Understanding the General Financial Rules (GFR) 2017: Key Highlights and Insights
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Introduction
The General Financial Rules (GFR) 2017 serve as a comprehensive set of guidelines for the financial management of government resources. These rules apply to all government ministries, departments, and organizations and aim to ensure transparency, accountability, and efficiency in public expenditure. The GFR 2017 replaced the earlier version (GFR 2005) to align with evolving governance needs and technological advancements.
Key Objectives of GFR 2017
- Ensuring Transparency:
- Promote clarity in financial transactions.
- Improving Efficiency:
- Streamline processes for effective resource utilization.
- Accountability in Expenditure:
- Emphasize responsibility for public funds.
- Flexibility for Modern Needs:
- Incorporate digital platforms and innovations in financial practices.
Salient Features of GFR 2017
Applicability:
- Applies to central government ministries, departments, and subordinate/attached offices.
- Includes autonomous bodies fully funded by the government.
Procurement Guidelines:
- Provides a framework for government procurement, ensuring fairness and competitiveness.
- Introduces e-Procurement to enhance transparency.
- Defines thresholds for direct purchase and tendering.
Performance-Based Financial Management:
- Emphasizes measurable outcomes for expenditure.
- Encourages periodic review of programs and policies.
Advances and Grants:
- Guidelines for providing financial assistance to organizations, societies, and institutions.
- Clear rules for grant-in-aid utilization and reporting.
Asset Management:
- Detailed instructions for asset acquisition, maintenance, and disposal.
- Mandates inventory management to prevent misuse or loss.
Digitization Initiatives:
- Recognizes the role of digital platforms like Public Financial Management System (PFMS).
- Facilitates paperless transactions and real-time monitoring.
Internal Controls and Audits:
- Ensures robust internal checks to prevent irregularities.
- Encourages independent audits for accountability.
Recent Additions and Changes
The GFR 2017 includes provisions to cater to new government initiatives such as:
- Make in India: Preference for local products in procurement.
- Startup India: Relaxed norms for startups in government tenders.
- Adoption of technology for seamless financial operations.
Importance of GFR 2017 in Public Administration
- Foundation for Sound Governance: Provides a structured approach to managing public funds.
- Promotes Best Practices: Encourages ethical and efficient use of resources.
- Adaptability: Ensures alignment with dynamic socio-economic conditions.
Conclusion
The General Financial Rules (GFR) 2017 are an essential guide for public financial management. They balance the need for flexibility in governance with the principles of accountability and transparency. For administrators and public servants, a thorough understanding of GFR 2017 is indispensable to achieving excellence in service delivery and resource management.
This concise yet dynamic framework continues to evolve, reflecting the government’s commitment to good governance and fiscal prudence.
