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Rule 238 - Grants-in-Aid Reporting | KartavyaDesk

GFR 2017

Original Rule Text

238 (6) In the case of organizations receiving one-time assistance or non-recurring Grants as Grants-in-aid from Rupees ten lakhs to Rupees five crore, all Ministries or Departments of Government of India should include in their Annual Reports, statements showing the quantum of funds provided to each of these organizations and the purpose for which the funds were utilized, for the information of Parliament. The Annual Reports and Audited Accounts of Private and Voluntary Organizations or societies registered under the Registration of Societies Act, 1860, receiving one-time assistance/non-recurring Grants of Rupees Five Crore and above should also be laid on the Table of the House, within nine months of the close of the succeeding financial year of the grantee Organisations. [Note: Increase in monetary ceiling in laying of Annual Reports and Audited Accounts of various organisations receiving funds from Govt. of India]56 .

What This Means

Furthermore, if a private or voluntary organization (like a society registered under the Societies Act) receives a one-time grant of ₹5 crore or more, the Ministry/Department must also lay the organization's Annual Report and Audited Accounts before Parliament. This needs to happen within nine months after the end of the organization's financial year. This ensures even greater scrutiny for larger grants given to non-governmental entities, promoting responsible use of taxpayer money.

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

Key Points

  • •Applies to one-time grants (Grants-in-aid) given by government Ministries/Departments.
  • •For grants between ₹10 lakhs and ₹5 crore, the Ministry/Department must report the grant details in their Annual Report.
  • •For grants of ₹5 crore and above to private/voluntary organizations, their Annual Report and Audited Accounts must be laid before Parliament.
  • •The Annual Report and Audited Accounts must be presented within nine months of the grantee organization's financial year end.
  • •This rule promotes transparency and accountability in the use of public funds.

Practical Example

The Ministry of Culture provides a one-time grant of ₹2 crore to the 'Bharatiya Kala Sansthan' for the renovation of their historical dance academy. According to Rule 238(6), the Ministry of Culture must include a statement in its Annual Report to Parliament, detailing the ₹2 crore grant to Bharatiya Kala Sansthan and specifying that the funds were used for the renovation project.

Later, the Ministry of Social Justice and Empowerment provides a grant of ₹6 crore to 'Seva Foundation', a registered society, for running a nationwide skill development program for underprivileged youth. The Ministry is then obligated to present Seva Foundation's Annual Report and Audited Accounts before the Parliament within nine months of the end of Seva Foundation's financial year.

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

Frequently Asked Questions

What constitutes a 'one-time assistance' or 'non-recurring grant'?▼
It refers to a grant that is provided as a single instance or for a specific, non-repeating purpose, as opposed to recurring grants given annually or periodically.
What is the purpose of laying the Annual Reports and Audited Accounts before the Parliament?▼
It allows Parliament to scrutinize the financial activities of organizations receiving substantial government funding, ensuring accountability and preventing misuse of funds.
What happens if a Ministry fails to comply with Rule 238(6)?▼
Failure to comply would be a serious lapse in financial propriety and could lead to audit objections, parliamentary questions, and potential disciplinary action against the responsible officers.
Does this rule apply to grants given to state government entities?▼
No, this rule primarily focuses on grants given to organizations other than state government entities. Grants to state governments are governed by different rules and procedures.
What is the 'Registration of Societies Act, 1860'?▼
It is an act that provides for the registration of literary, scientific, and charitable societies. Many NGOs and voluntary organizations in India are registered under this Act.

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 238(6) of GFR 2017, for one-time Grants-in-aid between ₹10 lakhs and ₹5 crore, what information must be included in the Annual Reports of Ministries/Departments of the Government of India?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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