Rule 21 - Exceptions

Rule 21: Repeal and savings– (1) The Delegation of Financial Powers Rules, 1978, is hereby repealed:

Provided that such repeal shall not affect anything done, any order issued, any action taken or any powers exercised before coming into force of the Delegation of Financial Powers Rules, 2024 and all sanctions, orders, declarations or other action taken before the commencement of these rules shall continue to be operative and in force even after the commencement of these rules, unless specifically cancelled or revoked by the authority who accorded such sanction or issued such order or took such action: Provided further that all delegations made to any authority under special orders of Government shall also continue to remain in force unless specifically revoked by the President. (2) Nothing contained in these rules shall apply to –

(a) the Ministry of Railways and authorities subordinate to that Ministry;

(b) the Ministry of Defence and authorities subordinate to that Ministry in relation to expenditure debitable to Defence Services Estimates.

(c) the Departments of Atomic Energy and Space;

(d) the Department of Telecommunications;

(e) the Government of India’s representatives abroad whose powers shall be determined in accordance with the rules or orders issued separately in consultation with the Finance Ministry.

Note 1– The Ministry of Railways, Ministry of Defence and authorities subordinate to that Ministry and Departments of Atomic Energy, Space and Telecommunications are required to align their Primary units of Appropriation as far as possible on the lines provided in rule 8. ******

DELEGATION OF FINANCIAL POWERS RULES, 2024 MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE 23 ANNEXURES

DELEGATION OF FINANCIAL POWERS RULES, 2024 MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE 24 Annexure-I (See Rule 8) Sl.No. Code Object Head Description / Definitions (1) (2) (3) (4) (A) Revenue Expenditure Object Class 1- Compensation to Employees 1. 01 Salaries It will include pay of the Government employees as defined under FR 9(21), honorarium to Government servant and stipend to interns. It will also include expenditure on emoluments and allowances of Heads of States and other high dignitaries including Sumptuary Allowance, salary payable to the staff of Departmental canteens and leave encashment on LTC. 2. 02 Wages It will include wages of labourers and of staff at present paid out of contingencies. 3. 05 Rewards It will include rewards under a scheme given to the Government employees in addition to their pay and allowances. It will also include payment of bonus and cash awards for Hindi Pratiyogita, etc. 4. 06 Medical Treatment It will include amount paid towards medical reimbursements /treatment of the Government employees/ pensioners. 5. 07 Allowances It will include as applicable the Dearness Allowance, House Rent Allowance, Transport Allowance, Foreign Allowance, Non Practicing Allowance, Deputation (Duty) Allowance, Personal Pay, Family Planning Allowance, Special Compensatory (Hill Areas) Allowance, Tribal Area Allowance, Hard Area Allowance, Headquarter Allowance, Overtime Allowance, Children Education Allowance, Reimbursement of Tuition Fee, Ration Allowance, Cost of Ration given in cash, Constituency Allowance,

DELEGATION OF FINANCIAL POWERS RULES, 2024 MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE 25 Sl.No. Code Object Head Description / Definitions (1) (2) (3) (4) Uniform and Clothing Allowance, Entertainment Allowance, Project Allowance, Special Compensatory (Remote Locality) Allowance, Bad Climate Allowance, Washing Allowance, Special (Duty) Allowance, Night Duty Allowance, Risk Allowance, Sunderban Allowance, Cash Handling Allowance, Caretaking Allowance, Split Duty Allowance and any other allowance in addition to above which is payable to the Government employees in addition to their pay. 6. 08 Leave Travel Concession It will include air/rail/bus fare/fare of any other mode of transport entitled under LTC Rule. 7. 09 Training Expenses It will include expenditure on cost of training such as fees paid, contingencies, materials, etc., for participating in the training, workshops but exclude expenditure on domestic or foreign travel expenses. Object Class II-Social Security of Employees 8. 04 Pensionary Charges It will include all pensionary benefits including payment of pensions and gratuity in all forms to the Government employees, members of Parliament, freedom fighters, etc. It will also include contributions to service funds and contributory provident funds and payment of leave encashment at the time of retirement or death, termination of service, etc. It will also include Government’s contribution payable under National Pension System(NPS) for Government employees. This will, however, not include social security expenditure such as old age pension.

DELEGATION OF FINANCIAL POWERS RULES, 2024 MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE 26 Sl.No. Code Object Head Description / Definitions (1) (2) (3) (4) Object Class III - Goods and Services 9. 11 Domestic Travel Expenses It will include travel expenses on official tours and transfers of the Government employees within India. This will also include expenditure on TA/ DA to non- official members on account of travel in India. It will also include transfer TA payable to pensioners at the time of retirement. 10. 12 Foreign Travel Expenses It will include expenses on official tours and transfers of the Government employees outside India. This will also include expenditure on TA/ DA to non- official members going on official tour abroad. 11. 13 Office Expenses It will include all recurring and non-recurring contingent expenses incurred for the maintenance of office establishment such as, stationery, postage charges, courier charges, telephone charges, internet charges, cable connection charges, electricity charges, water charges, service agreements, security, expenditure relating to hiring of retired Government servants on short term contract basis, outsourced office attendants, office assistants/ Data Entry Operators(DEO), house-keeping, liveries/uniforms, hot and cold weather charges, pest control, refreshment, books and periodicals, hospitality expenses including entertainment of foreign delegates, gifts and souvenirs and conferences/ seminars/workshops/meetings convened by office including all related expenses on study material/ kits, refreshments, study tours, etc. It will also include purchase of office equipment, furniture and fixtures not exceeding the threshold limit of one lakh rupees or three years of useful life,

DELEGATION OF FINANCIAL POWERS RULES, 2024 MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE 27 Sl.No. Code Object Head Description / Definitions (1) (2) (3) (4) either of the two, as decided by the Government from time to time. The office equipment and furniture and fixtures exceeding the threshold limit as decided by the Government from time to time should be classified as ‘capital’ expenditure under the relevant Object Head ‘Machinery and Equipment’ and ‘Furniture and Fixtures’. Purchase of vehicles, however, irrespective of its usage (office or otherwise) should be classified as ‘capital’ expenditure under the relevant capital Object Head ‘Motor Vehicles’. 12. 14 Rent, Rates and Taxes for Land and Buildings It will include expenditure on rent for buildings (non-residential or residential or structures other than buildings), municipal rates and taxes and lease charges for rented land and buildings, the ownership of which is not transferable to Government. However, lease charges for land and buildings, the ownership of which is transferable to Government, will be classified as ‘capital’ expenditure under the relevant Object Heads ‘Land’ and ‘Buildings and Structures’. 13. 15 Royalty It will include expenses on royalties on patents, designs, trademarks, print, publishing, music, etc. 14. 16 Printing and Publication It will include expenses on printing of valuables, printing of audit and accounts reports, forms, stationery, office codes, manuals and other documents, newspaper and magazines including e-books, e-magazines, digital printing, pen drive, CD, etc., but exclude expenses on printing of publicity material which shall be classified under Advertising and Publicity.

DELEGATION OF FINANCIAL POWERS RULES, 2024 MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE 28 Sl.No. Code Object Head Description / Definitions (1) (2) (3) (4) 15. 18 Rent for others It will include expenses on rent for equipment and other various items like office equipment, transport, computer and ancillary equipment, communication equipment, air-conditioning, heating and refrigerating equipment, security equipment, broadcasting and recording equipment, construction equipment, agricultural equipment, horticultural equipment, medical equipment, furniture and fixtures. It will also include lease charges for equipment and other items, the ownership of which is not transferable to Government. However, lease charges for equipment and other items, the ownership of which is transferable to Government will be classified as ‘capital’ expenditure under the relevant Object Heads. 16. 19 Digital Equipment It will include expenses to be classified as revenue expenditure on procurement or development of hardware and software where the cost of individual item does not exceed the threshold limit of one lakh rupees or three years of useful life, either of the two as decided by the Government from time to time. The threshold limit will, however, not apply to the consumables like toner and cartridge for printer shall be classified under revenue expenditure. 17. 21 Materials and Supplies It will include expenses on various kinds of supplies, materials and stores etc., such as., medical supplies, educational supplies, agricultural supplies, livestock supplies, cleaning materials, hospital drugs and medicines, veterinary drugs, chemicals and fertilizers, lab supplies, spare parts, clothing and tentage.

DELEGATION OF FINANCIAL POWERS RULES, 2024 MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE 29 Sl.No. Code Object Head Description / Definitions (1) (2) (3) (4) 18. 22 Arms and Ammunition It will include revenue expenditure on arms and ammunitions on police and other paraestablishments. 19. 23 Cost of Ration It will include expenditure on procurement of ration provided to police and central armed police forces. 20. 24 Fuels and Lubricants It will include expenditure on petrol, oil, lubricants and other fuels like CNG, diesel, etc. 21. 26 Advertising and Publicity It will include expenses including commission to agents for sale and printing of publicity material on advertising and publicity through various media such as print media, TV media or outdoor media or Internet or mobile network or other audio-visual publicity or fairs and exhibition. 22. 27 Minor civil and electric Works It will include expenditure on repairs and maintenance of minor civil and electrical works of office buildings, residential buildings, other buildings and, expenditure on running operation and maintenance (ROM) of diesel genset, etc. maintained by the CPWD. 23. 28 Professional Services It will include expenses on engagement of professionals, consultants, artists, banks, etc., for providing services to the Government which include legal services, consultancy fees, audit fees, teaching and training Fees, payments to artists, remunerations to question setters or invigilators or guest speakers, payments to other departments for services rendered, payment or expenses to agencies for conducting departmental examination.

DELEGATION OF FINANCIAL POWERS RULES, 2024 MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE 30 Sl.No. Code Object Head Description / Definitions (1) (2) (3) (4) 24. 29 Repair and Maintenance It will include expenses on repair and maintenance (including all maintenance contract) of equipment such as machinery and equipment, office equipment, equipment for other functional use, digital equipment for office use, digital equipment for functional use, furniture and fixtures for office, furniture and fixtures for other functional use, vehicles (including motor vehicles and non-motor vehicles like bicycle, rickshaw, carts, trolleys and boat, etc., for office or functional use),infrastructural assets (It will include expenses on preventive, operating maintenance of Infrastructural assets other than minor civil and electrical works like lines, bridges, rolling stocks of railways, roads, highways, ports, ships, aircrafts, helicopters, radars, hovercrafts, airports or other infrastructures), tools and plants, arms and ammunitions, etc., but exclude expenditure on upgradation, midlife rehabilitation, retrofitting andor reconditioning. 25. 39 Bank and Agency charges It will include bank service charges, agency charges, MDR charges, direct benefit transfer charges to banks and any other charges for convenience fee performing monetary transactions. 26. 40 Awards and Prizes It will include expenses on awards and prizes given by the Government to the eminent persons and organisations. Object Class IV- Aid and Assistance 27. 31 Grants-in-aid - General It will include Grants-in-aid released for payments other than salaries and creation of capital assets. It will also include expenditure on welfare activities.

DELEGATION OF FINANCIAL POWERS RULES, 2024 MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE 31 Sl.No. Code Object Head Description / Definitions (1) (2) (3) (4) 28. 32 Contribution It will include the contributions made to international or national organisations related to membership. This will not include transfers made to autonomous bodies or PSUs or PSBs for corpus funds. 29. 33 Subsidies It will include subsidies released under various schemes of the Government. 30 34 Scholarships It will include the amount of scholarship released to various institutions or organisations or beneficiaries or individuals. 31. 35 Grants for creation of Capital Assets It will include Grants-in-aid released for payment for creation of capital assets. It will also include Viability Gap Funding (Expenditure on the projects run under Viability Gap Funding Scheme). 32. 36 Grants-in-aid - Salaries It will include grants-in-aid released for payment of salaries. 33. 37 Aid Material and Equipment It will include value of aid material and equipment transferred to Ministries or Departments or other Governments or organisations. It will also include grants given in kind to grantee bodies. Object Class V-Misc. Revenue Expenditure 34. 41 Secret Service Expenditure It will include expenses on secret services. 35. 44 Loss in Exchange It will include the loss due to difference in the rate of exchange of foreign currency in Indian rupees. The loss due to difference in the rate of exchange at the time of receipts loans from foreign resources and repayment thereof shall also be debited under this Object Head. 36. 45 Interest Payments It will include payment of inter

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1Rule 21 creates exceptions to the general Delegation of Financial Powers Rules, 1978.
• 2The rule exempts the Ministry of Railways, Ministry of Defence (for Defence Services Estimates), Departments of Atomic Energy and Space, and the Department of Telecommunications.
• 3Indian representatives abroad also fall under this exception, with their financial powers determined separately in consultation with the Finance Ministry.
• 4The exempted entities operate under their own specific financial rules and guidelines.
• 5This ensures flexibility and efficiency in managing finances for these specialized departments.

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.