Rule 6 of the General Financial Rules 2017 Modifications
Original Rule Text
Visual Summary
Finance Ministry’s Authority
The Ministry of Finance can issue new instructions or orders that apply to these rules.
Exclusive Modification Power
No other authority can change these rules without the express approval of the Ministry of Finance.
Rule Supremacy
The procedures in the GFR are binding, but subject to any updates from the Finance Ministry.
Executive Summary
Rule 6 of the General Financial Rules, 2017, establishes the supreme authority of the Ministry of Finance over these rules. It clarifies two key points: first, that the Ministry of Finance can issue new instructions or orders at any time, which all departments must follow. Second, no other government authority is allowed to modify the systems and procedures laid out in these rules unless they have received explicit, direct approval from the Ministry of Finance. This rule ensures that financial procedures remain consistent and centrally controlled across the government.
In-Depth Analysis of the Rule
Introduction
Rule 6 acts as a ‘master key’ for the General Financial Rules (GFR). It defines how the entire set of rules can be updated or changed. This is crucial for maintaining flexibility and ensuring that financial management practices can evolve over time while remaining under a single, unified authority.
Breakdown of the Rule
The rule is divided into two simple but powerful sub-clauses:
(i) Overriding Power of the Ministry of Finance: This part states that the GFR is ‘subject to’ any special instructions the Ministry of Finance might issue. In simple terms, this means that if the Ministry of Finance releases a new order or circular, that new instruction can supplement, clarify, or even override what is written in the GFR. This allows the government to respond quickly to new financial situations without having to amend the entire GFR document each time.
(ii) Requirement of Express Approval for Modifications: This sub-clause prevents other government departments or authorities from creating their own versions of financial rules. If any authority wants to change a procedure established in the GFR, they must seek and obtain ‘express approval’ from the Ministry of Finance. ‘Express approval’ means a clear, direct, and unambiguous permission, not an implied one. This centralizes control and prevents a fragmented system where different departments follow different financial procedures.
Practical Example
Imagine the Department of Science and Technology develops a new software that could simplify how they manage research grants, a process currently governed by the GFR. According to Rule 6(ii), they cannot simply start using this new system. They must first prepare a proposal, submit it to the Ministry of Finance, and get explicit approval to modify the standard procedure for their department. Conversely, if the Ministry of Finance itself decides that this new software is beneficial for all government departments, it could issue a ‘general order’ under Rule 6(i), making the new system a standard practice for everyone.
Conclusion
Rule 6 is fundamental to the integrity and consistency of government financial management. It establishes the Ministry of Finance as the sole custodian of financial procedures, empowering it to adapt the rules as needed while preventing unauthorized changes by other bodies. This ensures a uniform and disciplined financial environment across all government operations.
Related Provisions
This rule works in conjunction with other provisions that establish the authority of the Ministry of Finance. Key related rules include:
- Rule 4: Departmental Regulations of financial character – This rule reinforces the Ministry of Finance’s authority by stating that any departmental regulations with a financial bearing must be made with its approval.
- Rule 5: Removal of Doubts – This rule designates the Ministry of Finance as the final authority for interpreting any provision of the GFR, which complements its power to modify the rules under Rule 6.
Learning Aids
Mnemonics
- M.O.D.S. – Ministry Of Finance Decides System changes. This helps remember that the Ministry of Finance is the key authority for all modifications to the GFR.
Mindmap
Multiple Choice Questions (MCQs)
1. Which body has the authority to issue general or special instructions that can alter the procedures established by the General Financial Rules, 2017?
- A) The President of India
- B) The Ministry of Finance
- C) The Comptroller and Auditor General of India
- D) The Cabinet Secretariat
Show Answer
Correct Answer: B) The Ministry of Finance. Rule 6(i) explicitly states that the systems and procedures are subject to instructions issued by the Ministry of Finance.
2. If a department, other than the Ministry of Finance, wishes to modify a financial procedure established by the GFR, what must it obtain?
- A) Approval from its own Head of Department
- B) Implied consent from the Ministry of Finance
- C) A report from the Audit Officer
- D) Express approval from the Ministry of Finance
Show Answer
Correct Answer: D) Express approval from the Ministry of Finance. Rule 6(ii) specifies that modification by any other authority requires the ‘express approval’ of the Ministry of Finance.
3. What is the primary purpose of Rule 6 in the context of the entire GFR framework?
- A) To define the financial year for all government transactions.
- B) To ensure the GFR can be adapted over time while maintaining central control by the Ministry of Finance.
- C) To list the specific financial powers delegated to different departments.
- D) To provide a procedure for removing doubts about the interpretation of rules.
Show Answer
Correct Answer: B) To ensure the GFR can be adapted over time while maintaining central control by the Ministry of Finance. This question tests the overall understanding of the rule’s function. Rule 6(i) allows for adaptation, and Rule 6(ii) ensures central control, making option B the most comprehensive and accurate answer.
Frequently Asked Questions
Can my department create its own financial rule if it’s more efficient for our specific work?
No, not independently. According to Rule 6(ii), any modification to the systems and procedures established by the GFR must have the ‘express approval’ of the Ministry of Finance. You would need to formally propose your new rule and get it approved before implementation.
How are changes to the GFR communicated to different government departments?
Rule 6(i) states that the Ministry of Finance may issue ‘general or special instructions/orders’ from time to time. These are typically circulated through official government channels, such as Office Memorandums (OMs) or circulars, which all departments are expected to follow.
What happens if an order from the Ministry of Finance contradicts a rule in the GFR?
The order from the Ministry of Finance would prevail. Rule 6(i) establishes that the GFR is ‘subject to’ these instructions, meaning the instructions have the power to modify or override the existing rules.
Key Takeaways
- The Ministry of Finance has the ultimate authority to change or update the General Financial Rules.
- No other government department can alter financial procedures on its own; it must get prior permission from the Ministry of Finance.
- The GFR is a dynamic document, subject to updates through official orders from the Finance Ministry.
- This rule ensures that financial management across the entire government remains uniform and consistent.