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Rule 20 - NER Fund Re-appropriation | KartavyaDesk

DFPR 1978delegation

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.

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

  • •Allows Secretaries of Ministries/Departments to re-appropriate NER funds from non-functional to functional heads.
  • •This delegation includes re-appropriations during the first quarter of the financial year.
  • •Secretary can further delegate this power to officers of Joint Secretary rank or equivalent and above.
  • •Re-appropriations from NER to non-NER purposes require approval from the respective Secretaries or the Ministry of Finance.
  • •The 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?▼
Non-functional Major Heads (like 2552, 4552, and 6552) typically represent budget allocations for projects or schemes that are planned but not yet actively incurring expenditure. They might be for projects in the initial stages of approval or implementation.
Can a Director-level officer re-appropriate funds under Rule 20?▼
No, Rule 20 explicitly states that the Secretary can only delegate the power of re-appropriation to officers not below the rank of Joint Secretary or equivalent.
Does Rule 20 allow for unlimited re-appropriation of NER funds?▼
No, while it provides flexibility, it's limited to re-appropriations from non-functional to functional heads within the NER. Any re-appropriation to non-NER purposes still requires higher-level approval.
What if the Ministry of Textiles wants to re-appropriate funds from a functional NER head to another functional NER head?▼
Rule 20 specifically addresses re-appropriation from *non-functional* to functional heads. Re-appropriation between functional heads within NER may be governed by other delegation rules, but not Rule 20.
Why is the Ministry of Development of North Eastern Region (DoNER) excluded from the relaxation under Rule 20?▼
The Ministry of DoNER has its own specific financial regulations and procedures tailored to its unique mandate. Applying Rule 20 to DoNER could potentially create conflicts or inconsistencies with its established framework.

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?

Related Rules

Annexure IIDFPR 2024 - Annexure IIAppendix IDFPR 2024 - Appendix IRule 10DFPR 2024 - Rule 10 - (Re-appropriation)Rule 14DFPR 2024 - Rule 14 - (Insurance of Government property)Rule 18DFPR 2024 - Rule 18 - (Loans and advances)

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