Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 19 of 44, covering Rules 16 and 17. 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 16(1), a Department may sanction expenditure on any scheme or project subject to
(a) Approval of the C&AG
(b) Approval of the PAO
(c) Approval of the State Government
(d) Its outlay having been approved by the Competent Authority in accordance with the appraisal and approval process prescribed by the Finance Ministry
Ans. (d) Its outlay having been approved by the Competent Authority in accordance with the appraisal and approval process prescribed by the Finance Ministry — Explanation: Rule 16(1) permits a Department to sanction expenditure on any scheme or project as per delegated powers, subject to its outlay having been approved by the Competent Authority under the prescribed appraisal and approval process. [Ref: Rule 16(1)]
2. Rule 16(1) begins with the words "Without prejudice to the provisions of rule 12". This means
(a) Rule 12 is repealed
(b) Rule 16 overrides Rule 12 completely
(c) The general powers of Departments under Rule 12 are not affected by Rule 16
(d) Rule 12 applies only to schemes
Ans. (c) The general powers of Departments under Rule 12 are not affected by Rule 16 — Explanation: "Without prejudice to" means Rule 16 operates in addition to, and does not curtail, the powers of Departments and subordinate authorities under Rule 12. [Ref: Rule 16(1)]
3. Under Rule 16(1), the power of appraisal and approval of schemes or projects
(a) Can be delegated to the Head of Office
(b) Shall not be delegated
(c) Can be delegated to the PAO
(d) Can be delegated to the HoD
Ans. (b) Shall not be delegated — Explanation: Rule 16(1) ends with "the power of appraisal and approval under this rule shall not be delegated". Rule 12(2)(c) also excludes Rule 16 from re-delegation. [Ref: Rule 16(1); Rule 12(2)(c)]
4. Under Rule 16(2), where award of contract, purchase or consultancy is inseparably linked with a scheme, the expenditure is processed as per
(a) The C&AG's directions
(b) The discretion of the HoD
(c) The financial limits laid down for sanction of such schemes or projects by the authority competent to approve them
(d) Rule 11(3) limits
Ans. (c) The financial limits laid down for sanction of such schemes or projects by the authority competent to approve them — Explanation: Rule 16(2) says 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)]
5. As per GoI Decision (1) under Rule 16, appraisal and approval of public funded schemes and projects is at present governed by DoE OM No. 24(35)/PF-II/2012 dated
(a) 15th September, 2016
(b) 1st April, 2024
(c) 5th August, 2016
(d) 29th August, 2014
Ans. (c) 5th August, 2016 — Explanation: The Decision states that appraisal and approval are governed by DoE OM No. 24(35)/PF-II/2012 dated 5th August, 2016, placed at Appendix-III, which will continue till further orders. [Ref: Rule 16, GoI Decision (1), paras 2–3]
6. Rule 18 (Expenditure on schemes or projects) of DFPR 1978 corresponds to which rule in DFPR 2024?
(a) Rule 11
(b) Rule 16
(c) Rule 17
(d) Rule 18
Ans. (b) Rule 16 — Explanation: The Concordance Table shows Rule 18 of DFPR 1978 shifted as Rule 16 of DFPR 2024. [Ref: Concordance Table]
7. Rule 16 of DFPR 2024 is titled
(a) Grants-in-aid, loans, etc.
(b) Expenditure on Schemes or Projects
(c) Indents, contracts and purchases
(d) Trading operations
Ans. (b) Expenditure on Schemes or Projects — Explanation: Rule 16 is titled "Expenditure on Schemes or Projects". [Ref: Rule 16]
8. Under Rule 17, which authorities have full powers to sanction grants-in-aid including scholarships and loans?
(a) Only the Finance Ministry
(b) Departments of the Government of India and Administrators
(c) Only the Cabinet
(d) Only Heads of Offices
Ans. (b) Departments of the Government of India and Administrators — Explanation: Rule 17 states that Departments of the Government of India and Administrators shall have full powers to sanction grants-in-aid including scholarships and loans, subject to provisos. [Ref: Rule 17]
9. Under Rule 17(a), grants-in-aid including scholarships must be in accordance with rules or principles prescribed with
(a) Approval of the C&AG
(b) The previous consent of the Finance Ministry, and a certificate to that effect included in the sanction
(c) Approval of the State Government
(d) Approval of NITI Aayog
Ans. (b) The previous consent of the Finance Ministry, and a certificate to that effect included in the sanction — Explanation: Proviso (a) to Rule 17 requires grants to be in accordance with rules or principles prescribed with the previous consent of the Finance Ministry, with a certificate to that effect in the sanction. [Ref: Rule 17(a)]
10. Under Rule 17(b), the rate of interest and period of repayment of a loan are fixed with the previous consent of the Ministry of Finance unless
(a) The loan is to a State Government
(b) They are prescribed in any general or special order of the Department of the Government of India
(c) The loan is below Rs. 1 crore
(d) The Minister approves
Ans. (b) They are prescribed in any general or special order of the Department of the Government of India — Explanation: Proviso (b) to Rule 17 requires MoF consent for fixing rate of interest and period of repayment unless these are prescribed in any general or special order of the Department of the Government of India. [Ref: Rule 17(b)]
11. A sanction for grants-in-aid under Rule 17 must include
(a) A certificate from the grantee's auditor only
(b) A certificate from the C&AG
(c) A certificate that the grants are in accordance with rules or principles prescribed with the previous consent of the Finance Ministry
(d) No certificate
Ans. (c) A certificate that the grants are in accordance with rules or principles prescribed with the previous consent of the Finance Ministry — Explanation: Rule 17(a) requires "a certificate to that effect is included in the sanction". [Ref: Rule 17(a)]
12. Rule 20 (Grants and Loans) of DFPR 1978 corresponds to which rule in DFPR 2024?
(a) Rule 16
(b) Rule 18
(c) Rule 20
(d) Rule 17
Ans. (d) Rule 17 — Explanation: The Concordance Table shows Rule 20 of DFPR 1978 shifted as Rule 17 of DFPR 2024. [Ref: Concordance Table]
13. Scholarships under DFPR 2024 are treated as part of
(a) Rewards
(b) Salaries
(c) Professional Services
(d) Grants-in-aid under Rule 17
Ans. (d) Grants-in-aid under Rule 17 — Explanation: Rule 17 speaks of "grants in aid including scholarships". In the object head classification, scholarships are booked under Object Head 34. [Ref: Rule 17; Annexure-I]
14. Rule 19 (Power to release funds) of DFPR 1978 has been
(a) Shifted as Rule 17
(b) Deleted
(c) Shifted as Rule 9
(d) Shifted as Rule 16
Ans. (b) Deleted — Explanation: The Concordance Table shows Rule 19 (Power to release funds) of DFPR 1978 as deleted. [Ref: Concordance Table]
15. A Department wants to give a loan to an autonomous body at an interest rate not prescribed in any general or special order. Under Rule 17 it must
(a) Obtain the previous consent of the Ministry of Finance for the rate of interest and period of repayment
(b) Obtain the C&AG's approval
(c) Give the loan interest-free
(d) Fix any rate it likes
Ans. (a) Obtain the previous consent of the Ministry of Finance for the rate of interest and period of repayment — Explanation: Rule 17(b) requires the rate of interest and period of repayment to be fixed with the previous consent of the Ministry of Finance unless prescribed in a general or special order of the Department. [Ref: Rule 17(b)]
16. The expression "Competent Financial Authority (including the Cabinet)" appears in the clarification under
(a) Rule 11(6)
(b) Rule 19
(c) Rule 21
(d) Rule 17
Ans. (a) Rule 11(6) — Explanation: GoI Decision (1) under Rule 11 refers to schemes appraised by PIB or EFC and approved by the Competent Financial Authority (including the Cabinet). [Ref: Rule 11, GoI Decision (1)]
17. Rule 16 requires the outlay of a scheme to be approved "in accordance with the appraisal and approval process prescribed by" the
(a) Planning Commission
(b) Finance Ministry
(c) C&AG
(d) Parliament
Ans. (b) Finance Ministry — Explanation: Rule 16(1) refers to the appraisal and approval process prescribed by the Finance Ministry from time to time. [Ref: Rule 16(1)]
18. Which rule of DFPR 2024 makes grants-in-aid dependent on "rules or principles" framed with Finance Ministry consent?
(a) Rule 17
(b) Rule 18
(c) Rule 16
(d) Rule 12
Ans. (a) Rule 17 — Explanation: Rule 17(a) provides that grants-in-aid including scholarships should be in accordance with the rules or principles prescribed with the previous consent of the Finance Ministry. [Ref: Rule 17(a)]
19. Which of the following is correct about Rule 16?
(a) It lets HoDs approve any scheme
(b) It permits Departments to sanction expenditure on approved schemes, but the power of appraisal and approval cannot be delegated
(c) It exempts schemes from appraisal
(d) It applies only to Railways
Ans. (b) It permits Departments to sanction expenditure on approved schemes, but the power of appraisal and approval cannot be delegated — Explanation: Rule 16(1) allows sanction of expenditure on schemes whose outlay has been approved through the prescribed process, and bars delegation of the power of appraisal and approval. [Ref: Rule 16(1)]
20. The OM dated 05.08.2016 on appraisal and approval of schemes and projects is placed as which Appendix to DFPR 2024?
(a) Annexure-II
(b) Appendix-I
(c) Appendix-II
(d) Appendix-III
Ans. (d) Appendix-III — Explanation: GoI Decision (1) under Rule 16 states that the OM dated 5th August, 2016 is placed at Appendix-III. [Ref: Rule 16, GoI Decision (1), para 3]
21. The appraisal OM dated 05.08.2016 does not apply to matters required to be placed before
(a) The Cabinet Committee on Economic Affairs
(b) The Public Investment Board
(c) The Expenditure Finance Committee
(d) The Cabinet Committee on Security
Ans. (d) The Cabinet Committee on Security — Explanation: The subject line of the OM reads "Appraisal and Approval of Public Funded Schemes and Projects (except matters required to be placed before the Cabinet Committee on Security)". [Ref: Appendix III]
22. Rule 17 of DFPR 2024 is titled
(a) Trading operations
(b) Grants-in-aid, loans, etc.
(c) Expenditure on Schemes or Projects
(d) Communication of sanctions to audit
Ans. (b) Grants-in-aid, loans, etc. — Explanation: Rule 17 is titled "Grants-in-aid, loans, etc.". [Ref: Rule 17]
23. The guidelines of 05.08.2016 for appraisal of schemes and projects, according to the GoI Decision under Rule 16, will
(a) Apply only to new schemes after 2026
(b) Continue till further orders
(c) Lapse on 31.03.2024
(d) Apply only to Railways
Ans. (b) Continue till further orders — Explanation: Para 2 of the Decision says these guidelines for formulation, appraisal and approval of public funded schemes and projects will continue till further orders. [Ref: Rule 16, GoI Decision (1), para 2]
24. A Department sanctions scholarships under a scheme whose rules were framed with Finance Ministry consent. The sanction must
(a) Be issued only by the Finance Ministry
(b) Be approved by the C&AG
(c) Include a certificate that the scholarships are in accordance with such rules
(d) Be referred to the Cabinet
Ans. (c) Include a certificate that the scholarships are in accordance with such rules — Explanation: Rule 17(a) requires a certificate in the sanction that the grants including scholarships are in accordance with rules or principles prescribed with the previous consent of the Finance Ministry. [Ref: Rule 17(a)]
25. Consider: (1) Rule 16 appraisal and approval powers cannot be delegated. (2) Rule 17 gives Departments and Administrators full powers to sanction grants-in-aid, subject to provisos. Which is correct?
(a) Both (1) and (2)
(b) Only (1)
(c) Only (2)
(d) Neither (1) nor (2)
Ans. (a) Both (1) and (2) — Explanation: Both statements are correct: Rule 16(1) bars delegation of appraisal and approval powers, and Rule 17 gives full powers to sanction grants-in-aid, including scholarships and loans, subject to provisos (a) and (b). [Ref: Rules 16 and 17]
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