Rule 230 - Grants-in-Aid | KartavyaDesk
Original Rule Text
Rule 230 (9) In making Grants to Non-Government or Quasi-Government Institutions or Organisations, a condition should be laid down that assets acquired wholly or substantially out of Government Grants, except those declared as obsolete and unserviceable or condemned in accordance with the procedure laid down in the General Financial Rules, shall not be disposed of without obtaining the prior approval of the authority which sanctioned the Grants-in-aid. Rule 230 (10) The sanctioning authority may prescribe conditions regarding quantum and periodicity for release of Grants-inaid in installments in consultation with the Financial Adviser. However, the release of the last installment of the Annual Grant must be conditional upon the Grantee Institutions providing reasonable evidence of proper utilization of installments released earlier. In the cases where Central Financial Assistance (CFA) has been sanctioned, the grant will be released in one installment upon the Grantee Institutions/ Organisation providing complete evidence of achieving the specified objectives and expenditure incurred supported by Audited Statement of Expenditure. In these cases, the grantee institutions will not be required to submit Utilization Certificates. Rule 230 (11) In order to finalize the Budgetary Estimates of Grants in aid to the Grantee Institutions, the Ministry or Department should impress upon Institution or Organisation desiring Grants from Government, to submit their requirement with supporting details by the end of September in the year preceding the year for which the Grants-in-aid is sought. The Ministry or Department should finalize their examination of the requests with the utmost expedition and make the necessary Budget provision where it is decided to sanction Grants. The Institution or Organisation should be informed of the result of their requests by April of the succeeding year. Rule 230 (12) (i) All Grantee Institutions or Organisations which receive more than fifty percent of their recurring expenditure in the form of Grants-in- aid, should ordinarily formulate terms and conditions of service of their employees which are, by and large, not higher than those applicable to similar categories of employees in Central Government. In exceptional
What This Means
Rule 230 of the General Financial Rules (GFR), 2017, outlines important guidelines for government departments when providing grants to non-government or quasi-government organizations. Essentially, it ensures that assets purchased with government money are properly managed and that grant funds are used responsibly. It aims to maintain accountability and prevent misuse of public funds allocated to these institutions.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Assets acquired with government grants cannot be disposed of without prior approval from the sanctioning authority.
- •Grant installments are released based on evidence of proper utilization of previous installments.
- •For projects with Central Financial Assistance (CFA), grants are released in a single installment upon evidence of achieving objectives and incurring expenditure.
- •Grantee institutions receiving over 50% of recurring expenditure as grants should align employee terms with Central Government standards.
- •Ministries/Departments should finalize grant requests promptly and inform institutions of the outcome by April.
Practical Example
The Ministry of Culture provides a grant of ₹50 lakhs to the 'Kalakriti Foundation,' a non-governmental organization promoting traditional arts. With ₹30 lakhs of this grant, Kalakriti purchases specialized weaving looms. According to Rule 230, if Kalakriti wants to sell these looms, even if they are considered outdated after a few years, they must first obtain permission from the Ministry of Culture. Furthermore, the Ministry releases the grant in two installments. The second installment of ₹25 lakhs is only released after Kalakriti provides a detailed report and supporting documents demonstrating how the initial ₹25 lakhs was used to conduct workshops and purchase raw materials.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if an organization disposes of assets purchased with grant money without approval?▼
Does Rule 230 apply to all types of grants?▼
What constitutes 'reasonable evidence of proper utilization' of grant funds?▼
What is the purpose of aligning employee terms with Central Government standards?▼
What is Central Financial Assistance (CFA) and how does it affect grant release?▼
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 230 of GFR 2017, what is the prerequisite for disposing of assets acquired substantially from government grants by a Non-Government Organization (NGO)?
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