Rule 137 of The General Financial Rules 2017 Project Grouping for Approval
Original Rule Text
Visual Summary
Grouped works form a single project for approval.
Approval not avoided if individual costs are low.
Rule doesn’t apply to similar, but separate, works.
Executive Summary
Rule 137 of the General Financial Rules, 2017 mandates that for approval and sanction purposes, a collection of individual works that together constitute a single project must be treated as one unified work. This prevents authorities from circumventing the requirement for higher-level approvals by breaking down a large project into smaller components, each falling within a lower authority’s sanctioning powers. However, this principle does not extend to works that are similar in nature but are genuinely independent of each other.
In-Depth Analysis of the Rule
Rule 137 is a critical provision designed to ensure proper financial oversight and accountability in government projects. It addresses the potential for ‘salami-slicing’ or breaking down large projects into smaller, seemingly independent works to avoid the scrutiny and approval thresholds of higher authorities. By treating a group of interconnected works as a single project, the rule upholds the principle that the overall financial implications and strategic importance of a project should dictate the level of sanctioning authority required.
Breakdown of the Rule:
- Unified Project Concept: Any group of works that collectively forms a single, cohesive project must be considered as one entity for the purpose of obtaining administrative approval and financial sanctions.
- Preventing Circumvention: The rule explicitly states that the need for higher authority approval for a project should not be bypassed merely because the individual cost of each component work falls within the sanctioning powers of a lower authority. This ensures that the cumulative impact and total cost of a project are assessed at the appropriate level.
- Exception for Independent Works: A crucial caveat is provided: this rule does not apply to works that are similar in nature but are genuinely independent of each other. This distinction is vital to avoid unnecessary bureaucratic hurdles for unrelated but similar activities.
Practical Example:
Imagine a government department planning to construct a new university campus, which involves building multiple academic blocks, a library, hostels, and sports facilities. Each of these structures, if considered individually, might fall within the sanctioning power of a mid-level authority. However, under Rule 137, since all these works are part of the larger ‘university campus project’, they must be grouped together and submitted for approval to the higher authority whose sanctioning limits cover the total estimated cost of the entire campus. This prevents the project from being fragmented to avoid high-level scrutiny. Conversely, if the department is building several independent primary schools in different villages, even if they are structurally similar, they would not be considered a single project under this rule because they are independent initiatives.
Related Provisions
Understanding Rule 137 is enhanced by considering its interplay with other financial rules:
- Rule 136 of The General Financial Rules 2017 Work Commencement and Sanction: Details the prerequisites for commencing any work or incurring liability, including administrative approval and expenditure sanction.
- Rule 132 of The General Financial Rules 2017 Powers to Sanction Works: Outlines the delegated powers for sanctioning works, which Rule 137 aims to prevent circumvention of.
- Rule 21 of The General Financial Rules 2017 Standards of Financial Propriety: Emphasizes the high standards of financial propriety expected from officers, which Rule 137 helps enforce by ensuring proper approval levels.
Learning Aids
Mnemonics:
- Project Grouping For Approval: Prevent Games, Follow Authority.
Process Flowchart:
Multiple Choice Questions
1. According to Rule 137 of the General Financial Rules, 2017, how should a group of works forming one project be treated for approval and sanction purposes?
- A) As separate works, each requiring individual sanction.
- B) As one unified work, regardless of individual component costs.
- C) As a single work only if the total cost exceeds a specific threshold.
- D) As a single work only if all components fall under the same lower authority.
Show Answer
Correct Answer: B) As one unified work, regardless of individual component costs.
2. What is the primary objective of Rule 137 of the General Financial Rules, 2017 regarding project grouping?
- A) To simplify administrative procedures for small works.
- B) To ensure that all works are sanctioned by the lowest possible authority.
- C) To prevent the circumvention of higher authority approvals by fragmenting projects.
- D) To allow greater flexibility in the financial management of government projects.
Show Answer
Correct Answer: C) To prevent the circumvention of higher authority approvals by fragmenting projects.
3. Rule 137 of the General Financial Rules, 2017 states that the necessity for obtaining approval of higher authority to a project should not be avoided if:
- A) The project consists of works of similar nature that are independent of each other.
- B) The cost of each particular work in the project is within the powers of a lower authority.
- C) The project is funded by multiple departments.
- D) The project is completed within the financial year.
Show Answer
Correct Answer: B) The cost of each particular work in the project is within the powers of a lower authority.
4. Under Rule 137 of the General Financial Rules, 2017, when does the provision for treating a group of works as one project NOT apply?
- A) When the works are of similar nature but are independent of each other.
- B) When the total project cost exceeds the highest authority’s sanctioning power.
- C) When the project involves both capital and revenue expenditure.
- D) When the works are executed by different agencies.
Show Answer
Correct Answer: A) When the works are of similar nature but are independent of each other.
5. Which of the following best describes the scope of “one project” as per Rule 137 of the General Financial Rules, 2017?
- A) Any two or more works undertaken by the same department.
- B) A group of works that are functionally interconnected and form a cohesive whole.
- C) Works that are geographically located in the same area.
- D) Works that are initiated in the same financial year.
Show Answer
Correct Answer: B) A group of works that are functionally interconnected and form a cohesive whole.
Frequently Asked Questions
What is the main purpose of Rule 137 of the General Financial Rules, 2017?
The main purpose is to ensure that large projects are not fragmented into smaller works to bypass the required approval levels of higher authorities, thereby maintaining proper financial oversight.
Does Rule 137 of the General Financial Rules, 2017 apply to all similar works undertaken by a government department?
No, Rule 137 specifically states that it does not apply to works of similar nature which are independent of each other. It only applies when a group of works forms a single, cohesive project.
What happens if a project is found to be deliberately fragmented to avoid higher authority sanction under Rule 137 of the General Financial Rules, 2017?
While Rule 137 itself defines the grouping principle, such an act would be a breach of financial propriety and could lead to disciplinary action against the officers involved, as it circumvents established financial controls.
Key Takeaways
- Rule 137 mandates that a group of works forming a single project must be treated as one for approval and sanction.
- This rule prevents the fragmentation of projects to avoid higher-level scrutiny and approval.
- The principle does not apply to similar works that are genuinely independent of each other.
- It reinforces financial propriety by ensuring that the overall scope and cost of a project determine the appropriate sanctioning authority.
Conclusion
Rule 137 of the General Financial Rules, 2017 is a cornerstone for maintaining financial discipline and transparency in government works. By clearly defining how projects comprising multiple works should be treated for sanctioning purposes, it safeguards against potential abuses and ensures that public funds are managed with the utmost accountability and adherence to established hierarchies of approval.