Rule 228 of The General Financial Rules 2017 Grants in Aid
Original Rule Text
Visual Summary
Persons, public bodies, institutions with distinct legal entity.
Autonomous bodies, NGOs, educational, local govts, co-ops, employee societies.
Competent authority under Delegation of Financial Powers Rules.
Executive Summary
Rule 228 outlines the general principle for sanctioning grants-in-aid, specifying that they can be provided to individuals, public bodies, or institutions with a distinct legal identity. It details various eligible recipients, including autonomous organizations, voluntary bodies, educational institutions, local self-government bodies, cooperative societies, and societies/clubs for government employees, all subject to the Delegation of Financial Powers Rules.
In-Depth Analysis of the Rule
Introduction: Grants-in-aid are financial assistance provided by the government to various entities for specific purposes. Rule 228 defines the scope of eligible recipients, ensuring that such aid is directed towards organizations with a clear legal standing and specific objectives.
Breakdown of the Rule:
- General Principle: Grants-in-aid can be extended to any person, public body, or institution that possesses a distinct legal entity. This foundational requirement ensures accountability and proper governance of the funds.
- Sanctioning Authority: The power to sanction these grants, including scholarships, rests with an authority deemed competent under the Delegation of Financial Powers Rules. This ensures that decisions are made at the appropriate administrative level.
- Specific Categories of Recipients:
- Autonomous Organizations: This includes bodies established under specific statutes or registered under acts like the Societies Registration Act, 1860, or the Indian Trusts Act, 1882.
- Voluntary/Non-Government Organizations (NGOs): These organizations are eligible if they undertake activities that promote government welfare schemes and programs. Their selection is based on well-defined criteria, including financial resources, credibility, and the nature of their activities.
- Educational and Other Institutions: Grants can be provided in the form of scholarships or stipends to students, supporting educational pursuits.
- Urban and Rural Local Self-Government Institutions: This category covers local administrative bodies, enabling them to fund local development and welfare initiatives.
- Co-operative Societies: These entities can also receive grants to support their cooperative endeavors.
- Societies or Clubs for Government Servants: Grants can be sanctioned to promote social, cultural, and sports activities among government employees, serving as recreational avenues.
Practical Example: A government department might sanction a grant-in-aid to a registered NGO (falling under category b) to implement a specific public health awareness program in a rural area. Alternatively, a grant could be provided to a state university (category c) to fund a new research initiative or offer scholarships to students pursuing critical fields of study.
Related Provisions
Understanding Rule 228 is enhanced by examining related provisions:
- Rule 229 of The General Financial Rules 2017 General Principles for setting up of Autonomous Organisations outlines the criteria and procedures for establishing autonomous bodies that may receive grants.
- Rule 230 of The General Financial Rules 2017 Principles and Procedure for award of GrantsinAid details the application, assessment, and sanctioning process for grants-in-aid.
- Rule 238 of The General Financial Rules 2017 Utilization Certificates specifies the requirements for submitting utilization certificates to ensure proper accountability of granted funds.
Learning Aids
Mnemonics
- Rule 228: GRANTS to PALS: Public bodies, Autonomous, Local, Societies.
Process Flowchart
Multiple Choice Questions (MCQs)
1. Which of the following entities is NOT explicitly mentioned as an eligible recipient for grants-in-aid under Rule 228 of the General Financial Rules, 2017?
- A) Institutions registered under the Societies Registration Act, 1860
- B) Private commercial enterprises for profit generation
- C) Urban and Rural local self-government institutions
- D) Educational institutions providing scholarships
Show Answer
Correct Answer: B) Private commercial enterprises for profit generation
2. According to Rule 228 of the General Financial Rules, 2017, who is competent to sanction grants-in-aid?
- A) Only the Ministry of Finance
- B) Any authority under the Delegation of Financial Powers Rules
- C) Only the President of India
- D) The Comptroller and Auditor General of India
Show Answer
Correct Answer: B) Any authority under the Delegation of Financial Powers Rules
3. Under Rule 228 of the General Financial Rules, 2017, grants-in-aid can be sanctioned to societies or clubs set up by Government servants for what purpose?
- A) Commercial ventures
- B) Promoting social, cultural, and sports activities
- C) Political lobbying
- D) International collaborations
Show Answer
Correct Answer: B) Promoting social, cultural, and sports activities
4. Which characteristic is essential for an institution to receive grants-in-aid as per the general principle in Rule 228 of the General Financial Rules, 2017?
- A) Being a government department
- B) Having a distinct legal entity
- C) Being a for-profit organization
- D) Operating internationally
Show Answer
Correct Answer: B) Having a distinct legal entity
5. Rule 228 of the General Financial Rules, 2017, specifies that voluntary organizations or NGOs receiving grants should be selected based on criteria including:
- A) Their political affiliations
- B) Their financial and other resources, credibility, and type of activities
- C) The number of international awards they have received
- D) The size of their physical infrastructure
Show Answer
Correct Answer: B) Their financial and other resources, credibility, and type of activities
Frequently Asked Questions
Who can receive grants-in-aid under Rule 228 of the General Financial Rules, 2017?
Grants-in-aid can be given to any person, public body, or institution with a distinct legal entity, including autonomous organizations, voluntary bodies, educational institutions, local self-government bodies, cooperative societies, and societies/clubs for government employees.
What is the role of the Delegation of Financial Powers Rules in sanctioning grants-in-aid as per Rule 228 of the General Financial Rules, 2017?
The Delegation of Financial Powers Rules determines which authority is competent to sanction grants-in-aid, ensuring that the sanctioning power is exercised by the appropriate level of government.
Key Takeaways
- Rule 228 defines eligible recipients for grants-in-aid, emphasizing the requirement of a distinct legal entity.
- Recipients include a broad spectrum of organizations: autonomous bodies, NGOs, educational institutions, local governments, co-operative societies, and government employee clubs.
- Sanctioning authority for grants-in-aid is determined by the Delegation of Financial Powers Rules.
- The rule aims to support entities engaged in welfare, education, and social activities aligned with government objectives.
Conclusion
Rule 228 of the General Financial Rules, 2017, provides a foundational framework for the judicious distribution of grants-in-aid. By clearly delineating eligible recipients and the competent authorities for sanction, it ensures that financial assistance reaches diverse entities, from autonomous organizations to local self-governments, fostering welfare, education, and community development in a structured and accountable manner.