Rule 58 of The General Financial Rules 2017 Maintenance of Liability Register for Expenditure Control
Original Rule Text
Visual Summary
Controlling Officer’s duty to track expenditure.
From spending authorities monthly from October.
Proper oversight of public funds.
Executive Summary
Rule 58 of The General Financial Rules, 2017, mandates that a Controlling Officer is responsible for maintaining proper control over expenditure. To achieve this, the officer must obtain monthly liability statements (Form GFR 3-A) from spending authorities, commencing from October of each financial year. Concurrently, the Controlling Officer is required to maintain a comprehensive Liability Register (Form GFR 3) to systematically track and manage all financial liabilities and ensure adherence to budgetary allocations.
In-Depth Analysis of the Rule
Introduction: Rule 58 serves as a foundational pillar for effective financial management within government departments, emphasizing proactive control over expenditure rather than reactive measures. It outlines a clear procedural framework to monitor financial commitments and prevent overspending.
Breakdown of the Rule:
- Controlling Officer’s Responsibility: The rule places the onus squarely on the Controlling Officer to ensure proper control over all expenditures. This involves a vigilant approach to financial commitments.
- Obtaining Liability Statements (Form GFR 3-A): Spending authorities are required to submit monthly liability statements to the Controlling Officer. Crucially, this process begins in October of each financial year, allowing for early tracking of commitments as the year progresses.
- Maintaining a Liability Register (Form GFR 3): The Controlling Officer must maintain a dedicated Liability Register. This register acts as a central record for all liabilities, enabling a consolidated view of financial commitments.
- Purpose of Control: The overarching goal is to prevent unauthorized or excessive expenditure by providing a real-time mechanism for tracking financial obligations against budgetary provisions.
Practical Example: Imagine a government department undertaking several projects. The Controlling Officer for this department would, starting from October, collect monthly liability statements (GFR 3-A) from each project manager. These statements would detail all financial commitments made or anticipated. The Controlling Officer would then consolidate this information into the department’s central Liability Register (GFR 3). By regularly reviewing this register, the officer can identify potential overruns, reallocate funds if necessary, or seek additional appropriations well in advance, thereby maintaining strict control over the department’s budget and preventing financial irregularities.
Related Provisions
Understanding Rule 58 is enhanced by examining related provisions within the General Financial Rules, 2017:
- Rule 57 of The General Financial Rules 2017 Responsibility for Control of Expenditure: This rule outlines the broader responsibilities of Central Government Departments for controlling expenditure against sanctioned grants and appropriations, providing context for Rule 58’s specific mechanism.
- Rule 59 of The General Financial Rules 2017 Personal Attention for Estimating Savings or Excesses: This rule complements Rule 58 by emphasizing the need for Heads of Departments and Controlling Officers to personally estimate potential savings or excesses monthly, directly benefiting from the data gathered through liability registers.
Learning Aids
Mnemonics
- CORETS: Controlling Officer’s Register Ensures Timely Statements.
Process Flowchart
Multiple Choice Questions
1. What is the primary purpose of Rule 58 of the General Financial Rules, 2017?
- A) To define capital expenditure.
- B) To regulate inter-departmental adjustments.
- C) To ensure proper control over expenditure.
- D) To establish banking arrangements.
Show Answer
Correct Answer: C) To ensure proper control over expenditure.
2. According to Rule 58 of the General Financial Rules, 2017, who is responsible for maintaining the Liability Register?
- A) The Accounts Officer
- B) The Spending Authority
- C) The Controlling Officer
- D) The Ministry of Finance
Show Answer
Correct Answer: C) The Controlling Officer
3. From which month in each financial year does a Controlling Officer begin obtaining liability statements as per Rule 58 of the General Financial Rules, 2017?
- A) April
- B) July
- C) October
- D) January
Show Answer
Correct Answer: C) October
4. Which form is used for the Liability Register as per Rule 58 of the General Financial Rules, 2017?
- A) Form GFR 3-A
- B) Form GFR 3
- C) Form GFR 5
- D) Form GFR 8
Show Answer
Correct Answer: B) Form GFR 3
5. Which form is used for liability statements obtained from spending authorities as per Rule 58 of the General Financial Rules, 2017?
- A) Form GFR 3
- B) Form GFR 3-A
- C) Form GFR 6
- D) Form GFR 9
Show Answer
Correct Answer: B) Form GFR 3-A
Frequently Asked Questions
Why is a Liability Register important under Rule 58 of the General Financial Rules, 2017?
The Liability Register is crucial for maintaining proper control over expenditure by providing a consolidated record of all financial commitments. It helps Controlling Officers track liabilities against budgetary allocations, identify potential overruns, and ensure financial discipline.
What are the key responsibilities of a Controlling Officer under Rule 58 of the General Financial Rules, 2017?
Under Rule 58, a Controlling Officer is responsible for obtaining monthly liability statements (Form GFR 3-A) from spending authorities, starting from October each financial year, and maintaining a Liability Register (Form GFR 3) to ensure proper control and oversight of expenditure.
Key Takeaways
- Rule 58 mandates Controlling Officers to maintain a Liability Register (Form GFR 3).
- Monthly liability statements (Form GFR 3-A) must be obtained from spending authorities.
- This process for obtaining statements begins in October of each financial year.
- The primary objective is to ensure effective and proper control over government expenditure.
Conclusion
Rule 58 of The General Financial Rules, 2017, is a vital instrument for fostering financial accountability and prudence within government operations. By institutionalizing the maintenance of a Liability Register and the regular submission of liability statements, it empowers Controlling Officers to proactively manage financial commitments, prevent budgetary excesses, and uphold the highest standards of financial propriety in public spending.