Rule 60 of The General Financial Rules 2017 Control of Expenditure Against Grant Appropriation and Ultimate Responsibility
Original Rule Text
Visual Summary
Administering authority is ultimately accountable for expenditure control.
Reports disproportionate expenditure immediately.
Recurring items under grant/appropriation.
Executive Summary
Rule 60 of The General Financial Rules, 2017, clarifies the responsibilities for controlling expenditure against grants and appropriations. While the Accounts Officer is tasked with immediately reporting any disproportionate expenditure, especially concerning recurring items, the ultimate responsibility for controlling expenditure rests with the authority administering the grant or appropriation. This rule emphasizes that the administrative authority cannot delegate or shift this ultimate accountability to the Accounts Officer.
In-Depth Analysis of the Rule
Rule 60 is a foundational principle in financial management within the Central Government, delineating clear lines of accountability for public funds. It addresses a critical aspect of governance: ensuring that expenditure aligns with sanctioned grants and appropriations, thereby preventing financial mismanagement and promoting fiscal discipline.
Breakdown of the Rule:
- Accounts Officer’s Reporting Duty: The rule mandates that the Accounts Officer must promptly report any instance of disproportionate expenditure. This proactive reporting mechanism is crucial for early detection of potential financial irregularities.
- Focus on Recurring Expenditure: Special emphasis is placed on recurring items of expenditure. This highlights the government’s concern over consistent and potentially escalating costs that could lead to significant financial strain if not monitored closely.
- Ultimate Responsibility: Despite the Accounts Officer’s reporting role, the rule unequivocally states that the authority administering the grant or appropriation bears the ultimate responsibility for controlling expenditure. This prevents any ambiguity regarding accountability and ensures that decision-making bodies remain fully answerable for the financial health of their respective grants.
- Non-Transferable Accountability: The rule explicitly clarifies that the ultimate responsibility cannot be shifted to the Accounts Officer, reinforcing the principle that those who administer funds are ultimately accountable for their prudent use.
Practical Example:
Consider a government department with a sanctioned grant for office supplies. If the Accounts Officer notices that the monthly expenditure on stationery has suddenly doubled without a corresponding increase in staff or workload, Rule 60 of The General Financial Rules, 2017, requires them to immediately report this disproportionate expenditure to the Head of the Department (the administering authority). Even after this report, the Head of the Department remains ultimately responsible for investigating the cause, taking corrective action, and ensuring that future expenditure remains within appropriate limits and for the intended purpose. The Accounts Officer’s role is to flag the issue, but the onus of control and resolution lies with the administrative head.
Related Provisions
Understanding Rule 60 is enhanced by examining its interplay with other financial rules:
- Rule 57 of The General Financial Rules, 2017: Responsibility for Control of Expenditure – This rule details the overall responsibility of Central Government Departments for controlling expenditure against sanctioned grants, providing context for the specific accountability outlined in Rule 60.
- Rule 61 of The General Financial Rules, 2017: Excess Expenditure – Directly related to Rule 60, this rule outlines procedures for dealing with expenditure that exceeds budget provisions, reinforcing the need for strict control.
- Rule 21 of The General Financial Rules, 2017: Standards of Financial Propriety – Provides the overarching principles that every officer must adhere to when incurring or authorizing expenditure, forming the ethical backdrop for Rule 60’s operational guidelines.
Learning Aids
Mnemonics:
- A.R.U.L.E.: Accounts Officer Reports Ultimate Liability of Executive.
Process Flowchart:
Multiple Choice Questions (MCQs)
1. According to Rule 60 of The General Financial Rules, 2017, who is primarily responsible for reporting disproportionate expenditure?
- A) The Head of the Department
- B) The Accounts Officer
- C) The Ministry of Finance
- D) The Comptroller and Auditor General
Show Answer
Correct Answer: B) The Accounts Officer
2. Rule 60 of The General Financial Rules, 2017, places ultimate responsibility for controlling expenditure against a grant/appropriation on which entity?
- A) The Accounts Officer
- B) The Ministry of Finance
- C) The authority administering the grant/appropriation
- D) The Drawing and Disbursing Officer
Show Answer
Correct Answer: C) The authority administering the grant/appropriation
3. What type of expenditure does Rule 60 of The General Financial Rules, 2017, particularly highlight for reporting disproportionate amounts?
- A) Capital expenditure
- B) Non-recurring expenditure
- C) Recurring items of expenditure
- D) Emergency expenditure
Show Answer
Correct Answer: C) Recurring items of expenditure
4. Can the ultimate responsibility for controlling expenditure, as per Rule 60 of The General Financial Rules, 2017, be transferred from the administering authority to the Accounts Officer?
- A) Yes, if mutually agreed upon.
- B) Yes, in exceptional circumstances.
- C) No, it explicitly states it cannot.
- D) Only with the approval of the Ministry of Finance.
Show Answer
Correct Answer: C) No, it explicitly states it cannot.
5. When should the Accounts Officer report disproportionate expenditure according to Rule 60 of The General Financial Rules, 2017?
- A) Annually, during budget review.
- B) Quarterly, during financial reporting.
- C) Immediately on the first appearance.
- D) After a full investigation is complete.
Show Answer
Correct Answer: C) Immediately on the first appearance.
Frequently Asked Questions (FAQs)
What is the primary role of the Accounts Officer under Rule 60 of The General Financial Rules, 2017?
The primary role of the Accounts Officer is to immediately report any disproportionate expenditure, especially concerning recurring items, to the Head of the Department.
Who holds the ultimate responsibility for expenditure control as per Rule 60 of The General Financial Rules, 2017?
The authority administering the grant or appropriation holds the ultimate responsibility for controlling expenditure, not the Accounts Officer.
Why does Rule 60 of The General Financial Rules, 2017, specifically mention recurring items of expenditure?
Recurring items are highlighted because their consistent nature can lead to significant financial implications if not monitored closely for disproportionate increases, making early detection crucial for fiscal discipline.
Key Takeaways
- The Accounts Officer is responsible for immediately reporting disproportionate expenditure.
- Special attention is given to disproportionate recurring items of expenditure.
- The authority administering the grant/appropriation holds the ultimate responsibility for expenditure control.
- This ultimate responsibility cannot be transferred to the Accounts Officer.
Conclusion
Rule 60 of The General Financial Rules, 2017, establishes a clear framework for financial accountability, ensuring that while Accounts Officers play a vital role in flagging irregularities, the ultimate onus of prudent expenditure management rests firmly with the administrative authorities. This dual mechanism of reporting and ultimate responsibility is essential for maintaining fiscal discipline and preventing misuse of public funds.