Rule 145 of The General Financial Rules 2017 Authorities competent to purchase goods
Original Rule Text
Visual Summary
Sanctions goods for public service.
Must be competent to incur financial outlay.
Adheres to established financial procedures.
Executive Summary
Rule 145 of The General Financial Rules, 2017, delineates the fundamental authority for purchasing goods within government operations. It stipulates that any authority empowered to incur expenditure is also competent to sanction the purchase of goods required for public service. This sanctioning power, however, is not absolute and must be exercised strictly in accordance with the provisions outlined in the Delegation of Financial Powers Rules and other general procedures specified in the General Financial Rules.
In-Depth Analysis of the Rule
Rule 145 serves as a foundational principle for government procurement, establishing who holds the power to initiate and approve the acquisition of goods. It links the power to purchase directly to the power to incur expenditure, ensuring that financial responsibility and procurement authority are aligned.
Breakdown of the Rule:
- Competent Authority: The rule explicitly states that an authority must be ‘competent to incur expenditure’ to be able to sanction the purchase of goods. This ensures that only authorized personnel with budgetary control can approve spending on goods.
- Purpose of Purchase: The goods must be ‘required for use in public service’. This clause prevents the misuse of public funds for private or unauthorized purposes, emphasizing the public utility aspect of all procurements.
- Procedural Compliance: All purchases must be made ‘in accordance with provisions in the Delegation of Financial Powers Rules’ and ‘following the general procedure contained in the following rules’. This mandates adherence to a structured and transparent procurement process, ensuring accountability and preventing arbitrary decisions.
Practical Example:
Consider a Head of Department who has been delegated financial powers to incur expenditure up to a certain limit for office administration. Under Rule 145, this Head of Department is competent to sanction the purchase of new computers for their public service staff, provided the purchase adheres to the financial limits set by the Delegation of Financial Powers Rules and follows the established procurement procedures outlined in the General Financial Rules, such as inviting tenders or using the GeM portal as applicable.
Related Provisions
Understanding Rule 145 is enhanced by examining related provisions that govern public procurement and financial management:
- Rule 144 of The General Financial Rules 2017 Fundamental Principles of Public Buying: Lays down the overarching principles for all public buying, which Rule 145’s authorities must uphold.
- Rule 147 of The General Financial Rules 2017 Powers for Procurement of Goods: Further details the specific powers delegated for the procurement of goods, building upon the general authority established in Rule 145.
- Rule 149 of The General Financial Rules 2017 Government e-Marketplace GeM: Specifies the mandatory use of the Government e-Marketplace for common use goods and services, providing a key procedural framework for procurement.
Learning Aids
Mnemonics:
- CAPS: Competent Authority Purchases for Service.
Process Flowchart:
Multiple Choice Questions
1. Who is competent to sanction the purchase of goods under Rule 145 of the General Financial Rules, 2017?
- A) Any government employee
- B) An authority competent to incur expenditure
- C) Only the Ministry of Finance
- D) Only the Head of Department
Show Answer
Correct Answer: B) An authority competent to incur expenditure
2. For what purpose must goods be purchased under Rule 145 of the General Financial Rules, 2017?
- A) Personal use of the authority
- B) Resale for profit
- C) Use in public service
- D) Investment in private ventures
Show Answer
Correct Answer: C) Use in public service
3. What rules must be followed when sanctioning the purchase of goods under Rule 145 of the General Financial Rules, 2017?
- A) Only departmental regulations
- B) Delegation of Financial Powers Rules and general procedures
- C) International trade laws
- D) Private company procurement policies
Show Answer
Correct Answer: B) Delegation of Financial Powers Rules and general procedures
4. Rule 145 of the General Financial Rules, 2017 primarily deals with:
- A) Disposal of surplus goods
- B) Authority for goods procurement
- C) Inventory management
- D) Sanctioning of loans
Show Answer
Correct Answer: B) Authority for goods procurement
5. An authority’s competence to sanction goods purchase under Rule 145 of the General Financial Rules, 2017 is linked to its ability to:
- A) Negotiate prices
- B) Incur expenditure
- C) Manage inventory
- D) Audit accounts
Show Answer
Correct Answer: B) Incur expenditure
Frequently Asked Questions
What is the primary condition for an authority to purchase goods under Rule 145 of the General Financial Rules, 2017?
The authority must be competent to incur expenditure.
Does Rule 145 of the General Financial Rules, 2017 allow for the purchase of goods for private use?
No, the rule explicitly states that goods must be required for use in public service.
Are there specific procedures mentioned in Rule 145 of the General Financial Rules, 2017 for procurement?
Yes, it refers to the provisions in the Delegation of Financial Powers Rules and the general procedure contained in the following rules.
Key Takeaways
- Only authorities competent to incur expenditure can sanction goods purchases for public service.
- All procurement actions must strictly adhere to the Delegation of Financial Powers Rules.
- The rule emphasizes following general procedures outlined in the General Financial Rules for all purchases.
- It ensures financial propriety, accountability, and transparency in government procurement processes.
Conclusion
Rule 145 of The General Financial Rules, 2017, is a cornerstone of responsible government procurement. By clearly defining the authorities competent to sanction goods purchases and mandating adherence to established financial rules, it ensures that public funds are utilized efficiently, transparently, and solely for the benefit of public service. This rule underpins the integrity of the entire procurement framework, setting the stage for subsequent detailed procedures.