Rule 57 - Expenditure Control
Original Rule Text
Rule 56
Administrative Ministries or Departments to discuss the totality of the requirements of funds for various programmes and schemes, along with receipts of the Ministries or Departments.
(2) The estimates initially submitted by the Departments may undergo some changes as a result of scrutiny in the Budget Division, Ministry of Finance and deliberations in the pre-budget meetings between the Secretary (Expenditure) and the Secretary or Financial Adviser of the Department concerned. The final estimates arrived at on the basis of scrutiny and pre-budget meetings shall be incorporated in the Budget documents.
Outcome Budget. After finalization of the estimates for budgetary allocations, the Department of Expenditure in consultation with NITI Aayog and the concerned Ministries shall prepare an Outcome Budget statement linking outlays against each scheme/project with the outputs/deliverables and medium- term outcomes. The outputs/deliverables shall be mandatorily given in measurable/quantitative terms on the basis of parameters and deliverables decided in advance, on the basis of projections made in the Medium-Term Expenditure Framework (MTEF) Statement. Allocations for each scheme/project shall be against at firm set of deliverables which shall be adhered to. The performance against specified outcomes would form the basis of deciding on the continuation of the scheme and the quantum of budget allocation.
Vote on Account. If the Appropriation Bill seeking authorization of the Parliament to make expenditure in consonance with the Budget proposal is likely to be passed after the start of the financial year to which it corresponds then pending the completion of the procedure prescribed in Article 113 of the Constitution for the passing of the Budget, the Finance Ministry may needi to obtain a Vote on Account' to cover expenditure for a brief period in accordance with the provisions of Article 116 of the Constitution. Funds made available under Vote on Account are not to be utilized for expenditure on a 'New Service'.
Communication and distribution of grants and appropriations. After the Appropriation Bill relating to Budget is passed, the Ministry of Finance shall communicate the same to the Ministries /
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
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
- 1Departments are responsible for controlling expenditure within their sanctioned grants.
- 2Money can only be spent during the financial year it was allocated for.
- 3Spending beyond the approved budget requires a supplementary grant or advance from the Contingency Fund.
- 4Voted and charged portions of a grant are distinct; money cannot be moved between them.
- 5Drawing 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.
Cross References
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?