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Rule 70 - Financial Responsibility | KartavyaDesk

GFR 2017

Original Rule Text

Rule 70 (ii) 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 it 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.

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

  • •Ensuring public funds are used for their intended purpose.
  • •Promoting effective, efficient, economical, and transparent use of resources.
  • •Maintaining proper financial records and internal controls.
  • •Following government procurement procedures fairly and transparently.
  • •Collecting 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?▼
Failure to comply with Rule 70 can lead to various consequences, including being held accountable before Parliamentary Committees, facing disciplinary action, and potentially being liable for financial irregularities.
Does Rule 70 apply to autonomous bodies under a Ministry?▼
While the Secretary is directly responsible for the Ministry/Department, they also have an oversight role over autonomous bodies. They need to ensure that these bodies also adhere to the principles of financial prudence and transparency as outlined in the GFR.
What are 'internal controls' mentioned in Rule 70?▼
Internal controls are the processes and procedures implemented within a Ministry/Department to safeguard assets, prevent fraud, ensure accuracy of financial records, and promote operational efficiency. Examples include segregation of duties, regular audits, and authorization limits.
How does Rule 70 relate to the Prevention of Corruption Act?▼
Rule 70 reinforces the principles of integrity and accountability, which are also central to the Prevention of Corruption Act. By ensuring proper financial management and preventing irregularities, Rule 70 helps to minimize the risk of corruption.
What is the role of the Ministry of Finance in relation to Rule 70?▼
The Ministry of Finance issues regulations, guidelines, and directives related to financial management. The Secretary of each Ministry/Department is responsible for ensuring compliance with these regulations, and the Ministry of Finance monitors their adherence.

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?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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