Rule 10 - Appropriation Limits | KartavyaDesk
Original Rule Text
Rule 10- Appropriation and Re-Appropriation – General Restrictions– (1) Save with prior approval of the Parliament, funds shall not be appropriated or re-appropriated to meet expenditure on a New Service or New Instrument of Service (NS or NIS) not contemplated in the budget as approved by Parliament. For deciding whether a case relates to a New Service or New Instrument of Service and for determining whether prior approval of Parliament is required or it is to be reported to Parliament along with the next batch of supplementary demands, the financial limits prescribed by the Budget Division, Department of Economic Affairs, from time to time shall be referred to. (2) Funds shall not be appropriated or re-appropriated to meet expenditure which has not been sanctioned by an authority competent to sanction it. (3) Funds shall not be appropriated or re-appropriated to any work which has not received administrative approval and technical sanction as prescribed by Government of India from time to time. (4) Funds provided for charged expenditure shall not be appropriated or reappropriated to meet voted expenditure and funds provided for voted expenditure shall not be appropriated or re-appropriated to meet charged expenditure. (5) No Re-appropriation shall be made from one grant or Appropriation for charged expenditure to another Grant or Appropriation for charged expenditure. (6) No Re-appropriation can be made from Capital to Revenue Section of the Grant or vice versa. (7) No Re-appropriation can be made from an appropriation already augmented through a Supplementary Demand for Grant passed by the Parliament or under the provisions of this rule. (8) No Re-appropriation can be made from savings under an activity for which a Contingency Fund Advance has already been obtained during the course of the financial year.
What This Means
Rule 10 of the Delegation of Financial Powers Rules, 1978, lays down crucial restrictions on how government departments can move funds around (appropriation and re-appropriation). Think of it as setting boundaries to ensure money allocated for a specific purpose isn't diverted without proper authorization. The rule aims to maintain financial discipline and accountability, preventing unauthorized spending and ensuring that Parliament's budgetary decisions are respected. It affects all government employees involved in financial management, from budget officers to heads of departments, ensuring they adhere to these guidelines when managing public funds.
Essentially, this rule prevents departments from using funds for new projects or activities not initially approved by Parliament, unless they get explicit permission. It also stops them from using funds that haven't been properly sanctioned, or for works lacking administrative and technical approvals. Furthermore, it prohibits shifting funds between 'charged' and 'voted' expenditures, or from capital to revenue accounts, and restricts re-appropriation from funds already boosted by supplementary demands or from activities where a Contingency Fund advance has been taken. Adhering to Rule 10 ensures that government spending remains transparent, accountable, and aligned with the approved budget.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Prior Parliamentary approval is needed for funding 'New Service' or 'New Instrument of Service' not in the original budget.
- •Funds cannot be used for expenditures lacking proper sanction or for works without administrative and technical approvals.
- •Re-appropriation between 'charged' and 'voted' expenditure, or between capital and revenue accounts, is prohibited.
- •Re-appropriation is restricted from funds augmented by supplementary demands or activities with Contingency Fund advances.
- •Financial limits prescribed by the Budget Division, Department of Economic Affairs, must be followed when determining if Parliamentary approval is required.
Practical Example
The Ministry of Rural Development initially allocated ₹50 crore for the 'Pradhan Mantri Gram Sadak Yojana' (PMGSY) in the budget. Later in the year, the Director of the PMGSY project, Mr. Sharma, identifies a new type of road construction technology that wasn't considered during the budget preparation. This new technology, if implemented, would be classified as a 'New Instrument of Service'.
According to Rule 10, Mr. Sharma cannot re-appropriate funds from other activities within the PMGSY budget to implement this new technology without first obtaining the prior approval of the Parliament. He must consult the Budget Division, Department of Economic Affairs, to determine if the financial implications of this new technology exceed the prescribed limits, and if so, seek Parliamentary approval before proceeding. Similarly, if the ministry wants to re-appropriate funds from the 'Swachh Bharat Abhiyan' to PMGSY, it is prohibited because these are different grants.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a 'New Service' or 'New Instrument of Service'?▼
What does 'charged' and 'voted' expenditure mean?▼
Can I re-appropriate funds from a scheme if we have savings due to efficient implementation?▼
Who determines whether Parliamentary approval is required for a New Service?▼
What happens if I violate Rule 10?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Rule 10 of the Delegation of Financial Powers Rules, 1978, what is required before funds can be appropriated or re-appropriated to meet expenditure on a New Service (NS) not contemplated in the approved budget?
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