Rule 262 of The General Financial Rules 2017 Annual Returns
Original Rule Text
Visual Summary
Principal Accounts Officer to Ministry/Department
GFR 13: Outstanding Central Loans
By September 30th Annually
Executive Summary
Rule 262 of The General Financial Rules, 2017 mandates that each Principal Accounts Officer must submit an annual statement (Form GFR 13) to the relevant Ministry or Department. This statement, due by September 30th each year, details all outstanding Central Loans as of March 31st, including aggregate balances, any defaults in principal or interest repayment, and the earliest period of such defaults, covering various government entities and institutions. For cases where detailed accounts are not maintained by the Accounts Office, the statement should provide departmental authority-wise aggregate balances.
In-Depth Analysis of the Rule
Introduction: Rule 262 establishes a critical reporting mechanism for tracking the financial health of Central Loans across various government entities. It ensures transparency and accountability in loan management by requiring regular, detailed submissions.
Breakdown of the Rule:
- Who Submits: Each Principal Accounts Officer.
- To Whom: The concerned Ministry or Department of Government.
- What is Submitted: A statement in Form GFR 13.
- Content of the Statement: It must detail outstanding Central Loans as of March 31st of each year. This includes the aggregate balance of loans, specific details of any defaults in repayment of principal and/or interest, and the earliest period to which such defaults pertain.
- Scope of Entities Covered: The statement must cover loans against State or Union Territory Governments, foreign Governments, Railway or Department of Posts funds, Central Public Sector, and other Government Institutions.
- Special Provision for Non-Detailed Accounts: If detailed accounts are not maintained by the Accounts Office, the statement should instead contain departmental authority-wise aggregate balances of outstanding loans.
- Submission Deadline: The statement must be submitted not later than the following thirtieth September (i.e., September 30th annually).
Practical Example: Imagine the Ministry of Finance needs to understand the total outstanding loans from various states and public sector undertakings. The Principal Accounts Officer for a specific department, say, the Department of Economic Affairs, would compile a report using Form GFR 13. This report would list every outstanding loan as of March 31st, noting if any state, like ‘Government of Rajasthan’, or a PSU, like ‘National Thermal Power Corporation’, has defaulted on principal or interest payments, and for how long. This consolidated view allows the Ministry to track financial health and compliance across different entities.
Related Provisions
Rule 262 is part of a broader framework for financial management and is complemented by several other rules:
- Rule 260 of The General Financial Rules, 2017: Accounts and Control – This rule outlines the maintenance of detailed accounts for loans and the responsibility of the Accounts Officer to monitor their recovery and ensure conditions are fulfilled.
- Rule 263 of The General Financial Rules, 2017: Review of Annual Statements – This rule mandates Administrative Ministries to review the annual statements (like those from Rule 262) to enforce timely repayments and address defaults.
- Rule 256 of The General Financial Rules, 2017: Submission of Utilization Certificate, Reports, Statements, etc. – This rule details the requirements for submitting utilization certificates and other reports for loans, ensuring funds are used for their intended purpose.
Learning Aids
Mnemonics
- GFR 262: A.R.O.L.S.B.S. – Annual Returns On Loans Submitted By September.
Process Flowchart
Multiple Choice Questions
1. What is the primary responsibility of the Principal Accounts Officer under Rule 262 of the General Financial Rules, 2017?
- A) To sanction new Central Loans.
- B) To prepare the annual budget for the Ministry.
- C) To submit a statement of outstanding Central Loans.
- D) To audit the accounts of all government institutions.
Show Answer
Correct Answer: C) To submit a statement of outstanding Central Loans.
2. By what date must the statement of outstanding Central Loans be submitted annually according to Rule 262 of the General Financial Rules, 2017?
- A) March 31st
- B) April 1st
- C) September 30th
- D) December 31st
Show Answer
Correct Answer: C) September 30th
3. Which form is specified in Rule 262 of the General Financial Rules, 2017 for reporting details of outstanding Central Loans?
- A) Form GFR 1
- B) Form GFR 5
- C) Form GFR 13
- D) Form GFR 22
Show Answer
Correct Answer: C) Form GFR 13
4. What information must the statement in Form GFR 13 include regarding outstanding Central Loans, as per Rule 262 of the General Financial Rules, 2017?
- A) Only the total number of loans sanctioned.
- B) Aggregate balance, details of defaults, and earliest default period.
- C) Future projections for loan disbursements.
- D) The names of all individual loan beneficiaries.
Show Answer
Correct Answer: B) Aggregate balance, details of defaults, and earliest default period.
5. In cases where detailed accounts are not maintained by the Accounts Office, what type of balances should the statement contain, according to Rule 262 of the General Financial Rules, 2017?
- A) Estimated future balances.
- B) Departmental authority-wise aggregate balances.
- C) Only the total outstanding amount.
- D) Balances from the previous financial year only.
Show Answer
Correct Answer: B) Departmental authority-wise aggregate balances.
Frequently Asked Questions
What is the purpose of the annual returns mentioned in Rule 262 of the General Financial Rules, 2017?
The purpose is to provide a comprehensive overview of all outstanding Central Loans, including any defaults, to the concerned Ministry or Department, enabling effective financial oversight and management.
Does Rule 262 of the General Financial Rules, 2017 apply to loans given to State Governments and Public Sector Undertakings?
Yes, Rule 262 explicitly states that the annual returns must include details of outstanding Central Loans against State or Union Territory Governments, foreign Governments, Railway or Department of Posts funds, Central Public Sector, and other Government Institutions.
What happens if there are defaults in loan repayments as per Rule 262 of the General Financial Rules, 2017?
The statement in Form GFR 13 must specifically indicate details of defaults, if any, in the repayment of principal and/or interest, along with the earliest period to which the default pertains. This information is crucial for the Ministry/Department to take appropriate action.
Key Takeaways
- Principal Accounts Officers are responsible for submitting annual statements on outstanding Central Loans.
- The statement, Form GFR 13, must detail loans as of March 31st each year.
- The deadline for submission is September 30th annually to the concerned Ministry/Department.
- The report includes aggregate balances, details of defaults (principal/interest), and the earliest default period, covering various government entities.
Conclusion
Rule 262 serves as a cornerstone for robust financial governance within the Central Government. By mandating comprehensive annual reporting on outstanding loans and defaults, it provides essential data for informed decision-making, risk assessment, and ensuring accountability across all entities receiving Central financial assistance. Adherence to this rule is vital for maintaining fiscal discipline and transparency.