GUIDING PRINCIPLES FOR

AN OFFICER

High standards of financial propriety

Financial Economy
Observance of Financial Rules and
Regulations
Expenditure within limits of authorised
grants
1
RULES AND REGULATIONS OF
FINANCIAL MANAGEMENT

GENERAL FINANCIAL RULES, 1963

DELEGATION of FINANCIAL POWERS
RULES, 1978
CENTRAL GOVERNMENT ACCOUNT
(RECEIPTS AND PAYMENTS) RULES,
1983

2
PURPOSE OF FINANCIAL
MANAGEMENT

To prevent and detect errors and irregularities

To guard against loss and wastage of public
money and stores
To apply prescribed systemic checks
effectively

3
BUDGET - definition
Oxford English Dictionary has defined Budget as
a statement of probable revenue and
expenditure for the ensuing year with
financial proposals founded thereon annually
submitted by the Exchequer for the approval
of the House of Common.hence, any
analogous statement, estimate or proposals

4
BUDGET - elements

Budget comprises of three documents-

a statement of the sums required for the due
conduct of affairs during the period to which
such estimate relates;
an estimate of the probable income from
revenue and loans on the basis of existing
provisions of law regarding public dues and
credit operations.
a statement showing conditions of treasury in
terms of the assets and liabilities.
5
BUDGETING

Involves
preparation of the estimates;
collection and custody of funds;
disbursement and control of expenditure,
and
recording of all the transactions whose
legality and regularity are duly verified by
the independent offices
6
ANNUAL FINANCIAL
STATEMENT
DEFINITION

AUTHORITY Statement of Estimated

Article 112 (1) of the Receipts and
Constitution Expenditure
Rule 45 of General of Central Government
Financial Rules, 1963 of a Financial Year
-also referred as
BUDGET

7
Departmental Accounting
System
Introduced in 1976
Applicable to all Central Civil Ministries/
Departments and Union Territories

Exceptions
Defence, Postal/ Telecommunications
Departments and Railways have their
own departmental accounting system.

8
 BROAD FEATURES

Chief Accounting Authority Secretary of the

Ministry/ Department
C & AG provides directions to the Ministries
and Departments
Pay and Accounts Officer (PAO)
Cheque-Drawing and Disbursing Officer
(DDO)

9
TYPES OF CHEQUES

Negotiable cheques
Non-transferable cheques
Government account cheques

10
Modes of Payments

By Drafts Mail Transfer

Legal requirement To Autonomous Bodies

Pay and Allowances To Private Sector
Private parties Undertakings
To Grantee Institutions
for payment of grant-in-
aid

11
PROCEDURE for
Payments
Submission of bills by non cheque drawing officers
Pre-check of bills
Payments Form CAM 13
Post-check objection memo
Cancellation of sub-vouchers
Consolidation of Accounts Compilation Sheet
(CAM 33), Receipts (CAM 37), Disbursements
(CAM 38) and Consolidated (CAM 39)

12
Provident Fund Account -
Maintenance
Allotment of Account Number Rule 4 of
GFRs
Nominations
Advance / Withdrawals
Transfer of account
Annual Accounts
Accounts for Group D staff

13
Relevant General Financial
Rules
Rule 62 & 63(1) Submission of Budget
estimates by individual offices/
Heads of Departments
Plan and Non-Plan estimates
Rule 45 r.w.r.54 & 62 to be given separately

Financial management for the

Rule 53

months when budget is

pending
Communication of grants to
Rule 60 the Departments

14
Budget preparation

Parliament
Office

C
Grants

Ministry /
Department

Gr
an t
t Gran
Plan

Estimate Office
budget A Office
Non- Plan B

15
 Relevant General Financial
Rules
Rule 70 - contd.
Provision for

Supplementary grant

Rule 64, 69, 71 & 72 Application of the grant

towards a given financial
year

Rule 48 & 59 Submission of estimates

in the given forms

16
REVISED ESTIMATES
aspects
Due dates
Budget Estimates
Plan and Non-Plan Estimates
Revised Estimates
Final Estimates
Communication of Budget Grant

17
CONTROL OF EXPENDITURE

procedure and requirements

Bill Passing cum-Expenditure Control Register : Bill-wise and
Head-wise in Form GFR 9 [Rule 66(2)(i)]
Monthly Statement to be maintained by the DDOs
Broadsheet in GFR 10 to be maintained by the Controlling
Officer
Statement in GFR 11- by the Controlling Officer
Complete Expenditure in GFR 12 to be shown by Head of the
Department
Quarterly returns
Liability Register
Appropriation Audit Register (CAM 62)

18
 RECONCILIATION
-procedure
PAO to send figures of expenditure/ receipts
booked for a month and progressive figures up to
that month, from the DDO-wise Expenditure
Control Register or Compilation Sheet to the
DDOs
DDO will send monthly statement (containing
departmental figures, PAOs figures, differences, and details
of adjustments pending with DDO/ PAO) showing
progress of reconciliation to Head of Department
Head of Department to furnish a Quarterly
Certificate to the PAO certifying the correctness
of the figures

19
 FINANCIAL POWERS
- relevant GFRs and DFPRs
Defines -
General powers Rule 34 GFRs & Rule 5
DFPRs

Head of Department the Rule 3(f) GFRs and

Authority Schedule I to DFPRs
Head of Office Rule 14 DFPRs
Powers of subordinate Rule 13 DFPRs
authorities
Delegation of enhanced Rule 13(2) and 35 DFPRs,
powers GID 1 to Rule 13 DFPRs.

20
 FINANCIAL POWERS
- relevant GFRs and
DFPRs
Authorisation of contd.-
Rule 13(3) and
subordinate officers 16DFPRs.
Powers are to be Rule 89 GFRs and
exercised subject to Rule 13 DFPRs
availability of budget
provisions
Sanctions Explanation below
Schedule V to
DFPRs and GID 1,
Rule 89, GFRs

21