Compilation of amendments in GFR 2017 upto 31.01.2023

Ch.-1 – INTRODUCTION

Rule 1 Short Title and Commencement: These rules may be called General Financial Rules, 2017 and they shall come into force at once and shall be applicable to all Central Government Ministries/Departments, attached and subordinate bodies. The provisions contained in GFRs are deemed to be applicable to Autonomous Bodies except to the extent the bye-laws of an Autonomous Body provides for separate Financial Rules which have been approved by the Government.

DoE: Amendments in General Financial Rules (GFR) 2017

Rule 2 Definition: In these rules, unless the context otherwise requires-

(i) “Accounts Officer” means the Head of an Office of Accounts or the Head of a Pay and Accounts Office set up under the scheme of departmentalization of accounts;

(ii) “Administrator” means Administrator of a Union Territory, by whatever name designated;

(iii) “Appropriation” means the assignment, to meet specified expenditure, of funds included in a primary unit of appropriation;

(iv) “Audit Officer” means the Head of an Office of Audit;

(v) “Competent Authority” means, in respect of the power to be exercised under any of these Rules, the President or such other authority to which the power is delegated by or under these Rules, Delegation of Financial Power Rules or any other general or special orders issued by the Government of India;

(vi) “Comptroller and Auditor General” means the Comptroller and Auditor General of India;

(vii) “Consolidated Fund” means the Consolidated Fund of India referred to in Article 266 (1) of the Constitution;

(vill) “Constitution” means the Constitution of India;

(ix) “Contingency Fund” means the Contingency Fund of India established under the Contingency Fund of India Act, 1950, in terms of Article 267 (1) of the Constitution;

(x) “Controlling Officer’ means an officer entrusted by a Department of the Central Government with the responsibility of controlling the incurring of expenditure and/or the collection of revenue. The term shall include a Head of Department and also an Administrator;

(xi) “Department of the Government of India” means any of the Ministries, Departments, Secretariats and Offices as notified from time to time and listed in the First Schedule to the Government of India (Allocation of Business Rules);

(xii) “Drawing and Disbursing Officer” means a Head of Office and also any other Gazetted Officer so designated by a Department of the Central Government, a Head of Department or an Administrator, to draw bills and make payments on behalf of the Central Government. The term shall also include a Head of Department or an Administrator where he himself discharges such function;

(xiii) “Ministry of Finance” means the Ministry of Finance of the Central Government;

(xiv) “Financial Year” means the year beginning on the ist of April and ending on the 3ist of March following;

(xv) “Government” means the Central Government;

(xvi) “Government Account” means the account relating to the Consolidated Fund, the Contingency Fund and the Public Account; as defined in these rules;

(xvii) “Head of the Department” means an authority or person (not below the rank of a Deputy Secretary to the Government of India), declared by the concerned Department in the Government of India as a Head of Department in relation to an identifiable establishment or establishments to exercise the delegated financial powers under these Rules;

(xvill) “Head of Office’ means (a) a Gazetted Officer declared as such in the Delegation of Financial Powers Rules and (b) any other authority declared as such under any general or special orders of the competent authority;

(xix) “Local Body” means an authority legally entitled or specially empowered by Government to administer a local fund;

(xx) “Local Fund” means a local fund as defined in Rule 652 of the Treasury Rules;

(xxi) “Non-recurring expenditure” means expenditure other than recurring expenditure;

(xxii) “President” means the President of India;

(xxiii) “Primary unit of appropriation” means a primary unit of appropriation referred to in Rule 8 of the Delegation of Financial Powers Rules;

(xxiv) “Public Account” means the Public Account of India referred to in Article 266 (2) of the Constitution;

(xxv) “Public Works” means civil/ electrical works including public buildings, public services, transport infrastructure etc., both original and repair works and any other project, including infrastructure which is for the use of general public;

(xxvi) “Re-appropriation” means the transfer of funds from one primary unit of appropriation to another such unit;

(xxvii) “Recurring expenditure” means the expenditure which is incurred at periodical intervals for the same purpose. Expenditures other than recurring expenditure are nonrecurring expenditure;

(xxviii) “Reserve Bank” means the Reserve Bank of India or any office or agency of the Reserve Bank of India and includes any Bank acting as the agent of the Reserve Bank of India in accordance with the provisions of the Reserve Bank of India Act, 1934 (Act II of 1934);

(xxix) “Subordinate authority” means a Department of the Central Government or any authority subordinate to the President;

(xxx) “Treasury Rules” means the Treasury Rules of the Central Government;

(xxxi) CAPEX model: In the CAPEX Model, Capital expenditures is used by the buyer to straightway purchase goods followed by procurement of consumables, arranging comprehensive maintenance contract after warranty period and finally disposing the product after useful life;

(xxxii) OPEX model: In the OPEX model, the Seller provides the goods, maintains it and also provides the consumables as required and finally takes back the goods after useful / contracted life. The expenditure is made by the Buyer in a staggered manner as per the terms and conditions of the contract.

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Review of Existing Government Guarantees as per GFRs: FinMin OM dated 23.04.2021

F. No. 12(4)-B(SD)/2021
Government of India
Ministry of Finance
Department of Economic Affairs
Budget Division

Room No. 221-A, North Block,
New Delhi, the 23th April 2021

OFFICE MEMORANDUM

Subject: Review of Existing Government Guarantees as per GFRs – reg.

Rule 281 of GFRs provides that Financial Advisers should review Govt. guarantee issued by the Ministries/Deptts. annually and furnish review report to this Department by 30″ April every year. They are also required to furnish data on guarantees in GFR 25 format by 10″ April every year. The review which needs to be undertaken by the respective Financial Advisers should address the following aspects:

1. The review should cover the period from 01.04.2020 to 31.03.2021. For the purpose of examining correctness of guarantee fee payment, outstanding payment of principal and interest as on 31.03.2020 should be reckoned to apply the admissible rate of guarantee fee. The amount of guarantee fee so calculated should be paid on 01.04.2020 in advance for the period of review i.e. 01.04.2020 to 31.03.2021.
2. Review should be conducted at the level of Financial Adviser of the respective Min./Deptt.
3. Review should be conducted for all guarantees given by the Min./Deptt. and a consolidated report should be furnished to Budget Division (Ministry of Finance).
4. Report should say whether the borrower is discharging repayment and interest obligations as per terms of loan. If not, corrective measures taken/being taken by the Min./Deptt. are to be indicated in the review report.
5. Whether all covenants and conditions of loan and guarantee are being followed by the borrower.
6. Whether the borrower has paid correct amount of guarantee fee to the Govt. (to be assessed with reference to the approval of guarantee fee rate given by the Govt.).
7. Whether the guarantee fee has been paid on time. Guarantee fee is to be paid initially before giving guarantee and thereafter on 1st April every year in advance. Delayed payment attracts penal guarantee fee i.e. double the normal guarantee fee for the period of delay/default.
8. Whether the Min./Deptt. is maintaining the register and records of guarantees.

2. Annual Review reports submitted by Ministries/Deptts. should address the above aspects and must include information as per Form GFR 25 (copy enclosed) indicating outstanding guarantees as on 31.03.2021. It must be ensured that all the columns of Form GFR 25 needs to be religiously filled against each individual guarantee taken by the Ministry/Deptt. Ministries/Deptts.

3. Ministries/Departments are also requested to ensure that information provided by them as per GFR 25 (indicating outstanding guarantees as on 31.03.2021) should tally with the information which would be provided to Office of Controller General of Accounts in relation to Statement No. 4 for preparation of Union Finance Accounts. Further, in case revised statement will be furnished to Office of CGA, copy of the same may be marked to Budget Division.

4. Ministries/Deptts. are, therefore, again requested to conduct annual review of guarantees covering the points highlighted above and submit the review reports latest by 30.04.2021 positively. Reports may be submitted via email at raja.sr[at]nic.in/nikesh.mudgal[at]nic.in.

(S. R. Raja)
Under Secretary to the Government of India

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