Rule 66 — General Financial Rules 2017 (amended July 2024) - Rule 66
Original Rule Text
Rule 66
Supplementary Grants. If savings are not available within the Grant to which the payment is required to be debited, or if the expenditure is on "New Service" or "New Instrument of Service" not provided in the budget, necessary Supplementary Grant or Appropriation in accordance with Article 115(1) of the Constitution shall be obtained before payment is authorized (Refer to Appendix 5).
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What This Means
Rule 66 of the General Financial Rules, 2017, explains when government departments need to ask for more money than what was originally given to them in their annual budget. This rule applies in two main situations. First, if a department needs to spend more money on an existing activity or project, but there isn't enough money left in that specific budget category (called a 'Grant') and no savings can be found within it.
Second, and very importantly, this rule also applies if a department wants to spend money on something completely new that was not planned or included in the original budget. This could be a 'New Service,' which means a brand-new scheme or program, or a 'New Instrument of Service,' which means a new way of delivering an existing service, like buying new equipment not previously thought of.
In both these scenarios, government officers cannot simply spend the money. They are required to follow a formal process to get additional funds, known as a 'Supplementary Grant' or 'Appropriation.' This ensures that all new or increased spending is properly approved by the higher authorities, maintaining financial discipline and transparency in government spending.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Supplementary Grants are required when existing budget allocations within a specific Grant are insufficient.
- 2They are also mandatory for any expenditure on a 'New Service' or 'New Instrument of Service' not included in the original budget.
- 3Funds cannot be spent on new items or services without obtaining a formal Supplementary Grant or Appropriation.
- 4This rule ensures proper financial approval for unforeseen or entirely new expenditures.
- 5It prevents unauthorized spending and promotes budgetary discipline within government departments.
Practical Example
Imagine the Department of Health and Family Welfare had an annual budget of Rs. 500 crores for its 'National Rural Health Mission' (Grant No. 32). Midway through the financial year, a sudden, unexpected outbreak of a new infectious disease occurs in a remote region. The department realizes that the existing budget for disease control is fully utilized, and there are no savings available within Grant No. 32 to cover the immediate, large-scale medical supplies, testing kits, and additional medical personnel required for this emergency response.
Simultaneously, the department decides to launch a pilot project to implement a new AI-powered diagnostic tool across district hospitals, a technology initiative that was not part of the original budget. This new AI project qualifies as a 'New Service.' In both these situations – the emergency response for which no savings exist, and the new AI diagnostic project – the Secretary of Health, Ms. Priya Singh, cannot simply reallocate funds or spend money without formal approval. She must initiate the process to obtain a Supplementary Grant to cover the additional costs for the emergency response and the entirely new expenditure for the AI diagnostic system, ensuring all financial protocols are followed.
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.