Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 11 of 44, covering Rule 11. Each set has 25 questions. Try each question first, then tap Show answer to check your answer and read the explanation.
Source: Delegation of Financial Powers Rules, 2024 (Ministry of Finance, Department of Expenditure, notification S.O. 1543(E) dated 22.03.2024) and the Government of India decisions, appendices and related orders printed in the official DFPR 2024 booklet.
1. Under Rule 11(1), a Department of the Government of India has full powers to sanction expenditure for purchases and execution of contracts, subject to the DFPR and
(a) The provisions of the General Financial Rules governing procurement of goods and services
(b) Approval of the Cabinet in every case
(c) Approval of the CPWD
(d) Approval of the C&AG
Ans. (a) The provisions of the General Financial Rules governing procurement of goods and services — Explanation: Rule 11(1) gives full powers subject to these rules and the provisions of the General Financial Rules governing the procurement of goods and services. [Ref: Rule 11(1)]
2. The Secretary of the Department can exercise powers under Rule 11 for open or limited tender contracts up to
(a) Rs. 50 crore
(b) Rs. 500 crore
(c) Rs. 25 crore
(d) Rs. 100 crore
Ans. (d) Rs. 100 crore — Explanation: Rule 11(2) states that the powers shall be exercised by the Secretary up to rupees one hundred crores for open or limited tender contracts. [Ref: Rule 11(2)]
3. The Secretary can exercise powers under Rule 11 for negotiated, single tender or proprietary contracts and agreements up to
(a) Rs. 10 crore
(b) Rs. 25 crore
(c) Rs. 50 crore
(d) Rs. 100 crore
Ans. (b) Rs. 25 crore — Explanation: Rule 11(3) sets a limit of rupees twenty-five crores for negotiated or single tender or proprietary contracts and agreements. [Ref: Rule 11(3)]
4. Contracts or purchases exceeding the Secretary's limits under Rule 11(2) and (3) require the approval of
(a) The Secretary (Expenditure)
(b) The Finance Minister
(c) The Cabinet
(d) The Minister in charge of the Department
Ans. (d) The Minister in charge of the Department — Explanation: Rule 11(4) states that contracts or purchases exceeding the values in sub-rules (2) and (3) require the approval of the Minister in charge of the Department. [Ref: Rule 11(4)]
5. A single tender contract of Rs. 30 crore is proposed. Under Rule 11, who approves it?
(a) The Head of Department
(b) The Secretary of the Department
(c) The Financial Adviser
(d) The Minister in charge of the Department
Ans. (d) The Minister in charge of the Department — Explanation: The Secretary's power for single tender contracts is up to Rs. 25 crore (Rule 11(3)). Rs. 30 crore exceeds this, so Rule 11(4) requires approval of the Minister in charge. [Ref: Rule 11(3), (4)]
6. An open tender contract of Rs. 80 crore can be approved by
(a) Only the Minister in charge
(b) Only the Cabinet
(c) The Secretary of the Department
(d) Only the Finance Minister
Ans. (c) The Secretary of the Department — Explanation: For open or limited tender contracts the Secretary's power extends up to Rs. 100 crore under Rule 11(2). Rs. 80 crore is within this. [Ref: Rule 11(2)]
7. A limited tender contract of Rs. 120 crore requires approval of
(a) The Financial Adviser
(b) The Head of Office
(c) The Secretary of the Department
(d) The Minister in charge of the Department
Ans. (d) The Minister in charge of the Department — Explanation: Rs. 120 crore exceeds the Secretary's Rs. 100 crore limit for open/limited tenders, so approval of the Minister in charge is needed under Rule 11(4). [Ref: Rule 11(2), (4)]
8. Under Rule 11(5), Secretaries may confer powers not exceeding their own under Rule 11(2) and (3) and Rule 13 upon
(a) Any private agency
(b) The C&AG
(c) The State Governments
(d) An Administrator, Head of the Department or any other authority subordinate to him, in consultation with the Financial Adviser
Ans. (d) An Administrator, Head of the Department or any other authority subordinate to him, in consultation with the Financial Adviser — Explanation: Rule 11(5) allows Secretaries, by general or special order, to confer powers not exceeding those vested in them under sub-rules (2) and (3) and Rule 13 upon an Administrator, HoD or subordinate authority in consultation with the Financial Advisor. [Ref: Rule 11(5)]
9. Besides Rule 11(2) and (3), which other rule's powers can Secretaries confer on subordinate authorities under Rule 11(5)?
(a) Rule 16 (schemes and projects)
(b) Rule 15 (waiver of recovery)
(c) Rule 13 (write-off of losses)
(d) Rule 10 (re-appropriation)
Ans. (c) Rule 13 (write-off of losses) — Explanation: Rule 11(5) mentions powers under sub-rules (2) and (3) and Rule 13. Rules 10, 15 and 16 cannot be re-delegated under Rule 12(2). [Ref: Rule 11(5); Rule 12(2)]
10. Under Rule 11(6), where powers to award a contract, purchase or consultancy in a project or scheme have been considered and allowed by PIB, EFC or Cabinet, such cases are processed
(a) Always within the Secretary's Rs. 25 crore limit
(b) As per the financial limits laid down for sanction of such schemes or projects by that authority
(c) Always with the Minister's approval
(d) Only after C&AG approval
Ans. (b) As per the financial limits laid down for sanction of such schemes or projects by that authority — Explanation: Rule 11(6) provides that such cases will be processed as per the financial limits laid down for sanction of such schemes or projects by that authority, notwithstanding sub-rules (1) to (4). [Ref: Rule 11(6)]
11. The clarification under Rule 11(6) states that where financial limits for contract powers have been specifically prescribed in the approval of a scheme or project appraised by PIB/EFC,
(a) The C&AG's limits shall be followed
(b) The Rule 11(2) limits shall override them
(c) The limits allowed by the Competent Financial Authority shall be followed
(d) The Minister's approval is always needed
Ans. (c) The limits allowed by the Competent Financial Authority shall be followed — Explanation: GoI Decision (1) under Rule 11 clarifies that where financial limits have been specifically prescribed in the approval, the limits allowed by the Competent Financial Authority (including the Cabinet) shall be followed. [Ref: Rule 11, GoI Decision (1)]
12. Rule 21 (Indents, contracts and purchases) of DFPR 1978 has been shifted as which rule in DFPR 2024?
(a) Rule 12
(b) Rule 21
(c) Rule 18
(d) Rule 11
Ans. (d) Rule 11 — Explanation: The Concordance Table shows Rule 21 of DFPR 1978 shifted as Rule 11 of DFPR 2024. [Ref: Concordance Table]
13. A proprietary article purchase of Rs. 20 crore can be approved by
(a) Only the Cabinet
(b) Only the Finance Minister
(c) Only the Minister in charge
(d) The Secretary of the Department
Ans. (d) The Secretary of the Department — Explanation: Proprietary contracts fall under Rule 11(3), where the Secretary's power extends up to Rs. 25 crore. [Ref: Rule 11(3)]
14. Which body is NOT mentioned in Rule 11(6) as one whose consideration of contract powers in a project or scheme is relevant?
(a) Public Investment Board
(b) Expenditure Finance Committee
(c) Cabinet
(d) Committee on Establishment Expenditure
Ans. (d) Committee on Establishment Expenditure — Explanation: Rule 11(6) mentions PIB, EFC and Cabinet. The CEE appraises the creation of new bodies, not contract powers. [Ref: Rule 11(6)]
15. Rule 11 of DFPR 2024 is titled
(a) Expenditure on Schemes or Projects
(b) Trading operations
(c) Indents, contracts and purchases
(d) Powers of Subordinate Authorities
Ans. (c) Indents, contracts and purchases — Explanation: Rule 11 is titled "Indents, contracts and purchases". [Ref: Rule 11]
16. A negotiated contract of Rs. 25 crore exactly falls within the power of
(a) The Cabinet
(b) The Secretary of the Department
(c) The Finance Minister
(d) The Minister in charge only
Ans. (b) The Secretary of the Department — Explanation: Rule 11(3) permits the Secretary up to Rs. 25 crore. Approval of the Minister is needed only when the amount exceeds this value (Rule 11(4)). [Ref: Rule 11(3), (4)]
17. Re-delegation of contract powers by the Secretary to a Head of Department under Rule 11(5) must be made
(a) By general or special order, in consultation with the Financial Adviser
(b) Orally
(c) Only with the C&AG's approval
(d) Only by a Gazette notification of the Finance Ministry
Ans. (a) By general or special order, in consultation with the Financial Adviser — Explanation: Rule 11(5) requires a general or special order, in consultation with the Financial Advisor of the Department or Ministry. [Ref: Rule 11(5)]
18. The Secretary's power under Rule 11(2) for open or limited tenders is how many times the power under Rule 11(3) for single tender, negotiated or proprietary contracts?
(a) Ten times
(b) Four times (Rs. 100 crore vs Rs. 25 crore)
(c) Twice
(d) Five times
Ans. (b) Four times (Rs. 100 crore vs Rs. 25 crore) — Explanation: Rule 11(2) allows Rs. 100 crore for open/limited tenders and Rule 11(3) allows Rs. 25 crore for negotiated/single tender/proprietary contracts, a ratio of 4:1. [Ref: Rule 11(2), (3)]
19. The lower limit for single tender and proprietary contracts in Rule 11(3) reflects
(a) The lower competition and higher risk in such contracts compared with open or limited tenders
(b) Their exemption from GFR
(c) The higher value of such contracts
(d) Their being charged expenditure
Ans. (a) The lower competition and higher risk in such contracts compared with open or limited tenders — Explanation: Single tender, negotiated and proprietary contracts involve limited or no competition, so the Secretary's power is capped at Rs. 25 crore against Rs. 100 crore for competitive open or limited tenders. [Ref: Rule 11(2), (3)]
20. Can a Secretary confer on a Head of Department powers exceeding Rs. 100 crore for open tenders?
(a) Yes, with the Minister's approval
(b) Yes, without limit
(c) Yes, with FA concurrence
(d) No, powers conferred cannot exceed those vested in the Secretary
Ans. (d) No, powers conferred cannot exceed those vested in the Secretary — Explanation: Rule 11(5) allows Secretaries to confer powers "not exceeding those vested in them" under sub-rules (2) and (3). [Ref: Rule 11(5)]
21. An award of consultancy forming part of a scheme appraised by EFC and approved by the Cabinet, with specific financial limits prescribed in the approval, will be processed under
(a) Rule 11(4) only
(b) Rule 18
(c) Rule 11(3) limits only
(d) The limits allowed by the Competent Financial Authority in that approval
Ans. (d) The limits allowed by the Competent Financial Authority in that approval — Explanation: Rule 11(6) and the clarification under it state that such cases follow the financial limits prescribed in the approval of the Competent Financial Authority, including the Cabinet. [Ref: Rule 11(6); Rule 11, GoI Decision (1)]
22. Rule 16(2) contains a provision similar to Rule 11(6). It states that where award of contract, purchase or consultancy is inseparably linked with a scheme, the expenditure is processed as per
(a) The Minister's approval only
(b) The financial limits laid down for sanction of such schemes by the authority competent to approve them
(c) The Secretary's Rs. 25 crore limit
(d) The C&AG's directions
Ans. (b) The financial limits laid down for sanction of such schemes by the authority competent to approve them — Explanation: Rule 16(2) provides that such expenditure will be processed as per the financial limits laid down for sanction of such schemes or projects by the authority competent to approve them. [Ref: Rule 16(2)]
23. Which of the following is correct regarding powers under Rule 11?
(a) The Department has full powers subject to the rules and GFR, but the Secretary's exercise is capped at Rs. 100 crore (open/limited) and Rs. 25 crore (negotiated/single/proprietary)
(b) Every contract requires the Finance Ministry's consent
(c) The Secretary has unlimited powers
(d) Every contract requires the Minister's approval
Ans. (a) The Department has full powers subject to the rules and GFR, but the Secretary's exercise is capped at Rs. 100 crore (open/limited) and Rs. 25 crore (negotiated/single/proprietary) — Explanation: Rule 11(1) gives the Department full powers subject to the rules and GFR, Rule 11(2) and (3) cap the Secretary's exercise, and Rule 11(4) sends higher values to the Minister. [Ref: Rule 11]
24. A contract entered on the basis of a single financial bid without competition from multiple vendors is covered by which sub-rule for the Secretary's limit?
(a) Rule 11(1) only
(b) Rule 11(6)
(c) Rule 11(2)
(d) Rule 11(3)
Ans. (d) Rule 11(3) — Explanation: Single tender contracts fall under Rule 11(3), with the Secretary's limit of Rs. 25 crore. [Ref: Rule 11(3)]
25. In DFPR 2024, the authority that exercises powers under Rule 11(2) and (3) on behalf of the Department is
(a) The Secretary of the Department concerned
(b) The Head of Office
(c) The Controller of Accounts
(d) The Financial Adviser
Ans. (a) The Secretary of the Department concerned — Explanation: Rule 11(2) and (3) state that the powers shall be exercised by the Secretary of the Department concerned within the stated limits. [Ref: Rule 11(2), (3)]
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