Rule 64 — GFR 2017
Original Rule Text
Rule 64
(1) Additional Allotment for excess
expenditure. A subordinate authority
incurring
the
expenditure
shall
be
responsible for seeing that the allotment
placed at its disposal is not exceeded.
Where any excess over the allotment is
apprehended, the subordinate authority
shall obtain additional allotment before
incurring the excess expenditure. For this
purpose,
the
authorities
incurring
expenditure shall maintain a ‘Liability
Register’ in Form GFR 3.
Rule 64
(2) A Disbursing Officer may not, on his
own authority, authorize any payment in
excess of the funds placed at his
disposal. If the Disbursing Officer is
called upon to honour a claim, which is
certain to produce an excess over the
allotment or appropriation at his disposal,
he
shall
take
the
orders
of
the
administrative authority to which he is
subordinate before authorizing payment
of
the
claim
in
question.
The
administrative
authority
shall
then
What This Means
This rule is all about ensuring that government departments and officials stick to their allocated budgets and do not spend more money than they have been given. It places a clear responsibility on any officer or unit (referred to as a 'subordinate authority') that is managing and spending public funds. If you are in such a position, you must make sure that the money placed at your disposal is not exceeded. Crucially, if you anticipate that a particular expense will cause you to go over your budget, you *must* get additional funds approved *before* you actually incur that extra expenditure. To help you keep track, you are required to maintain a 'Liability Register' (Form GFR 3) to record all your financial commitments.
Furthermore, if you are a Disbursing Officer – meaning you are responsible for making actual payments – you cannot, on your own, authorize any payment that would exceed the funds officially available to you. If you receive a bill or a claim that, if paid, would cause your budget to be overspent, you must first seek instructions from your senior administrative authority. It is then the job of that senior authority to find the necessary additional funds, either by reallocating money from another budget head or by requesting a new grant from the government, before the payment can be authorized. The core principle here is strict financial discipline to prevent unauthorized overspending of public money.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Subordinate authorities are directly responsible for ensuring they do not exceed their allocated budget.
- 2If an overspend is anticipated, additional funds must be secured *before* the excess expenditure is incurred.
- 3A 'Liability Register' (Form GFR 3) must be maintained by spending authorities to track financial commitments.
- 4Disbursing Officers cannot independently authorize payments that would exceed available funds.
- 5Disbursing Officers must seek approval from their administrative authority if a payment will lead to an overspend.
- 6Administrative authorities are responsible for arranging additional funds, either through re-appropriation or supplementary grants, to cover approved excesses.
- 7The rule emphasizes strict financial discipline and prevention of unauthorized overspending.
Practical Example
Consider the District Health Office in Bhopal, headed by Dr. Anjali Singh, which has an annual budget of ₹75 lakhs for medical supplies. By November, due to an unexpected surge in dengue cases, the office has already spent ₹70 lakhs on essential medicines, with a critical order for an additional ₹10 lakhs worth of supplies still pending. Dr. Singh realizes that her remaining budget is only ₹5 lakhs, meaning an excess of ₹5 lakhs is apprehended. According to Rule 64(1), she cannot simply place the ₹10 lakh order. She immediately updates her 'Liability Register' to reflect the potential expenditure and then submits an urgent request to the State Health Department (her administrative authority) for an additional ₹5 lakhs, explaining the critical public health need.
Meanwhile, Mr. Rajesh Kumar, the Disbursing Officer at the District Health Office, receives the bill for the ₹10 lakh supply order after it has been delivered (assuming Dr. Singh secured the necessary approval). If Dr. Singh had not obtained the additional allotment, Mr. Kumar, under Rule 64(2), would be unable to authorize the full ₹10 lakh payment on his own. He would have to refer the matter back to Dr. Singh and the State Health Department to ensure the necessary funds are officially provided before he can release the payment, thereby preventing an unauthorized overspend and ensuring accountability.
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.