GFR-2017 Rules and MCQ

GFR -2017 Rules & MCQ

The General Financial Rules, 2017 lay down the framework for financial management in all Central Government Ministries, Departments, attached/subordinate offices, and (with exceptions) Autonomous Bodies. They ensure financial propriety, accountability, transparency, and efficiency in use of public funds.

Chapter 1 – Introduction

(Rules 1–6)

Purpose

Establishes the legal foundation of GFRs.
Makes GFR applicable to all Central Government Ministries/Departments, attached & subordinate offices.
Applies to Autonomous Bodies unless they have separate approved financial rules.

Key Contents

Rule 1: Short title & commencement
Rule 2: Definitions (DDO, Controlling Officer, Competent Authority, Consolidated Fund, CAPEX/OPEX models, etc.)
Rule 3: Mandatory inter-departmental consultation
Rule 4: All financial regulations require MoF approval
Rule 5: Interpretation doubts → Ministry of Finance
Rule 6: Only MoF can modify financial systems

Chapter 2 – General System of Financial Management

(Rules 7–38)

A. Government Receipts (Rules 7–20)

All receipts must be promptly credited to Government Account.
Duties of Controlling Officers for collection, reconciliation, and reporting.
Rules on:
- Revenue realization
- Knowing irrecoverable dues
- Remission & abandonment of revenue
- User charges, rents, fines

B. Expenditure Principles (Rules 21–32)

Rule 21: Standards of financial propriety (MOST IMPORTANT)
- Prudence, economy, public interest
- No self-benefit, no favoritism
No expenditure without competent sanction
Delegation of Financial Powers (DFPR)
Communication, lapse, and validity of sanctions

C. Losses & Defalcation (Rules 33–38)

Mandatory reporting of:
- Loss, theft, fraud, embezzlement
Police report compulsory for losses > ₹50,000
Fixing personal responsibility
Timely investigation and write-off

Chapter 3 – Budget Formulation & Implementation

(Rules 42–70)

A. Budget Preparation (Rules 42–55)

Financial year: 1 April – 31 March
Annual Financial Statement (Budget)
Receipt & expenditure estimates
Demands for Grants
Outcome Budget & performance linkage
Vote on Account

B. Control of Expenditure (Rules 56–64)

Role of:
- DDO
- Controlling Officer
- Head of Department
Monthly expenditure monitoring
Maintenance of:
- GFR-3 (Liability Register)
- GFR-5 to GFR-9 returns
Reconciliation with PAO

C. Excess, Savings & Re-appropriation (Rules 65–69)

Re-appropriation only within limits
Supplementary grants
Advance from Contingency Fund
Surrender of savings
Avoidance of year-confirm rush

D. Chief Accounting Authority (Rule 70)

Secretary of Ministry is Chief Accounting Authority
Personally accountable to Parliament & PAC
Ensures transparency, efficiency, internal control

Chapter 4 – Government Accounts

(Rules 71–79)

Coverage

Preparation & certification of accounts
Role of:
- Controller General of Accounts (CGA)
- Comptroller & Auditor General (CAG)
Cash-based accounting
Structure of accounts:
- Consolidated Fund
- Contingency Fund
- Public Account