Rule 27 of the General Financial Rules 2017 Date of effect of sanction

Rule 27 of the General Financial Rules 2017 Date of effect of sanction

Original Rule Text

Rule 27 (1) Date of effect of sanction. Subject to fulfillment of the provisions as contained in the Delegation of Financial Powers Rules, all rules, sanctions or orders shall come into force from the date of issue unless any other date from which they shall come into force is specified therein.Rule 27 (2) Date of creation to be indicated in sanctions for temporary posts. Orders sanctioning the creation of a temporary post should, in addition to the sanctioned duration, invariably specify the date from which it is to be created

Visual Summary

Effective Date

A sanction is active from the day it’s issued, unless a different date is mentioned.

Default Start

If no specific start date is given, the issue date automatically becomes the start date.

Temporary Posts

For temporary jobs, the sanction order must state the exact creation date.

Executive Summary

This rule establishes a simple principle for when government sanctions and orders become active. Generally, any rule, sanction, or order takes effect from the date it is issued, unless the document itself specifies a different start date. For temporary posts, the rule adds a crucial requirement: the order must always state the exact date from which the post is created, in addition to its duration.

In-Depth Analysis of the Rule

Rule 27 provides clarity and certainty regarding the timing of government financial decisions, preventing ambiguity about when a sanction becomes legally effective.

Part (1): The General Rule on Effective Dates

This part sets a default starting point for all government rules, sanctions, and orders. The moment an order is officially issued, it is considered ‘live’ and in force. This is the standard procedure unless the order explicitly contains a different date. For example, an order might be issued in June but state that it will ‘come into force from the 1st of August’. In that case, the August date applies. This ensures that all parties know precisely when to begin acting on the order.

Part (2): A Specific Requirement for Temporary Posts

This part addresses a specific scenario: the creation of temporary jobs. For these posts, it’s not enough for the sanction order to just mention the duration (e.g., ‘for a period of six months’). The rule mandates that the order must also ‘invariably specify the date from which it is to be created’. This is critical for calculating the exact tenure of the post and avoiding disputes about its start and end dates. It ensures that the financial liability for the post is clearly defined from a specific point in time.

Practical Example:

Imagine a department needs to hire a consultant for a temporary 3-month project. The sanction order is issued on May 10th. According to Rule 27(2), this order cannot just say ‘a temporary post for 3 months’. It must be specific, for instance: ‘A temporary post of Consultant is created for a period of 3 months with effect from June 1st’. This makes it clear that the 3-month period begins on June 1st, not on May 10th (the issue date).

Conclusion:

Rule 27 is a fundamental administrative rule that establishes a clear and predictable timeline for government sanctions. By setting a default effective date and requiring explicit creation dates for temporary positions, it promotes financial discipline and operational clarity.

Related Provisions

Understanding Rule 27 is enhanced by looking at related rules that govern the lifecycle of a financial sanction:

  • Rule 25: Provision of funds for sanction – This rule ensures that funds are available for any expenditure before a sanction is issued. It is a prerequisite for Rule 27, as an effective sanction must have corresponding funds allocated.
  • Rule 29: Procedure for communication of sanctions – While Rule 27 determines when a sanction becomes effective, Rule 29 outlines how that sanction must be officially communicated to the relevant audit and accounts officers to be acted upon.
  • Rule 30: Lapse of Sanctions – This rule deals with what happens if a sanction is not acted upon. It sets a time limit (usually 12 months) after which an unused sanction expires, providing a bookend to the ‘start date’ established by Rule 27.

Learning Aids

Mnemonics
  • DATE: Remember that the **D**efault **A**ctivation **T**ime is **E**mission (the date of issue). For temporary posts, the creation **DATE** must be specified.
  • 27 START: Rule **27** tells you when the sanction will officially **START**.
Mindmap
Sanction/Order is IssuedDoes it specify a start date?Effective from thespecified dateEffective from thedate of issue (Default)Special Case:Sanction for a temporary postOrder MUST specifythe exact creation dateNoYes

Multiple Choice Questions (MCQs)

1. When does a government sanction generally come into force if no specific date is mentioned in the order?

  • A) The date the sanction was drafted.
  • B) The date the sanction is issued.
  • C) The first day of the next financial year.
  • D) The date the sanction is received by the relevant department.
Show Answer

Correct Answer: B) The date the sanction is issued.

2. According to Rule 27(2), what specific information must an order sanctioning a temporary post always include, in addition to its duration?

  • A) The pay scale of the post.
  • B) The name of the person likely to be appointed.
  • C) The date from which the post is to be created.
  • D) The reporting structure for the post.
Show Answer

Correct Answer: C) The date from which the post is to be created.

3. A sanction for a temporary post for one year is issued on 10th July 2024, and it states, ‘The post is created with effect from 1st August 2024’. When does the one-year duration of the post officially begin?

  • A) 10th July 2024.
  • B) 1st August 2024.
  • C) The date the first salary is paid for the post.
  • D) The date is not specified, so it defaults to the issue date.
Show Answer

Correct Answer: B) 1st August 2024.

Frequently Asked Questions

What if a government order says it will start next month?

The order will start next month as specified. Rule 27(1) states that the issue date is the default start date *unless* another date is specified in the order itself. The specific date mentioned always takes precedence.

Why is there a special rule for temporary posts?

This is to ensure absolute clarity. A temporary post has a fixed duration (e.g., six months). It is crucial to know the exact start date to correctly calculate the end date and manage the associated finances. Simply stating the duration without a start date can lead to confusion, so the rule requires the creation date to be explicitly mentioned.

Does this rule apply to orders from private companies?

No, this rule is part of the General Financial Rules, 2017, and applies specifically to Central Government rules, sanctions, and orders. Private companies are governed by their own internal policies and corporate law.

Key Takeaways

  • A government sanction is effective from its issue date unless the order specifies a different date.
  • For any temporary job, the sanction order must clearly state the exact date the post is created.
  • This rule eliminates ambiguity, ensuring everyone knows precisely when a government financial decision takes effect.