Rule 59 of The General Financial Rules 2017 Personal Attention to Savings and Excesses
Original Rule Text
Visual Summary
HOD/Controlling Officer must personally monitor financial status.
Estimate likelihood of savings or excesses every month.
Regularize all financial deviations according to Rule 62 instructions.
Executive Summary
Rule 59 of The General Financial Rules, 2017, places a critical responsibility on the Head of Department or Controlling Officer to maintain vigilant financial oversight. This rule mandates that these officers must be capable of estimating potential financial savings or excesses on a monthly basis. The primary objective is to ensure that any such deviations are promptly identified and regularized in strict adherence to the procedures outlined in Rule 62, thereby promoting sound and disciplined financial management within government operations.
In-Depth Analysis of the Rule
Introduction: Rule 59 is a cornerstone of proactive financial management within the General Financial Rules, 2017. It emphasizes continuous monitoring and timely action to prevent financial irregularities and ensure efficient use of public funds. This rule underscores the personal accountability of senior officers in maintaining fiscal discipline.
Breakdown of the Rule:
- Personal Responsibility: The Head of Department or Controlling Officer is personally tasked with this duty, highlighting the importance of senior-level engagement in financial oversight.
- Estimation of Deviations: Officers must actively estimate the likelihood of both savings (underspending) and excesses (overspending) in their allocated budgets. This requires a forward-looking approach to financial planning.
- Monthly Frequency: The estimation process is not an annual or quarterly exercise but must be conducted every month, ensuring continuous vigilance and early detection of potential issues.
- Regularization as per Rule 62: Any identified savings or excesses must be regularized strictly in accordance with the instructions and procedures detailed in Rule 62, which primarily deals with the surrender of savings.
Practical Example: Consider a government department with a budget for office supplies. The Controlling Officer, under Rule 59, would review monthly expenditure patterns, upcoming projects, and current stock levels to estimate if there will be a saving or an excess in the ‘office supplies’ budget head by the end of the month or financial year. If a significant saving is anticipated, the officer would then initiate steps to regularize this, potentially by surrendering the funds as per Rule 62, rather than allowing them to lapse or be spent unnecessarily at year-end. Conversely, if an excess is foreseen, measures would be taken to either re-appropriate funds or seek supplementary grants, adhering to the prescribed financial rules.
Related Provisions
Rule 59 is closely linked with other financial regulations that govern budget management and accountability. Understanding these connections provides a comprehensive view of the financial framework:
- Rule 62 of The General Financial Rules 2017 Surrender of Savings: This rule provides the specific instructions for the regularization of anticipated savings, directly referenced by Rule 59. It outlines the process for surrendering unutilized funds to the Finance Ministry.
Learning Aids
Mnemonics
- P.A.C.E.: Personal Attention, Continual Estimation. This helps remember the core aspects of the rule.
Process Flowchart
Multiple Choice Questions (MCQs)
1. Who is primarily responsible for estimating the likelihood of savings or excesses every month under Rule 59 of the General Financial Rules, 2017?
- A) The Accounts Officer
- B) The Finance Ministry
- C) The Head of Department or Controlling Officer
- D) The Audit Officer
Show Answer
Correct Answer: C) The Head of Department or Controlling Officer
2. According to Rule 59 of the General Financial Rules, 2017, how frequently should the estimation of savings or excesses be conducted?
- A) Annually
- B) Quarterly
- C) Bi-annually
- D) Every month
Show Answer
Correct Answer: D) Every month
3. Rule 59 of the General Financial Rules, 2017, states that savings or excesses must be regularized in accordance with the instructions laid down in which other rule?
- A) Rule 57
- B) Rule 60
- C) Rule 62
- D) Rule 50
Show Answer
Correct Answer: C) Rule 62
4. What is the core responsibility highlighted for a Controlling Officer in Rule 59 of the General Financial Rules, 2017?
- A) To approve all departmental expenditures
- B) To conduct external audits of financial records
- C) To estimate the likelihood of financial savings or excesses
- D) To prepare the annual budget estimates for the entire Ministry
Show Answer
Correct Answer: C) To estimate the likelihood of financial savings or excesses
5. Rule 59 of the General Financial Rules, 2017, requires a Head of Department to be in a position to do what regarding financial deviations?
- A) To delegate all financial oversight duties to subordinates
- B) To ignore minor financial discrepancies until year-end
- C) To estimate and regularize the likelihood of savings or excesses monthly
- D) To only report actual excesses, not anticipated ones
Show Answer
Correct Answer: C) To estimate and regularize the likelihood of savings or excesses monthly
Frequently Asked Questions (FAQs)
What is the primary duty of a Head of Department under Rule 59 of the General Financial Rules, 2017?
The primary duty is to personally estimate the likelihood of financial savings or excesses every month and ensure their regularization as per Rule 62.
How does Rule 59 of the General Financial Rules, 2017, relate to Rule 62?
Rule 59 mandates the monthly estimation of savings or excesses, while Rule 62 provides the specific instructions and procedures for the regularization, particularly the surrender, of these identified financial deviations.
What is the frequency of estimating savings or excesses as per Rule 59 of the General Financial Rules, 2017?
The estimation of the likelihood of savings or excesses must be conducted every month.
Key Takeaways
- Heads of Departments and Controlling Officers bear personal responsibility for financial oversight.
- Monthly estimation of potential savings or excesses is a mandatory requirement.
- All financial deviations must be regularized strictly in accordance with Rule 62.
- The rule promotes proactive and disciplined financial management within government entities.
Conclusion
Rule 59 of The General Financial Rules, 2017, is vital for maintaining fiscal prudence and accountability. By requiring senior officers to personally and regularly estimate financial deviations and regularize them as per Rule 62, it ensures that public funds are managed with utmost care, preventing both wasteful expenditure and unutilized allocations. This proactive approach is fundamental to effective governance and financial health.