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Rule 147 - Procurement Powers | KartavyaDesk

GFR 2017

Original Rule Text

Rule 147 Powers for procurement of 9 Amended vide Department of Expenditure (DoE), Ministry of Finance (MoF) OM No. F.7/10/2021-PPD dated 23.02.2023. 10 Amended vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. 11 Deleted vide DoE OM No. F.1/26/2018-PPD dated 02.04.2019. 12 Amended vide Department of Expenditure (DoE), Ministry

What This Means

Rule 147 of the General Financial Rules (GFR), 2017, deals with the powers delegated to various authorities within the government for making procurements. In simpler terms, it outlines who in a government department has the authority to approve purchases, contracts, and other financial commitments. This rule is crucial for ensuring accountability and preventing unauthorized spending of public funds. The specific powers assigned under Rule 147 are typically detailed in the delegation of financial powers rules or orders issued by the respective ministries or departments. These delegations specify the monetary limits up to which different officers can approve procurements without needing higher-level approval.

Essentially, Rule 147 doesn't directly state the exact monetary limits. Instead, it acts as a framework, directing government departments to clearly define and document the financial powers of their officers. This ensures that procurement decisions are made at the appropriate level, balancing efficiency with oversight. The rule affects all government employees involved in the procurement process, from those initiating purchase requests to those approving contracts. It's vital for maintaining transparency and preventing financial irregularities in government spending.

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

Key Points

  • Rule 147 concerns the delegation of financial powers for procurement within government departments.
  • It mandates that departments clearly define the financial powers of their officers.
  • The specific monetary limits are defined in the delegation of financial powers rules/orders of each department, not directly in Rule 147.
  • The rule aims to ensure accountability and prevent unauthorized spending.
  • It affects all government employees involved in the procurement process.

Practical Example

Ms. Sharma, a Section Officer in the Ministry of Rural Development, needs to procure 10 new computers for her section. According to the Ministry's delegation of financial powers, Section Officers can approve procurements up to ₹50,000. The total cost of the computers is estimated at ₹45,000. Therefore, Ms. Sharma can approve the purchase herself, as it falls within her delegated financial powers. However, if the estimated cost was ₹60,000, she would need to escalate the request to her superior, perhaps a Deputy Secretary, who has a higher approval limit as per the Ministry's financial delegation rules. This ensures that procurements are approved at the appropriate level based on their financial value, maintaining accountability and preventing unauthorized spending.

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

Frequently Asked Questions

Where can I find the specific monetary limits for procurement approvals under Rule 147?
The specific monetary limits are not directly stated in Rule 147. You need to refer to the delegation of financial powers rules or orders issued by your specific ministry or department.
What happens if a procurement exceeds my delegated financial powers?
If the procurement amount exceeds your delegated financial powers, you must escalate the request to an officer with the appropriate authority as defined in your department's delegation of financial powers rules.
Does Rule 147 apply to all types of government procurement?
Yes, Rule 147 provides the framework for delegation of financial powers for all types of government procurement. The specific procedures for different types of procurement (e.g., goods, services, works) are outlined in other GFR rules.
What is the purpose of Rule 147?
The primary purpose of Rule 147 is to ensure accountability, transparency, and prevent unauthorized spending by clearly defining the financial powers of government officers involved in procurement.
How often are the delegation of financial powers updated?
The frequency of updates to the delegation of financial powers varies by department. They are typically reviewed and updated periodically or when there are significant changes in government policy or financial regulations.

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

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