Rule 3 - Definitions

DFPR 1978delegation

Rule 3: Definitions- (1) In these rules, unless the context otherwise requires –
(a) “Administrator” means an Administrator of a Union territory, by whatever name designated, appointed under Article 239 of the Constitution;
(b) “Annexure” means the Annexure appended to these rules;
(c) “Appropriation” means the assignments of funds to defray charges in respect of services indicated voted or charged section;
(d) “Competent Authority” means, in respect of the power to be exercised under any of these rules, the President or such other authority to which the power is delegated by or under these rules, or any other general or special rules or orders issued by the Government of India;
(e) “Department of the Government of India” means any of the Ministries, Departments, Secretariats and Offices as notified from time to time and listed in the First Schedule to the Government of India (Allocation of Business Rules) and the Vice-President’s Secretariat;
(f) “Finance Ministry” means the Department of Expenditure, Ministry of Finance of the Government of India:
Provided that in any Department of the Government of India where the Scheme of Integrated Financial Adviser is in force, the Integrated Financial Adviser of that Department, will, subject to supervision by Finance Ministry, exercise all or any of the powers delegated by Finance Ministry.
(g) “Head of the Department” means an authority or person (not below the rank of Deputy Secretary to the Government of India and equivalent), declared by the Department concerned, in the Government of India, as a Head of the Department (HoD) in relation to an identifiable establishment or establishments to exercise the financial powers delegated to him under these rules;
(h) “Head of Office” means a Gazetted Officer designated as such, subordinate to Administrators and Heads of Departments;
(i) “Ministry of Finance” means the Departments concerned with the subject matter in the Ministry of Finance;
(j) “Projects” means one-time expenditure resulting in creation of capital assets or otherwise, which could yield financial or economic returns or both and such projects may either be separate or part of an approved Scheme;
(k) “Re-appropriation” means transfer, by a Competent Authority, of funds from one primary unit of appropriation to another to meet additional expenditure within the same Section (Revenue Section and Capital Section) of the grant or Appropriation;
(l) “Recurring expenditure” means expenditure which is incurred at periodical intervals for the same purpose and the expenditure other than recurring expenditure is non-recurring expenditure;
(m) “Schemes” means programmes through which Departments of the Government of India spend resources for delivering goods or, services or both.
(2) The terms and expressions used in these rules and not defined here but defined in the General Financial Rules shall have the meanings respectively assigned to them in the said General Financial Rules.

What This Means

Rule 3 of the Delegation of Financial Powers Rules, 1978, defines key terms used throughout the document. Understanding these definitions is crucial for interpreting the rules correctly and applying them in your daily work. It clarifies who the 'Finance Ministry' is (usually the Department of Expenditure), what constitutes a 'Head of Department' (HoD), and other important concepts like 'Projects,' 'Re-appropriation,' 'Recurring expenditure,' and 'Schemes.'

For example, it specifies that a 'Head of Department' must be at least a Deputy Secretary level officer and designated as such by their department. It also distinguishes between 'Recurring expenditure' (like salaries) and 'Non-recurring expenditure' (like purchasing equipment). The rule also clarifies the role of Integrated Financial Advisors (IFA) in departments where the Integrated Financial Advisor scheme is in force. The IFA exercises delegated financial powers, subject to the supervision of the Finance Ministry.

These definitions ensure everyone is on the same page when it comes to financial matters, preventing confusion and promoting consistent application of the rules across different government departments. Knowing these definitions is essential for anyone involved in financial management within the government, from processing invoices to approving large-scale projects.

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

Key Points

1Defines key terms used in the Delegation of Financial Powers Rules, 1978.
2Clarifies the roles and responsibilities of different authorities, such as the 'Head of Department' and 'Integrated Financial Advisor'.
3Distinguishes between different types of expenditure, including 'Recurring' and 'Non-recurring' expenditure.
4Defines what constitutes a 'Project' and a 'Scheme' for financial purposes.
5Explains the meaning of 'Re-appropriation' of funds.

Practical Example

Ms. Sharma, a newly appointed Section Officer in the Ministry of Culture, is tasked with processing a request for Rs. 50,000 for the annual maintenance of the Ministry's library. To determine if she has the authority to approve this expenditure, she needs to understand the definition of 'Recurring expenditure' as defined in Rule 3(l). Since library maintenance is an expense incurred at periodical intervals for the same purpose, it falls under 'Recurring expenditure'. She then needs to consult the delegation of financial powers assigned to a Section Officer within her Ministry to see if she has the power to sanction recurring expenditure of this amount.

Similarly, Mr. Verma, a Deputy Secretary, needs to approve a proposal for a new IT system costing Rs. 2 crores. He needs to understand the definition of 'Projects' in Rule 3(j) to determine if this qualifies as a project requiring specific approvals beyond his routine delegated powers. Because the IT system is a one-time expenditure resulting in the creation of a capital asset, it is considered a project. He must then follow the procedures for project approval, which may involve seeking approval from the Finance Ministry or the Integrated Financial Advisor.

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 the significance of defining 'Head of Department' in these rules?▼

Defining 'Head of Department' (HoD) ensures that only officers of a certain seniority and designation have the authority to exercise specific financial powers. This maintains accountability and prevents misuse of funds.

What is the role of the Integrated Financial Advisor (IFA) as defined in Rule 3(f)?▼

The IFA, in departments where the scheme is in force, exercises delegated financial powers, subject to the supervision of the Finance Ministry. This brings financial expertise closer to the operational level.

What is the difference between 'Schemes' and 'Projects' according to Rule 3?▼

'Schemes' are ongoing programs through which government departments deliver goods or services. 'Projects' are one-time expenditures that create capital assets or yield financial/economic returns.

Why is it important to differentiate between 'Recurring' and 'Non-recurring' expenditure?▼

This distinction is crucial for budgeting and financial control. Different approval processes and limits may apply to each type of expenditure.

What does 'Re-appropriation' mean, and why is it important?▼

'Re-appropriation' is the transfer of funds from one budget head to another within the same section of the grant. It allows for flexibility in managing funds to meet changing needs, but it must be done by a competent authority.

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 the Delegation of Financial Powers Rules, 1978, which department is generally referred to as the 'Finance Ministry'?

Rule 3 - Definitions

DFPR 1978delegation

Rule 3: Definitions- (1) In these rules, unless the context otherwise requires –
(a) “Administrator” means an Administrator of a Union territory, by whatever name designated, appointed under Article 239 of the Constitution;
(b) “Annexure” means the Annexure appended to these rules;
(c) “Appropriation” means the assignments of funds to defray charges in respect of services indicated voted or charged section;
(d) “Competent Authority” means, in respect of the power to be exercised under any of these rules, the President or such other authority to which the power is delegated by or under these rules, or any other general or special rules or orders issued by the Government of India;
(e) “Department of the Government of India” means any of the Ministries, Departments, Secretariats and Offices as notified from time to time and listed in the First Schedule to the Government of India (Allocation of Business Rules) and the Vice-President’s Secretariat;
(f) “Finance Ministry” means the Department of Expenditure, Ministry of Finance of the Government of India:
Provided that in any Department of the Government of India where the Scheme of Integrated Financial Adviser is in force, the Integrated Financial Adviser of that Department, will, subject to supervision by Finance Ministry, exercise all or any of the powers delegated by Finance Ministry.
(g) “Head of the Department” means an authority or person (not below the rank of Deputy Secretary to the Government of India and equivalent), declared by the Department concerned, in the Government of India, as a Head of the Department (HoD) in relation to an identifiable establishment or establishments to exercise the financial powers delegated to him under these rules;
(h) “Head of Office” means a Gazetted Officer designated as such, subordinate to Administrators and Heads of Departments;
(i) “Ministry of Finance” means the Departments concerned with the subject matter in the Ministry of Finance;
(j) “Projects” means one-time expenditure resulting in creation of capital assets or otherwise, which could yield financial or economic returns or both and such projects may either be separate or part of an approved Scheme;
(k) “Re-appropriation” means transfer, by a Competent Authority, of funds from one primary unit of appropriation to another to meet additional expenditure within the same Section (Revenue Section and Capital Section) of the grant or Appropriation;
(l) “Recurring expenditure” means expenditure which is incurred at periodical intervals for the same purpose and the expenditure other than recurring expenditure is non-recurring expenditure;
(m) “Schemes” means programmes through which Departments of the Government of India spend resources for delivering goods or, services or both.
(2) The terms and expressions used in these rules and not defined here but defined in the General Financial Rules shall have the meanings respectively assigned to them in the said General Financial Rules.

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

1Defines key terms used in the Delegation of Financial Powers Rules, 1978.
2Clarifies the roles and responsibilities of different authorities, such as the 'Head of Department' and 'Integrated Financial Advisor'.
3Distinguishes between different types of expenditure, including 'Recurring' and 'Non-recurring' expenditure.
4Defines what constitutes a 'Project' and a 'Scheme' for financial purposes.
5Explains the meaning of 'Re-appropriation' of funds.