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Rule 269 - External Aid Funds | KartavyaDesk

GFR 2017

Original Rule Text

Rule 269 Fund flow for Central or Central sponsored Projects. Under the Central or Central sponsored project financed from external aid, whether loan or grant, the process of disbursement of such claims by the Funding Agency shall be the same as explained in Rule 267. The respective Ministry or Department get EAP funds under a separate budget head when Demands for Grants are passed in the Parliament and advised by the Budget Division of the Ministry of Finance. The funds shall be released to

What This Means

Essentially, when the Parliament approves the budget, the relevant Ministry or Department receives these external aid funds under a specific budget heading. The Ministry of Finance's Budget Division plays a crucial role in advising on this process. After that, the funds are released to the implementing agencies to carry out the project. Rule 269 ensures transparency and accountability in managing these externally aided projects, impacting everyone involved in project implementation, from the Ministry officials to the project managers on the ground.

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

Key Points

  • •Applies to Central and Centrally Sponsored Projects financed by external aid (loans or grants).
  • •Disbursement process mirrors that of Rule 267 (general disbursement procedures).
  • •Funds are allocated under a separate budget head after Parliamentary approval.
  • •Ministry of Finance's Budget Division provides guidance on fund allocation.
  • •Ensures transparency and accountability in managing externally aided projects.

Practical Example

The Ministry of Rural Development receives a loan of ₹500 crore from the World Bank for a rural road construction project under the Pradhan Mantri Gram Sadak Yojana (PMGSY). After the Demands for Grants are passed in Parliament, the Budget Division of the Ministry of Finance advises the Ministry of Rural Development on the allocation of these funds under a specific budget head dedicated to externally aided projects. The Ministry of Rural Development then releases the funds in tranches to the National Rural Infrastructure Development Agency (NRIDA), the implementing agency, based on project milestones and adherence to GFR 2017 guidelines. NRIDA then disburses the funds to the contractors building the roads, ensuring proper documentation and audit trails at each stage.

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 'external aid' in the context of Rule 269?▼
External aid refers to financial assistance received from international organizations (like the World Bank, IMF, ADB) or foreign governments in the form of loans or grants.
What is the role of the Budget Division of the Ministry of Finance?▼
The Budget Division advises the concerned Ministry/Department on the allocation and management of externally aided funds, ensuring compliance with financial regulations.
How does Rule 269 relate to Rule 267?▼
Rule 269 specifies that the disbursement process for externally aided projects should follow a similar procedure as outlined in Rule 267, which deals with general disbursement procedures.
Who is responsible for ensuring compliance with Rule 269?▼
The concerned Ministry/Department receiving the external aid, along with the implementing agencies, are responsible for ensuring compliance with Rule 269 and other relevant financial rules.
What happens if there is a violation of Rule 269?▼
Violations of Rule 269 can lead to audit objections, financial irregularities, and potential disciplinary action against the responsible officials. It can also jeopardize future funding from external agencies.

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 269 of GFR 2017, which of the following best describes the source of funds for Central or Centrally Sponsored Projects financed by external aid after parliamentary approval?

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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