Rule 57 - Expenditure Control | KartavyaDesk
Original Rule Text
Departments which, in turn, shall distribute the same to their subordinate formations. The distribution so made shall also be communicated to the respective Pay and Accounts Officers who shall exercise check against the allocation to each subordinate authority. II. CONTROL OF EXPENDITURE AGAINST BUDGET Rule 57 (1) Responsibility for control of Expenditure. The Departments of the Central Government shall be responsible for the control of expenditure against the sanctioned grants and appropriations placed at their disposal. The control shall be exercised through the Heads of Departments and other Controlling Officers, if any, and Disbursing Officers subordinate to them. Rule 57 (2) A Grant or Appropriation can be utilised only to cover the charges (including liabilities, if any, of the past year) which are to be paid during the financial year of the Grant or Appropriation and adjusted in the account of the year. No charges against a Grant or Appropriation can be authorized after the expiry of the financial year. Rule 57 (3) No expenditure shall be incurred which may have the effect of exceeding the total grant or appropriation authorized by Parliament by law for a financial year, except after obtaining a supplementary grant or appropriation or an advance from the Contingency Fund. Since voted and charged portions as also the revenue and capital sections of a Grant/Appropriation are distinct and re-appropriation inter se is not permissible, an excess in any one portion or section is treated as an excess in the Grant/Appropriation. Rule57(4) To have effective control over expenditure by the Departments, Controlling and Disbursing Officers subordinate to them shall follow the procedure as given below:- (i) For drawl of money the Drawing and Disbursing Officer shall (a) Prepare and present bills for “charged” and “voted” expenditure separately. (b) Enter on each bill the complete accounts classifications from major head down to the object head of account. When a single bill includes charges falling under two or more object heads, the charges shall be distributed accurately over the respective heads. (c) Enter on each bill the
What This Means
Rule 57 of the General Financial Rules (GFR) 2017 is all about keeping government spending in check. It makes sure that each department is responsible for managing its budget and not spending more than what's been approved. Think of it like this: Parliament gives each department a certain amount of money (a 'grant' or 'appropriation') for the year, and it's the department's job to stay within that limit. This rule applies to all Central Government departments and the officers who handle money within those departments, from the top bosses down to the people who write the checks (Drawing and Disbursing Officers).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Departments are responsible for controlling expenditure within their sanctioned grants.
- •Money can only be spent during the financial year it was allocated for.
- •Spending beyond the approved budget requires a supplementary grant or advance from the Contingency Fund.
- •Voted and charged portions of a grant are distinct; money cannot be moved between them.
- •Drawing and Disbursing Officers (DDOs) must accurately classify expenditure on bills.
Practical Example
The Ministry of Agriculture receives a grant of ₹500 crore for the financial year 2024-25. Mr. Sharma, a Section Officer, is responsible for processing bills related to a farmer subsidy program. He receives a bill for ₹10 crore, but notices that ₹2 crore of it is incorrectly classified under a different object head. He corrects the classification before approving the bill, ensuring that the expenditure is accurately recorded. Later in the year, the Ministry realizes they need an additional ₹50 crore for the subsidy program due to increased demand. They cannot simply spend more; they must apply for a supplementary grant from Parliament. If they spend more than the allocated amount without the supplementary grant, it would be a violation of Rule 57.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if a department spends more than its allocated budget?▼
Can money be transferred between different parts of a grant (e.g., from 'voted' to 'charged' expenditure)?▼
What is the role of the Drawing and Disbursing Officer (DDO) in controlling expenditure?▼
What are 'voted' and 'charged' expenditures?▼
Does Rule 57 apply to state government departments?▼
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 57 of GFR 2017, which entity is primarily responsible for controlling expenditure against sanctioned grants and appropriations?
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