Rule 24 — This rule is about ensuring that important financi
Original Rule Text
Rule 24 Consultation with Financial Advisers. All draft memoranda for Expenditure Finance Committee or Public Investment Bureau or Committee on Establishment Expenditure and Cabinet Committee for Economic Affairs or Cabinet shall be circulated by the Ministry or Department concerned after consultation with the concerned Financial Adviser of the Ministry or Department. A confirmation to this effect shall be included in the draft memorandum at the circulation stage.
What This Means
This rule is about ensuring that important financial proposals from government ministries or departments are properly reviewed by financial experts before they are sent to high-level decision-making bodies. Think of it as a mandatory financial health check for major projects and policies.
Specifically, if your Ministry or Department is preparing a proposal (often called a 'memorandum') that needs approval from significant committees like the Expenditure Finance Committee (EFC), Public Investment Bureau (PIB), Committee on Establishment Expenditure (CEE), Cabinet Committee for Economic Affairs (CCEA), or even the full Cabinet, you must first consult with your Ministry's Financial Adviser. This consultation must happen *before* you send the proposal out to these committees for their review.
The purpose of this consultation is for the Financial Adviser to scrutinize the financial aspects of your proposal, ensuring its prudence and viability. Once this discussion has taken place, you must include a clear statement within the draft memorandum itself, confirming that you have indeed consulted with the Financial Adviser. This step ensures that financial expertise is integrated early into the decision-making process for major government initiatives.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1All significant financial proposals destined for high-level government committees or the Cabinet require prior consultation with the Ministry's Financial Adviser.
- 2This consultation is mandatory and must be completed before the draft memorandum is circulated to the decision-making bodies.
- 3The rule applies to proposals for the Expenditure Finance Committee, Public Investment Bureau, Committee on Establishment Expenditure, Cabinet Committee for Economic Affairs, and the Cabinet.
- 4A specific confirmation statement, acknowledging the consultation with the Financial Adviser, must be included in the draft memorandum at the time of its circulation.
- 5This process ensures financial prudence, expert oversight, and accountability for major government expenditures and investments.
Practical Example
The Ministry of Health and Family Welfare is planning a new nationwide public health initiative, 'Swasth Bharat Abhiyan Phase II,' with an estimated cost of Rs. 750 crore over five years. This project requires approval from the Expenditure Finance Committee (EFC) and subsequently the Cabinet Committee on Economic Affairs (CCEA). The Joint Secretary (Policy) in the Ministry drafts the detailed memorandum outlining the project's objectives, implementation strategy, and financial requirements.
Before circulating this draft memorandum to the EFC members, the Joint Secretary must schedule a meeting with Ms. Anjali Singh, the Financial Adviser (FA) for the Ministry. During this meeting, Ms. Singh will meticulously review the budget allocations, funding sources, projected expenditures, and financial viability of the 'Swasth Bharat Abhiyan Phase II.' She might suggest optimizing certain budget lines or ask for clarification on cost assumptions. After a thorough discussion and incorporating any agreed-upon changes, the Ministry will then add a specific paragraph to the memorandum, stating: 'The financial implications of this proposal have been thoroughly examined and discussed with the Financial Adviser, Ministry of Health and Family Welfare, on [Date of Consultation].' Only after this confirmation is included can the memorandum be formally circulated to the EFC for its consideration.
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.