Rule 11 of the General Financial Rules 2017 Departmental Regulations for Revenue and Receipts
Original Rule Text
Visual Summary
Departmental Rules
Each department must create its own detailed rules for handling all financial receipts.
Revenue Lifecycle
These rules must cover the entire process: assessment, collection, allocation, and even remission of revenue.
Receipt Book Control
Departments must have a strict system for managing official receipt books (Form GAR-6).
Accountability Check
Used receipt books must be checked against the officer’s accounts to ensure all money is accounted for.
Executive Summary
Rule 11 mandates that every government department must create its own detailed regulations for managing all financial receipts. This includes setting procedures for how revenue is calculated, collected, and sometimes forgiven. Crucially, it also requires a strict system for controlling and accounting for official receipt books (Form GAR-6) to ensure transparency, create a clear audit trail, and prevent any misuse of funds.
In-Depth Analysis of the Rule
Introduction
Rule 11 of the General Financial Rules, 2017, is a foundational principle of decentralized financial management. Instead of a single, rigid set of procedures for all government bodies, this rule delegates the responsibility of creating detailed financial protocols to the individual departments. This allows for flexibility while ensuring robust accountability mechanisms are in place.
Breakdown of the Rule
The rule is divided into two key parts:
- Rule 11(1): The Mandate for Departmental Regulations. This clause requires each department to establish its own comprehensive regulations for the entire lifecycle of revenue. This includes:
- Assessment: How the amount due to the government is calculated.
- Collection: The procedure for receiving the money.
- Allocation: How the collected money is assigned.
- Remission and Abandonment: The formal process for forgiving or giving up a claim to revenue.
This ensures that procedures are tailored to the specific functions of each department.
- Rule 11(2): Control over Receipt Books. This clause focuses on the practical aspect of handling physical money. It mandates that departments where officers issue receipts using Form GAR-6 must have a system to control these receipt books. This system must cover:
- The issuance of receipt books to officers.
- The number of books an officer can have at one time.
- A mandatory check of the used books against the officer’s financial accounts upon their return.
This creates a crucial audit trail and holds individual officers accountable for the money they collect.
Practical Example
Imagine an officer at a Regional Transport Office (RTO) collecting fees for driving licenses. As per Rule 11, the Transport Department must have its own set of regulations detailing this process. The officer is issued a pre-numbered receipt book (Form GAR-6). The departmental regulations would specify that the officer gets only one book at a time. When all receipts in the book are used, the officer returns it to their supervisor. The supervisor then cross-checks the total amount of money deposited by the officer against the duplicate copies of the receipts in the returned book. If the amounts match, it confirms that all collected funds have been properly accounted for. This entire process is a direct implementation of the principles laid out in Rule 11.
Conclusion
Rule 11 is a cornerstone of financial discipline within the government. It balances the need for department-specific procedures with the universal requirement for transparency and accountability. By mandating detailed regulations and strict control over receipt books, it ensures that public money is managed responsibly from the point of collection.
Related Provisions
Understanding Rule 11 is enhanced by considering other related rules that form the broader framework for financial management:
- Rule 9: Duty of Departments Regarding Receipts – This rule establishes the fundamental responsibility of departments to collect and credit government dues. Rule 11 provides the mechanism for how departments should create the detailed procedures to fulfill this duty.
- Rule 10: Monthly Accounts and Reconciliation – This rule deals with the next step after collection: reporting and reconciling the collected amounts. The procedures created under Rule 11 feed into the accounting and verification processes of Rule 10.
- Rule 7: Prompt Crediting of Government Moneys – This sets the overarching principle that all money received must be deposited into the Government Account without delay. Rule 11 outlines the departmental systems designed to ensure this principle is followed.
Learning Aids
Mnemonics
- For Rule 11(1) on creating regulations: Remember “CARE” – **C**ollection, **A**ssessment, **R**emission, **E**stablishment of rules.
- For Rule 11(2) on receipt books: Remember “BOOK” – **B**ooks **O**f **O**fficial **K**eeping must be checked.
Mindmap
Multiple Choice Questions (MCQs)
1. What is the primary purpose of Rule 11(1) of the General Financial Rules, 2017?
- A) To specify the exact tax rates for all government services.
- B) To create a single, uniform financial rule for all government departments to follow.
- C) To mandate that each department creates its own detailed rules for revenue assessment, collection, and management.
- D) To outline the punishments for financial fraud within government departments.
Show Answer
Correct Answer: C) To mandate that each department creates its own detailed rules for revenue assessment, collection, and management.
2. According to Rule 11(2), which specific form is mentioned for issuing receipts for money received on behalf of the Government?
- A) GFR-11
- B) GFR-5
- C) GAR-12
- D) GAR-6
Show Answer
Correct Answer: D) GAR-6.
3. What is the key accountability mechanism mandated by Rule 11(2) for departments where officers use receipt books?
- A) That all receipts must be digitally signed by the Head of the Department.
- B) A mandatory check of the used receipt books against the officer’s accounts upon their return.
- C) That officers are only allowed to be issued one receipt book throughout their entire service.
- D) That a monthly audit must be conducted by an external agency for all collected revenue.
Show Answer
Correct Answer: B) A mandatory check of the used receipt books against the officer’s accounts upon their return.
Frequently Asked Questions
Why can’t there be one single set of financial rules for all departments?
Different departments have varied and specific sources of revenue. For example, the process for collecting income tax is very different from collecting entry fees for a national park. Rule 11 allows departments to create tailored procedures that fit their unique operations, which is more efficient and practical than a one-size-fits-all approach.
What is the significance of Form GAR-6?
Form GAR-6 is the official receipt book used by government officers to provide proof of payment for money they collect on behalf of the government. Rule 11(2) places strong emphasis on controlling these books because they are a critical part of the audit trail. Proper management of these forms helps prevent fraud and ensures all collected money is accounted for.
What happens if an officer’s collected cash doesn’t match their returned receipt book?
The check mandated by Rule 11(2) is designed to detect such discrepancies. If a mismatch is found, it would trigger an investigation by the department to determine the reason for the shortfall. This process is a key part of enforcing accountability for public funds.
Key Takeaways
- Every government department must create its own specific rulebook for handling the money it collects.
- These rules must cover the entire financial process, from calculating what is owed to finally collecting it.
- A strict system for controlling and tracking official receipt books (Form GAR-6) is mandatory.
- To ensure accountability, used receipt books must be checked against an officer’s financial records.