond 3 years.\n * Pensionary liabilities of Commercial Departments assessed on contribution basis (charging average percentage for 15th year of service under Fundamental Rules).\n\n# Execution of Public Works and Infrastructure Projects\n\n* **Rules 130 to 132 - Classifications and Administrative Approval**:\n * **Original Works**: New constructions, site preparations, additions/alterations, special repairs to newly purchased/abandoned structures, remodeling, and replacements.\n * **Minor Works**: Works adding capital value to existing assets without creating new assets.\n * **Repair Works**: Maintenance of buildings and fixtures.\n * **Administrative Control**: Full responsibility for construction, upkeep, property utilization, and fund provision.\n\n* **Rule 133 - Financial Thresholds for Execution of Repair & Original Works**:\n * **Sub-rule (1)**: A Ministry/Department may directly execute repair works estimated to cost up to \text{Rs. } 60 \text{ Lakhs}.\n * **Sub-rule (2)**: Ministries/Departments may assign repair works exceeding \text{Rs. } 60 \text{ Lakhs} and original/minor works of any value to Public Works Organisations (PWOs) such as CPWD, State PWD, MES, BRO, or construction wings of Railways, Defence, Posts, Space, Environment, etc.\n * **Sub-rule (3)**: Alternatively, works exceeding \text{Rs. } 60 \text{ Lakhs} (repairs) or any value (original/minor) can be awarded to Central/State PSUs set up for civil/electrical works, or entities notified by MoHUA. Award must be via competition based on lump sum service charges.\n * **Scientific Ministries Special Provision**: Scientific Ministries/Departments (DST, DBT, DSIR, DAE, DoS, MoES, DRDO, ICAR, DHR, ICMR, higher research institutes) can assign repair works up to \text{Rs. } 5 \text{ Crore} on a nomination basis to specified PWOs/PSUs (valid up to 31.03.2025, subject to DoE review).\n\n* **Rules 135 to 141 - Project Execution Procedures and Variations**:\n * **Rule 135**: Empowered Project Teams must be established for large-value projects, dedicated strictly to execution without operational duties.\n * **Rule 136 (Prerequisites for Commencing Works)**: No work can commence or liability be incurred without:\n 1. Administrative Approval.\n 2. Expenditure Sanction.\n 3. Sanctioned detailed design (incorporating Life Cycle Cost principles).\n 4. Sanctioned detailed estimates based on Schedule of Rates (SOR).\n 5. Fund provision.\n 6. Tenders invited/processed.\n 7. Issue of Work Order.\n * **Emergency Exception (Rule 136(2))**: Executive officers may initiate urgent works on personal responsibility, simultaneously seeking competent authority approval and informing Accounts Officers.\n * **Rule 137 (Grouping of Works)**: Works forming one project must be treated as single work; splitting to evade higher sanctioning authority powers is strictly prohibited.\n * **Rule 139 (Tendering Thresholds for Departmental Execution)**:\n * **Limited Tenders**: Works costing less than \text{Rs. } 10 \text{ Lakhs}.\n * **Open Tenders**: Works costing \text{Rs. } 10 \text{ Lakhs}$to$\text{Rs. } 60 \text{ Lakhs}.\n * **Final Payment**: Issued only upon the Personal Certificate of the Executing Officer certifying satisfaction with contract specifications and industry workmanship standards.\n * **Rule 141 (Review Committees for Mega Projects)**:\n * Projects costing \text{Rs. } 100 \text{ Crore}$or above: Mandatory Review Committee (representatives from Administrative Ministry, IFW, Executing Agency) with powers to accept cost variations within$10\% of approved estimates.\n * Projects below \text{Rs. } 100 \text{ Crore}$: Review/variation mechanism within$10\% left to Administrative Ministry discretion.\n\n# Procurement of Goods, Consulting, and Non-Consulting Services\n\n* **Rules 142 to 148 - Definitions and Fundamental Public Buying Principles**:\n * **Goods Definition (Rule 143)**: Includes articles, materials, livestock, furniture, raw materials, machinery, equipment, software, technology transfers, licenses, patents, and incidental services (installation, training, maintenance). Excludes library books, publications, and periodicals.\n * **Fundamental Yardsticks (Rule 144)**:\n * Generic, objective, functional, and measurable technical specifications based on national standards (or international standards where absent). Avoid trade names/brands.\n * Avoid over-procurement to minimize inventory carrying costs.\n * Mandatory publication of complete procurement cycle schedule.\n * Mandatory Annual Procurement Plan published on websites prior to financial year commencement.\n * *National Security Restrictions*: Department of Expenditure may restrict procurement from bidders of specific countries sharing land borders or on national defense grounds.\n * **Procurement Powers (Rule 147)**: Full powers delegated to Ministries/Departments for goods/services not available on Government e-Marketplace (GeM).\n\n* **Rule 149 - Government e-Marketplace (GeM) Thresholds & Mandatory Provisions**:\n * Procurement of common-use goods/services available on GeM is mandatory for Central Ministries/Departments.\n * **Monetary Thresholds for Purchases on GeM**:\n * **Up to \text{Rs. } 50,000**: Direct purchase through any available supplier meeting quality, specification, and delivery period. (Note: Automobile purchases have no ceiling limit under direct purchase).\n * **Above \text{Rs. } 50,000$to$\text{Rs. } 10,00,000**: Purchase through GeM Seller offering lowest price (L-1) among at least 3 different manufacturers meeting specifications.\n * **Above \text{Rs. } 10,00,000**: Mandatory online bidding or reverse auction tool on GeM to determine lowest compliant supplier (L-1).\n * *Scientific Ministries Exception*: Direct purchase ceiling is up to \text{Rs. } 1,00,000$; L-1 comparison applies from above$\text{Rs. } 1,00,000$to$\text{Rs. } 10,00,000.\n * **Annual Projection**: Annual Procurement Plan projected on GeM portal within 30 days of Budget approval under CAPEX or OPEX models.\n * Demand splitting to avoid L-1 bidding/reverse auction or higher authority sanctions is strictly prohibited.\n\n* **Rules 150 to 156 - Registration, Debarment, and Off-GeM Procurement Methods**:\n * **Supplier Registration (Rule 150)**: Fixed tenure between 1 to 3 years. List exhibited on website/e-Procurement portals.\n * **Debarment Limits (Rule 151)**:\n * *Offences under Prevention of Corruption Act or Bharatiya Nyaya Sanhita* (loss of life/property/public health threat): Mandatory debarment up to 3 years across all procuring entities (list managed by DoE on CPPP).\n * *Breach of Code of Integrity*: Procuring entity may debar up to 2 years.\n * Debarment requires reasonable opportunity of hearing (Show Cause).\n * **Reserved Items & Purchase Preference (Rule 153)**:\n * Khadi goods reserved for exclusive purchase from KVIC.\n * Mandatory minimum 20\% textile procurement from handloom origin (KVIC, Handloom Clusters, SHGs, Pehchan Card weavers).\n * MSME Procurement Policy compliance mandatory.\n * **Purchase Without Quotation (Rule 154)**: Items not on GeM up to \text{Rs. } 50,00,00$on each occasion based on a self-certificate of quality and reasonable price. (*Scientific Ministries: up to$\text{Rs. } 2,00,000 for research equipment/consumables*).\n * **Purchase by Local Purchase Committee - LPC (Rule 155)**: Items not on GeM costing above \text{Rs. } 50,000$and up to$\text{Rs. } 5,00,000$on each occasion, evaluated by a 3-member committee certifying market rates and reliability. (*Scientific Ministries: above$\text{Rs. } 2,00,000$up to$\text{Rs. } 25,00,000*).\n\n* **Rules 157 to 167 - Standard Bidding Methods**:\n * **E-Publishing & E-Procurement (Rules 159 & 160)**:\n * Mandatory publishing of tender enquiries and awards on GeM-Central Public Procurement Portal (GeM-CPPP). Confidentiality exemptions on national security grounds require Secretary approval with FA concurrence.\n * Mandatory e-procurement (receiving bids online).\n * **Advertised Tender Enquiry - ATE (Rule 161)**:\n * Mandatory for goods valued at \text{Rs. } 50 \text{ Lakhs}$and above. (*Scientific Ministries:$\text{Rs. } 1 \text{ Crore} and above*).\n * Bidding documents free of cost. Minimum time for bid submission: 3 weeks (4 weeks if international offers are contemplated).\n * **Global Tender Enquiry - GTE (Rule 161(iv))**: No GTE shall be invited for tenders up to \text{Rs. } 200 \text{ Crore} without prior approval from Cabinet Secretariat / designated DoE authority.\n * **Limited Tender Enquiry - LTE (Rule 162)**:\n * Used for goods valued up to \text{Rs. } 50 \text{ Lakhs}$(*Scientific Ministries: up to$\text{Rs. } 1 \text{ Crore}*). Sent to registered suppliers; minimum number of firms must be more than 3. Unsolicited bids not accepted.\n * Allowed above \text{Rs. } 50 \text{ Lakhs} only if urgency is certified, public interest demands confidentiality, or supply sources are exclusively known.\n * **Two-Bid System & Two-Stage Bidding (Rules 163 & 164)**:\n * *Two-Bid*: Simultaneous submission of sealed Technical Bid and Financial Bid. Financial bids opened only for technically qualified offers.\n * *Two-Stage*: Stage 1 invites technical proposals without prices to finalize detailed specifications. Stage 2 invites final price bids from non-rejected bidders based on revised terms. Bidders may withdraw without forfeiting bid security.\n * **Single Tender Enquiry - STE (Rule 166)**: Permitted if single manufacturer exists (Proprietary Article Certificate - PAC required), in emergencies, or for standardization/compatibility. Late bids cannot be considered (Rule 165).\n\n* **Rules 168 to 176 - Contract Conditions, Guarantees, and Integrity**:\n * **Bidding Document Structure (Rule 168)**: 7 Chapters (Instructions, Contract Conditions, Schedule of Requirements, Specifications, Price Schedule, Contract Form, Standard Forms).\n * **Bid Security / Earnest Money Deposit - EMD (Rule 170)**:\n * Ordinarily 2\%$to$5\% of estimated value. Exempted for MSEs, Startups (recognized by DPIIT), and registered suppliers.\n * Valid for 45 days beyond final bid validity. Returned within 30 days after contract award (or 30 days after 1st stage technical evaluation in 2-stage bidding).\n * Bid Securing Declaration can be taken in place of EMD.\n * **Performance Security (Rule 171)**: 3\%$to$5\%$of contract value for goods/services (*3$30\% of contract value to private firms.\n * Max 40\% of contract value to Govt agencies / PSUs.\n * Max 6 months payable amount for Maintenance Contracts.\n * **Transparency & Fair Play (Rule 173)**:\n * Zero/NIL consideration quotes treated as unresponsive.\n * No price negotiation post-opening except in rare ad-hoc cases solely with lowest evaluated responsive bidder (L-1).\n * Electrical appliances must carry BEE threshold or higher Star Rating.\n * Single bid valid if satisfactorily advertised, criteria non-restrictive, and prices reasonable.\n * In Purchase Committees > \text{Rs. } 50 \text{ Lakhs}, no member should report directly to another.\n * **Code of Integrity (Rule 175)**: Strictly prohibits bribes, misrepresentation, collusion/bid-rigging, information misuse, coercion, and undisclosed conflicts of interest.\n * **Buy-Back Offer (Rule 176)**: Department may trade existing old items while purchasing new replacements.\n\n* **Rules 177 to 196 - Procurement of Consulting Services**:\n * **Definition**: Intellectual, advisory, procedural, non-physical project-specific services where outcomes vary by consultant. Excludes direct retired government servant engagement.\n * **Expression of Interest - EOI (Rule 183)**:\n * Estimated cost up to \text{Rs. } 50 \text{ Lakhs}: Long list generated via informal/formal enquiries (min 3 shortlist).\n * Estimated cost above \text{Rs. } 50 \text{ Lakhs}: Mandatory advertised EOI published on GeM/CPPP.\n * **Request for Proposal - RFP (Rule 186)**: Issued to shortlisted consultants containing TOR, eligibility, CV evaluation positions, selection procedure, and draft contract.\n * **Selection Methods**:\n * **Quality and Cost Based Selection (QCBS - Rule 192)**: Used when quality is prime concern. Weightage for technical parameters shall not exceed 80\% (e.g., 70:30, 60:40). Highest combined score selected.\n * **Least Cost System (LCS - Rule 193)**: Used for standard/routine assignments (audits, simple engineering designs). Lowest evaluated financial bid among technically qualified offers selected.\n * **Single Source Selection / Nomination (Rule 194)**: Used in emergencies, natural disasters, proprietary techniques, or natural continuation of prior work.\n\n* **Rules 197 to 206 - Outsourcing Non-Consulting Services**:\n * **Definition**: Physical, measurable deliverables/outcomes with clear performance standards (maintenance, vehicle hiring, security, janitorial, photocopier, mapping, photography).\n * **Tendering Limits (Rule 201)**:\n * Up to \text{Rs. } 50 \text{ Lakhs}: Limited Tender Enquiry to identified potential contractors (more than 3).\n * Above \text{Rs. } 50 \text{ Lakhs}: Advertised Tender Enquiry on GeM and CPPP.\n * **Nomination Basis (Rule 204)**: Allowed in exceptional situations with Financial Adviser consultation.\n\n# Inventory Management, Disposal of Goods, and Contract Management\n\n* **Rules 207 to 216 - Custody, Registers, and Verification**:\n * **Receipt of Goods (Rule 208)**: Materials counted, measured, weighed, visually/technically inspected upon arrival and immediately posted into IT-based Stock Registers.\n * **Asset Registers (Rule 211)**:\n * Fixed Assets: Form GFR-22.\n * Consumables: Form GFR-23.\n * Library Books: Form GFR-18 (Accession Register).\n * Historical / Artistic Assets: Form GFR-24.\n * **Fixed Asset Verification (Rule 213(1))**: Maintained at site and physically verified at least once a year.\n * **Consumables Verification (Rule 213(2))**: Verified physically at least once a year.\n * **Buffer Stock (Rule 214)**: Materials remaining in stock for over 1 year generally treated as surplus.\n * **Library Books Physical Verification (Rule 215)**:\n * Libraries \le 20,000 volumes: Every year.\n * Libraries 20,000$to$50,000 volumes: At least once in 3 years.\n * Libraries $> 50,000 volumes: Sample verification every 3 years.
    • Reasonable Loss Limit: 5 volumes per 1,000 volumes issued/consulted per year. Loss of books $> \text{Rs. } 1,000 or rare books must be investigated.\n\n* **Rules 217 to 223 - Disposal of Goods and Write-Off**:\n * **Surplus/Obsolete Declaration (Rule 217)**: Form GFR-10 prepared for stores disposal. Book value, guiding price, and reserve price determined. Hazardous waste/e-waste sold strictly to registered recyclers/preprocessors.\n * **Modes of Disposal Thresholds (Rule 218)**:\n * Assessed residual value above \text{Rs. } 4 \text{ Lakhs}: Advertised Tender or Public Auction.\n * Assessed residual value less than \text{Rs. } 4 \text{ Lakhs}: Mode decided by competent authority to prevent space blockage and value deterioration.\n * **Auction Earnest Money (Rule 220)**: Minimum 25\% spot payment taken upon hammer stroke in cash or Deposit-at-Call-Receipt (DACR).\n * **Sale Account**: Form GFR-11 prepared post-disposal.\n * **Losses Classification (Rule 223)**:\n * *Due to Depreciation*: Market price fluctuations, normal wear and tear, lack of foresight in purchasing, post-purchase negligence.\n * *Not Due to Depreciation*: Theft/fraud, neglect, obsolescence/excess purchasing, damages, Force Majeure (fire, flood, enemy action).\n\n* **Rules 224 to 227A - Contract Management Regulations**:\n * **Execution Authority**: Article 299(1) compliance ("for and on behalf of the President of India").\n * **Contract Thresholds (Rule 225(iv))**:\n * Up to \text{Rs. } 2,50,000: Purchase orders with basic terms.\n * \text{Rs. } 1 \text{ Lakh}$to$\text{Rs. } 10 \text{ Lakhs}: Letter of Acceptance attaching GCC, SCC, and scope of work constitutes a binding contract.\n * Above \text{Rs. } 10 \text{ Lakhs} (or Turnkey/Maintenance): Formal self-contained contract document executed within 21 days of LOA issue.\n * **Cost-Plus Contracts**: Ordinarily avoided; requires full justification.\n * **Price Variation Clause - PVC (Rule 225(viii))**:\n * Allowed only in long-term contracts (delivery exceeding 18 months). Short-term contracts must be firm/fixed price.\n * Formula incorporates fixed element (10\%$to$25\%$), material element ($a$), and labor element ($b):\n            P_1 = P_0 \left[ F + a \left( \frac{M_1}{M_0} \right) + b \left( \frac{L_1}{L_0} \right) \right] - P_0\n * Requires ceiling cap, cut-off dates for inputs, minimum 2\% threshold trigger, and LD applied on varied price.\n * **Audit Copies**: Contracts of value \text{Rs. } 25 \text{ Lakhs} and above must be sent to Audit/Accounts Officers.\n * **Challenged Arbitral Awards (Rule 227A)**: When Ministry challenges an award, 75\% of arbitral award (including interest) paid to contractor against Bank Guarantee into an Escrow Account.\n\n# Grants-in-Aid and Loans Management\n\n* **Rules 228 to 245 - Principles for Grants-in-Aid**:\n * **Rule 228**: Sanctioned to Autonomous Bodies, registered societies (Societies Registration Act 1860, Indian Trusts Act), NGOs, educational institutions, local self-governments, co-operatives, and staff recreation clubs.\n * **Rule 229 (Autonomous Bodies Setup & Review)**:\n * No new autonomous body created without Cabinet approval.\n * Creation of Corpus Funds out of budget allocations requires Finance Ministry concurrence.\n * Mandatory Memorandum of Understanding (MoU) for entities receiving budgetary support > \text{Rs. } 5 \text{ Crore} per annum.\n * Mandatory internal/external peer review every 3 to 5 years.\n * **Rule 230 (Award & Operating Rules)**:\n * Reimbursement-based grants treated as Central Financial Assistance (CFA); no Utilization Certificate required.\n * Unspent balances of previous recurring grants must be factored in prior to subsequent releases using PFMS. Cash balances must not exceed 3 months' requirements.\n * Interest/earnings on grants/advances must be mandatorily remitted to Consolidated Fund of India.\n * Assets acquired out of grants cannot be disposed of without sanctioning authority approval.\n * Grant requests must be submitted by end of September; decisions communicated by April.\n * Staff service conditions in grantee bodies receiving $> 50\% recurring support must not exceed Central Government standards.\n * Reservation clauses for SC, ST, and OBC must be mandatorily included if recipient employs > 20$ persons and receives \ge 50\%$recurring support or general purpose grant$\ge \text{Rs. } 20 \text{ Lakhs}.\n * **Rule 231 (Voluntary Organisations)**: Administrative grants cannot exceed 25\%$of approved staff pay/allowances. Executive Committee members must execute Bonds binding them jointly/severally with$10\% per annum interest liability on breach.\n * **Rule 233 (Sponsored Projects)**: Implemented by Universities/IITs/CSIR/ICAR. Physical/intellectual asset ownership vests in sponsor. Scientific Departments relaxed to cover private sector/NGOs.\n * **Rule 234 (Register of Grants)**: Form GFR-21 maintained to prevent double payments.\n * **Rule 236 & 237 (Audit & Submission Schedule)**:\n * CAG audits accounts under Section 14/15 of CAG(DPC) Act 1971 if grants/loans are \ge \text{Rs. } 25 \text{ Lakhs}$and$\ge 75\%$of total expenditure, or total grants/loans$\ge \text{Rs. } 1 \text{ Crore} (continues for 2 subsequent years).\n * *Time Schedule*: Authenticated accounts to Audit by 30th June; Final Separate Audit Report (SAR) issued by 31st October; Annual Report and Audited Accounts laid in Parliament by 31st December.\n * **Rule 238 (Utilization Certificates - UCs)**:\n * Non-recurring grants: Form GFR 12-A submitted within 12 months of financial year close (output-based performance assessment).\n * Recurring grants: Subsequent year release contingent on provisional UC; releases $> 75\%$ require final audited UC of preceding year. (*Scientific Departments permitted release on receipt of 75% UC utilization*).\n * State Governments submit Form GFR 12-C.\n * Annual Reports laying thresholds in Parliament for non-recurring grants: \text{Rs. } 5 \text{ Crore} and above.\n * **Rule 245 (Staff Amenities Grant)**: \text{Rs. } 50$per head per annum base grant plus matching grant up to$\text{Rs. } 25$per head per annum. Max one-time setup grant for Recreation Club:$\text{Rs. } 50,000.\n\n* **Rules 246 to 263 - Principles and Terms of Government Loans**:\n * **Rule 247**: Budget Division (DEA) is nodal division to finalize loan terms.\n * **Rule 250 (General Conditions)**:\n * Specific repayment term fixed (maximum 30 years in special cases).\n * Repayments effected via equal annual installments. Early repayments $< 14$ days in advance incur full year/half-year interest.\n * PAOs issue advance repayment notices in Form GFR-19 one month prior to due date.\n * Loans to private/non-state parties require security valued at least 33\frac{1}{3}\%$($1/3) above loan amount.\n * **Rule 251 (Interest Calculation)**:\n * Calculated on actual days elapsed over 365 days (366 in leap year):\n            \text{Interest} = \frac{\text{Days} \times \text{Yearly Interest Rate}}{365 \quad (\text{or } 366)}\n * **Rule 253 & 254 (Government Companies)**: Concession in interest takes form of direct subsidy. Wholly-owned Govt companies execute Form GFR 15 written undertaking and Form GFR 32 non-hypothecation undertaking.\n * **Rule 256 (UC for Loans)**: Form GFR 12-B submitted within reasonable time (target date maximum 18 months from sanction/close of year).\n * **Rule 258 (Defaults & Penal Interest)**: Penal interest on default must be at least 2.5\% per annum above normal rate.\n * **Rule 262 & 263 (Annual Statements)**: Principal Accounts Officers submit Form GFR 13 by 30th September. FAs submit Annual Assessment Report on loan status to Ministry of Finance by 30th June.\n\n# Budgeting and Accounting of Externally Aided Projects & Government Guarantees\n\n* **Rules 264 to 274 - Externally Aided Projects (EAPs)**:\n * **Rule 264**: Legal agreements executed by Department of Economic Affairs (DEA). CAAA (Controller of Aid Accounts and Audit) implements financial covenants.\n * **Rule 265**: Foreign aid flow received by RBI Mumbai, remitted to CAAA account at RBI New Delhi as external loan/grant receipt in Consolidated Fund of India.\n * **Rule 267 (Withdrawal Procedures)**:\n * *Reimbursement through Special Account (Revolving Fund Scheme)*: Funding agency disburses 4 months' estimated expenditure advance in USD to RBI Mumbai. Claims submitted by CAAA replenish Special Account.\n * *Reimbursement outside Special Account*: Direct transmission of claims to funding agency; funds disbursed to RBI Mumbai.\n * *Direct Payment Procedure*: Funding agency pays contractors/suppliers directly. Rupee equivalent recovered by CAAA from Implementing Agency / State Government.\n * **Rule 271 & 272 (Repayment & Interest)**: Processed by CAAA; classified as Charged Expenditure under Major Head '2049-Interest Payments'.\n\n* **Rules 275 to 283 - Government Guarantees**:\n * **Rule 275**: Extended under Article 292 and FRBM Act limits. Powers vest exclusively with Budget Division (DEA).\n * **Rule 277 (Guidelines)**:\n * Extended only to Central PSUs/Agencies (strictly prohibited for private sector).\n * Restricted to principal repayment and normal interest only.\n * Independent risk unit assessment required.\n * Form GFR 26 operational data furnished to Finance Ministry.\n * **Rule 278 (Multilateral CPSU Borrowings)**: Direct borrowings without GOI intermediation, requiring guarantee fee agreement.\n * **Rule 279 (Guarantee Fees & Coverage Caps)**:\n * Rates governed by Appendix-12 based on credit category (A/B) and tenor (\le 5 years or $> 5 years).
    • Levied prior to issue and on 1st April annually based on outstanding balance. Default incurs double fee rate.
    • Govt guarantees maximum $80\%$ of project loan (lenders share minimum $20\%$ risk); $100\%$ guarantee allowed only in exceptional cases where CPSU discharges pure Govt functions.
  • Rule 281 (Annual Review): FAs review all guarantees annually, submitting reports to Budget Division by 30th April and updated GFR 25 Register by 10th April.
  • Rule 283 (Guarantee Redemption Fund - GRF): Established in Public Account for redemption of invoked guarantees, funded via DEA budget transfers.

Establishment Matters, Miscellaneous Regulations, and Destruction of Records

• Rules 284 to 299 - Establishment & Personal Claims:

  • Rule 284: Post creations/revisions require cost-benefit details, pay scales, pension liabilities, and fund sources. Continuation beyond duration requires Finance Ministry approval.
  • Rule 286 (Transfer of Charge): Form GFR 16 signed on same day. Cash book closed and signed jointly.
  • Rule 287 (Date of Birth): Declared via Matriculation Certificate or Municipal/School Birth Certificate.
  • Rule 288 (Service Books):
    • Maintained in duplicate (1st copy with Head of Office, 2nd copy with employee given within 6 months of joining/rules effect).
    • Updated annually every January within 30 days.
    • Replacement cost for lost employee copy: $\text{Rs. } 500$.
  • Rule 290 (TA Claims): Due on day after journey completion. Forfeited if not submitted within 60 days.
  • Rule 292 (LTC Claims):
    • With Advance: Submitted within 30 days of due date (if unsubmitted, advance recovered, claim permitted under no-advance route).
    • Without Advance: Submitted within 60 days of due date.
    • Failure to submit within prescribed timelines results in total claim forfeiture.
  • Rule 293 (Overtime Allowance - OTA): Due on 1st day of following month. Forfeited if not submitted within 60 days.
  • Rule 295 (Arrear Claims): Preferred within 2 years. Claims older than 2 years require Head of Department investigation.
  • Rule 299 (PF Advances): Sanction lapses after 3 months unless renewed.

• Rules 300 to 305 - Refunds, Debt, and Insurance:

  • Rule 301: Refunds noted against original Cash Book entries. Remissions allowed before collection are reductions of demand, not refunds.
  • Rule 302 (Accidental Property Loss): Compensation not granted for natural calamities/accidents except with Finance Ministry approval.
  • Rule 305 (Postal Life Insurance - PLI): Form GFR 20 maintained by Drawing Officers for PLI premium recoveries.

• Rules 306 to 324 - Security Deposits, Land Transfers, Local Bodies, and Contingencies:

  • Rule 306 (Security Deposits): Handlers of cash/stores execute Form GFR 14 Security Bond and furnish Form GFR 17 Fidelity Bond. Retained for at least 6 months post-vacation of post (Rule 308). Exempted for drivers, librarians, and stationery/furniture custodians (Rule 307).
  • Rule 310 (Transfer of Land & Buildings): Inter-departmental/UT transfers on 'no profit no loss' basis at present day cost minus depreciation ( सीपीWD valuation). PSU allotments at market value.
  • Rule 312 & 317 (Local Bodies): Pre-payment required for services (except epidemic medicine supplies). Audit fees charged at daily rates prescribed with CAG.
  • Rule 320 (Destruction of Accounting Records): Governed strictly by Appendix-9 retention periods. Permanent preservation mandated for unresolved audit objections, incomplete projects, legal limitation expenditure, and permanent sanctions.
  • Rule 322 & 323 (Imprest & Contingent Advances):
    • Permanent advance/imprest granted in consultation with IFW.
    • Adjustment bills for contingent advances must be submitted within 15 days of drawal, or recovered from salary.
  • Rule 324 (Government Pleader Advance): Max $\text{Rs. } 25,000$ at a time for lawsuits.

• Key Appendix & Form Summary Tables (Prescribed Standards):

  • Appendix 1 (Depreciation Rates for Recovery): Vehicles/Cycles: $20\%$ per annum on reduced balance; Calculating machines: $15\%$ per annum on reduced balance.
  • Appendix 9 (Record Retention Schedule Summary):
    • Cash Books (DDO): 10 years.
    • Contingent Expenditure & TA Claims: 3 years (or 1 year post-audit).
    • Pay Bill Register (PBR) & Establishment Bills: 35 years.
    • Paid Cheque Counterfoils & Muster Rolls: 5 years.
    • Service Books & Leave Accounts: 3 years post final pension/gratuity order or cessation of service.
  • Appendix 11 (Price Variation Formula):         $P_1 = P_0 \left[ F + a \left( \frac{M_1}{M_0} \right) + b \left( \frac{L_1}{L_0} \right) \right] - P_0$
  • Appendix 12 (Guarantee Fee Rates):
    • Category A: $\le 5$ years = $0.5\%$, $> 5$years =$0.6\%.\n * Category B: \le 5$years =$0.7\%, $> 5 years = $0.9\%$.