Rule 114 — GFR 2017
Original Rule Text
Rule 114
Claims of State Governments on
account of the extra cost of agency
functions. Claims of State Governments,
on account of the extra cost of agency
functions entrusted to them under Article
258 of the Constitution shall be dealt with
and settled in accordance with such
directions as may be issued by the
President in this regard from time to time
What This Means
This rule explains how State Governments can claim money from the Central Government when they perform certain tasks on the Centre's behalf. Sometimes, the Central Government asks State Governments to carry out specific functions, acting almost like an agent for the Centre. This arrangement is typically made under Article 258 of the Indian Constitution.
When a State Government takes on such a task and incurs additional expenses beyond what was initially planned or provided for, this rule comes into play. It states that any claims made by the State for these extra costs will not be settled in a generic way. Instead, the President of India will issue specific instructions or guidelines from time to time, detailing exactly how these claims should be processed, evaluated, and ultimately settled.
So, for any State Government officer dealing with such a claim, the key action is to refer to the latest directions issued by the President regarding the settlement of extra costs for agency functions. These directions will provide the step-by-step procedure and criteria for reimbursement.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1State Governments can claim reimbursement for extra costs incurred while performing duties for the Central Government.
- 2These duties are referred to as 'agency functions' and are typically entrusted under Article 258 of the Constitution.
- 3The claims are specifically for 'extra cost,' meaning expenses beyond what was initially covered or anticipated.
- 4The method for dealing with and settling these claims is not fixed but is determined by specific directions.
- 5These specific directions are issued by the President of India periodically.
- 6Government officers must follow the latest Presidential directions when processing or making such claims.
Practical Example
Imagine the Central Government launches a new national scheme, 'Jal Suraksha Abhiyan,' to improve water quality in rural areas, and under Article 258, it entrusts the implementation to various State Governments. The State of 'Vikas Pradesh' is tasked with setting up 50 new water testing labs across its districts. The initial funding provided by the Centre covers the basic infrastructure and staff salaries. However, due to unforeseen geological challenges in certain remote areas and a sudden increase in the cost of specialized testing equipment, the State's Public Health Engineering Department (PHED) incurs an additional Rs. 75 lakhs beyond the allocated budget.
The PHED of Vikas Pradesh compiles detailed records of these extra expenses, including invoices for equipment and additional labor costs. They then prepare a claim to the Central Government for this Rs. 75 lakhs. According to Rule 114, this claim will not be settled based on general financial rules. Instead, the officers in both the State Finance Department and the relevant Central Ministry (e.g., Ministry of Jal Shakti) will need to refer to the specific directions issued by the President of India regarding the settlement of extra costs for agency functions under such national schemes. These directions will outline the documentation required, the approval process, and the criteria for determining what constitutes a legitimate 'extra cost' eligible for reimbursement.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.