Rule 23 — This rule explains how financial decision-making p
Original Rule Text
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.
What This Means
This rule explains how financial decision-making power is distributed within the Indian government. Essentially, the government has given specific powers to various departments and officers to approve spending, make purchases, or enter into financial commitments. These specific powers and their limits are detailed in a separate document called the 'Delegation of Financial Powers Rules,' which is updated regularly.
Every government officer who deals with finances needs to know what their specific financial powers are according to these 'Delegation of Financial Powers Rules.' If a financial decision needs to be made, and no specific officer or department has been given the authority to make that particular decision, then the power to make that decision automatically falls to the Finance Ministry. This means if you don't have the explicit power to approve something, you must send it to the Finance Ministry for their approval.
In simple terms, it's a clear chain of command for financial approvals: check your delegated powers first, and if it's beyond your limit or not specifically delegated to anyone else, then the Finance Ministry is the ultimate authority.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Government financial powers are distributed to various subordinate authorities.
- 2These specific delegated powers are detailed in the 'Delegation of Financial Powers Rules'.
- 3The 'Delegation of Financial Powers Rules' can be amended and updated over time.
- 4Any financial power not explicitly delegated to a subordinate authority automatically rests with the Finance Ministry.
- 5Government officers must be aware of their specific delegated financial limits and follow the prescribed procedures.
Practical Example
Imagine Mr. Sharma, a Section Officer in the Ministry of Culture, needs to procure new office furniture for his department. The total cost of the furniture is estimated to be Rs. 80,000. Mr. Sharma consults the 'Delegation of Financial Powers Rules' applicable to his ministry.
He finds that a Section Officer has the power to approve purchases up to Rs. 50,000, while his immediate superior, the Under Secretary, can approve purchases up to Rs. 2,00,000. Since the Rs. 80,000 purchase exceeds Mr. Sharma's delegated power but falls within the Under Secretary's power, Mr. Sharma prepares the proposal and forwards it to the Under Secretary for approval. If the purchase was for, say, Rs. 50,00,000 and the highest delegated power in the ministry was only Rs. 20,00,000, then the proposal would need to be sent to the Finance Ministry for final approval, as that power would not have been delegated to any subordinate authority within the Ministry of Culture.
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.