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Para 21 - Financial Propriety | KartavyaDesk

Goods Manual

Original Rule Text

Rule 21. Standards of Financial Propriety: Every officer incurring or authorising expenditure from public moneys should be guided by high standards of financial propriety. Every officer should also enforce financial order and strict economy and see that all relevant financial rules and regulations are observed, by his own office and by subordinate disbursing officers. Among the principles on which emphasis is generally laid are the following: - i) Every officer is expected to exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of expenditure of his own money. ii) The expenditure should not be prima facie more than the occasion demands. iii) No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage. iv) Expenditure from public moneys should not be incurred for the benefit of a particular person or a section of the people, unless - a) a claim for the amount could be enforced in a Court of Law, or b) the expenditure is in pursuance of a recognised policy or custom.

What This Means

Para 21 of the Manual for Procurement of Goods, 2017, emphasizes 'Standards of Financial Propriety.' Essentially, it's a reminder to all government officers that when spending public money, they must act with the same care and diligence they would if it were their own personal funds. This rule applies to every officer who is involved in authorizing or incurring expenditure from public funds, from the highest-ranking official to subordinate disbursing officers. It affects anyone who handles government money because it sets the ethical and practical standards for how that money should be managed.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Exercise the same vigilance with public money as you would with your own.
  • •Ensure expenditure is proportionate to the need and not excessive.
  • •Avoid any situation where sanctioning expenditure could directly or indirectly benefit you.
  • •Public funds should not be used for the benefit of specific individuals or groups unless legally required or part of a recognized policy.
  • •Enforce financial order and strict economy in your office and among subordinates.

Practical Example

Mr. Sharma, a procurement officer in the Ministry of Textiles, is tasked with purchasing new computers for his department. He receives quotes from three vendors: Vendor A (₹40,000 per computer), Vendor B (₹45,000 per computer), and Vendor C (₹50,000 per computer). Vendor C is owned by Mr. Sharma's cousin. While Vendor C offers slightly better specifications, Mr. Sharma, guided by Para 21, chooses Vendor A because it offers the best value for money. He avoids selecting Vendor C, even though it might indirectly benefit his family, ensuring he adheres to the principles of financial propriety and avoids any conflict of interest. He also ensures the specifications of Vendor A's computers meet the department's actual needs, avoiding unnecessary expenditure on features that won't be used.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What does 'financial propriety' mean in the context of this rule?▼
Financial propriety refers to maintaining high ethical standards and acting with integrity when dealing with public funds. It means being honest, transparent, and responsible in all financial transactions.
Does this rule apply to petty cash expenses?▼
Yes, this rule applies to all expenditure from public funds, regardless of the amount. Even small expenses should be incurred with due diligence and in accordance with financial regulations.
What happens if I violate this rule?▼
Violating the standards of financial propriety can lead to disciplinary action, including warnings, suspensions, or even termination of employment. It can also result in legal consequences if the violation involves fraud or corruption.
If a policy allows for a certain expenditure, does that automatically mean it's financially proper?▼
Not necessarily. While adhering to policy is important, you must still ensure the expenditure is justified, economical, and doesn't disproportionately benefit any individual or group. You must still exercise prudence and vigilance.
How do I handle a situation where following a 'recognised custom' seems wasteful?▼
Document your concerns and bring them to the attention of your superior. Suggest alternative, more economical approaches that still respect the spirit of the custom while minimizing unnecessary expenditure. Seek guidance on whether the custom can be modified or discontinued.

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 21 of the Manual for Procurement of Goods, 2017, what level of vigilance should an officer exercise when incurring expenditure from public moneys?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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