Rule 313 of The General Financial Rules 2017 Adjustment of Unpaid Loans from NonStatutory Grants

Rule 313 of The General Financial Rules 2017 Adjustment of Unpaid Loans from NonStatutory Grants

Original Rule Text

Rule313 Any amount or loan not paid on due date to Government by a local body, may be adjusted from any non-statutory grant sanctioned for payment to it.

Visual Summary

Unpaid Loans

Addresses loans due from local bodies to Government.

Adjustment Mechanism

Allows adjustment from non-statutory grants.

Local Body Accountability

Ensures recovery when payments are overdue.

Executive Summary

Rule 313 of the General Financial Rules, 2017, provides a mechanism for the Central Government to recover outstanding amounts or loans from local bodies. If a local body fails to pay an amount or loan by its due date, the Government is authorized to adjust this unpaid sum from any non-statutory grant that has been sanctioned for payment to that local body. This rule ensures financial discipline and provides a clear recourse for the Government in cases of default by local administrative entities.

In-Depth Analysis of the Rule

Rule 313 establishes a critical financial safeguard for the Government when dealing with local bodies. It addresses situations where financial obligations, specifically amounts or loans, are not met by local bodies on their stipulated due dates. This rule empowers the Government to take direct action to recover such outstanding dues, thereby maintaining financial integrity and accountability across different levels of administration.

Breakdown of the Rule: