KartavyaDesk

Rule 239 - Utilization Certificate | KartavyaDesk

GFR 2017

Original Rule Text

Rule 239 State Government to submit Utilization Certificate for Grants-in-aid relating to Scheme. When Central Grants are given to State Governments for implementation of Central Scheme, Utilization Certificate in format GFR 12-C may be submitted by the State Government in respect of the Scheme. The UC should be counter-signed by the Administrative Secretary of the Division regulating the Scheme/Finance Secretary. Rule 240 State Government to submit Utilization Certificate when expenditure incurred through local bodies. When Central Grants are given to State Governments for expenditure to be incurred by them through local bodies or private institutions, the Utilization Certificates should be furnished by the State Government concerned. Rule 241 Utilisation Certificate in case of Direct Benefit Transfer (DBT) Scheme. In case of the schemes covered under Direct Benefit Transfers (DBT), where the fund flow is directly from the Central Government to the beneficiaries, the intimation from the bank/National Payments Corporation of India (Aadhaar Payment Bridge) regarding deposit of the funds in the beneficiaries’ bank accounts, generated as per procedure prescribed by the Controller General of Accounts, may be treated as a Utilization Certificate. The Ministry/Department releasing the Grant should keep proper record and accounts relating to such direct releases under DBT to the beneficiaries bank accounts. Rule 242 (1) Performance parameters. Performance parameters should be clearly set to allow better oversight of the Autonomous Body. Rule 242 (2) Submission of Achievement-cumPerformance Reports. (i) The Grantee Institutions or Organisations should be required to submit performance cum achievement reports soon after the end of the financial year, and in any case, not later than six months after the close of the financial year. (ii) In regard to non-recurring Grants such as those meant for celebration of anniversaries, conduct of special tours and maintenance Grants for education, performance- cum-

What This Means

Rule 239 of the General Financial Rules (GFR) 2017 focuses on how State Governments must account for funds (Grants-in-aid) they receive from the Central Government for implementing Central Schemes. Essentially, it says that when the Central Government gives money to a State to run a specific program, the State needs to provide a 'Utilization Certificate' (UC) to prove that the money was spent correctly and for the intended purpose. This UC is a formal document that confirms the funds were used as planned and is submitted in a specific format (GFR 12-C).

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

Key Points

  • •Applies when Central Government provides Grants-in-aid to State Governments for Central Schemes.
  • •State Governments must submit a Utilization Certificate (UC) in format GFR 12-C.
  • •The UC must be counter-signed by the Administrative Secretary or Finance Secretary of the relevant State Government department.
  • •For DBT schemes, bank/NPCI intimation of fund deposit is treated as a UC.
  • •Ministries/Departments releasing grants must maintain records of DBT releases.

Practical Example

The Ministry of Rural Development provides a grant of ₹50 crore to the Government of Uttar Pradesh to implement the Pradhan Mantri Awas Yojana (PMAY-G) in the state. After spending the funds on constructing houses for eligible beneficiaries, the Uttar Pradesh Rural Development Department prepares a Utilization Certificate in the GFR 12-C format. This UC details how the ₹50 crore was spent, including the number of houses constructed and the beneficiaries who received them. The UC is then counter-signed by the Administrative Secretary of the Uttar Pradesh Rural Development Department before being submitted to the Ministry of Rural Development.

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

Frequently Asked Questions

What is a Utilization Certificate (UC)?▼
A Utilization Certificate is a document certifying that a grant received has been utilized for the purpose for which it was sanctioned.
What is the format for the Utilization Certificate under Rule 239?▼
The Utilization Certificate must be submitted in format GFR 12-C.
Who needs to sign the Utilization Certificate?▼
The Utilization Certificate needs to be counter-signed by the Administrative Secretary or the Finance Secretary of the State Government department responsible for the scheme.
What happens if the funds are not utilized properly?▼
If the funds are not utilized properly, the State Government may be required to refund the unspent or misspent amount to the Central Government. Further grants may also be withheld.
How does Rule 239 apply to Direct Benefit Transfer (DBT) schemes?▼
For DBT schemes, the intimation from the bank/NPCI regarding the deposit of funds into beneficiaries' accounts is treated as a Utilization Certificate.

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 239 of GFR 2017, when Central Grants are given to State Governments for implementation of a Central Scheme, the Utilization Certificate (UC) must be submitted in which format?

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

Need help understanding this rule?

Ask Niti — your AI assistant for GFR 2017 and other government rules