Rule 63 of The General Financial Rules 2017 Expenditure on New Service

Rule 63 of The General Financial Rules 2017 Expenditure on New Service

Original Rule Text

Rule 63 Expenditure on New Service. No expenditure shall be incurred during a financial year on a “New Service” not contemplated in the Annual Budget for the year except after obtaining a supplementary grant or appropriation or an advance from the Contingency Fund during that year. The guidelines to determine cases of “New Service”/ “New Instrument of Service” are contained in Annexure-1 to Appendix -3.

Visual Summary

New Service Expenditure

Prohibited if not in Annual Budget.

Required Approvals

Supplementary Grant or Contingency Fund advance.

Guidelines Reference

Annexure-1 to Appendix-3 for definitions.

Executive Summary

Rule 63 of the General Financial Rules, 2017, mandates that no expenditure on a ‘New Service’ not originally planned in the Annual Budget can be incurred during a financial year. The only exceptions are if a supplementary grant or appropriation is obtained, or an advance is secured from the Contingency Fund. Detailed guidelines for identifying what constitutes a ‘New Service’ or ‘New Instrument of Service’ are provided in Annexure-1 to Appendix-3 of the Rules.

In-Depth Analysis of the Rule

Introduction: Rule 63 is a cornerstone of financial discipline, ensuring that government spending remains aligned with approved budgetary allocations. It prevents arbitrary or unplanned expenditure on new initiatives, thereby upholding parliamentary control over public funds.

Breakdown of the Rule: