Rule 60 — General Financial Rules 2017 (amended July 2024) - Rule 60
Original Rule Text
Rule 60 Control of expenditure against grant/appropriation and ultimate responsibility of the authority administering it. The Accounts Officer shall report to the Head of the Department concerned immediately on the first appearance of any disproportionate expenditure, particularly in respect of recurring items of expenditure under any grant or appropriation or a primary unit of appropriation thereof. However, the authority administering a grant/ appropriation is ultimately responsible for the control of expenditure against the grant/appropriation and not the Accounts Officer.
What This Means
This rule explains how government spending is controlled and who is ultimately accountable for it. It states that if an Accounts Officer notices that money is being spent in a way that seems excessive or out of proportion, especially for regular, ongoing expenses under a specific budget allocation (called a grant or appropriation), they must immediately inform the Head of the Department responsible for that budget.
However, even though the Accounts Officer flags these issues, the final and complete responsibility for making sure that spending stays within the approved budget rests with the Head of the Department or the authority that manages that particular grant or appropriation. The Accounts Officer's role is to monitor and report, but they are not the ones ultimately accountable if the department overspends or mismanages funds.
In essence, the Accounts Officer acts as an early warning system, but the person in charge of the department's budget is the one who must ensure proper financial control and take corrective action.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The Accounts Officer must immediately report any disproportionate or excessive spending, especially for recurring costs, to the Head of the Department.
- 2This reporting mechanism serves as an early warning system for potential budget issues.
- 3The ultimate responsibility for controlling expenditure against a grant or appropriation lies with the authority administering it, typically the Head of the Department.
- 4The Accounts Officer's role is to monitor and report, but they are not held ultimately responsible for budget control.
- 5Heads of Departments must actively manage their budgets and take corrective action based on reports from Accounts Officers.
Practical Example
Consider the Department of Rural Development, which has an annual "Village Infrastructure Grant" of ₹50 crores. Ms. Priya Sharma is the Head of the Department, and Mr. Rajesh Kumar is the Accounts Officer. In the third quarter of the financial year, Mr. Kumar notices a significant and unusual spike in the expenditure for "Office Supplies and Stationery," a recurring item, which has already consumed 80% of its annual allocation of ₹50 lakhs. This is disproportionate compared to previous years and the current rate of project execution.
Mr. Kumar immediately prepares a report detailing this disproportionate expenditure and submits it to Ms. Sharma. While Mr. Kumar has fulfilled his duty by reporting, it is now Ms. Sharma's ultimate responsibility to investigate why the stationery costs have surged, implement measures to control future spending, and ensure that the overall "Village Infrastructure Grant" remains within its approved limits. She might initiate an internal audit, restrict purchases, or reallocate funds if necessary, but the onus is on her to manage the budget effectively.
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.