Rule 239 of The General Financial Rules 2017 State Government Grants in aid Scheme Utilization Certificate
Original Rule Text
Visual Summary
For State Scheme Implementation.
GFR 12-C format required.
Admin/Finance Secretary.
Executive Summary
Rule 239 of The General Financial Rules, 2017 mandates that when the Central Government provides grants-in-aid to State Governments for implementing Central Schemes, the State Government must submit a Utilization Certificate (UC) in the prescribed GFR 12-C format. This certificate serves as proof that the funds were used for their intended purpose and must be counter-signed by either the Administrative Secretary of the Division regulating the scheme or the Finance Secretary of the State.
In-Depth Analysis of the Rule
Rule 239 is a critical component of financial accountability, ensuring that Central Government funds disbursed to State Governments for specific schemes are utilized transparently and effectively. It establishes a clear mechanism for reporting and verification of expenditure.
Breakdown of the Rule:
- Applicability: This rule applies specifically when the Central Government provides grants-in-aid to State Governments for the implementation of Central Schemes.
- Requirement: The State Government is obligated to submit a Utilization Certificate (UC).
- Format: The UC must adhere to the format specified in GFR 12-C. This ensures standardization and ease of verification.
- Verification: The Utilization Certificate must be counter-signed by a high-ranking official, specifically the Administrative Secretary of the Division regulating the scheme or the Finance Secretary of the State. This adds a layer of senior-level accountability.
Practical Example:
Imagine the Central Government launches a “Clean Village Initiative” and provides grants to various State Governments. Under Rule 239, each State Government receiving these funds must submit a GFR 12-C Utilization Certificate, detailing how the funds were spent on sanitation projects, waste management, etc. This certificate would then need to be counter-signed by the State’s Rural Development Secretary (Administrative Secretary) or the Finance Secretary, confirming the proper use of funds before further grants are released or accounts are closed.
Related Provisions
Rule 239 is part of a broader framework for financial management and accountability. Other relevant rules include:
- Rule 238 (1) of The General Financial Rules, 2017 Utilization Certificates: Details the general requirements for Utilization Certificates for non-recurring grants.
- Rule 240 of The General Financial Rules, 2017 State Government Local Bodies Utilization Certificate: Addresses UC submission when expenditure is incurred through local bodies.
- Rule 230 (10) of The General Financial Rules, 2017 Grants in aid Installments: Discusses conditions for releasing grants-in-aid in installments, often linked to proper utilization.
Learning Aids
Mnemonics:
- S.U.C.C.E.S.S.: State Utilization Certificate for Central Expenditure on Schemes, Secretary-signed.
Process Flowchart:
Multiple Choice Questions (MCQs)
1. What is the primary requirement for State Governments receiving Central Grants for schemes under Rule 239 of The General Financial Rules, 2017?
- A) Submission of a detailed project report.
- B) Submission of a Utilization Certificate in GFR 12-C format.
- C) Obtaining approval from the Central Finance Ministry.
- D) Providing a bank guarantee for the grant amount.
Show Answer
Correct Answer: B) Submission of a Utilization Certificate in GFR 12-C format.
2. Who is responsible for counter-signing the Utilization Certificate submitted by a State Government under Rule 239 of The General Financial Rules, 2017?
- A) The Chief Minister of the State.
- B) The Central Finance Secretary.
- C) The Administrative Secretary of the regulating Division or the Finance Secretary of the State.
- D) The Accountant General of the State.
Show Answer
Correct Answer: C) The Administrative Secretary of the regulating Division or the Finance Secretary of the State.
3. The Utilization Certificate required under Rule 239 of The General Financial Rules, 2017 pertains to which type of funds?
- A) State’s own revenue.
- B) Loans taken by the State from commercial banks.
- C) Central Grants given to State Governments for Central Schemes.
- D) Funds allocated for disaster relief from the State Contingency Fund.
Show Answer
Correct Answer: C) Central Grants given to State Governments for Central Schemes.
4. What is the specific format mentioned for the Utilization Certificate in Rule 239 of The General Financial Rules, 2017?
- A) GFR 6
- B) GFR 10
- C) GFR 12-C
- D) GFR 21
Show Answer
Correct Answer: C) GFR 12-C
5. Rule 239 of The General Financial Rules, 2017 specifies the submission of a Utilization Certificate for grants-in-aid relating to which type of scheme?
- A) State-funded schemes only.
- B) Centrally Sponsored Schemes implemented by State Governments.
- C) Schemes funded by international organizations.
- D) Private sector development schemes.
Show Answer
Correct Answer: B) Centrally Sponsored Schemes implemented by State Governments.
Frequently Asked Questions
What is the primary purpose of a Utilization Certificate under Rule 239 of The General Financial Rules, 2017?
The primary purpose is to ensure accountability and confirm that Central Grants provided to State Governments for implementing Central Schemes have been utilized for their intended purpose, as per the scheme guidelines.
Who is required to counter-sign the Utilization Certificate submitted by a State Government as per Rule 239 of The General Financial Rules, 2017?
The Utilization Certificate must be counter-signed by either the Administrative Secretary of the Division regulating the Central Scheme or the Finance Secretary of the State Government.
Is the GFR 12-C format mandatory for the Utilization Certificate under Rule 239 of The General Financial Rules, 2017?
Yes, Rule 239 explicitly states that the Utilization Certificate “may be submitted by the State Government in respect of the Scheme” in format GFR 12-C, indicating it is the prescribed format for this purpose.
Key Takeaways
- Rule 239 mandates State Governments to submit Utilization Certificates (UCs) for Central Grants used in implementing Central Schemes.
- The prescribed format for this UC is GFR 12-C, ensuring standardization and clarity in financial reporting.
- A crucial accountability measure is the requirement for the UC to be counter-signed by either the Administrative Secretary of the regulating Division or the State’s Finance Secretary.
- This rule is vital for ensuring transparency, proper utilization, and financial oversight of Central funds disbursed to States.
Conclusion
Rule 239 of The General Financial Rules, 2017 underpins the accountability framework for Central Grants to State Governments. By requiring a specific Utilization Certificate, counter-signed by senior officials, it establishes a robust mechanism to track fund usage and ensure that public money is spent effectively on intended Central Schemes, fostering fiscal discipline and transparency across government tiers.