Para 10.12 — CAM
Original Rule Text
10.12 PERMANENT ADVANCES OR IMPREST
10.12.1 Permanent advance or imprest is normally granted to officers who have to meet day to day contingent and emergent expenditure, subject to the provisions under Rule 322 of GFR, 2017. Subject to observance of the following conditions, Departments of Central Government, Administrators and Heads of Departments are competent to decide in consultation with their Internal Financial Adviser the amount of Permanent Advance in respect of themselves and all organizations subordinate to them:-
a. The quantum of such advance for any organization should not as a rule exceed the monthly average of contingent expenditure for the preceding twelve months. The application for the advance by an office/organization should be accompanied by a statement showing monthwise contingent expenditure for the preceding twelve months. In case of a new organization, the amount of advance should be fixed on a conservative basis subject to review after six months.
b. The advance should be recouped at least twice a month so that the amount sanctioned does not exceed half the amount of the average monthly contingent expenditure calculated as in
(a) above.
c. As these advances involve the permanent retention of money outside the treasury, the amount of such an advance must not be larger than is absolutely necessary.
d. These advances should not be multiplied unnecessarily.
NOTE. The amount of permanent advance should be adequate enough to meet the needs of every Branch of the Department, offices or organization so as to avoid the necessity of applying for separate advances for their subordinates.
e. The advance is primarily intended for meeting emergent contingent expenditure. However, the holder of the advance may, at this discretion, utilize it to meet any other bona fide expenditure on Government account except for grant of advance of pay to Groups 'A' and 'B' officers.
f. The accountability for the advance and its utilization on bona fide Government account in accordance with these rules and regulations shall rest wholly on the holder.
g. Copies of sanctions along with monthly statements of expenditure showing the amount of contingent bills cashed with classified details of items of expenditure should be furnished to the sanctioning authority in the following month.
h. In the event of transfer of charges and annually on the 15th April, each officer in whose favour the permanent advance is sanctioned shall send an acknowledgement of the amount due
What This Means
A permanent advance (imprest) is a cash advance given to officers who need to meet day-to-day contingent and emergent expenditure. The amount should not exceed the monthly average of contingent expenditure for the past 12 months and must be recouped at least twice a month. The holder is personally accountable for the advance and must send monthly expenditure statements to the sanctioning authority. Every year on 15th April, each holder must acknowledge the outstanding amount as on 31st March.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Permanent advance is for day-to-day contingent and emergent expenditure under GFR Rule 322
- 2Amount should not exceed the monthly average of contingent expenditure for the preceding 12 months
- 3Must be recouped at least twice a month to keep the outstanding amount within limits
- 4Holder is fully accountable and must send monthly classified expenditure statements
- 5Annual acknowledgement of outstanding balance required by 15th April for the amount as on 31st March
Practical Example
A Branch Head in a government office needs to make small, urgent purchases like stationery, minor repairs, and refreshments for official meetings. A permanent advance of Rs 25,000 is sanctioned based on average monthly contingent expenditure. The officer uses the advance, submits bills for recoupment twice a month, and sends a classified expenditure statement to the sanctioning authority each month. On 15th April, the officer sends a formal acknowledgement of the outstanding balance to the Head of Department.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can permanent advance be used to give pay advances to senior officers?▼
How is the amount of permanent advance determined for a new office?▼
What happens when the officer holding permanent advance is transferred?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.