Rule 315 of The General Financial Rules 2017 Payments to Local Bodies
Original Rule Text
provision of relevant act and rules,
payments to local bodies in respect of
revenue and other moneys raised or
received by Government on their behalf
will be made in such manner and on such
date, as may be authorized by general or
special orders of Government.
Visual Summary
Government payments to local bodies for collected revenues.
Payments authorized by general or special government orders.
Covers all revenue and other moneys collected on behalf of local bodies.
Executive Summary
Rule 315 of the General Financial Rules, 2017, outlines the procedure for making payments to local bodies. It specifies that all revenue and other funds collected or received by the Government on behalf of local bodies must be disbursed according to general or special orders issued by the Government. This ensures that such financial transactions are conducted in a regulated and authorized manner, adhering to established legal frameworks and government directives.
In-Depth Analysis of the Rule
Rule 315 provides a foundational principle for financial interactions between the Central Government and local bodies, ensuring accountability and adherence to established procedures for the transfer of funds. It underscores the Government’s role as a custodian and disbursing agent for moneys collected on behalf of these local entities.
Breakdown of the Rule:
- Subject to provision of relevant act and rules: This clause establishes that all payments must be in conformity with existing legal and regulatory frameworks. It implies that the Government cannot act arbitrarily but must follow prescribed laws and rules governing financial transactions with local bodies.
- Payments to local bodies: The primary beneficiaries of these payments are local bodies, which include various forms of local self-governance. This highlights the decentralized nature of certain financial flows.
- Revenue and other moneys raised or received by Government on their behalf: The scope of funds covered is broad, encompassing not just direct revenue collections but also any other moneys that the Government handles as an agent for local bodies. This ensures comprehensive coverage of all such financial obligations.
- Will be made in such manner and on such date: This grants flexibility to the Government in determining the operational aspects of payment, including the method and timing. This flexibility allows for adaptation to different types of funds or local body requirements.
- As may be authorized by general or special orders of Government: The authorization for these payments must come from official government orders. This ensures that each payment is backed by a legitimate directive, whether it’s a standing general order or a specific instruction for a particular case.
Practical Example:
Imagine a Central Government department collects a specific cess or tax that is earmarked for urban local bodies for infrastructure development. According to Rule 315, this department cannot simply transfer the funds. Instead, it must follow a procedure authorized by a general order (e.g., an annual directive for cess distribution) or a special order (e.g., a one-time instruction for a specific project fund). This order would specify how the funds are to be transferred (e.g., electronic transfer), when (e.g., quarterly), and to which specific local bodies, ensuring transparency and accountability in the disbursement process.
Related Provisions
Understanding Rule 315 is enhanced by examining other provisions that govern financial interactions with local bodies:
- Rule 314 of The General Financial Rules 2017 Taxes etc collected by Government on behalf of Local Bodies: This rule details the handling of taxes, fines, and other revenues collected by the Government for or on behalf of local bodies, which directly precedes the payment process outlined in Rule 315.
- Rule 316 of The General Financial Rules 2017 Audit of Account of Local Bodies: This provision addresses the audit of accounts for local bodies, ensuring accountability for the funds received, including those disbursed under Rule 315.
- Rule 312 of The General Financial Rules 2017 Financial arrangements between Central Government and Local Bodies: This rule sets out the general financial arrangements between the Central Government and local bodies, providing context for the specific payment mechanisms in Rule 315.
Learning Aids
Mnemonics:
- PLB GO: Payments to Local Bodies by Government Order. This helps remember the core elements of the rule: payments to local bodies are governed by government orders.
Process Flowchart:
Multiple Choice Questions
1. According to Rule 315 of the General Financial Rules, 2017, what type of funds collected by the Government on behalf of local bodies are covered for payment?
- A) Only tax revenues
- B) Only grants and subsidies
- C) Revenue and other moneys
- D) Only funds for specific projects
Show Answer
Correct Answer: C) Revenue and other moneys
2. Who authorizes the manner and date of payments to local bodies as per Rule 315 of the General Financial Rules, 2017?
- A) The local bodies themselves
- B) The Ministry of Finance
- C) General or special orders of Government
- D) The Comptroller and Auditor General
Show Answer
Correct Answer: C) General or special orders of Government
3. Rule 315 of the General Financial Rules, 2017, states that payments to local bodies are subject to the provision of:
- A) International treaties only
- B) Relevant act and rules
- C) Discretion of the disbursing officer
- D) Approval of the State Legislature
Show Answer
Correct Answer: B) Relevant act and rules
4. What is the primary purpose of Rule 315 of the General Financial Rules, 2017?
- A) To define the taxation powers of local bodies
- B) To regulate the manner and date of payments to local bodies for funds collected on their behalf
- C) To establish new revenue streams for local bodies
- D) To mandate direct financial aid from the Central Government to local bodies
Show Answer
Correct Answer: B) To regulate the manner and date of payments to local bodies for funds collected on their behalf
5. Which of the following is NOT a condition for payments to local bodies under Rule 315 of the General Financial Rules, 2017?
- A) Payments must be authorized by government orders.
- B) Payments must be made within a fixed 7-day period.
- C) Payments are for revenue and other moneys collected on their behalf.
- D) Payments are subject to relevant acts and rules.
Show Answer
Correct Answer: B) Payments must be made within a fixed 7-day period.
Frequently Asked Questions
Q1: What kind of funds does Rule 315 cover for payments to local bodies?
Rule 315 covers all revenue and other moneys that are raised or received by the Government on behalf of local bodies. This includes a broad spectrum of financial inflows intended for local administration.
Q2: Can the Government decide the payment method and timing for funds under Rule 315 arbitrarily?
No, the Government cannot decide arbitrarily. While it determines the “manner and date” of payments, these decisions must be “authorized by general or special orders of Government” and are “subject to provision of relevant act and rules.” This ensures a structured and legally compliant process.
Q3: Is Rule 315 applicable to all types of local bodies?
Yes, Rule 315 refers broadly to “payments to local bodies,” implying its applicability to all local self-government institutions for whom the Central Government collects or receives funds.
Key Takeaways
- Rule 315 governs the disbursement of all funds (revenue and other moneys) collected by the Government on behalf of local bodies.
- Payments must strictly adhere to existing legal acts and rules.
- The specific manner and date of payments are determined by general or special government orders.
- This rule ensures a structured, authorized, and accountable process for transferring funds to local self-governing institutions.
Conclusion
Rule 315 of the General Financial Rules, 2017, is a vital provision that formalizes the financial relationship between the Central Government and local bodies. By mandating that payments for collected funds are made according to authorized orders and existing legal frameworks, it reinforces principles of good governance, transparency, and fiscal discipline, ensuring that resources reach their intended local recipients through proper channels.