Rule 61 - Expenditure Control
Original Rule Text
Rule 61 Excess Expenditure. 1. The Accounts Officer shall not allow any payment against sanctions in excess of the Budget provisions unless there is specific approval of the Chief Accounting Authority. 2. The Financial Advisers and Chief Accounting Authority, before according concurrence for excess under any Head, shall ensure availability of funds through Re-appropriation/ Supplementary Demands for Grants. (Refer Appendix 10)
What This Means
Rule 61 of the General Financial Rules (GFR) 2017 focuses on who's in charge of making sure government money is spent properly. Think of it like this: the government allocates funds (a 'grant' or 'appropriation') for different departments and programs. This rule clarifies that the *department head* is ultimately responsible for controlling how that money is spent, making sure it stays within the allocated budget. It's their job to prevent overspending or misuse of funds.
However, the Accounts Officer also plays a crucial role. They act as an early warning system. If they spot any unusual or excessive spending, especially on regular, recurring expenses, they must immediately alert the Head of the Department. This allows the department head to take corrective action before the situation gets out of hand. The Accounts Officer's report is a crucial piece of information, but the final responsibility for managing the budget rests with the head of the department.
In short, Rule 61 emphasizes accountability. It ensures that while the Accounts Officer provides financial oversight, the Head of the Department is the one ultimately held responsible for keeping spending in check and adhering to the approved budget. This rule affects all government departments and employees involved in managing and spending public funds.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Head of Department is ultimately responsible for controlling expenditure against grant/appropriation.
- 2Accounts Officer must report disproportionate expenditure immediately to the Head of Department.
- 3The rule applies to all grants/appropriations and their primary units.
- 4Focus is on controlling expenditure, especially recurring items.
- 5Rule emphasizes accountability in financial management.
Practical Example
The Department of Rural Development received a grant of ₹50 crore for a rural road construction project. Mr. Sharma, the Head of the Department, is ultimately responsible for ensuring this money is spent according to the approved plan. The Accounts Officer, Ms. Verma, notices that the expenditure on road materials in the first quarter is significantly higher than projected, even though the amount of road constructed is less than planned. She immediately reports this to Mr. Sharma. Mr. Sharma then investigates and discovers that the contractor was charging inflated prices. He takes corrective action by renegotiating the contract and implementing stricter oversight to ensure the project stays within budget. Even though Ms. Verma flagged the issue, Mr. Sharma is ultimately accountable for the financial management of the project.
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 'disproportionate expenditure' mean in Rule 61?▼
Is the Accounts Officer responsible if the department overspends?▼
What are the consequences of not adhering to Rule 61?▼
Does this rule apply to all types of government expenditure?▼
What should the Head of Department do after receiving a report of disproportionate expenditure?▼
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 61 of GFR 2017, who is ultimately responsible for the control of expenditure against a grant or appropriation?