Rule 3 - Definitions | KartavyaDesk
Original Rule Text
(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.
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
- •Defines key terms used in the Delegation of Financial Powers Rules, 1978.
- •Clarifies the roles and responsibilities of different authorities, such as the 'Head of Department' and 'Integrated Financial Advisor'.
- •Distinguishes between different types of expenditure, including 'Recurring' and 'Non-recurring' expenditure.
- •Defines what constitutes a 'Project' and a 'Scheme' for financial purposes.
- •Explains 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?▼
What is the role of the Integrated Financial Advisor (IFA) as defined in Rule 3(f)?▼
What is the difference between 'Schemes' and 'Projects' according to Rule 3?▼
Why is it important to differentiate between 'Recurring' and 'Non-recurring' expenditure?▼
What does 'Re-appropriation' mean, and why is it important?▼
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'?
Related Rules
Need help understanding this rule?
Ask Niti — your AI assistant for DFPR 1978 and other government rules