Para 3.3 - Financial Propriety | KartavyaDesk
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 ensure 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 that 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 recognized policy or custom.
What This Means
Para 3.3 of the Manual for Procurement of Non-Consultancy Services, referencing Rule 21 on Standards of Financial Propriety, essentially boils down to using public money responsibly. It's a reminder that when spending taxpayer money, government employees must act with the same care and diligence they would if it were their own personal funds. This rule applies to every officer who spends or approves spending of public funds, from junior clerks to senior officials. It affects everyone in government by setting a standard for ethical and responsible financial management.
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 care with public money as you would with your own.
- •Ensure expenditure is necessary and proportionate to the need.
- •Avoid any situation where you or your office benefits personally from spending decisions.
- •Public funds should only benefit specific individuals or groups under specific legal or policy-driven circumstances.
- •Enforce financial order and ensure compliance with all relevant rules and regulations.
Practical Example
Mr. Sharma, a Section Officer in the Ministry of Culture, is tasked with procuring chairs for a new conference hall. Three vendors submit quotes: Vendor A at ₹5,000 per chair, Vendor B at ₹7,000 per chair (owned by Mr. Sharma's relative), and Vendor C at ₹5,500 per chair. Even though Vendor B's chairs are supposedly of higher quality, Mr. Sharma must choose Vendor C, as it offers a reasonable price and avoids any conflict of interest. Choosing Vendor B would violate Para 3.3 because it would directly benefit his relative, and thus indirectly benefit Mr. Sharma, even if the chairs were slightly better.
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 simple terms?▼
If a vendor offers me a small gift after a successful procurement, is that a violation of this rule?▼
What happens if I unintentionally violate this rule?▼
Does this rule apply to petty cash expenses?▼
How does this rule relate to the General Financial Rules (GFR)?▼
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 on Standards of Financial Propriety, what level of vigilance should an officer exercise when spending public money?
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