Rule 83 of The General Financial Rules 2017 Charged or Voted Expenditure
Original Rule Text
Visual Summary
Not subject to legislative vote (Article 112(3)).
Subject to legislative vote and approval.
Must be shown distinctly in accounts & budget.
Executive Summary
Rule 83 of The General Financial Rules, 2017, distinguishes between ‘Charged Expenditure’ and ‘Voted Expenditure’ within the Consolidated Fund of India. Charged expenditure, as defined by Article 112(3) of the Constitution, is not subject to legislative vote, ensuring continuity for essential government functions. Conversely, all other expenditures from the Consolidated Fund are ‘Voted Expenditure’ and require parliamentary approval. Both types must be clearly presented separately in government accounts and budget documents to maintain transparency and accountability.
In-Depth Analysis of the Rule
Rule 83 is a foundational principle in Indian public finance, delineating how government expenditures are categorized and approved. This distinction is critical for understanding the constitutional framework of financial accountability and the roles of the executive and legislature.
Breakdown of the Rule:
- Charged Expenditure: This refers to expenses that are ‘charged’ upon the Consolidated Fund of India. As per Article 112(3) of the Constitution, these expenditures are not submitted to the vote of Parliament. They typically include items like the emoluments of the President, salaries and allowances of the Speaker and Deputy Speaker of the House of the People, debt charges, and sums required to satisfy any judgment, decree or award of any court or arbitral tribunal. The purpose is to ensure that certain essential government functions and obligations are not disrupted by parliamentary debate or voting.
- Voted Expenditure: All other expenditures met from the Consolidated Fund of India fall under this category. These are subject to the vote of the Lok Sabha (House of the People). This mechanism ensures parliamentary control over the majority of government spending, reflecting democratic accountability.
- Separate Presentation: The rule explicitly mandates that both Charged and Voted Expenditures must be shown separately in the accounts and budget documents. This ensures transparency and allows for clear oversight by both the legislature and the public regarding the nature and approval process of government spending.
Practical Example:
Imagine the annual budget presentation. The Finance Minister will present figures for both types of expenditure. For instance, the salaries of Supreme Court judges would be part of ‘Charged Expenditure’ and thus not voted upon. However, funds allocated for a new social welfare scheme would be ‘Voted Expenditure’ and require the Lok Sabha’s approval. This clear distinction helps in maintaining the constitutional balance of powers and financial discipline.
Related Provisions
Understanding Rule 83 is enhanced by examining related provisions:
- Rule 50 of The General Financial Rules, 2017 Expenditure Estimates: This rule details the preparation of expenditure estimates, distinguishing between charged and voted expenditures.
- Rule 57 of The General Financial Rules, 2017 Responsibility for Control of Expenditure: This rule outlines the responsibilities for controlling expenditure against sanctioned grants, emphasizing the distinct nature of voted and charged portions.
- Rule 61 of The General Financial Rules, 2017 Excess Expenditure: This rule addresses the procedures for handling excess expenditure and the need for specific approvals, which is pertinent to both charged and voted funds.
Learning Aids
Mnemonics:
- Charged Vote Expenditure: Constitutionally Vested, Exempt from vote.
- Voted Expenditure: Vote Essential for approval.
Process Flowchart:
Multiple Choice Questions (MCQs)
1. What is ‘Charged Expenditure’ under Rule 83 of the General Financial Rules, 2017?
- A) Expenditure requiring Lok Sabha’s vote.
- B) Expenditure not subject to legislative vote.
- C) Expenditure for capital assets only.
- D) Expenditure met from Public Account.
Show Answer
Correct Answer: B) Expenditure not subject to legislative vote.
2. According to Rule 83 of the General Financial Rules, 2017, which constitutional article defines ‘Charged Expenditure’?
- A) Article 266(1)
- B) Article 283(1)
- C) Article 112(3)
- D) Article 113(2)
Show Answer
Correct Answer: C) Article 112(3)
3. How should ‘Charged’ and ‘Voted’ expenditures be presented in accounts and budget documents as per Rule 83 of the General Financial Rules, 2017?
- A) They can be combined for simplicity.
- B) They must be shown separately.
- C) Only total expenditure needs to be shown.
- D) Only voted expenditure needs detailed presentation.
Show Answer
Correct Answer: B) They must be shown separately.
4. Which of the following is true regarding ‘Voted Expenditure’ as per Rule 83 of the General Financial Rules, 2017?
- A) It is defined by Article 112(3) of the Constitution.
- B) It is not subject to the vote of the legislature.
- C) It includes all expenditure from the Consolidated Fund of India not classified as charged.
- D) It is primarily for debt servicing.
Show Answer
Correct Answer: C) It includes all expenditure from the Consolidated Fund of India not classified as charged.
5. The primary purpose of distinguishing between ‘Charged’ and ‘Voted’ expenditure in Rule 83 of the General Financial Rules, 2017 is to:
- A) Simplify accounting procedures.
- B) Reduce the overall government expenditure.
- C) Maintain constitutional balance and ensure transparency in financial accountability.
- D) Allow the executive to spend without parliamentary oversight.
Show Answer
Correct Answer: C) Maintain constitutional balance and ensure transparency in financial accountability.
Frequently Asked Questions (FAQs)
Q1: What is the main difference between Charged and Voted Expenditure under Rule 83 of the General Financial Rules, 2017?
A1: Charged Expenditure is not subject to the vote of the legislature (Parliament), as it covers constitutional obligations like salaries of high constitutional functionaries and debt charges. Voted Expenditure, on the other hand, requires the approval of the Lok Sabha.
Q2: Why is it important to show Charged and Voted Expenditure separately in budget documents as per Rule 83 of the General Financial Rules, 2017?
A2: Separate presentation ensures transparency and accountability. It allows the legislature and the public to clearly see which expenditures are mandatory constitutional obligations and which are subject to parliamentary approval, thereby maintaining financial discipline and oversight.
Key Takeaways
- Rule 83 of The General Financial Rules, 2017, defines ‘Charged Expenditure’ (not subject to vote, as per Article 112(3) of the Constitution) and ‘Voted Expenditure’ (subject to legislative vote).
- This distinction is crucial for constitutional financial accountability and parliamentary oversight.
- Both categories of expenditure must be clearly and separately presented in all government accounts and budget documents.
- The rule ensures transparency in how public funds are allocated and approved, highlighting mandatory versus discretionary spending.
Conclusion
Rule 83 of The General Financial Rules, 2017, serves as a cornerstone of financial governance in India. By clearly demarcating charged and voted expenditures, it upholds the constitutional division of financial powers and ensures that public funds are managed with both efficiency and accountability. Adherence to this rule is vital for maintaining fiscal transparency and parliamentary control over government spending.