General Financial Rules, 2017
F.No.14(3)/2015-EII(A)
Government of India
Ministry of Finance
Department of expenditure
North Block, New Delhi
Dated 8th March, 2017
OFFICE MEMORANDUM
Subject:- General Financial Rules,2017-reg.
The undersigned is directed to inform that the General Financial Rules, 2017 (GFRs 2017) have been formulated which take effect with immediate effect. The GFRs, 2017 have been placed on this Ministry’s website www.finmin.nic.in.
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2. The provisions of GFRs, 2017 are deemed to be applicable to Autonomous Bodies except to the extent to the bye laws of an Autonomous Body provides separate Financial Rules which have been approved by the Government.
3. Hindi version will follow.
(S. Naganathan)
Under Secretary to the Government of India
P R E F A C E
1.General Financial Rules (GFRs) are a compilation of rules and orders of Government of India to be followed by all while dealing with matters involving public finances. These rules and orders are treated as executive instructions to be observed by all Departments and Organisations under the Government and specified Bodies except otherwise provided for in these Rules.
2.General Financial Rules were issued for the first time in 1947 bringing together in one place all existing orders and instructions pertaining to financial matters. These have subsequently been modified and issued as GFRs 1963 and GFRs 2005.
3.In the last few years, Government has made many innovative changes in the way it conducts its business. Reforms in Government budgeting like removal of distinction in non-plan and plan expenditure, merger of Railway Budget with General Budget, focusing on outcomes through an improved Outcome Budget document, all needed to be reflected in the GFRs. Increased focus on Public Finance Management System(PFMS), reliance on the Direct Benefit Transfer (DBT) Scheme to ensure efficient delivery of entitlements, introduction of new e-sites like Central Public Procurement Portal, Government e-Marketing (GeM) Portal, Non-Tax Revenue Portal have also necessitated revision of the existing GFRs to keep them in tune with the changing business environment. The objective was to make the GFRs facilitate efficiency rather than create impediments in smooth and timely implementation while following principles of accountability and procedures of financial discipline and administrative due diligence. The Expenditure Management Commission set up in 2014 to recommend ways in which efficiency of public expenditure could be increased has also made several recommendations especially with respect to Autonomous Bodies. New rules on non-tax revenues, user charges, e-receipts portal have been added in addition to the manner in which Autonomous Bodies are run.
4.The PAC in April 2015, Group of Secretaries in February 2016 and EMC in March 2016 has recommended setting up a Task Force to review the GFRs so as to frame comprehensive rules to address the issues as highlighted in the above para.
5.GFRs, 2017 have evolved as a result of wide consultations with Central Government Ministries and Departments, some State Governments and other stakeholders at the Task Force stage and thereafter. The Discussion Draft was also uploaded on the MoF’s website. Secretaries of each Department/ Ministry of Government of India were asked to give their views for additions/ modifications, keeping in view their specific requirements of their domain. Detailed deliberations were also carried out within the Ministry. C&AG’s comments on the draft GFRs have also been taken into consideration.
6.The aim of any rule is to provide a framework within which an organization manages its business in a financially prudent manner without compromising its flexibility to deal with varied situations. The GFRs 2005 have been very comprehensively reviewed with the aim of promoting simplicity and transparency in the Government financial system and procedures. It is expected that the new GFRs 2017 will enable an improved, efficient and effective framework of fiscal management while providing the necessary flexibility to facilitate timely delivery of services.
7.Department of Expenditure would like to place on record the exceptional work done by the Task Force on Review of GFRs, the office of the C&AG, the office of the CGA, Budget Division of Department of Economic Affairs, the Ministries and Departments for their valuable inputs and its own officers for assiduously and meticulously completing this vital and challenging exercise in a time bound manner.
(ASHOK LAVASA)
Finance Secretary &
Secretary(Expenditure)
Department of Expenditure
Ministry of Finance
North Block, New Delhi
Dated: 11th February, 2017
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| CONTENTS | GENERAL FINANCIAL RULES 2017
Ministry of Finance
Department of Expenditure |
TABLE OF CONTENTS
| Chapter No. | Name of the Chapter |
| 1 | Introduction |
| 2 | General System of Financial Management |
| I. | General Principles relating to expenditure and payment of money |
| II. | Defalcation and losses |
| III. | Submission of records & information |
| 3 | Budget formulation and implementation. |
| 4 | Government Accounts |
| 5 | Works |
| 6 | Procurement of Goods and Services |
| I. | Procurement of Goods |
| II. | Procurement of Services |
| 7 | Inventory Management |
| 8 | Contract Management |
| 9 | Grants-in-aid and Loans |
| 10 | Budgeting and Accounting for Externally Aided Projects |
| 11 | Government Guarantees |
| 12 | Miscellaneous Subjects |
| I. | Establishment |
| II. | Refund of revenue |
| III. | Debt and misc. obligations of Govt. |
| IV. | Security deposits |
| V. | Transfer of land and buildings |
| VI. | Charitable endowments and other trusts |
| VII. | Local bodies |
| VIII. | Maintenance of records |
| IX. | Contingent and Miscellaneous Expenditure. |
APPENDIX
| Appendix No. | Subject |
| 1 | Instructions for regulating the Enforcement of Responsibility for losses, etc., |
| 2 | Procedure for the preparation of Detailed Estimates of Receipts |
| 3 | Instructions for the preparation of Detailed Estimates of expenditure from the Consolidated Fund |
| 4 | Procedure for compilation of Detailed Demands for Grants |
| 5 | Procedure to be followed in connection with the Demands for Supplementary Grants |
| 6 | The Contingency Fund of India Rules |
| 7 | Transfer of Land and Buildings between the Union and State Governments |
| 8 | Charitable Endowments and other Trusts |
| 9 | Destruction of Office Records connected with Accounts. |
| 10 | Check against provision of funds |
| 11 | Formula for Price Variation Clause |
| 12 | Rates of Guarantee Fee |
FORMS | Form Serial No. | Description |
| GFR 1 | Application for an Additional Appropriation |
| GFR 2 | Revenue Receipts |
| GFR 2 - A | Estimates of foreign grants |
| GFR 2 - B | Estimates of interest receipts and loan repayments |
| GFR 3 | Liability Register |
| GFR 3 - A | Liability Statement |
| GFR 4 | Statement of proposals for pre-budget discussions |
| GFR 5 | Register showing expenses by Heads of Account |
| GFR 6 | Broadsheet for watching receipt of account from Disbursing Officers 159 |
| GFR 7 | Compilation Sheet |
| GFR 8 | Consolidated Accounts |
| GFR 9 | Broadsheet for watching Receipt of the Returns from the Heads of Departments under a Department of the Central Government |
| GFR 10 | Report of Surplus, Obsolete and Unserviceable Stores for Disposal |
| GFR 11 | Sale Account |
| GFR 12 - A | Form of Utilization Certificate (Autonomous Bodies) |
| GFR 12 - B | Form of Utilization Certificate (For Loans) |
| GFR 12 - C | Form of Utilization Certificate (State Governments)) |
| GFR 13 | Statement of aggregate balance of loan(s) outstanding as on 31st March and details of defaults |
| GFR 14 | Form of Security Bond (Fidelity Bond Deposited as Security) |
| GFR 15 | Form of Written Undertaking to be executed by an Undertaking/ Corporation wholly owned by the Central Government at the time of sanctioning of a loan. |
| GFR 16 | Certificate of transfer of charge |
| GFR 16 - A | Joining Report |
| GFR 17 | Fidelity Guarantee Policy |
| GFR 18 | Accession Register |
| GFR 19 | Notice to borrower about the due date for repayment of loan and interest thereon |
| GFR 20 | Register of Policy Holder |
| GFR 21 | Register of Grants to be maintained by the sanctioning Authority. |
| GFR 22 | Register of Fixed Assets |
| GFR 23 | Stock Register of consumables such as Stationery, Chemicals, Spare parts etc. |
| GFR 24 | Register of Assets of Historical /Artistic value. |
| GFR 25 | Government Guarantees. |
| GFR 26 | Furnishing of data regarding Guarantees to Ministry of Finance. |
| CONCORDANCE TABLE |
Source: http://finmin.nic.in/the_ministry/dept_expenditure/GFRS/OM_GFR2017.pdf
