Rule 3 of the General Financial Rules 2017 Interdepartmental consultations

Original Rule Text

Rule 3 Interdepartmental consultations: When the subject of a case concerns more than one Department, no order shall be issued until all such Departments have concurred, or, failing such concurrence, a decision has been taken by or under the authority of the Cabinet. In this regard it is clarified that every case in which a decision, if taken in one Department, is likely to affect the transaction of business allotted to another Department, shall also be deemed to be a case which concerns more than one Department.

Visual Summary

Multi-Department Issue
A matter involves more than one government department.

Concurrence Required
All involved departments must agree before an order is issued.

Cabinet Decision
If departments disagree, the Cabinet makes the final decision.

Executive Summary

This rule ensures that government departments work together on issues that affect more than one of them. It states that no official order can be issued on a matter concerning multiple departments unless all of them agree. If they cannot reach an agreement, the issue must be sent to the Cabinet for a final decision. This rule also clarifies that any decision by one department that is likely to impact the work of another is considered a multi-department issue.

In-Depth Analysis of the Rule

Introduction
Rule 3 of the General Financial Rules, 2017, establishes a fundamental principle of collaborative governance. It prevents any single department from acting in isolation on matters that have wider implications across the government. This process, known as interdepartmental consultation, is crucial for cohesive and well-rounded policy-making and execution.

Breakdown of the Rule
The rule can be broken down into two main parts:

Requirement for Concurrence: The core mandate is that if a subject involves multiple departments, an order can only be issued after achieving ‘concurrence’. Concurrence simply means agreement or approval from all relevant departments. This ensures that every perspective is considered before a decision is finalized.
Dispute Resolution Mechanism: The rule provides a clear path for what to do when departments disagree. If concurrence cannot be reached, the matter is escalated to the Cabinet. The Cabinet, being the principal decision-making body of the government, has the authority to resolve the deadlock and make a final, binding decision.
Clarification on Scope: The rule includes an important clarification. It’s not just about cases that obviously involve multiple departments. Even if a decision is taken within one department, but it is *likely to affect* the work of another, it must go through the same consultation process. This broadens the scope and promotes proactive collaboration.

Practical Example
Imagine the Ministry of Commerce wants to introduce a new import policy for electronic goods to boost trade. This decision would directly affect:

The Ministry of Finance (regarding customs duties and revenue).
The Ministry of Electronics and Information Technology (regarding the impact on domestic manufacturing).
The Ministry of External Affairs (regarding trade relations with other countries).

Under Rule 3, the Ministry of Commerce cannot issue the new policy order on its own. It must formally consult with and get the agreement (concurrence) of the other three ministries. If, for instance, the Ministry of Finance objects because of a potential loss of revenue, and no compromise can be found, the entire proposal must be presented to the Cabinet for a final decision.

Conclusion
Rule 3 is a cornerstone of coordinated governance. It mandates teamwork, prevents unilateral decisions, and provides a structured mechanism for resolving disagreements at the highest level. This ensures that government actions are holistic, well-considered, and avoid inter-departmental conflicts.

Related Provisions

Understanding Rule 3 is enhanced by looking at related rules that govern financial and administrative procedures. The following provisions are particularly relevant:

Rule 4: Departmental Regulations of financial character – This rule builds on Rule 3 by specifying that any departmental regulation with a financial impact must be made with the approval of the Ministry of Finance, reinforcing the principle of consultation, especially in financial matters.
Rule 5: Removal of Doubts – If there is any confusion about interpreting these rules (including whether a matter requires interdepartmental consultation), this rule states that the final decision rests with the Ministry of Finance.

Learning Aids

Mnemonics

TEAM: Together Everyone Approves Matters. If not, the Cabinet decides. This helps remember that multiple departments must approve, or the matter goes to a higher authority.
The 3 C’s: A Case with Common Concerns needs Concurrence or the Cabinet.

Mindmap

Multiple Choice Questions (MCQs)

1. [Easy] According to Rule 3, what must be obtained before an order is issued on a matter concerning more than one department?

A) Approval from the Prime Minister’s Office
B) Concurrence from all concerned departments
C) A report from a special committee
D) Permission from the Ministry of Finance only

Show Answer

Correct Answer: B) Concurrence from all concerned departments.

2. [Medium] If the departments involved in a case fail to reach a concurrence, what is the next step as per Rule 3?

A) The order is automatically cancelled.
B) The matter is referred to the President of India.
C) A decision must be taken by or under the authority of the Cabinet.
D) The lead department can issue the order with a note of dissent.

Show Answer

Correct Answer: C) A decision must be taken by or under the authority of the Cabinet.

3. [Hard] Under what specific circumstance is a case ‘deemed to be a case which concerns more than one Department’ even if it originates in a single department?

A) When the financial implication exceeds a certain threshold.
B) When the decision is likely to affect the transaction of business allotted to another department.
C) Only when another department formally raises an objection.
D) When the case involves international relations.

Show Answer

Correct Answer: B) When the decision is likely to affect the transaction of business allotted to another department.

Frequently Asked Questions

Why is interdepartmental consultation so important?

It ensures that government decisions are not made in a silo. A policy made by one department can have unintended consequences for another. Consultation allows for a holistic view, leading to better, more effective governance and preventing conflicts between different parts of the government.

What does ‘concurrence’ mean in this context?

Concurrence means formal agreement or approval. It’s more than just being informed; it means the other departments have reviewed the proposal and have given their consent to proceed.

Who decides if a case is ‘likely to affect’ another department?

The responsibility primarily lies with the department initiating the case. They are expected to identify potential impacts on other departments and initiate the consultation process. The rules of business allocation for government departments also help in identifying stakeholders.

Key Takeaways

No Solo Decisions: If a matter affects multiple departments, no single department can issue an order alone.
Agreement is Key: All involved departments must agree (concur) before any action is taken.
Cabinet is the Tie-Breaker: If departments cannot agree, the Cabinet makes the final call.
Think About Impact: A department must consult others even if a decision just *might* affect their work.

Continue to Rule 4 →