Rule 67 - Contingency Fund
Original Rule Text
Rule 67 Rule 67 Rule 67 (1) Re-appropriation of Funds. Subject to the provisions of Rule 10 of the Delegation of Financial Powers Rules, and also subject to such other general or specific restrictions as may be imposed by the Finance Ministry in this behalf, reappropriation of funds from one primary unit of appropriation to another such unit within a grant or appropriation, may be sanctioned by a competent authority at any time before the close of the financial year to which such grant or appropriation relates. The Primary unit in this regard shall be the final unit of appropriation i.e. the Object head of account. (2) Re-appropriation of funds shall be made only when it is known or anticipated that the appropriation for the unit from which funds are to be transferred shall not be utilized in full or that savings can be effected in the appropriation for the said unit. (3) Funds shall not be re-appropriated from a unit with the intention of restoring the diverted appropriation to that unit when savings become available under other units later in the year. (4) An application for re-appropriation of funds shall ordinarily be supported by a statement in Form GFR 1 or any other special form authorized by departmental regulations showing how the excess is proposed to be met. In all orders, sanctioning re-appropriation, the reasons for saving and excess of Rupees 1 lakh or over and the primary units (secondary units, wherever necessary), affected shall be invariably stated. The authority sanctioning the re-appropriation shall endorse a copy of the order to the Accounts Officer. 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). (1) Advance from Contingency Fund. When a need arises to incur unforeseen expenditure in excess of the sanctioned grant or appropriation or on a new service not provided in Budget and there is not sufficient time for the voting of the Supplementary Demand and the passing of the connected appropriation bill before close of the financial year, an advance from the Contingency Fund set up under Article 267(1) of the Constitution shall be obtained before incurring the expenditure. (2) An advance from the Contingency Fund shall also be obtained to meet expenditure in excess of the provisions for the service included in an Appropriation (Vote on Account) Act. (3) The application for an advance from the Contingency Fund shall indicate inter alia the particulars of the additional expenditure involved and the sanction to the advance has also to indicate the subhead and the primary unit of the Grant to which the expenditure appropriately relates. In case, however, any difficulty is felt, the matter shall be referred to the Finance Ministry for clarification. (4) The procedure for obtaining an advance from the Contingency Fund and recoupment of the Fund shall be as laid down in the Contingency Fund of India (Amendment) Rules, 2021 as amended from time to time. For ready reference, rules have been placed at Appendix - 6 to this volume. [
Note: The Contingency Fund of India (Amendment) Rules, 2021 were published in Extraordinary Gazette of India vide No. G.S.R. 721(E) dated 4th October, 2021.]2 Inevitable Payments.
(i) Subject to the provisions of Article 114(3) of the Constitution, money indisputably payable by Government shall not ordinarily be left unpaid.
(ii) Suitable provision for anticipated liabilities shall invariably be made in Demands for Grants to be placed before Parliament. For easy reference an extract relating to procedures followed in the Accounts Office for check against provision of funds as a part of pre-check of bills has been placed at Appendix 10. Duties and Responsibilities of the Chief Accounting Authority. The Secretary of a Ministry/Department who is the Chief Accounting Authority of the Ministry/ Department shall: —
(i) be responsible and accountable for financial management of his Ministry or Department.
What This Means
Rule 67 of the General Financial Rules (GFR) 2017 deals with accessing funds from the Contingency Fund of India. Think of the Contingency Fund as a financial safety net for unexpected or urgent expenses that arise when the Parliament isn't in session to approve a Supplementary Demand for Grants. This rule ensures that government operations aren't stalled due to lack of funds for essential services or payments. It outlines the process for obtaining an advance from this fund and how it needs to be replenished later. This is especially important when there isn't enough time to get parliamentary approval before the end of the financial year or when the amount approved in the 'Vote on Account' is insufficient.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Advances from the Contingency Fund are used for urgent, unforeseen expenditure.
- 2These advances are obtained when there isn't enough time to get parliamentary approval for a Supplementary Demand.
- 3Applications for advances must detail the additional expenditure and link it to the relevant grant.
- 4The process for obtaining and recouping advances is governed by the Contingency Fund of India Rules.
- 5The Finance Ministry can provide clarification if there are any difficulties in applying the rule.
Practical Example
Imagine the Ministry of Health and Family Welfare suddenly faces an outbreak of a new, highly contagious disease. The existing budget allocated for disease control is insufficient to purchase the necessary vaccines and protective equipment. With only a month left in the financial year, there isn't enough time to get a Supplementary Demand approved by Parliament. In this scenario, the Ministry, under the guidance of its Chief Accounting Authority, would apply for an advance from the Contingency Fund. The application would clearly state the amount needed (say, ₹50 crore), the purpose (procurement of vaccines and equipment), and the specific sub-head and primary unit of the Grant to which the expenditure relates. Once approved, the Ministry can immediately access the funds to combat the outbreak and later seek parliamentary approval to replenish the Contingency Fund.
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 is the Contingency Fund of India?▼
When should I consider applying for an advance from the Contingency Fund?▼
Where can I find the detailed procedure for obtaining an advance?▼
What happens if I'm unsure about which grant the expenditure relates to?▼
Who is responsible for the financial management when using the Contingency Fund?▼
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 67 of GFR 2017, under what circumstance is an advance from the Contingency Fund of India obtained?