Rule 14 — General Financial Rules 2017 (amended July 2024) - Rule 14
Original Rule Text
Rule 14
Subject to any general or special orders
issued by a Department of the Central
Government, an Administrator or a Head
of a Department responsible for the
collection of revenue shall keep the
Finance Ministry fully informed of the
progress of collection of revenue under
his control and of all important variations
in such collections as compared with the
Budget Estimates.
What This Means
This rule is about keeping the central government's Finance Ministry in the loop regarding money collected by various government departments. Essentially, if your department is responsible for collecting any kind of government income – like taxes, fees, or duties – then you, as the head or administrator of that department, have a duty to regularly inform the Finance Ministry about how much money you're collecting.
Specifically, you need to provide updates on the overall progress of your revenue collection efforts. More importantly, if there are any big differences between the amount of money you actually collect and the amount your department had originally planned or budgeted to collect, you must highlight these variations to the Finance Ministry. This ensures that the central financial authority is always aware of the government's income status and any significant deviations from financial plans.
It's important to remember that while this rule sets a general expectation, your specific department might have additional or more detailed instructions (general or special orders) on how and when to report this information. These specific orders would also need to be followed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Heads or Administrators of departments responsible for collecting government revenue must report to the Finance Ministry.
- 2They need to provide updates on the progress of their revenue collection.
- 3Any significant differences between actual collections and budgeted estimates must be reported.
- 4The purpose is to keep the Finance Ministry fully informed about the government's income.
- 5This rule ensures financial transparency and oversight at the central government level.
- 6Specific departmental orders may provide further details on reporting procedures.
Practical Example
Imagine Mr. Sharma is the Director of the Department of Commercial Taxes in a Central Government Ministry. His department is responsible for collecting various indirect taxes. At the beginning of the financial year, his department budgeted to collect ₹500 Crores in a particular quarter from Goods and Services Tax (GST).
Mid-quarter, due to an unexpected economic slowdown and a new government policy offering tax rebates, Mr. Sharma's team realizes that the actual collection for that quarter is likely to be only ₹420 Crores, a significant shortfall of ₹80 Crores (16%) from the budget estimate. According to Rule 14, Mr. Sharma must promptly prepare a detailed report for the Finance Ministry, explaining the progress of collection, highlighting this ₹80 Crore variation, and providing reasons for the shortfall, such as the economic slowdown and the new tax rebate policy. This allows the Finance Ministry to understand the impact on overall government finances and plan accordingly.
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.