Rule 70 of The General Financial Rules 2017 Duties and Responsibilities of the Chief Accounting Authority
Original Rule Text
Visual Summary
Secretary manages funds, ensuring proper use and accountability.
Efficient, economical, and transparent use of resources for objectives.
Ensures adherence to rules, proper records, and procurement.
Executive Summary
Rule 70 of the General Financial Rules, 2017, outlines the extensive duties and responsibilities of the Secretary of a Ministry or Department, who serves as the Chief Accounting Authority. This role encompasses comprehensive financial management, ensuring public funds are utilized for their intended purposes in an effective, efficient, economical, and transparent manner. The Secretary is also responsible for appearing before parliamentary committees, monitoring program performance, maintaining meticulous financial records, adhering to government procurement procedures, collecting all government dues, and actively preventing unauthorized, irregular, and wasteful expenditure. This rule establishes a robust framework for accountability and sound financial governance within government ministries.
In-Depth Analysis of the Rule
Rule 70 of the General Financial Rules, 2017, assigns critical financial stewardship to the Secretary of each Ministry or Department, designating them as the Chief Accounting Authority. This rule is foundational for maintaining fiscal discipline and accountability across all government operations. It delineates a broad spectrum of responsibilities, from strategic financial oversight to meticulous operational compliance, ensuring that public resources are managed with utmost integrity and effectiveness.
Breakdown of the Rule
- (i) Responsibility and Accountability for Financial Management: The Secretary is the primary custodian of financial health, answerable for all aspects of financial management within their domain.
- (ii) Purpose-Driven Fund Utilization: A core duty is to guarantee that all appropriated public funds are strictly used for the specific purposes for which they were allocated, preventing diversion.
- (iii) Effective, Efficient, Economical, and Transparent Resource Use: This clause emphasizes optimal resource utilization, aligning with project objectives and performance standards, promoting value for money and openness.
- (iv) Parliamentary Committee Appearances: The Secretary must appear before the Committee on Public Accounts and other Parliamentary Committees, underscoring direct accountability to the legislature.
- (v) Regular Performance Review and Monitoring: Continuous oversight of programs and projects is mandated to assess objective achievement and identify areas for improvement.
- (vi) Preparation of Financial Statements: Responsibility includes preparing all required expenditure and other financial statements, adhering to Ministry of Finance guidelines.
- (vii) Maintenance of Records and Internal Controls: Ensuring proper financial transaction records and robust internal control systems are in place to prevent errors and irregularities.
- (viii) Adherence to Procurement Procedures: Strict compliance with government procurement rules for works, services, and supplies, ensuring fairness, equity, transparency, competition, and cost-effectiveness.
- (ix) Collection of Dues and Prevention of Waste: Proactive steps to collect all government dues and to actively avoid unauthorized, irregular, and wasteful expenditure.
Practical Example
Consider the Secretary of the Ministry of Health and Family Welfare. Under Rule 70, this Secretary is the Chief Accounting Authority. If the Ministry receives funds for a national vaccination program, the Secretary is responsible for ensuring these funds are used exclusively for vaccinations, procuring vaccines and related services transparently and cost-effectively, maintaining accurate financial records of every transaction, and regularly reviewing the program’s progress against its health objectives. Should the Public Accounts Committee inquire about the program’s expenditure, the Secretary is obligated to appear and provide a detailed account, demonstrating adherence to all financial rules and the achievement of public health goals.
Related Provisions
Rule 70 is closely related to several other rules that collectively ensure robust financial management and accountability within the government:
- Rule 9 of The General Financial Rules 2017 Assessment and Collection of Government Receipts: Details the duty of departments to ensure correct and prompt assessment, collection, and credit of government receipts.
- Rule 21 of The General Financial Rules 2017 Standards of Financial Propriety: Lays down the high standards of financial propriety expected from every officer incurring or authorizing expenditure.
- Rule 26 of The General Financial Rules 2017 Responsibility of Controlling Officer in Respect of Budget Allocation: Outlines the duties of a controlling officer regarding budget allocation, ensuring expenditure does not exceed limits and is for intended purposes.
- Rule 144 of The General Financial Rules 2017 Fundamental Principles of Public Buying: Establishes fundamental principles for all public procurement, emphasizing efficiency, economy, transparency, and fair treatment of suppliers.
Learning Aids
Mnemonics
- C.A.R.E.F.U.L. P.R.O.C.U.R.E. for Chief Accounting Authority’s duties:
- Control finances
- Accountable for funds
- Responsible for resources
- Examine committees
- Follow procurement
- Utilize funds properly
- Leave no waste
- Prepare statements
- Records & controls
- Oversight of programs
- Collect dues
- Uphold transparency
- Review performance
- Ensure efficiency
Process Flowchart
Multiple Choice Questions
1. What is the primary responsibility of the Secretary of a Ministry/Department as per Rule 70 of the General Financial Rules, 2017?
- A) To manage human resources.
- B) To oversee public relations.
- C) To be responsible and accountable for financial management.
- D) To lead policy formulation.
Show Answer
Correct Answer: C
2. According to Rule 70 of the General Financial Rules, 2017, the Chief Accounting Authority must ensure public funds are used for:
- A) Any purpose deemed beneficial by the Secretary.
- B) The purpose for which they were meant.
- C) Personal development of employees.
- D) Unforeseen emergencies only.
Show Answer
Correct Answer: B
3. Which of the following is NOT explicitly mentioned as a responsibility of the Chief Accounting Authority under Rule 70 of the General Financial Rules, 2017?
- A) Appearing before the Committee on Public Accounts.
- B) Ensuring effective, efficient, economical, and transparent use of resources.
- C) Direct involvement in day-to-day operational tasks of all subordinate offices.
- D) Maintaining full and proper records of financial transactions.
Show Answer
Correct Answer: C
4. Rule 70 of the General Financial Rules, 2017, mandates the Secretary to ensure adherence to government procurement procedures for:
- A) Only high-value works.
- B) Execution of works, procurement of services, and supplies.
- C) Only emergency procurements.
- D) Procurements from specific vendors.
Show Answer
Correct Answer: B
5. A key step the Chief Accounting Authority must take, as per Rule 70 of the General Financial Rules, 2017, is to ensure the Ministry/Department:
- A) Invests all surplus funds in private ventures.
- B) Collects all moneys due to the Government and avoids unauthorized expenditure.
- C) Prioritizes expenditure on new projects over existing ones.
- D) Delegates all financial responsibilities to subordinate officers without oversight.
Show Answer
Correct Answer: B
Frequently Asked Questions
Who is the Chief Accounting Authority as per Rule 70 of the General Financial Rules, 2017?
The Secretary of a Ministry or Department is designated as the Chief Accounting Authority, responsible for the overall financial management of their respective Ministry or Department.
What does “effective, efficient, economical, and transparent use of resources” entail under Rule 70 of the General Financial Rules, 2017?
It means ensuring that public funds are utilized in a manner that achieves stated project objectives with optimal output, minimal waste, and complete openness, while strictly adhering to performance standards and financial regulations.
Does Rule 70 of the General Financial Rules, 2017, require the Secretary to appear before Parliamentary Committees?
Yes, Rule 70(iv) explicitly states that the Secretary, as the Chief Accounting Authority, shall appear before the Committee on Public Accounts and any other Parliamentary Committee for examination, highlighting their direct accountability to the legislature.
Key Takeaways
- The Secretary of a Ministry/Department is the Chief Accounting Authority, fully responsible and accountable for financial management.
- Ensuring public funds are used for their intended purpose, effectively, efficiently, economically, and transparently, is a core duty.
- Responsibilities include parliamentary oversight, regular program monitoring, meticulous record-keeping, strict adherence to procurement rules, and preventing wasteful expenditure.
- Rule 70 establishes a comprehensive framework for fiscal discipline and accountability at the highest administrative level.
Conclusion
Rule 70 of the General Financial Rules, 2017, is a cornerstone of financial governance in the Indian government. By clearly defining the extensive duties and responsibilities of the Chief Accounting Authority, it ensures a high degree of accountability, transparency, and efficiency in the management of public funds. Adherence to this rule is paramount for maintaining public trust and achieving the developmental objectives of the nation.