Rule 28 of the General Financial Rules 2017 Powers in regard to certain special matters

Rule 28 of the General Financial Rules 2017 Powers in regard to certain special matters

Visual Summary

Executive Summary

Rule 28 establishes a crucial financial safeguard. It states that a subordinate authority (any government body below the highest level) cannot issue an order that gives away government land, natural resources (like minerals or forests), or revenue without first getting permission from the Finance Ministry. This ensures that decisions with significant financial implications for the government are carefully reviewed. The only exception is if the President has already specifically delegated these powers to that authority.

In-Depth Analysis of the Rule

Introduction
Rule 28 of the General Financial Rules, 2017, acts as a high-level control mechanism to protect public assets and revenue. It places a specific restriction on the powers of subordinate authorities, ensuring that certain financially sensitive decisions are not taken without the oversight of the Finance Ministry. This rule is fundamental to maintaining fiscal discipline and preventing the unauthorized disposal of national resources.

Breakdown of the Rule
The rule can be broken down into three main parts:

1. The General Prohibition: A ‘subordinate authority’ is any authority under the President. Such an authority is prohibited from issuing certain orders without the ‘previous consent of the Finance Ministry’. This means permission must be sought and granted *before* the order is issued.
2. Types of Orders Covered: The rule specifies two categories of orders that require this prior consent:
   • Grants of Resources: This is a broad category covering the grant of land, assignment of revenue, and any concession, lease, or license for mineral rights, forest rights, water, or power. It also includes any related ‘easement or privilege’, which means any right or advantage associated with these concessions.
   • Relinquishment of Revenue: This refers to any action that involves giving up money that is rightfully owed to the government. This could be through waivers, remissions, or setting fees far below market value.
3. The Exception: The entire rule is subject to one major exception: if the power to issue such orders has already been delegated by, or with the approval of, the President. If a subordinate authority has been explicitly empowered by the President to grant land or relinquish revenue through other rules (like the Delegation of Financial Powers Rules), then they do not need to seek separate consent from the Finance Ministry for each case.

Practical Example
Imagine a State’s Public Works Department (a subordinate authority) wants to grant a private company a long-term lease on a piece of government land to build a factory. The lease agreement proposes a rent that is significantly lower than the market rate. This action involves both a ‘grant of land’ (the lease) and a ‘relinquishment of revenue’ (the below-market rent). According to Rule 28, the head of the PWD cannot simply sign off on this. They must prepare a proposal and send it to the Finance Ministry for its ‘previous consent’. Only after the Finance Ministry approves the terms can the lease be granted. If, however, there was a specific rule, approved by the President, allowing the PWD to lease land for industrial development under certain conditions, this might fall under the exception.

Conclusion
Rule 28 is a vital check and balance in the system of financial management. It ensures that decisions affecting valuable public resources and government income are not made in isolation at lower levels. By centralizing the approval for such matters with the Finance Ministry, it promotes consistency, accountability, and the protection of the public interest, while still allowing for flexibility through presidential delegations.

Related Provisions

Understanding Rule 28 is enhanced by looking at related provisions that deal with financial powers and revenue management. Here are a few key connections:

• Rule 23: Delegation of Financial Powers – This rule outlines how financial powers are delegated to subordinate authorities. Rule 28 acts as a specific limitation on these delegated powers, carving out certain matters that require higher approval regardless of general delegations.
• Rule 18: Remission of Revenue – This rule states that revenue claims cannot be remitted without the sanction of a competent authority. Rule 28 clarifies that if this remission constitutes a ‘relinquishment of revenue’, it may require the Finance Ministry’s consent, linking the two rules.
• Rule 25: Provision of funds for sanction – This rule deals with the general requirement that any sanction for expenditure must have a provision of funds. Rule 28 adds a preliminary step for certain types of sanctions, requiring Finance Ministry consent even before the funding aspect is finalized.

Learning Aids

Mnemonics

• F.L.O.W.E.R.: Remember the types of orders requiring approval – Finance Ministry consent for Land, Other concessions, Water, Easements, and Revenue relinquishment.
• Simple Rhyme: ‘To give away land or cash, you must first ask.’ This helps recall that giving away assets (land) or revenue (cash) requires prior permission.

Mindmap

Multiple Choice Questions (MCQs)

Frequently Asked Questions

Key Takeaways

• Government officials at lower levels cannot give away public land or resources without getting prior approval from the Finance Ministry.
• Any decision that results in the government losing revenue also needs the Finance Ministry’s prior consent.
• This rule is a safeguard to ensure major financial decisions are properly vetted at a high level.
• An exception exists if the President has already specifically granted these powers to an authority through other rules.