Press Information Bureau

Government of India

Ministry of Finance

15-May-2012 18:01 IST

Control on Unnecessary Expenditure

In terms of Rule 21 of General Financial Rules (GFRs) expenditure should not be prima facie more than the occasion demands. Further, in terms of Rule 64 of GFRs, the Chief Accounting Authority of a Ministry/Department shall take effective and appropriate steps to ensure that his Ministry/Department avoids unauthorized, irregular and wasteful expenditure. Government also issues instructions on expenditure management from time to time. The last set of instructions on expenditure management were issued in May, 2011 and July, 2011. The instructions advise adherence to budgeted estimates of 2011-12 and contain economy measures related to Seminars/Conferences, Purchase of vehicles, Foreign Travel, Consultancy Assignments etc. and guidelines for observance of discipline in fiscal transfers and balanced pace of expenditure.

The responsibility for implementing the instructions rests with the respective Ministries/Departments and data is not maintained centrally.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

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DSM/SS/Hb

Control on unnecessary expenditure: ministries must follow GFR limits and apply prescribed economy measures across discretionary spending. Rule 21 of the General Financial Rules limits expenditure to what the occasion demands and Rule 64 requires Chief Accounting Authorities to prevent unauthorized, irregular and wasteful expenditure; the Government issued May and July 2011 instructions mandating adherence to budgeted estimates and economy measures for seminars, vehicle purchases, foreign travel, consultancy assignments and disciplined fiscal transfers, with implementation responsibility resting with the respective Ministries/Departments and no centrally maintained compliance data.