Rule 66 of The General Financial Rules 2017 Supplementary Grants
Original Rule Text
Visual Summary
Existing grant lacks funds.
Unbudgeted expenditure arises.
Article 115(1) authorization.
Executive Summary
Rule 66 of the General Financial Rules, 2017, outlines the procedure for obtaining Supplementary Grants. These grants are essential when a Ministry or Department needs to authorize payments for which existing budget savings are unavailable, or for expenditures related to a “New Service” or “New Instrument of Service” not originally provided in the annual budget. The rule mandates that such Supplementary Grants or Appropriations must be obtained in accordance with Article 115(1) of the Constitution of India, and crucially, this authorization must precede the actual payment.
In-Depth Analysis of the Rule
Introduction: Rule 66 serves as a critical mechanism within the government’s financial management framework, allowing for flexibility in addressing unforeseen or unbudgeted expenditures. It ensures that all significant financial outlays are duly authorized by Parliament, even if they arise after the main budget has been passed.
Breakdown of the Rule:
- Conditions for Supplementary Grant: A Supplementary Grant or Appropriation becomes necessary under two primary conditions:
- When existing savings within the relevant Grant are insufficient to cover a required payment.
- When the expenditure is for a “New Service” or “New Instrument of Service” that was not initially included in the annual budget.
- Constitutional Authority: The process for obtaining such grants is governed by Article 115(1) of the Constitution, underscoring the parliamentary oversight of government expenditure.
- Timing of Authorization: It is explicitly stated that the Supplementary Grant or Appropriation must be obtained before the payment is authorized, ensuring prior approval for all expenditures.
- Procedural Reference: For detailed procedures, the rule directs users to Appendix 5 of the General Financial Rules, 2017.
Practical Example: Imagine the Ministry of Health needs to procure a new, highly specialized medical equipment that was not anticipated during the budget formulation, and no existing budget head has sufficient savings to cover its cost. Under Rule 66, the Ministry would need to apply for a Supplementary Grant, detailing the necessity and ensuring it aligns with Article 115(1) of the Constitution, before it can authorize the purchase payment.
Related Provisions
Understanding Rule 66 is enhanced by examining related provisions:
- Rule 63 of The General Financial Rules 2017 Expenditure on New Service: This rule defines what constitutes a “New Service” or “New Instrument of Service,” which is a key trigger for requiring a Supplementary Grant under Rule 66.
- Rule 67 of The General Financial Rules 2017 Advance from Contingency Fund: This rule provides an alternative mechanism for meeting unforeseen expenditures when there isn’t sufficient time to obtain a Supplementary Grant.
Learning Aids
Mnemonics
- S.N.A.P. for Supplementary Grants: Savings Not Available, New Service, Article 115(1) Pre-authorization.
Process Flowchart
Multiple Choice Questions (MCQs)
1. According to Rule 66 of the General Financial Rules, 2017, a Supplementary Grant is required if savings are not available within which of the following?
- A) The Public Account
- B) The Contingency Fund
- C) The Grant to which payment is to be debited
- D) The Consolidated Fund of India
Show Answer
Correct Answer: C) The Grant to which payment is to be debited
2. Rule 66 of the General Financial Rules, 2017, states that a Supplementary Grant is needed if expenditure is on a “New Service” or “New Instrument of Service” not provided in the:
- A) Annual Report
- B) Budget
- C) Departmental Regulations
- D) Treasury Rules
Show Answer
Correct Answer: B) Budget
3. In accordance with which Article of the Constitution must a Supplementary Grant or Appropriation be obtained as per Rule 66 of the General Financial Rules, 2017?
- A) Article 266(1)
- B) Article 283(1)
- C) Article 115(1)
- D) Article 267(1)
Show Answer
Correct Answer: C) Article 115(1)
4. When must a necessary Supplementary Grant or Appropriation be obtained according to Rule 66 of the General Financial Rules, 2017?
- A) After payment is authorized
- B) Before payment is authorized
- C) At the end of the financial year
- D) Only for capital expenditures
Show Answer
Correct Answer: B) Before payment is authorized
5. Rule 66 of the General Financial Rules, 2017, refers to which Appendix for further details on the procedure for Supplementary Grants?
- A) Appendix 1
- B) Appendix 3
- C) Appendix 5
- D) Appendix 10
Show Answer
Correct Answer: C) Appendix 5
Frequently Asked Questions
What is the primary purpose of Rule 66 of the General Financial Rules, 2017?
The primary purpose of Rule 66 is to provide a mechanism for obtaining additional parliamentary authorization (Supplementary Grants) for expenditures that were not initially budgeted or for which existing funds are insufficient, ensuring financial propriety and control.
Can a Supplementary Grant under Rule 66 of the General Financial Rules, 2017 be authorized after payment has been made?
No, Rule 66 explicitly states that the necessary Supplementary Grant or Appropriation must be obtained before payment is authorized, emphasizing the principle of prior financial approval.
What is the relationship between Rule 66 and “New Service” expenditure under the General Financial Rules, 2017?
Rule 66 mandates a Supplementary Grant for any expenditure on a “New Service” or “New Instrument of Service” not provided in the budget. This ensures that new initiatives or significant changes in existing services receive specific parliamentary approval.
Key Takeaways
- Rule 66 governs the process of obtaining Supplementary Grants for unbudgeted or underfunded expenditures.
- It applies when existing grant savings are insufficient or for “New Service”/”New Instrument of Service” expenditures.
- Authorization must be secured under Article 115(1) of the Constitution.
- Supplementary Grants must be obtained before any payment is authorized.
Conclusion
Rule 66 of the General Financial Rules, 2017, is a cornerstone of prudent financial governance, ensuring that all significant government expenditures, especially those arising unexpectedly or from new initiatives, are subject to rigorous parliamentary scrutiny and approval. Its strict adherence to constitutional provisions and the requirement for prior authorization are vital for maintaining fiscal discipline and transparency in public finance.