Rule 228 - Grant Application | KartavyaDesk
Original Rule Text
required to submit an application which includes all relevant information such as Articles of Association, bye-laws, audited statement of accounts, sources and pattern of income and expenditure etc. enabling the sanctioning authority to assess the suitability of the Institution or Organisation seeking Grant. The application should clearly spell out the need for seeking Grant and should be submitted in such form as may be prescribed by the sanctioning authority. The Institution or Organisation seeking Grants-in-aid should also certify that it has not obtained or applied for grants for the same purpose or activity from any other Ministry or Department of the Government of India or State Government. Rule 230 (2) In order to obviate duplication in Grants-in-aid, each Ministry or Department should maintain a list of institutions or organisations along with details of amount and purpose of Grants given to them. These details should also be made available on the website of the Ministry/Department. Rule 230 (3) Award of Grants should be considered only on the basis of viable and specific schemes drawn up in sufficient detail by the institution or organisation. The budget for such schemes should disclose, inter alia, the specific quantified and qualitative targets likely to be attained against the outlay. In the cases of the schemes where Grants are given as part of the expenditure on reimbursement basis (i.e. the expenditure has already been incurred on approved project/scheme and reimbursement from the Government in the form of Grant/Subsidy etc. is due) the same will be treated as the Central Financial Assistance (CFA) and no Utilization Certificate shall be required in such cases of reimbursements. Rule 230 (4) Recurring Grant is defined as one which is released periodically to the same organization for the same purpose. Nonrecurring Grant is one time release to an organization for a special purpose (which could be released in installments). Every order sanctioning a Grant shall indicate whether it is recurring or non-recurring and specify clearly the object for which it is being given and the general and special conditions, if any, attached to the Grant. In the case of non-recurring Grants for specified object, the order shall also specify the time limit within which the Grant or each installment of it, is to be spent.
What This Means
Rule 228 of the General Financial Rules (GFR) 2017 outlines the process for institutions and organizations to apply for grants-in-aid from the government. It basically says that if you want government money, you need to provide a detailed application. This application must include all the important information about your organization, like your rules (Articles of Association, bye-laws), financial statements (audited accounts), and where your money comes from and how you spend it (income and expenditure). This helps the government decide if your organization is suitable to receive a grant. The application must also clearly explain why you need the grant and follow the format specified by the granting authority.
Furthermore, the rule emphasizes transparency and prevents double-dipping. Organizations applying for grants must certify that they haven't already received or applied for the same funding from another government department (either central or state). To avoid giving the same grant twice, each government ministry or department should keep a list of all the organizations they've given grants to, including the amount and purpose of the grant. This information should also be available on the ministry's website. Grants should only be given for well-defined projects with clear goals and budgets. If the grant is a reimbursement for expenses already incurred, it's treated as Central Financial Assistance (CFA), and no Utilization Certificate is required.
Finally, the rule distinguishes between recurring and non-recurring grants. Recurring grants are given regularly for the same purpose, while non-recurring grants are one-time payments for a specific project. All grant orders must clearly state whether the grant is recurring or non-recurring, what it's for, and any conditions attached. For non-recurring grants, the order must also specify a deadline for spending the money.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Organizations seeking grants-in-aid must submit a detailed application with financial and organizational information.
- •Applicants must certify they haven't applied for or received the same grant from other government sources.
- •Ministries must maintain and publish lists of grant recipients to prevent duplication.
- •Grants should be based on viable schemes with specific targets and budgets.
- •Grant orders must specify if the grant is recurring or non-recurring, its purpose, and any conditions.
Practical Example
The 'Helping Hands NGO' wants to start a new skill development program for underprivileged youth. They apply for a grant of ₹5,00,000 from the Ministry of Skill Development and Entrepreneurship. As per Rule 228, their application includes their Articles of Association, audited financial statements for the past three years, details of their income and expenditure, and a detailed proposal outlining the skill development program, its objectives, and the expected outcomes. They also certify that they have not applied for the same grant from any other ministry or state government. The Ministry reviews the application and, finding it satisfactory, approves the grant, specifying it as a non-recurring grant with a deadline of one year for utilization.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What documents are required when applying for a grant-in-aid?▼
What is the purpose of maintaining a list of grant recipients by each Ministry?▼
What is the difference between a recurring and non-recurring grant?▼
What is Central Financial Assistance (CFA) in the context of grants?▼
What happens if an organization receives the same grant from two different ministries?▼
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 228 of GFR 2017, which of the following documents is an institution seeking Grants-in-aid required to submit with its application?
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