Rule 70 - Financial Responsibility
Original Rule Text
Rule 70
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 sub- head 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 61 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.]1
- Inevitable Payments.
() Subject to the provisions of Article 114(3) of the Constitution, money indisputably payable by Government shall not ordinarily be left unpaid. (i)) 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:
() be responsible and accountable for financial management of his Ministry or Department.
(i)) ensure that the public funds appropriated to the Ministry or Department are used for the purpose for which they were meant.
(iii) be responsible for the effective, efficient, economical and transparent use of the resources of the Ministry or Department in achieving the stated project objectives of that Ministry or Department, whilst complying with performance standards.
(iv) appear before the Committee on Public Accounts and any other Parliamentary Committee for examination.
(v) review and monitor regularly the performance of the programmes and projects assigned to his Ministry to determine whether stated objectives are achieved.
(vi) be responsible for preparation of expenditure and other statements relating to his Ministry or Department as required by regulations, guidelines or directives issued by Ministry of Finance.
(vii) shall ensure that his Ministry or Department maintains full and proper records of financial transactions and adopts systems and procedures that shall at all times afford internal controls.
(viii) shall ensure that his Ministry or Department follows the Government procurement procedure for execution of works, as well as for procurement of services and supplies, and implements iti in a fair, equitable, transparent, competitive and cost- effective manner;
(ix) shall take effective and appropriate steps to ensure his Ministry or Department:
(a) collects all moneys due to the Government and
(b) avoids unauthorized, irregular and wasteful expenditure.
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What This Means
Rule 70 of the General Financial Rules (GFR), 2017, essentially outlines the core responsibilities of a Secretary (or the head) of a Ministry or Department regarding financial management. Think of it as their financial 'to-do' list. It emphasizes that they are ultimately accountable for how public money allocated to their department is spent. They need to make sure the funds are used for the intended purpose, resources are used efficiently and transparently, and that the department adheres to all financial regulations and procurement procedures. This rule applies to all Ministries and Departments of the Government of India and directly affects the Secretary/Head and, indirectly, all employees within that Ministry/Department.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Ensuring public funds are used for their intended purpose.
- 2Promoting effective, efficient, economical, and transparent use of resources.
- 3Maintaining proper financial records and internal controls.
- 4Following government procurement procedures fairly and transparently.
- 5Collecting all government dues and avoiding unauthorized/wasteful expenditure.
Practical Example
Ms. Sharma, Secretary of the Ministry of Rural Development, is responsible for overseeing the implementation of the 'Gram Swaraj Yojana'. Rule 70 requires her to ensure that the allocated budget of ₹500 crore for the Yojana is used specifically for rural infrastructure development, skill development programs, and sanitation projects as outlined in the Yojana's objectives. She must also ensure that all procurement of materials for construction projects follows the GFR guidelines, ensuring fair competition among vendors and preventing any irregularities. Furthermore, she needs to monitor the progress of the Yojana regularly to assess whether the stated objectives, such as providing clean drinking water to 500 villages, are being achieved and report on the expenditure to the Ministry of Finance.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if a Secretary fails to comply with Rule 70?▼
Does Rule 70 apply to autonomous bodies under a Ministry?▼
What are 'internal controls' mentioned in Rule 70?▼
How does Rule 70 relate to the Prevention of Corruption Act?▼
What is the role of the Ministry of Finance in relation to Rule 70?▼
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 70 of the General Financial Rules, 2017, what is the primary responsibility of the Secretary of a Ministry/Department regarding public funds?