Rule 126 of The General Financial Rules 2017 InterDepartmental Adjustments Settlement Procedure
Original Rule Text
Visual Summary
Governs financial settlements between government departments.
Directs adherence to GFR 1990 for procedures.
Specifies the exact chapter for regulatory guidance.
Executive Summary
Rule 126 of The General Financial Rules, 2017, precisely outlines the procedure for settling financial adjustments between different government departments. It explicitly mandates that these settlements must be regulated by the directions found in Chapter 4 of the Government Accounting Rules, 1990. This ensures a standardized, transparent, and compliant approach to all inter-departmental financial transactions, fostering accountability and operational efficiency across government entities.
In-Depth Analysis of the Rule
Introduction: Effective financial management within the government relies heavily on clear and consistent procedures for transactions between its various departments. Rule 126 addresses this critical need by establishing a definitive framework for inter-departmental financial adjustments, ensuring uniformity and preventing potential discrepancies.
Breakdown of the Rule:
- Core Mandate: The rule establishes the procedure for settling financial adjustments between various government departments. This covers any financial transaction where one department owes or is owed money by another.
- Regulatory Framework: It explicitly mandates that these procedures are governed by the directions outlined in Chapter 4 of the Government Accounting Rules, 1990. This means that all steps, documentation, and timelines for such adjustments must strictly adhere to the provisions of that specific chapter.
- Purpose: The primary objective is to ensure consistency, transparency, and accountability in financial dealings across different government entities. By referencing a specific external document, the rule minimizes ambiguity and provides a clear, authoritative source for all related processes.
Practical Example: Imagine Department A provides IT support services to Department B. When Department A raises an invoice for these services, Rule 126 dictates that the entire process for Department B to settle this payment, and for Department A to account for the receipt, must strictly follow the guidelines detailed in Chapter 4 of the Government Accounting Rules, 1990. This ensures that the transfer of funds and the corresponding accounting entries are standardized and auditable, preventing discrepancies and ensuring compliance with established financial protocols.
Related Provisions
To fully understand the context of inter-departmental adjustments, consider these related rules:
- Rule 125 of The General Financial Rules 2017 Claims Preferment Period: This rule specifies the time limits within which claims between departments must ordinarily be preferred.
- Rule 127 of The General Financial Rules 2017 Adjustments in Account Year: This rule outlines when inter-departmental adjustments should be made within a specific account year.
Learning Aids
Mnemonics
- Adjustments Regulated Chapter GFR: Helps remember that Adjustments are Regulated by Chapter 4 of Government Accounting Rules.
Process Flowchart
Multiple Choice Questions (MCQs)
1. What governs the settlement of inter-departmental adjustments according to Rule 126 of the General Financial Rules, 2017?
- A) Ministry of Finance directives
- B) Government Accounting Rules, 1990
- C) Departmental internal policies
- D) Cabinet Committee decisions
Show Answer
Correct Answer: B) Government Accounting Rules, 1990
2. Which specific chapter of the Government Accounting Rules, 1990, is referenced by Rule 126 of the General Financial Rules, 2017 for regulating inter-departmental adjustments?
- A) Chapter 1
- B) Chapter 2
- C) Chapter 3
- D) Chapter 4
Show Answer
Correct Answer: D) Chapter 4
3. According to Rule 126 of the General Financial Rules, 2017, what is the primary purpose of regulating inter-departmental adjustments?
- A) To increase government revenue
- B) To ensure standardized and compliant financial transactions
- C) To reduce inter-departmental communication
- D) To centralize all financial powers
Show Answer
Correct Answer: B) To ensure standardized and compliant financial transactions
4. Rule 126 of the General Financial Rules, 2017 applies to the settlement of adjustments between which entities?
- A) Central Government and State Governments
- B) Government departments
- C) Government and private entities
- D) International organizations
Show Answer
Correct Answer: B) Government departments
5. If there is a conflict between a departmental internal policy and Chapter 4 of the Government Accounting Rules, 1990, regarding inter-departmental adjustments, which takes precedence according to Rule 126 of the General Financial Rules, 2017?
- A) Departmental internal policy
- B) The latest Ministry of Finance circular
- C) Chapter 4 of the Government Accounting Rules, 1990
- D) A special order from the Head of Department
Show Answer
Correct Answer: C) Chapter 4 of the Government Accounting Rules, 1990
Frequently Asked Questions
What is the main objective of Rule 126 of the General Financial Rules, 2017?
The main objective is to establish a clear and regulated procedure for the settlement of financial adjustments between different government departments, ensuring consistency and compliance.
Which document provides the detailed directions for inter-departmental adjustments as per Rule 126 of the General Financial Rules, 2017?
The detailed directions are contained in Chapter 4 of the Government Accounting Rules, 1990.
Does Rule 126 of the General Financial Rules, 2017 allow for departmental discretion in settling adjustments?
No, Rule 126 explicitly states that the settlement of inter-departmental adjustments ‘shall be regulated by the directions contained in Chapter 4 of Government Accounting Rules, 1990’, leaving no room for departmental discretion outside of these prescribed rules.
Key Takeaways
- Rule 126 mandates that inter-departmental financial adjustments are strictly regulated.
- The governing framework for these adjustments is Chapter 4 of the Government Accounting Rules, 1990.
- This ensures standardization, transparency, and accountability in financial transactions between government entities.
- Adherence to this rule is crucial for maintaining financial order and preventing discrepancies across departments.
Conclusion
Rule 126 serves as a foundational pillar for sound financial governance within the Central Government by providing a clear, non-negotiable framework for inter-departmental financial settlements. Its direct reference to the Government Accounting Rules, 1990, underscores the importance of standardized procedures, ensuring that all transactions are handled with utmost precision, transparency, and accountability. This rule is vital for maintaining fiscal discipline and operational harmony across diverse government functions.