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Rule 30 - Lapsing of Sanctions | KartavyaDesk

GFR 2017

Original Rule Text

(i) when the period of currency of the sanction is prescribed in the departmental regulations or is specified in the sanction itself, it shall lapse on the expiry of such periods; or (ii) when there is a specific provision in a sanction that the expenditure would be met from the Budget provision of a specified financial year, it shall lapse at the close of that financial year; or (iii) in the case of purchase of stores, a sanction shall not lapse, if

What This Means

Rule 30 of the General Financial Rules (GFR), 2017, deals with the expiry or lapsing of financial sanctions issued by government departments. Essentially, it states that a financial sanction isn't valid forever. It automatically expires under certain conditions. This rule is crucial for maintaining financial discipline and ensuring that funds are used within the intended timeframe and budget. It prevents old, unused sanctions from being carried forward indefinitely, potentially leading to inaccurate budget allocations and misuse of public funds. This rule affects all government departments and employees involved in financial management, procurement, and project implementation.

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

Key Points

  • •Sanctions lapse if a specific expiry date is mentioned in the sanction itself or in departmental regulations.
  • •Sanctions lapse at the end of the financial year if they are explicitly tied to that year's budget.
  • •Sanctions for purchasing stores (goods) generally do not lapse, subject to certain conditions (which are detailed in subsequent clauses of the rule, not covered here).
  • •This rule ensures financial accountability and prevents indefinite carry-forward of unused funds.

Practical Example

The Ministry of Rural Development sanctioned ₹50 lakhs for constructing a community hall in Village X under the MGNREGA scheme. The sanction order, dated April 1, 2023, explicitly stated that the expenditure must be met from the FY 2023-24 budget. Due to unforeseen circumstances, the construction couldn't commence until March 2024. Since the sanction was tied to the FY 2023-24 budget, the ₹50 lakh sanction lapsed on March 31, 2024. The Ministry would need to issue a fresh sanction in the new financial year (2024-25) if the project is still deemed necessary and funds are available. This ensures the funds are allocated according to the current budget priorities.

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

Frequently Asked Questions

What does it mean for a sanction to 'lapse'?▼
It means the financial approval is no longer valid, and the funds cannot be spent under that particular sanction. A fresh approval might be needed.
If a sanction lapses, can we still use the money?▼
Generally, no. You would need to obtain a fresh sanction, subject to the availability of funds and current budget priorities.
Does Rule 30 apply to all types of government expenditure?▼
Yes, Rule 30 applies broadly to all financial sanctions issued by government departments, with specific exceptions as detailed in the rule itself (e.g., purchase of stores under certain conditions).
Where can I find the exact conditions under which a purchase sanction does not lapse?▼
The specific conditions for purchase sanctions are detailed in the subsequent clauses of Rule 30, which are not covered in this explanation but are crucial for understanding the full scope of the rule.

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 30 of GFR 2017, under what circumstance does a financial sanction automatically lapse?

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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