Rule 29 of the General Financial Rules 2017 Procedure for communication of sanctions
Original Rule Text
(i) All financial sanctions issued by a Department of the Central Government which relate to a matter concerning the Department proper and on the basis of which payment is to be made or authorized by the Accounts Officer, should be addressed to him.
(ii) All other sanctions should be accorded in the form of an Order, which need not be addressed to any authority, but a copy thereof should be endorsed to the Accounts Officer concerned.
(iii) In the case of non-recurring expenditure, the sanctioning authority may, where required, accord sanction by signing or countersigning the bill or voucher, whether before or after the money is drawn, instead of by a separate sanction.
(iv) All financial sanctions and orders issued by a Department of the Central Government with the concurrence of the Internal Finance Wing or Finance Ministry, as applicable, should be communicated to the Accounts Officer in accordance with the procedure laid down in the Delegation of Financial Powers Rules, and orders issued thereunder from time to time.
(v) All financial sanctions and orders issued by a department with the concurrence of the Ministry of Home Affairs or Comptroller and Auditor General of India or Department of Personnel should specify that the sanction or orders are issued with the concurrence of that Department along with the number and date of relevant communication of that Department wherein the concurrence was conveyed.
(vi) All orders conveying sanctions to expenditure of a definite amount or upto a specific limit should express both in words and figures the amount of expenditure sanctioned.
(vii) Sanctions accorded by a Head of Department may be communicated to the Accounts Officer by an authorized Gazetted Officer of his Office duly signed by him for the Head of Department or conveyed in the name of the Head of the Department.
(viii) All orders conveying sanctions to the grant of additions to pay such as Special Allowance, Personal Pay, etc., should contain a brief summary of the reasons for the grant of such additions to pay so as to enable the Accounts Officer to see that it is correctly termed as Special Allowance, Personal Pay, etc., as the case may be.
(ix) Orders issued by a Department of a Union Territory Government where Audit and Accounts (a) have not been separated shall be communicated direct to the Audit authority; (b) have been separated, copies shall be endorsed to the Audit authorities. In case of sanctions in respect of matters, where reference was made to the Central Government under the Rules of Busines framed under Section 46 of the Government of Union Territory Act, 1963, the following clause shall be added in the sanction endorsed to Audit: –
“A reference had been made in this case to the Central Government and the above order/letter conforms to the decision of the Central Government vide Government of India, Ministry/Department of Letter No…………dated… ”.
(x) Copies of all General Financial Orders issued by a Department of the Central Government with the concurrence of the Comptroller and Auditor General of India shall be supplied to the Comptroller and Auditor General of India.
(xi) Copies of all sanctions or orders other than the following types should be endorsed to the Audit Officers: –
(a) Sanctions relating to grant to advances to Central Government employees.
(b) Sanctions relating to appointment or promotion or transfer of Gazetted and non- Gazetted Officers.
(c) All sanctions relating to creation or continuation or abolition of posts.
(d) Sanctions for handing over charge and taking over charge, etc.
(e) Sanctions relating to payment or withdrawal of General Provident Fund advances to Government servants.
(f) Sanctions of contingent expenditure incurred under the powers of Head of Offices.
(g) Other sanctions of routine nature issued by Heads of Subordinate Officers (other than those issued by Ministries or Departments proper and under powers of a Head of Department).
(xii) Sanctions accorded by competent authority to grants of land and alienation of land revenue, other than those in which assignments of land revenue are treated as cash payment, shall be communicated to the Audit and/ or the Accounts Officer, as the case may be, in a consolidated monthly return giving the necessary details.
Visual Summary
All financial approvals must be sent to the Audit Officer and the Accounts Officer.
Sanctioned amounts must be written in both words and figures to avoid errors.
If other departments (like Finance) approved it, their reference number and date must be included.
For one-time expenses, simply signing the bill can act as the official sanction.
Executive Summary
Rule 29 establishes the official procedure for communicating any financial approval, known as a ‘sanction’, to the key financial gatekeepers: the Audit Officer and the Accounts Officer. It outlines exactly how these sanctions must be formatted and sent, ensuring clarity, preventing errors, and creating a proper paper trail for all government spending. The rule specifies different methods for different situations, such as directly addressing the officer, endorsing a copy, or even just signing a bill for small, one-time expenses.
In-Depth Analysis of the Rule
Introduction
For any government expenditure to be legitimate, it must first be approved by a competent authority. However, the approval itself is not enough. Rule 29 of the General Financial Rules, 2017, details the critical next step: the formal communication of that approval. This rule acts as a bridge between the decision to spend money and the actual payment and audit of that spending. It ensures that every financial commitment is properly documented, transparent, and communicated to the authorities responsible for payment (Accounts Officer) and verification (Audit Officer).
Breakdown of Key Provisions
The rule provides a comprehensive checklist for communicating sanctions:
- (i) & (ii) Methods of Communication: If a sanction is for a department’s own matter and the Accounts Officer will make the payment, the sanction should be addressed directly to them. For all other cases, a general order is issued, and a copy is simply ‘endorsed’ (sent as a copy) to the Accounts Officer.
- (iii) Shortcut for One-Time Expenses: For non-recurring (one-off) expenditure, the process is simplified. Instead of a separate formal sanction letter, the authority can just sign or countersign the bill or voucher. This is a practical measure to reduce paperwork for simple purchases.
- (iv) & (v) Showing Concurrence: If a sanction required the approval of another powerful body like the Finance Ministry, Home Ministry, or the Comptroller and Auditor General (CAG), the communication must explicitly state this. Crucially, it must also include the official communication number and date where that approval was given. This provides an auditable trail of all necessary clearances.
- (vi) Words and Figures: To prevent fraud or clerical errors, any sanction for a specific amount must state that amount in both words and figures (e.g., ‘Rupees Ten Thousand only (Rs. 10,000/-)’).
- (viii) Justifying Extra Pay: If a sanction grants an employee extra pay (like a Special Allowance), it must include a brief reason. This helps the Accounts Officer verify that the allowance is correctly classified and justified.
- (xi) Exceptions to the Rule: Not every single order needs to be sent to Audit. The rule lists routine matters like employee advances, promotions, transfers, and minor office expenses that are exempt from this specific communication requirement, as they are handled through other standard procedures.
Practical Example
Imagine the Department of Education wants to purchase 50 new laptops for a training center, costing Rs. 25 lakhs. The competent authority approves the purchase after getting concurrence from their Internal Finance Wing.
- An order is drafted. Since this is not a matter concerning the department proper (it’s for a training center), it is issued as a general order.
- A copy is endorsed to the Accounts Officer as per Rule 29(ii).
- The order states the sanctioned amount as ‘Rupees Twenty-Five Lakhs only (Rs. 25,00,000/-)’ as per Rule 29(vi).
- The order includes a line: ‘This sanction is issued with the concurrence of the Internal Finance Wing vide their U.O. No. 123/Fin/2023 dated 15-10-2023’ as per Rule 29(iv).
With this properly communicated sanction, the Accounts Officer has the official basis to process the payment to the laptop vendor, and the Audit Officer has the necessary document to verify the expenditure later.
Conclusion
Rule 29 is a cornerstone of financial discipline in government. It ensures that no payment is made without a properly communicated and documented authorization. By standardizing the communication process, it enhances transparency, facilitates smooth payments, and provides a clear and unambiguous record for audit, thereby safeguarding public funds.
Related Provisions
Understanding Rule 29 is enhanced by looking at related rules that govern the lifecycle of a sanction:
- Rule 25: Provision of funds for sanction – This rule mandates that any sanction for expenditure must indicate where the funds will come from, ensuring that approvals are backed by actual budget provisions.
- Rule 27: Date of effect of sanction – This rule clarifies when a sanction becomes effective, which is typically the date it is issued unless specified otherwise.
- Rule 30: Lapse of Sanctions – This rule explains what happens if a communicated sanction is not acted upon within a certain timeframe (usually 12 months), causing it to expire or ‘lapse’.
Learning Aids
Mnemonics
- C.O.P.I.E.S. – Remember the key elements of communicating a sanction: Communicate to Officers (Audit/Accounts), use proper Procedure, Include concurrences, state amounts with Exactness (words & figures), and list Specific reasons for extra pay.
Mindmap
Multiple Choice Questions (MCQs)
1. (Easy) According to Rule 29, which two officers must all financial sanctions be communicated to?
- A) The Head of Department and the concerned Minister.
- B) The Audit Officer and the Accounts Officer.
- C) The Drawing and Disbursing Officer and the Cashier.
- D) The Secretary of the Department and the Financial Advisor.
Show Answer
Correct Answer: B) The Audit Officer and the Accounts Officer. The rule explicitly states that all financial sanctions must be communicated to these two officers.
2. (Medium) For which type of expenditure does Rule 29(iii) allow a sanctioning authority to simply sign the bill instead of issuing a separate formal order?
- A) Any expenditure over Rupees one lakh.
- B) Recurring expenditure like monthly salaries.
- C) Non-recurring expenditure.
- D) Expenditure that requires the Finance Ministry’s concurrence.
Show Answer
Correct Answer: C) Non-recurring expenditure. Rule 29(iii) provides this simplified procedure specifically for non-recurring (one-time) expenses to reduce administrative overhead.
3. (Hard) A department issues a sanction with the concurrence of the Ministry of Home Affairs. As per Rule 29(v), what specific detail must be included in the communication to the Accounts Officer?
- A) A statement that the Ministry of Home Affairs has concurred.
- B) The name and designation of the officer in the Home Ministry who gave the concurrence.
- C) A brief summary of the reasons why the Home Ministry’s concurrence was necessary.
- D) The number and date of the communication from the Home Ministry in which the concurrence was conveyed.
Show Answer
Correct Answer: D) The number and date of the communication from the Home Ministry in which the concurrence was conveyed. This is a critical detail for the audit trail, ensuring that the concurrence can be verified and is not just a general statement.
Frequently Asked Questions
Why is it mandatory to write the sanctioned amount in both words and figures?
This is a standard financial control measure to prevent both accidental errors and intentional fraud. If the numbers are altered, the words provide a clear, unaltered reference, making it much harder to manipulate the sanctioned amount.
What is the difference between addressing a sanction to the Accounts Officer and endorsing a copy to them?
Addressing a sanction directly to the Accounts Officer (as per Rule 29(i)) is a formal instruction for them to act, typically used for matters concerning the department itself where payment is to be made by that officer. Endorsing a copy (as per Rule 29(ii)) is more for information and record-keeping, used for all other sanctions where the order is more general in nature.
Do all sanctions, no matter how small or routine, need to be sent to the Audit Officer?
No. Rule 29(xi) lists several exceptions for routine matters. For example, sanctions for employee advances (like GPF), promotions, transfers, or minor office expenses incurred by a Head of Office do not need to be endorsed to the Audit Officer, as these are typically handled and audited through other established procedures like payroll and contingent registers.
Key Takeaways
- Every financial approval must be formally communicated to the Audit and Accounts Officers to be valid for payment and audit.
- For clarity and security, sanctioned amounts must always be written in both words and numbers.
- If another department’s approval was required for the sanction, proof of this (like a reference number and date) must be included in the communication.
- For simple, one-time expenses, the process is streamlined: an authority can just sign the bill directly instead of issuing a separate order.