Para 2.2.34 — MSO (Audit)
Original Rule Text
2.2.34 It follows from Article 77(3) of the Constitution and Section 46 of the Government of Union Territories Act, 1963, that the power to sanction expenditure from the Consolidated Funds and the Contingency Funds of India and of the Union Territories, including power to dispose of property and stores pertaining to the Union Government and Union Territory Governments is vested in the President and Administrator respectively, whose sanction, given directly or by persons to whom the necessary powers have been delegated, is necessary to all expenditure from those Funds. The power to sanction expenditure from the Consolidated Fund and the Contingency Fund of a State is likewise vested by Article 166(3) of the Constitution in the Governor of the State whose sanction, given by himself or by persons to whom the necessary powers have been delegated, is required for expenditure from the Consolidated fund or the Contingency Fund of the State.
What This Means
The power to sanction expenditure from the Consolidated Fund and Contingency Fund of India and Union Territories is vested in the President (or the UT Administrator), under Article 77(3) of the Constitution and Section 46 of the UT Act. For States, this power is vested in the Governor under Article 166(3). These authorities can exercise the power directly or delegate it to subordinate officers. No expenditure from these funds is valid without the sanction of these constitutional authorities or their delegatees.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1President sanctions expenditure for Union and UTs (Article 77(3) / Section 46 UT Act)
- 2Governor sanctions expenditure for States (Article 166(3))
- 3Includes power to dispose of property and stores
- 4Powers can be delegated to subordinate authorities
- 5No expenditure is valid without sanction from these authorities or their delegatees
Practical Example
When a central government ministry wants to spend Rs 100 crore on a new IT project, the sanction must ultimately derive from the President's authority. In practice, the President has delegated financial powers to various levels -- the Finance Minister, Ministry Secretaries, Heads of Departments -- through the Delegation of Financial Powers Rules. The Secretary of the ministry sanctions the expenditure using powers delegated by the President.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who has the ultimate power to sanction government expenditure?▼
Can a government officer sanction expenditure without delegation?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.