Rule 20 - NER Fund Re-appropriation
Original Rule Text
i. Re-appropriation of funds earmarked for North East Region from the non-functional Major Heads (2552, 4552 and 6552) to the functional heads from which actual expenditure is incurred, is delegated to the Secretary of the Ministry/Department concerned, including re-appropriations during the first quarter of the financial year. The Secretary may further delegate such powers to any officer not below the rank of Joint Secretary or equivalent level officer. ii. All other re-appropriations from the NER to non-NER purposes shall continue to require the approval of the respective Secretaries or the Ministry of Finance, as applicable. iii. The relaxation allowed at 3
(i) is not applicable for Ministry of Development of NER.
[Ministry of Finance DoE O.M. No. 02(01)/2024-E.II(A) dated 03.06.2024]
Rule 20: Communication of sanctions to audit– (1) Whenever the consent or sanction of the Finance Ministry is required under these rules, such consent or sanction shall be communicated to the audit or Pay and Accounts Officer concerned by a Department of the Government of India itself after adding a clause to the sanction as follows:- “This order / memorandum issues with the concurrence of the Ministry of Finance (Department of Expenditure), vide their O.M./ U.O. No……..dated………”. (2) Whenever a financial sanction is issued by a Department of the Government of India in exercise of the powers conferred on it by these rules in consulta-
tion with its Internal Financial Adviser or Integrated Financial Adviser and approval of competent authority, it shall be communicated to audit/ Pay and Accounts Officer concerned by the Department concerned by adding a clause of the sanction as follows:
“This sanction issues with the approval of competent authority. The advice of Internal Finance / Integrated Finance was conveyed vide Dy. No./ U.O. No………dated………”.
What This Means
Rule 20 of the Delegation of Financial Powers Rules, 1978, focuses on how funds allocated for the North East Region (NER) can be moved around within a department's budget. Specifically, it allows the Secretary of a Ministry or Department to re-allocate funds from 'non-functional' budget categories (like 2552, 4552, and 6552, which might be for projects that haven't started yet) to 'functional' categories (where the money is actually being spent). This includes doing so even in the first quarter of the financial year, giving departments flexibility early on. The Secretary can also pass this power down to officers at the Joint Secretary level or higher.
However, there's a catch. If the department wants to move NER funds to projects *outside* the North East Region, they still need approval from the Secretary of the Ministry or the Ministry of Finance, depending on the specific circumstances. Also, this flexibility doesn't apply to the Ministry of Development of North Eastern Region (DoNER), which has its own specific rules. So, while Rule 20 aims to streamline fund reallocation within the NER, it maintains oversight for transfers outside the region and for the dedicated DoNER ministry.
In essence, this rule gives departments more autonomy in managing NER funds for ongoing projects but ensures that significant shifts in funding priorities are still subject to higher-level scrutiny.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Allows Secretaries of Ministries/Departments to re-appropriate NER funds from non-functional to functional heads.
- 2This delegation includes re-appropriations during the first quarter of the financial year.
- 3Secretary can further delegate this power to officers of Joint Secretary rank or equivalent and above.
- 4Re-appropriations from NER to non-NER purposes require approval from the respective Secretaries or the Ministry of Finance.
- 5The relaxation does not apply to the Ministry of Development of North Eastern Region (DoNER).
Practical Example
The Ministry of Textiles has allocated ₹5 crore under Major Head 2552 (non-functional) for a proposed handloom training center in Manipur. However, the project is delayed. Meanwhile, the Ministry needs additional funds for an existing silk production unit in Assam, which falls under a functional head. Under Rule 20, the Secretary of the Ministry of Textiles can re-appropriate ₹2 crore from the 2552 head to the Assam silk production unit. The Secretary delegates this power to the Joint Secretary (Finance), Mr. Sharma, who approves the re-appropriation. However, if the Ministry wanted to use ₹1 crore of the NER funds for a textile park in Gujarat, they would need approval from either the Secretary of the Ministry of Textiles or the Ministry of Finance.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are 'non-functional' Major Heads in the context of Rule 20?▼
Can a Director-level officer re-appropriate funds under Rule 20?▼
Does Rule 20 allow for unlimited re-appropriation of NER funds?▼
What if the Ministry of Textiles wants to re-appropriate funds from a functional NER head to another functional NER head?▼
Why is the Ministry of Development of North Eastern Region (DoNER) excluded from the relaxation under Rule 20?▼
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 20 of the Delegation of Financial Powers Rules, 1978, which of the following officers is authorized to re-appropriate funds earmarked for the North East Region (NER) from non-functional to functional major heads, after delegation by the Secretary?