General Financial Rules (GFR) 2017
Chapter 1: Introduction
·
Rule 1: GFR 2017 applies
to all Central Govt Ministries/Departments, including autonomous bodies unless
separate rules are approved.
·
Rule 2: Definitions of
key terms like "Accounts Officer", "Administrator",
"Appropriation", "Controlling Officer", "Consolidated
Fund", etc.
·
CAPEX Model: Buyer incurs
expenditure to purchase and maintain goods.
·
OPEX Model: Seller
provides goods/services; buyer pays in a staggered manner.
Rule
1: Short Title and Commencement
·
These rules are called
the General Financial Rules (GFR), 2017.
·
Applicable to all Central
Government Ministries/Departments, including autonomous bodies unless they have
separate financial rules approved by the government.
Rule
2: Definitions
·
Defines important terms
used in GFR such as:
o
Accounts Officer, Audit
Officer, Competent Authority, Consolidated Fund, Contingency Fund, Public
Account, Drawing and Disbursing Officer, Financial Year, etc.
·
CAPEX Model:
Buyer incurs upfront capital expenditure for goods and services.
·
OPEX Model:
Seller provides services/goods, and buyer pays over time.
Rule
3: Interdepartmental consultations for
financial matters must be undertaken when necessary.
Chapter 2: Financial Management
·
Rule 7-10: All receipts
must be credited promptly to the Govt Account.
·
Rule 21: Financial
propriety – act with prudence, avoid unnecessary expenditure.
·
Rule 22-24: No
expenditure without sanction; Financial Adviser must be consulted.
·
Rule 25-27: Expenditure
should align with budget and be properly sanctioned.
Rule
7-10: Receipt and Deposit of Government Money
·
All government receipts
must be deposited into the government account without delay.
·
Control and verification
of deposits by Controlling Officers and Accounts Officers.
Rule
11-20: Revenue Management
·
Departments responsible
for assessment, collection, and remittance of revenue.
·
Rules for remission,
abandonment, and refund of revenue.
Rule
21: Standards of Financial Propriety
·
Public expenditure must
be guided by prudence and economy.
·
Avoidance of
extravagance, conflict of interest, and unjustified advantage.
Rule
22-27: Authorization and Sanction of
Expenditure
·
No expenditure without
prior sanction by competent authority.
·
Consultation with
Financial Advisers is mandatory.
·
Sanctions must mention
the source of funds.
·
Controlling Officers must
ensure proper utilization of budget allocations.
Chapter 3: Budget
Formulation
·
Rule 42: Financial Year –
April 1 to March 31.
·
Rule 43-44: Budget
presented to Parliament includes all Govt receipts and expenditures.
·
Rule 50: Expenditure
estimates are classified as Revenue/Capital and Charged/Voted.
·
Rule 51-52: Demands for
Grants include revenue, capital, loans, and grants to states.
·
Rule 54: Outcome Budget
links financial allocation to results.
Rule 42:
Financial Year – 1st April to 31st March.
Rule 43-44:
Budget Presentation
·
Annual Financial
Statement (Budget) is presented to Parliament.
·
Includes all government
receipts and expenditures.
Rule 45-49:
Receipt Estimates
·
Departments prepare
detailed estimates for tax and non-tax revenues.
·
User charges to reflect
cost recovery principles.
Rule 50-56:
Expenditure Estimates
·
Separation of revenue and
capital expenditure.
·
Demands for Grants
prepared and scrutinized by Ministry of Finance.
Rule 54:
Outcome Budget
·
Links financial outlays
to measurable outcomes and deliverables.
Rule 55:
Vote on Account
·
Temporary funding pending
full budget approval.
Rule 56-57:
Grant Communication and Expenditure Control
·
Ministries communicate
approved grants and monitor their usage.
Chapter 4: Government
Accounts
·
Rule 71-72: Accounts
prepared by CGA and certified by CAG.
·
Rule 74: Cash-based
accounting system.
·
Rule 77: Govt accounts
divided into:
o
Consolidated Fund
o
Contingency Fund
o
Public Account
·
Rule 84: Capital vs.
Revenue Expenditure.
Rule
71-72: Preparation and Form of Accounts
·
CGA prepares accounts,
certified by CAG, submitted to the President.
Rule
73-75: Accounting Principles
·
Cash-based accounting.
·
All transactions must be
recorded in Indian Rupees.
Rule
77: Structure of Government Accounts
·
Divided into:
o
Part I: Consolidated Fund
o
Part II: Contingency Fund
o
Part III: Public Account
Rule
78-82: Classification of Transactions
·
Six-tier classification:
Major, Sub-major, Minor, Sub-head, Detailed Head, Object Head.
Rule
83-84: Charged vs Voted and Capital vs Revenue
Expenditure
·
Charged expenditure is
not voted by Parliament.
·
Capital expenditure
creates assets; revenue expenditure is recurring.
Rule
85-87: Banking and PFMS
·
RBI is the official
banker.
·
PFMS system used for fund
flow, payments, and financial tracking.
·
Direct Benefit Transfer
(DBT) mandatory for welfare schemes.
Rule
88-90: Annual Accounts
·
Preparation of
Appropriation Accounts and Finance Accounts.
·
CAG certifies and submits
to the President.
Chapter 5: Works
·
Rule 130: Defines
original, minor, and repair works.
·
Rule 133: Delegation of
powers for repair works (up to ₹60 lakh) or assigning works to CPWD/PSUs.
·
Rule 136: Pre-conditions
before starting a work (approval, design, estimate, funds, tendering).
Rule
130: Types of Works
·
Original Works: New
constructions, additions, major repairs.
·
Minor Works: Adds capital
value but no new asset.
·
Repair Works: Maintenance
related.
Rule
131-132: Control and Sanction of Works
·
Administrative control
includes maintenance, utilization, and provision of funds.
·
Delegation of powers
regulated by DFPR.
Rule
133: Delegation of Works
·
Up to ₹60 lakhs repair
works may be directly executed.
·
Can be assigned to CPWD,
State PWDs, or approved PSUs.
Rule
136: Pre-conditions for Starting Work
·
Administrative approval,
technical sanction, fund availability, and tender process.
Chapter
6: Procurement of Goods and Services
·
Rule 143:
"Goods" include tangible and intangible products (e.g. software).
·
Rule 144: Principles of
procurement – economy, efficiency, fairness, and competition.
·
Rule 149: Procurement
through GeM (Government e-Marketplace) is mandatory for listed goods/services.
·
Rule 154: Direct purchase
without quotation up to ₹50,000.
·
Rule 155: Purchase via
local committee for ₹50,000 to ₹5,00,000.
·
Rule 158: Standard
procurement methods – Advertised Tender, Limited Tender, Two-Stage Bidding,
etc.
·
Rule 159: Mandatory
e-publishing on CPPP for transparency.
Rule
142-143: Applicability and Definition of Goods
·
Applies to all
Ministries/Departments.
·
'Goods' includes
tangible/intangible items like machinery, software, etc.
Rule
144: Principles of Procurement
·
Economy, efficiency,
transparency, fair treatment of suppliers.
·
No over-specification or
brand favoritism.
Rule
145-147: Authority and Special Procurement
·
Departments have
delegated powers.
·
Military procurements
governed by special rules.
Rule
149: Government e-Marketplace (GeM)
·
Mandatory procurement for
listed items.
·
Purchase limits:
o
Up to ₹50,000 – direct
purchase.
o
₹50,001 to ₹10,00,000 –
L1 seller among 3.
o
Above ₹10,00,000 –
bidding/auction mandatory.
Rule
150-151: Registration and Debarment
·
Supplier registration for
non-GeM items.
·
Suppliers may be debarred
for legal or ethical violations.
Rule
152-153: Reserved Procurement
·
Mandatory purchases from
KVIC, MSMEs, and other notified bodies.
Rule
154-155: Purchase Without Quotation
·
Up to ₹50,000 can be done
on certificate basis.
·
₹50,000 to ₹5,00,000 via
Local Purchase Committee.
|
Rule 154:
Purchase of Goods without Quotation This rule provides the
framework for direct purchase of goods without the need for inviting
quotations or bids under certain conditions. 🔹 Key Provision: ·
Goods up to the
value of ₹50,000 (Rupees Fifty Thousand) on each occasion may be
purchased without calling for quotations. ·
Such purchases must be
based on a certificate issued by the competent authority. 🔹 Certificate
Format: "I am personally satisfied that these goods
purchased are of the requisite quality and specification and have been
purchased from a reliable supplier at a reasonable price." 🔹 Important
Guidelines: 1. Justification
of Quality and Specification: o
The certifying
authority must be personally satisfied that the goods meet the required
standards. o
The goods must conform
to the technical specifications required for the intended purpose. 2. Reliable
Supplier: o
The vendor should be
known for supplying standard quality materials. o
Past dealings and
supplier reputation may be used as a basis. 3. Reasonable
Price: o
Prices should not be
inflated or manipulated. o
Market price comparison
or recent similar purchases should be considered. 4. No
Piecemeal Purchases: o
Departments must not
split larger requirements into smaller lots just to avoid tendering
requirements. o
This is a common audit
observation and is strictly disallowed (also covered under Rule 157). 5. GeM
Availability Check: o
This mode can only be
used if the required goods are not available on the GeM portal. o
For goods listed on
GeM, procurement must follow Rule 149 guidelines. 6. Scientific
Ministries/Departments: o
For notified Scientific
Departments, this ceiling is extended to ₹1,00,000 (as per DoE OM
dated 20.05.2024). o
This includes
departments like DRDO, ISRO, ICAR, DAE, etc. o
Use is allowed only
when items are not available on GeM. |
|
Rule 155:
Purchase of Goods by Purchase Committee This rule outlines the
procedure for purchasing goods costing above ₹50,000 and up to ₹5,00,000
(Rupees Five Lakh) on each occasion through a duly constituted
Local Purchase Committee (LPC). 🔹 Applicability: ·
When goods are not
available on Government e-Marketplace (GeM). ·
If listed on GeM, then
procurement must follow Rule 149. 🔹 Purchase Value
Slabs: ·
General Ministries:
₹50,000 to ₹5,00,000. ·
For Scientific
Ministries/Departments (e.g. DST, DRDO, ICAR, ISRO): o
Extended limit:
₹1,00,000 to ₹10,00,000. o
Applicable only if
items are not listed on GeM. o
Notification: DoE OM
F.20/42/2021-PPD dated 20.05.2024. 🔹 Constitution of
Committee: ·
The committee should
consist of three members of an appropriate level. ·
Members must be
appointed by the Head of Department (HoD). 🔹 Duties of the
Committee: 1. Market
Survey: o
Committee conducts a
survey of the market to assess prices and available options. o
Should examine at
least 3 suppliers for comparison. 2. Price
Reasonableness: o
Committee must ensure
the selected price is at prevailing market rates. 3. Specification
Matching: o
Goods must match the
technical specifications and functional requirements. 4. Supplier
Reliability: o
Supplier should not be debarred
or blacklisted. 🔹 Certification
Format: "Certified that we, members of the purchase
committee are jointly and individually satisfied that the goods recommended
for purchase are of the requisite specification and quality, priced at the
prevailing market rate and the supplier recommended is reliable and competent
to supply the goods in question, and it is not debarred by Department of
Expenditure or Ministry/Department concerned." 🔹 Procurement
Procedure: ·
No quotations required,
but the committee must base decision on direct market assessment. ·
Committee members
should not have any conflict of interest with suppliers. ·
Certificate must be
signed by all three members. |
Rule
158-159: Bidding and e-Publishing
·
Standard bidding methods:
Advertised, Limited, Two-stage, Single Tender, e-Auction.
·
Tender details must be
published on CPPP (except for security-related cases).
|
Rule 158:
Purchase of Goods by Obtaining Bids This rule prescribes
the standard methods for procurement of goods exceeding ₹5,00,000 in
value, or where Rule 154 and 155 are not applicable. 🔹 Objective: To ensure fairness,
transparency, and competitiveness in public procurement by inviting bids. 🔹 Applicability: ·
For procurement above
₹5,00,000. ·
When procurement is
not eligible under Rules 154 and 155. ·
Mandatory for
advertised tenders, limited tenders, two-stage bidding, or reverse auction. 🔹 Standard
Methods of Procurement: Rule 158 outlines five
procurement methods: 1️. Advertised
Tender Enquiry: ·
Used when the estimated
value of goods is ₹50 lakhs and above. ·
Requires wide
publicity through: o
Government
e-Marketplace (GeM) o
Central Public
Procurement Portal (CPPP) o
Organization’s website ·
Bidding period: Minimum
3 weeks (4 weeks for global tenders) ·
Encourages maximum
competition. 2️. Limited
Tender Enquiry: ·
Used when the estimated
value is up to ₹50 lakhs. ·
Invitations sent
directly to more than 3 empanelled/registered suppliers. ·
Must be published on GeM
and CPPP. ·
Suitable where time is
limited and vendors are pre-qualified. 3️. Two-Stage
Bidding: ·
Applied when: o
Specifications can't be
defined clearly at the outset. o
Procurement is of a complex/technical
nature (e.g., IT systems). o
Inputs from bidders are
needed to finalize specifications. ·
Process: 1. Stage
1 – Invite technical proposals (without
financials) 2. Evaluate
technical bids and modify specifications if required 3. Stage
2 – Invite financial bids only from
technically qualified bidders 4️. Single
Tender Enquiry: ·
Exceptional method used
when: o
Only one
supplier/manufacturer exists o
Standardization is
required o
Emergency purchases are
justified with reasons ·
Requires approval of
competent authority and a Proprietary Article Certificate (PAC). 5️. Electronic
Reverse Auction: ·
Used for procurement of
standard, well-defined goods. ·
Bidders submit
progressively lower prices in real-time. ·
Ensures best price
discovery through competition. ·
Conducted via secure
online platforms. 🔹 Bid Evaluation: ·
Bids must be evaluated
based on pre-published criteria. ·
No post-bid
negotiations (except under rare circumstances with L1 bidder). 🔹 Compliance: ·
Bidding process must be
documented, transparent, and follow all GFR protocols. ·
Procurement officers
must ensure all technical and financial criteria are objectively defined. 🔹 Exceptions: ·
If a purchase falls
under Rule 154 (direct purchase) or Rule 155 (LPC), Rule 158 does not
apply. ·
Classified procurements
may be exempt with proper approval. |
MCQs
1. What
is the title of the rules discussed in the document?
A) Financial Rules of India, 2016
B) General Financial Rules, 2017
C) Central Finance Guidelines, 2017
D) Indian Financial Regulations, 2018
Correct Answer: B
2. When
did the General Financial Rules, 2017 come into force?
A) 1st January 2017
B) 31st July 2017
C) Immediately
D) 1st April 2017
Correct Answer: C
3. To
whom are the GFRs applicable?
A) Only Central Government
B) Central Ministries and Subordinate Bodies
C) All Autonomous Bodies
D) Private Sector
Correct Answer: B
4. Which
document governs the financial rules for Autonomous Bodies if not specified in
their bye-laws?
A) Treasury Rules
B) Delegation of Financial Powers Rules
C) GFR, 2017
D) Constitution of India
Correct Answer: C
5. Who
is an "Accounts Officer" under GFR?
A) Auditor General
B) Head of Accounts Office or Pay and Accounts Office
C) Ministry of Finance Officer
D) Drawing Officer
Correct Answer: B
6. The
term "Appropriation" means:
A) Audit of government funds
B) Assignment of funds for expenditure
C) Central fund allocation
D) Deduction of taxes
Correct Answer: B
7. Which
article of the Constitution defines the Consolidated Fund of India?
A) Article 265
B) Article 267
C) Article 266(1)
D) Article 268
Correct Answer: C
8. Who
is the "Competent Authority" in financial matters under GFR?
A) Finance Minister
B) President or delegated authority
C) Cabinet Secretary
D) Governor of RBI
Correct Answer: B
9. What
does “Public Account” refer to?
A) Consolidated savings
B) Revenue deposits
C) Account mentioned in Article 266(2)
D) Audit logs
Correct Answer: C
10. A
“Head of Department” must not be below which rank?
A) Section Officer
B) Under Secretary
C) Deputy Secretary
D) Joint Secretary
Correct Answer: C
11. Which
rule deals with interdepartmental consultations?
A) Rule 1
B) Rule 3
C) Rule 5
D) Rule 7
Correct Answer: B
12. What
must be done before issuing departmental regulations of financial character?
A) Audit certification
B) RBI approval
C) Ministry of Finance approval
D) Cabinet decision
Correct Answer: C
13. Who
is responsible for resolving interpretation doubts in GFR?
A) Ministry of Law
B) Cabinet
C) Comptroller and Auditor General
D) Ministry of Finance
Correct Answer: D
14. What
does CAPEX model involve?
A) Recurring maintenance
B) Straight purchase and maintenance contract
C) Outsourcing
D) Fixed deposit model
Correct Answer: B
15. What
is the feature of OPEX model?
A) Single payment upfront
B) Only product purchase
C) Seller provides, maintains, and reclaims product
D) No maintenance included
Correct Answer: C
16. Who
designates a Drawing and Disbursing Officer?
A) Comptroller
B) Auditor General
C) Department of the Central Government
D) State Government
Correct Answer: C
17. “Recurring
Expenditure” is incurred:
A) One-time only
B) Periodically for same purpose
C) For capital assets
D) For foreign transactions
Correct Answer: B
18. Which
rule allows modification of GFR procedures?
A) Rule 4
B) Rule 5
C) Rule 6
D) Rule 7
Correct Answer: C
19. The
Reserve Bank of India is also referred to as:
A) Indian National Bank
B) Treasury Authority
C) Reserve Bank
D) Auditor Bank
Correct Answer: C
20. Which
fund is created under the Contingency Fund of India Act, 1950?
A) Emergency Fund
B) Budget Reserve
C) Contingency Fund
D) Public Fund
Correct Answer: C
21. Under
Rule 7, all money received by the Government must be brought into the
Government account:
A) Monthly
B) Within 7 days
C) Without delay
D) After internal audit
Correct Answer: C
22. Under
which Article must all Government receipts be accounted for?
A) Article 266
B) Article 150 & 283(1)
C) Article 112
D) Article 280
Correct Answer: B
23. What
should be done with all moneys received by officers under Article 284?
A) Credited to Consolidated Fund
B) Credited to Contingency Fund
C) Paid into the Public Account
D) Deposited with the Ministry of Finance
Correct Answer: C
24. The
Head of Account and withdrawal of money is governed by:
A) Constitution only
B) Department rules
C) Government Accounting Rules 1990 & CGA rules 1983
D) RBI Guidelines
Correct Answer: C
25. Whose
responsibility is it to ensure timely collection and credit of Government dues?
A) Auditor
B) Controlling Officer
C) Department of Central Government concerned
D) Pay and Accounts Officer
Correct Answer: C
26. Who
compares statements of credit with accounts reported by subordinate officers?
A) CAG
B) Accounts Officer
C) Ministry of Finance
D) Administrator
Correct Answer: B
27. What
is Form GAR-6 used for?
A) Salary slips
B) Revenue receipts
C) Issuing official receipts
D) Budget estimates
Correct Answer: C
28. Government
dues must not be left outstanding without:
A) Documentation
B) Record in register
C) Valid reasons
D) Budget approval
Correct Answer: C
29. As
per Rule 14, who should be kept informed of variations in revenue collections?
A) Auditor
B) Accounts Officer
C) Finance Ministry
D) Cabinet
Correct Answer: C
30. Fines
must be deposited into:
A) Local Fund
B) Government Treasury or Bank
C) Supreme Court
D) Revenue Account
Correct Answer: B
31. Which
rule discusses remission or abandonment of Government revenue?
A) Rule 10
B) Rule 17
C) Rule 18
D) Rule 19
Correct Answer: C
32. Who
issues final approval for remitting irrecoverable dues?
A) Auditor
B) Financial Adviser
C) Competent Authority
D) Supreme Court
Correct Answer: C
33. Expenditure
must not exceed budget and must be for:
A) Welfare schemes
B) Specific political party
C) Purpose for which funds were provided
D) Revenue collection
Correct Answer: C
34. Which
rule deals with delegation of financial powers?
A) Rule 23
B) Rule 19
C) Rule 12
D) Rule 30
Correct Answer: A
35. Who
must be consulted before circulating expenditure-related draft memoranda?
A) Cabinet Secretary
B) Financial Adviser
C) Auditor General
D) Head of Department
Correct Answer: B
36. What
happens to a sanction if no payment is made within 12 months?
A) It is transferred to next year
B) It lapses
C) It is extended automatically
D) It is revised
Correct Answer: B
37. Which
losses must be reported under Rule 33?
A) Above ₹1,000
B) All losses except minor and late claims
C) Only fraud cases
D) Budget shortfall only
Correct Answer: B
38. Fire,
theft or fraud causing losses above ₹50,000 must be:
A) Ignored
B) Recovered
C) Reported to Police
D) Notified to media
Correct Answer: C
39. Who
is personally responsible for loss due to fraud or negligence?
A) Financial Adviser
B) Auditor
C) Officer involved
D) Department Head
Correct Answer: C
40. Classified
documents marked ‘Secret’ must be sent:
A) By fax
B) By ordinary post
C) Personally to the Head of Audit Office
D) Uploaded to government portal
Correct Answer: C
41. What
is the financial year for the Government of India?
A) January 1 to December 31
B) March 1 to February 28
C) April 1 to March 31
D) July 1 to June 30
Correct Answer: C
42. Under
which Article is the Annual Financial Statement laid before Parliament?
A) Article 110
B) Article 111
C) Article 112(1)
D) Article 113
Correct Answer: C
43. The
Railway Budget was merged with the General Budget starting from:
A) 2016-17
B) 2015-16
C) 2017-18
D) 2018-19
Correct Answer: C
44. Which
Ministry issues guidelines for the preparation of budget estimates?
A) Ministry of Railways
B) Ministry of Home Affairs
C) Ministry of Finance
D) NITI Aayog
Correct Answer: C
45. ‘User
Charges’ are part of which category of Government revenue?
A) Tax Revenue
B) Capital Receipts
C) Grants
D) Non-Tax Revenue
Correct Answer: D
46. The
dividend from Central Public Sector Enterprises must be paid:
A) Annually on March 31
B) Within 6 months of AGM
C) Immediately after AGM decision
D) After approval from NITI Aayog
Correct Answer: C
47. The
government portal for collection of non-tax revenue is called:
A) e-Treasury
B) Bharat Pay
C) e-Receipts
D) Tax GOV
Correct Answer: C
48. Which
form shows the revised and budget estimates of revenue and capital expenditure?
A) GFR 3
B) GFR 5
C) GFR 7
D) As prescribed by the Budget Division
Correct Answer: D
49. The
Demand for Grants is presented to Parliament by:
A) Prime Minister
B) Cabinet Secretary
C) Ministry of Finance
D) Concerned Ministry only
Correct Answer: C
50. What
document links scheme outlays to deliverables?
A) Zero Budget
B) Outcome Budget
C) Financial Report
D) Planning Report
Correct Answer: B
51. What
is a "Vote on Account"?
A) Permanent fund approval
B) Supplementary estimate
C) Interim expenditure approval
D) Taxation report
Correct Answer: C
52. Who
is responsible for control of expenditure against grants?
A) Accounts Officer
B) Disbursing Officer
C) Head of Department
D) Departments of Central Government
Correct Answer: D
53. Which
form is used by Drawing and Disbursing Officers to track expenditure?
A) GFR 1
B) GFR 5
C) GFR 8
D) TR-28A
Correct Answer: B
54. Which
authority is ultimately responsible for expenditure control?
A) Accounts Officer
B) Chief Auditor
C) Authority administering the grant
D) Ministry of Finance
Correct Answer: C
55. All
savings in grants must be surrendered to the Finance Ministry:
A) After the audit
B) As per demand
C) Before end of financial year
D) Every quarter
Correct Answer: C
56. Which
rule governs expenditure on New Service not contemplated in the Budget?
A) Rule 61
B) Rule 63
C) Rule 65
D) Rule 69
Correct Answer: B
57. Re-appropriation
is allowed only when:
A) Funds are required for emergency
B) Audit approves
C) It is known appropriation will not be fully utilized
D) After Parliament’s approval
Correct Answer: C
58. An
advance from the Contingency Fund is obtained under which Article of the
Constitution?
A) Article 112
B) Article 113
C) Article 267(1)
D) Article 280
Correct Answer: C
59. Who
is the Chief Accounting Authority of a Ministry/Department?
A) Accounts Officer
B) Secretary of the Ministry
C) Joint Secretary
D) Financial Adviser
Correct Answer: B
60. The
Chief Accounting Authority is responsible for:
A) Paying salaries
B) Approving loans
C) Financial management and proper use of funds
D) Preparing tax returns
Correct Answer: C
61. Who
prepares the annual accounts of the Union Government?
A) Finance Secretary
B) Ministry of Finance
C) Controller General of Accounts
D) Comptroller and Auditor General
Correct Answer: C
62. The
government accounts are maintained on which basis?
A) Accrual basis
B) Dual entry basis
C) Cash basis
D) Modified accrual basis
Correct Answer: C
63. The
accounts of the Government are divided into how many parts?
A) Two
B) Three
C) Four
D) Five
Correct Answer: B
64. The
Consolidated Fund is part of which section of Government accounts?
A) Part II
B) Part I
C) Part III
D) Annexure
Correct Answer: B
65. The
expenditure under Article 112(3) of the Constitution is:
A) Voted
B) Contingent
C) Charged
D) Approved by CAG
Correct Answer: C
66. What
kind of expenditure includes salaries and day-to-day operations?
A) Capital
B) Contingency
C) Revenue
D) Deferred
Correct Answer: C
67. Who
is the banker to the Government?
A) SBI
B) RBI
C) Ministry of Finance
D) ICICI Bank
Correct Answer: B
68. What
system is used for just-in-time payments and fund tracking?
A) SFMIS
B) PFMS
C) DBTS
D) UPI
Correct Answer: B
69. Utilisation
Certificates must be submitted through:
A) Audit Office
B) PFMS portal
C) Lok Sabha
D) RBI
Correct Answer: B
70. Direct
Benefit Transfers can be made through:
A) RBI only
B) State Bank only
C) Ministries or State Treasury or Implementing Agency
D) Parliament
Correct Answer: C
71. What
document consolidates expenditure estimates and is presented to Parliament?
A) Financial Statement
B) Appropriation Bill
C) Demand for Grants
D) Annual Report
Correct Answer: C
72. Capital
expenditure is generally met from:
A) Revenue receipts
B) Contingency Fund
C) Capital receipts
D) Borrowings only
Correct Answer: C
73. Interest
during the process of construction temporarily met from capital must be:
A) Ignored
B) Recharged to Revenue
C) Written back on surplus revenue
D) Converted to grant
Correct Answer: C
74. Appropriation
Accounts are signed by:
A) Finance Minister
B) CAG
C) Chief Accounting Authority
D) President of India
Correct Answer: C
75. In
PPP and Joint Ventures, financial stakes must be disclosed in:
A) GFR Registers
B) Budget Summary
C) Annual Report
D) Audit Report
Correct Answer: C
76. The
head responsible for commercial activities must maintain:
A) PFMS account only
B) Subsidiary Proforma Accounts
C) Capital Budget exclusively
D) PFMS and TR-28A
Correct Answer: B
77. Personal
Deposit Account withdrawals:
A) Can exceed the deposit
B) Should never result in a minus balance
C) Require RBI approval
D) Are exempt from audit
Correct Answer: B
78. Which
rule governs the distinction between capital and revenue expenditure?
A) Rule 83
B) Rule 98
C) Rule 102
D) Rule 95
Correct Answer: B
79. Interest
on capital is calculated on:
A) Total cost of project
B) Outlay at the end of year
C) Outlay at start plus half of current year's outlay
D) Loan disbursement
Correct Answer: C
80. Capital
receipts during construction are:
A) Added to revenue
B) Credited to loan account
C) Used to reduce capital expenditure
D) Reserved for contingency
Correct Answer: C
81. Claims
between States and Centre for services rendered below ₹10,000:
A) Must be settled
B) Are to be ignored under reciprocal arrangement
C) Must be deferred
D) Taken to audit
Correct Answer: B
82. Expenditure
due to extraordinary calamities can be:
A) Always charged to Revenue
B) Always charged to Capital
C) Either Capital or Revenue
D) Ignored
Correct Answer: C
83. Adjustments
with State Governments must be finalized by:
A) 31st March
B) 15th April
C) 10th April
D) 1st May
Correct Answer: C
84. Recoveries
from non-government parties for services rendered are:
A) Ignored
B) Treated as expenditure
C) Classified as Government receipts
D) Deferred to next year
Correct Answer: C
85. Inter-departmental
services rendered are charged if:
A) The department is a service department
B) It’s a commercial department
C) It’s a planning unit
D) Department so chooses
Correct Answer: B
86. What
document tracks deductions from gross expenditure?
A) GFR 3
B) Form TR-28
C) Schedule of Recovery
D) Supplementary Demand
Correct Answer: C
87. What
is the principle for classifying transactions in Government accounts?
A) Department structure
B) Economic survey
C) Functions and activities
D) Annual targets
Correct Answer: C
88. Transactions
in the Contingency Fund are recorded under:
A) Part-I
B) Part-II
C) Part-III
D) Appropriation account
Correct Answer: B
89. Capital
schemes require separation of:
A) Salaries and allowances
B) Cash and accrual basis
C) Capital and Revenue accounts
D) Funds and assets
Correct Answer: C
90. Recovery
of charges from a private body for services rendered by Government is:
A) Credited to Contingency Fund
B) Shown as Grant-in-Aid
C) Treated as reduction of expenditure
D) Accounted under Deposits
Correct Answer: C
91. What
do "Original Works" include as per Rule 130?
A) Routine maintenance
B) Tax assessments
C) New constructions and major additions
D) Furniture procurement
Correct Answer: C
92. Minor
works are defined as those which:
A) Are unrelated to assets
B) Create new buildings
C) Add capital value without creating new assets
D) Involve temporary repairs
Correct Answer: C
93. Which
rule defines the administrative control of works?
A) Rule 130
B) Rule 131
C) Rule 132
D) Rule 133
Correct Answer: B
94. Who
regulates the powers delegated for administrative approval and expenditure
sanction?
A) GFR
B) Ministry of Railways
C) Delegation of Financial Powers Rules
D) CPWD Code
Correct Answer: C
95. A
Ministry may directly execute repair works costing up to:
A) ₹10 lakh
B) ₹30 lakh
C) ₹50 lakh
D) ₹60 lakh
Correct Answer: D
96. Ministries
can assign repair works above ₹60 lakh to:
A) Municipal Corporation
B) Any private contractor
C) Public Works Organizations like CPWD, MES, etc.
D) NGOs
Correct Answer: C
97. The
scientific ministries can assign works up to ₹5 crore on nomination basis till:
A) 31.03.2024
B) 31.03.2025
C) 31.03.2023
D) 30.06.2025
Correct Answer: B
98. Works
not allotted to any department shall be included in:
A) Planning Commission budget
B) Ministry of Home Affairs
C) Grants for Civil Works
D) Department of Posts budget
Correct Answer: C
99. Empowered
project teams should be set up for:
A) All routine repairs
B) Maintenance works only
C) Large value projects
D) Tender evaluation
Correct Answer: C
100.
No work can begin unless
which of the following is obtained?
A) Verbal approval
B) Only tender notice
C) Administrative approval and expenditure sanction
D) Contractor’s quotation
Correct Answer: C
101.
Who issues a certificate
that a work is completed satisfactorily?
A) Financial Adviser
B) Vendor
C) Officer-in-charge of the execution
D) Head of Department
Correct Answer: C
102.
Open tenders are
mandatory for works costing between:
A) ₹5 lakh to ₹10 lakh
B) ₹10 lakh to ₹60 lakh
C) ₹60 lakh to ₹1 crore
D) ₹1 lakh to ₹5 lakh
Correct Answer: B
103.
Limited tenders may be
used for works costing:
A) More than ₹1 crore
B) Less than ₹10 lakh
C) Exactly ₹60 lakh
D) ₹10–50 lakh
Correct Answer: B
104.
A Work Order should be
issued:
A) After partial payment
B) Before completion
C) Before commencement of work
D) Only for repairs
Correct Answer: C
105.
Use of savings from a
sanctioned estimate for new work requires:
A) No approval
B) Contractor's consent
C) Special authority
D) Budget Division's certificate
Correct Answer: C
106.
A group of works forming
one project shall be considered:
A) As separate works
B) As independent repairs
C) As one work
D) Under the minor head
Correct Answer: C
107.
For projects costing ₹100
crore or more, what must be set up?
A) Audit team
B) Review Committee
C) Parliamentary Committee
D) Contractor's Board
Correct Answer: B
108.
The Review Committee can
approve variation up to:
A) 5%
B) 20%
C) 15%
D) 10%
Correct Answer: D
109.
Supplementary estimates
are required if:
A) The contractor is new
B) Development of a project is necessary and not part of the original sanction
C) Audit objections are raised
D) Work is completed early
Correct Answer: B
110.
Execution of work by PSUs
under Rule 133(3) should ensure:
A) Award based on political alignment
B) Competition based on lowest material rates
C) Competition based on lump sum service charges
D) Fixed price tender only
Correct Answer: C
111.
What does Rule 143 define
in the GFR?
A) Budget
B) Services
C) Goods
D) Procurement Committees
Correct Answer: C
112.
According to Rule 144,
public procurement must promote:
A) Private contracts
B) Efficiency and transparency
C) High pricing
D) Limited suppliers
Correct Answer: B
113.
Procurement
specifications should not:
A) Be functional
B) Include brand names
C) Be measurable
D) Be based on standards
Correct Answer: B
114.
What should Ministries
publish before procurement?
A) Tender award letters
B) Budget deficits
C) Annual Procurement Plan
D) Vendor complaints
Correct Answer: C
115.
Restrictions on
procurement due to national security can be imposed by:
A) Ministry of Defence
B) PMO
C) Department of Expenditure
D) NITI Aayog
Correct Answer: C
116.
Procurement up to ₹50,000
from GeM can be made:
A) Through newspaper ads
B) Without quotation
C) From any available GeM supplier
D) After e-auction
Correct Answer: C
117.
Who must certify the
reasonableness of GeM supplier rates?
A) Vendor
B) Auditor
C) Procuring authority
D) CAG
Correct Answer: C
118.
Rule 149 mandates
procurement of common use goods via:
A) NIC portal
B) Local suppliers
C) GeM
D) MSME registry
Correct Answer: C
119.
Splitting a demand to
avoid higher authority approval is:
A) Encouraged
B) Permissible below ₹5 lakh
C) Prohibited
D) Optional
Correct Answer: C
120.
What must all Ministries
use for publishing tenders?
A) WhatsApp
B) Company websites
C) Central Public Procurement Portal (CPPP)
D) Local newspapers only
Correct Answer: C
121.
Rule 150 allows supplier
registration for items not on:
A) Amazon
B) NIC portal
C) GeM
D) MSME portal
Correct Answer: C
122.
Supplier registration is
valid for:
A) 1 year only
B) Unlimited time
C) 1–3 years
D) 6 months
Correct Answer: C
123.
Who maintains the
debarred suppliers list?
A) CVC
B) Ministry of Law
C) Department of Expenditure
D) MSME
Correct Answer: C
124.
How much minimum purchase
of handloom items is mandatory for Central Govt?
A) 10%
B) 15%
C) 20%
D) 25%
Correct Answer: C
125.
MSME procurement policy
is under which Act?
A) FERA Act
B) Companies Act
C) MSMED Act, 2006
D) Competition Act
Correct Answer: C
126.
What is the method used
for purchases between ₹50,000 and ₹5,00,000 (not on GeM)?
A) Advertisement
B) Nomination
C) Purchase Committee
D) Tender Board
Correct Answer: C
127.
Standard bid methods
under Rule 158 include all except:
A) Advertised
B) Two-stage
C) Purchase Committee
D) Limited tender
Correct Answer: C
128.
For procurement over ₹50
lakh, what kind of bidding is used?
A) Phone call
B) Open tender
C) SMS bidding
D) GeM chat
Correct Answer: B
129.
Bids received after the
deadline are:
A) Accepted with penalty
B) Always accepted
C) Rejected
D) Allowed if lowest
Correct Answer: C
130.
Rule 166 permits single
tender enquiry only in:
A) All emergencies
B) Proprietary items or emergency cases
C) Common goods
D) Items available on GeM
Correct Answer: B
131.
Reverse auction involves:
A) Increasing prices
B) Successively lower bids
C) One bid only
D) Random pricing
Correct Answer: B
132.
Maintenance contracts
must start after:
A) Purchase order
B) Warranty period
C) Contract signing
D) Testing
Correct Answer: B
133.
Bid security is usually:
A) 1%
B) 2–5%
C) 10–15%
D) 20%
Correct Answer: B
134.
MSEs and Startups are:
A) Not allowed to bid
B) Required to pay security
C) Exempt from bid security
D) Allowed only in defence bids
Correct Answer: C
135.
Performance Security is:
A) 3–5% of contract value
B) 50% of cost
C) Always ₹1 lakh
D) Optional
Correct Answer: A
136.
Advance payment to
private firms can be up to:
A) 10%
B) 30%
C) 40%
D) 50%
Correct Answer: B
137.
Paid maintenance
contracts start:
A) On product arrival
B) After inspection
C) Post-warranty
D) With delivery
Correct Answer: C
138.
A "Buy-Back
Offer" refers to:
A) Selling old items
B) Returning faulty items
C) Trading in old items while purchasing new
D) Loan repayment
Correct Answer: C
139.
Who conducts evaluation
of consultancy technical bids?
A) Ministry of Law
B) Purchase Officer
C) Consultancy Evaluation Committee
D) Vendor association
Correct Answer: C
140.
Which of the following is
not a method of consultancy selection?
A) QCBS
B) LCS
C) Reverse Auction
D) Single Source
Correct Answer: C