Showing posts with label Finance. Show all posts
Showing posts with label Finance. Show all posts

Tuesday, February 21, 2012

Delegation of Financial Powers


FINANCIAL POWERS DELEGATIONS TO SUBORDINATE

AUTHORITIES

SANCTIONS TO EXPENDITURE: (BASIC PRINCIPLES)

         11.1 No subordinate authority is empowered to sanction without the previous consent of the Ministry of Finance any expenditure, which involves the introduction of a new principle or practice likely to lead to increase of expenses. Moreover, exercising of financial powers by a subordinate authority is subject to the observance of any general or special direction, which the authority delegating or redelegating power may issue at any time.
         11.2 A sanction to expenditure would be operative only when the funds have been appropriated to meet the expenditure. In case of sanction to a recurring expenditure covering a specified term of years it would operate when funds are appropriated to meet the expenditure of the first year and would remain in operation for each year of the specified term subject to appropriation in such years.
         11.3 The two main principles to be observed in any system of financial control are economy and regularity, and the success of any system must depend upon the vigour with which they are observed in day to day administration, Economy means gelting the full value for money, and by regularity is meant the spending of money for the purposes and in the manner prescribed by lav,. The two are not necessarily the same thing, for it is conceivable to spend money without constitutional irregularity and yet wastefully.
         11.4 While the provisions of the General Financial Rules Vol. 1 contain general and specific instructions on the subject, the principles on which emphasis is essentially laid may be recapitulated as follows:
(a) that expenditure is incurred with due regard to high standards of financial propriety;
(b) that funds allotted to a Ministry/Division, its Attached, or Subordinate Offices are spent for the purpose for which they are allocated;
(c) that funds are spent in accordance with relevant rules and regulations;
(d) that the actual expenditure does not exceed the budget allocation;
(e) that the expenditure is not prima facie more than (he occasion demands and that every Government servant exercises the same vigilance in respect of expenditure incurred from public funds as a person of ordinary prudence would exercise in respect of expenditure of his own money;
(f) that no authority exercises its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage;
(g) that public moneys are not utilised for the benefit of a particular person or section of the community unless: