Rule 21 - Financial Prudence | KartavyaDesk
Original Rule Text
economy and see that all relevant financial rules and regulations are observed, by his own office and by subordinate disbursing officers. Among the principles on which emphasis is generally laid are the following:- (i) Every officer is expected to exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own money. (ii) The expenditure should not be prima facie more than the occasion demands. (iii) No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage. (iv) Expenditure from public moneys should not be incurred for the benefit of a particular person or a section of the people, unless – (a) a claim for the amount could be enforced in a Court of Law, or (b) the expenditure is in pursuance of a recognized policy or custom. Rule 22 Expenditure from Public Funds. No authority may incur any expenditure or enter into any liability involving expenditure or transfer of moneys for investment or deposit from public funds (Consolidated Fund / Contingency Fund and the Public Accounts) unless the same has been sanctioned by a competent authority. Rule 23 Delegation of Financial Powers. The financial powers of the Government have been delegated to various subordinate authorities vide Delegation of Financial Powers Rules as amended from time to time. The financial powers of the Government, which have not been delegated to a subordinate authority, shall vest in the Finance Ministry. Rule 24 Consultation with Financial Advisers. All draft memoranda for Expenditure Finance Committee or Public Investment Bureau or Committee on Establishment Expenditure and Cabinet Committee for Economic Affairs or Cabinet shall be circulated by the Ministry or Department concerned after consultation with the concerned Financial Adviser of the Ministry or Department. A confirmation to this effect shall be included in the draft memorandum at the circulation stage.
What This Means
Rule 21 of the General Financial Rules (GFR), 2017, emphasizes the importance of financial prudence and accountability for every government officer. It essentially states that each officer is responsible for ensuring that public funds are spent wisely and in accordance with established rules and regulations. This responsibility extends not only to their own actions but also to the actions of subordinate officers who are disbursing funds. Think of it as spending taxpayer money as carefully as you would spend your own.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Every officer must exercise the same vigilance in spending public money as they would their own.
- •Expenditure should be reasonable and proportionate to the need.
- •No officer should use their sanctioning power for personal gain.
- •Public funds should not be used for the benefit of specific individuals or groups unless legally required or part of a recognized policy.
- •Financial rules and regulations must be strictly observed.
Practical Example
Mr. Sharma, a Section Officer in the Ministry of Culture, is responsible for approving travel expenses for artists participating in a government-sponsored festival. He receives a bill for ₹50,000 for a single artist's airfare, which seems unusually high. Applying Rule 21, Mr. Sharma investigates further and discovers that the artist booked a first-class ticket when economy class was sufficient and permissible under the rules. He rejects the inflated bill and approves only the amount equivalent to an economy class ticket, ensuring that public funds are used responsibly and in accordance with the rules. If he had approved the first class ticket without question, he would have violated Rule 21.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'vigilance' mean in the context of Rule 21?▼
What happens if I violate Rule 21?▼
Does Rule 21 apply only to senior officers?▼
If a policy allows for certain expenditure, does that automatically mean it's compliant with Rule 21?▼
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 Rule 21 of GFR 2017, what level of vigilance should a government officer exercise when spending public money?
Related Rules
Need help understanding this rule?
Ask Niti — your AI assistant for GFR 2017 and other government rules