The Central Government , vide notification no. S.O. 1543(E) dated 22nd March 2024 has notified the new rule named ‘Delegation of Financial Powers Rules, 2024’ under the Article 77 of the Constitution of India which empowers the President of India to make rules for the convenient transaction of the business of the Government of India, and for the allocation among Ministers of the said business.
The provisions in the rules includes:
1. Commencement and Scope: The rules shall be enforced from April 1, 2024, encompassing a broad spectrum of financial transactions within government entities.
2. Power to Relax: The President, upon discerning necessity or expediency, holds the prerogative to relax, delegate, reduce, impose conditions, or withdraw powers stipulated within these rules.
3. Definitions: A comprehensive delineation of terms vital for interpretation and application within the framework of these rules, ensuring clarity and consistency in their implementation.
4. Provision of Funds by Parliament: Following parliamentary authorization through the Appropriation Bill, sanctioned amounts become available for expenditure by concerned government departments.
5. General Conditions on Powers to Sanction Expenditure: Establishment of protocols necessitating prior consent from the Finance Ministry for expenditures introducing new principles or practices likely to escalate future financial commitments.
6. Residuary Financial Powers: Vesting residual financial authority in the Finance Ministry, ensuring a centralized oversight mechanism for matters not expressly delegated.
7. Sanction of Expenditure: Stipulating the prerequisite of sanction and appropriation for all expenditures, thereby ensuring fiscal discipline and accountability.
8. Primary Unit of Appropriation: Standardisation of accounting classifications into primary units, delineating expenditure categories for meticulous budgetary management.
9. Allotment of Funds: Clarity on the distribution of sanctioned funds among subordinate officers to facilitate efficient fund utilization.
10. Appropriation and Re-appropriation – General Restrictions: Delimiting the scope of appropriation and re-appropriation to prevent unauthorized reallocation of funds.
11. Indents, Contracts, and Purchases: Empowering departments with discretionary powers for procurement within specified financial thresholds, while ensuring adherence to established procurement guidelines.
12. Powers of Subordinate Authorities: Delegating financial powers to subordinate authorities within defined parameters, coupled with mechanisms to ensure accountability and compliance.
13. Powers of Subordinate Authorities to Write off Loss: Prescribing conditions and limits for subordinate authorities to write off losses incurred.
14. Insurance of Government Property: Imposing restrictions on the insurance of government property, subject to prior consent from the Finance Ministry.
15. Waiver of Recovery of Overpayment Made to Government Servants: Providing guidelines for waiving the recovery of overpayments made to government servants under specific circumstances.
16. Expenditure on Schemes or Projects: Regulating expenditure on schemes or projects, mandating adherence to prescribed appraisal and approval processes.
17. Grants-in-Aid, Loans, etc.: Empowering government departments to sanction grants-in-aid and loans within prescribed guidelines.
18. Trading Operations: Establishing protocols for trading operations involving government commodities or products.
19. Dismantlement of Public Buildings: Outlining conditions and procedures for the dismantlement of public buildings, ensuring adherence to established norms.
20. Communication of Sanctions to Audit: Mandating the communication of financial sanctions to audit authorities for transparency and accountability.
21. Repeal and Savings: Repealing previous rules while safeguarding actions taken under erstwhile regulations, alongside exemptions for specific ministries and departments.
(2) Nothing contained in these rules shall apply to –
(a) the Ministry of Railways and authorities subordinate to that Ministry;
(b) the Ministry of Defence and authorities subordinate to that Ministry in relation to expenditure debitable to Defence Services Estimates.
(c) the Departments of Atomic Energy and Space;
(d) the Department of Telecommunications;
(e) the Government of India’s representatives abroad whose powers shall be determined in accordance with the rules or orders issued separately in consultation with the Finance Ministry.
Note 1.–The Ministry of Railways, Ministry of Defence and authorities subordinate to that Ministry and Departments of Atomic Energy, Space and Telecommunications are required to align their Primary units of Appropriation as far as possible on the lines provided in rule 8.
The rules also contain 2 annexures.
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