Rule 243 of The General Financial Rules 2017 Discretionary Grants
Original Rule Text
Visual Summary
Expenditure governed by competent authority orders.
Must be non-recurring.
No future financial commitments allowed.
Executive Summary
Rule 243 of The General Financial Rules, 2017, outlines the regulations for Discretionary Grants. These grants are funds placed at the disposal of a particular authority, and their expenditure must be governed by specific orders from the competent authority. A key characteristic is that such grants must be non-recurring and cannot involve any future financial commitments, ensuring that they are used for immediate, one-off purposes.
In-Depth Analysis of the Rule
Rule 243 provides a framework for managing Discretionary Grants, which are a specific category of financial assistance. These grants are not part of regular, planned expenditure but are allocated for particular, often unforeseen, needs at the discretion of a designated authority. The rule emphasizes strict control and a clear understanding of their temporary nature.
Breakdown of the Rule:
- Allotment at Disposal: Discretionary Grants are funds specifically placed at the disposal of a particular authority. This implies a degree of autonomy for that authority in deciding how to allocate these funds, albeit within defined parameters.
- Regulation by Orders: The expenditure from these grants is not arbitrary. It must be strictly regulated by general or special orders issued by the competent authority. These orders specify the exact object for which the grants can be made and any other conditions that apply.
- Non-Recurring Nature: A fundamental condition is that Discretionary Grants must be non-recurring. This means they are intended for one-time expenses and cannot be used to establish ongoing financial liabilities.
- No Future Commitment: The rule explicitly states that these grants must not involve any future commitment. This reinforces their temporary and ad-hoc nature, preventing the creation of long-term financial obligations through discretionary allocations.
Practical Example:
Imagine a government department’s Head of Office is allocated a Discretionary Grant. They might use this grant to fund a one-off workshop for staff skill development, purchase a specific piece of software for a temporary project, or provide immediate relief for a minor, unforeseen operational issue. According to Rule 243 of The General Financial Rules, 2017, they cannot use this grant to create a new permanent position, commit to a multi-year software subscription, or fund an ongoing program that would require continuous funding in subsequent years. Each expenditure must be explicitly approved by competent authority orders, detailing the object and conditions, and ensuring no future financial liabilities are created.
Related Provisions
Understanding Discretionary Grants is enhanced by reviewing other rules governing financial management and grants:
- Rule 228 of The General Financial Rules, 2017: General Principles for Grants-in-aid: Provides the overarching framework for sanctioning grants to various entities.
- Rule 230 of The General Financial Rules, 2017: Principles and Procedure for Award of Grants-in-aid: Details the application, scrutiny, and conditions for awarding grants.
- Rule 244 of The General Financial Rules, 2017: Other Grants: Covers grants, subventions, etc., not specifically dealt with in other rules.
Learning Aids
Mnemonics:
- Discretionary Grants: Don’t Go Recurring, No Future Commitments. (Highlights Regulated, Non-recurring, No Future Commitments)
Process Flowchart:
Multiple Choice Questions
1. What is a primary characteristic of Discretionary Grants under Rule 243 of the General Financial Rules, 2017?
- A) They are always recurring.
- B) They must involve future financial commitments.
- C) They must be non-recurring.
- D) They are not subject to any specific orders.
Show Answer
Correct Answer: C) They must be non-recurring.
2. Who regulates the expenditure from Discretionary Grants as per Rule 243 of the General Financial Rules, 2017?
- A) The Ministry of Finance
- B) The Parliament
- C) General or special orders of the competent authority
- D) The recipient organization’s internal rules
Show Answer
Correct Answer: C) General or special orders of the competent authority
3. According to Rule 243 of the General Financial Rules, 2017, what is prohibited for Discretionary Grants?
- A) Being used for specific objects
- B) Being non-recurring
- C) Involving any future commitment
- D) Being placed at the disposal of an authority
Show Answer
Correct Answer: C) Involving any future commitment
4. If a Discretionary Grant under Rule 243 of the General Financial Rules, 2017, is found to be recurring, what is its status?
- A) It is a valid grant.
- B) It must be converted to a loan.
- C) It violates the rule’s conditions.
- D) It requires parliamentary approval.
Show Answer
Correct Answer: C) It violates the rule’s conditions.
5. Which of the following is NOT a condition for Discretionary Grants as per Rule 243 of the General Financial Rules, 2017?
- A) Regulated by competent authority orders
- B) Must be non-recurring
- C) Must involve future commitments
- D) Placed at the disposal of a particular authority
Show Answer
Correct Answer: C) Must involve future commitments
Frequently Asked Questions
Q: What is the primary purpose of Discretionary Grants under Rule 243 of the General Financial Rules, 2017?
A: Discretionary Grants are intended to provide funds for specific, often immediate or unforeseen, purposes at the discretion of a designated authority, without creating ongoing financial liabilities.
Q: Can Discretionary Grants be used to fund a project that requires funding over several years?
A: No, Rule 243 of the General Financial Rules, 2017, explicitly states that Discretionary Grants must be non-recurring and must not involve any future commitment, making them unsuitable for multi-year projects.
Q: Who defines the ‘object’ and ‘conditions’ for Discretionary Grants?
A: The general or special orders of the competent authority specify the object for which the grants can be made and any other conditions that shall apply to them, as per Rule 243 of the General Financial Rules, 2017.
Key Takeaways
- Discretionary Grants are funds allocated to an authority for specific, ad-hoc purposes.
- Expenditure from these grants is strictly regulated by orders from the competent authority.
- They must be non-recurring, meaning they are for one-time use.
- Crucially, Discretionary Grants cannot create any future financial commitments.
Conclusion
Rule 243 of The General Financial Rules, 2017, serves as a vital guideline for ensuring fiscal discipline in the allocation and utilization of Discretionary Grants. By mandating their non-recurring nature and prohibiting future commitments, it prevents the creation of unforeseen liabilities and promotes responsible, targeted spending for immediate needs within government operations.