Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 3 of 44, covering Rule 3(1)(h)–(m) and Rule 3(2). 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. As per Rule 3(1)(j), "Projects" means
(a) Expenditure incurred at periodical intervals for the same purpose
(b) One-time expenditure resulting in creation of capital assets or otherwise, which could yield financial or economic returns or both
(c) Grants released to States for salaries
(d) Programmes through which Departments spend resources for delivering goods or services
Ans. (b) One-time expenditure resulting in creation of capital assets or otherwise, which could yield financial or economic returns or both — Explanation: Rule 3(1)(j) defines Projects as one-time expenditure resulting in creation of capital assets or otherwise, which could yield financial or economic returns or both. "Programmes through which Departments spend resources for delivering goods or services" is the definition of Schemes, not Projects. [Ref: Rule 3(1)(j)]
2. According to Rule 3(1)(j), a project may be
(a) Only part of a Centrally Sponsored Scheme
(b) Only a recurring activity
(c) Either separate or part of an approved Scheme
(d) Only a stand-alone activity
Ans. (c) Either separate or part of an approved Scheme — Explanation: The definition of Projects ends by stating that such projects may either be separate or part of an approved Scheme. [Ref: Rule 3(1)(j)]
3. "Re-appropriation" under Rule 3(1)(k) means transfer of funds by a Competent Authority
(a) From one primary unit of appropriation to another within the same Section of the grant or appropriation
(b) From the Capital Section to the Revenue Section
(c) From one grant to another grant
(d) From the Contingency Fund to the Consolidated Fund
Ans. (a) From one primary unit of appropriation to another within the same Section of the grant or appropriation — Explanation: Rule 3(1)(k) defines Re-appropriation as transfer, by a Competent Authority, of funds from one primary unit of appropriation to another to meet additional expenditure within the same Section (Revenue Section and Capital Section) of the grant or appropriation. [Ref: Rule 3(1)(k)]
4. Re-appropriation, as defined in DFPR 2024, is made in order to
(a) Write off losses
(b) Create new posts
(c) Surrender savings to the Consolidated Fund
(d) Meet additional expenditure
Ans. (d) Meet additional expenditure — Explanation: The definition in Rule 3(1)(k) says the transfer is made "to meet additional expenditure" within the same Section of the grant or appropriation. [Ref: Rule 3(1)(k)]
5. Which two Sections of a grant are referred to in the definition of re-appropriation?
(a) Plan Section and Non-Plan Section
(b) Establishment Section and Scheme Section
(c) Voted Section and Charged Section
(d) Revenue Section and Capital Section
Ans. (d) Revenue Section and Capital Section — Explanation: Rule 3(1)(k) refers to the "same Section (Revenue Section and Capital Section) of the grant or Appropriation". [Ref: Rule 3(1)(k)]
6. "Recurring expenditure" as defined in Rule 3(1)(l) is
(a) Expenditure met from the Contingency Fund
(b) Expenditure on capital assets only
(c) Expenditure incurred only once
(d) Expenditure incurred at periodical intervals for the same purpose
Ans. (d) Expenditure incurred at periodical intervals for the same purpose — Explanation: Rule 3(1)(l) defines recurring expenditure as expenditure incurred at periodical intervals for the same purpose; all other expenditure is non-recurring. [Ref: Rule 3(1)(l)]
7. As per DFPR 2024, expenditure other than recurring expenditure is called
(a) Capital expenditure
(b) Contingent expenditure
(c) Non-recurring expenditure
(d) Charged expenditure
Ans. (c) Non-recurring expenditure — Explanation: Rule 3(1)(l) states that expenditure other than recurring expenditure is non-recurring expenditure. [Ref: Rule 3(1)(l)]
8. "Schemes" under Rule 3(1)(m) means
(a) One-time expenditure resulting in creation of capital assets
(b) Grants to autonomous bodies for salaries
(c) Programmes through which Departments of the Government of India spend resources for delivering goods or services or both
(d) Loans given to State Governments
Ans. (c) Programmes through which Departments of the Government of India spend resources for delivering goods or services or both — Explanation: Rule 3(1)(m) defines Schemes as programmes through which Departments of the Government of India spend resources for delivering goods or services or both. [Ref: Rule 3(1)(m)]
9. Terms used in DFPR 2024 but not defined there take their meaning from
(a) The Companies Act, 2013
(b) The General Financial Rules
(c) The Fundamental Rules
(d) The Constitution of India only
Ans. (b) The General Financial Rules — Explanation: Rule 3(2) provides that terms and expressions used but not defined in these rules but defined in the General Financial Rules shall have the meanings assigned to them in the GFR. [Ref: Rule 3(2)]
10. Rule 3(2) of DFPR 2024 links undefined terms to which rules?
(a) General Financial Rules
(b) Receipts and Payments Rules
(c) Central Government Account Rules
(d) Treasury Rules
Ans. (a) General Financial Rules — Explanation: Rule 3(2) adopts the meanings of terms defined in the General Financial Rules. [Ref: Rule 3(2)]
11. Which of the following is correctly matched?
(a) Rule 3(1)(k) – Recurring expenditure
(b) Rule 3(1)(k) – Re-appropriation
(c) Rule 3(1)(j) – Schemes
(d) Rule 3(1)(m) – Projects
Ans. (b) Rule 3(1)(k) – Re-appropriation — Explanation: Clause (j) defines Projects, (k) Re-appropriation, (l) Recurring expenditure and (m) Schemes. [Ref: Rule 3(1)]
12. Salary paid every month to Government employees is an example of
(a) Non-recurring expenditure
(b) Project expenditure
(c) Recurring expenditure
(d) Capital expenditure
Ans. (c) Recurring expenditure — Explanation: Salary is incurred at periodical (monthly) intervals for the same purpose and therefore falls within the definition of recurring expenditure in Rule 3(1)(l). [Ref: Rule 3(1)(l)]
13. A one-time purchase of a building for an office is best described under DFPR 2024 as
(a) Non-recurring expenditure
(b) Establishment expenditure
(c) Charged expenditure
(d) Recurring expenditure
Ans. (a) Non-recurring expenditure — Explanation: Expenditure that is not incurred at periodical intervals for the same purpose is non-recurring under Rule 3(1)(l). A one-time purchase is non-recurring. [Ref: Rule 3(1)(l)]
14. The definition of "Projects" in DFPR 2024 emphasises
(a) One-time expenditure
(b) Expenditure on interest
(c) Recurring expenditure
(d) Expenditure on salaries
Ans. (a) One-time expenditure — Explanation: Projects are defined as one-time expenditure resulting in creation of capital assets or otherwise. [Ref: Rule 3(1)(j)]
15. Under DFPR 2024, re-appropriation can be done only by
(a) The Head of Office in all cases
(b) Any Drawing and Disbursing Officer
(c) The Pay and Accounts Officer
(d) A Competent Authority
Ans. (d) A Competent Authority — Explanation: Rule 3(1)(k) defines re-appropriation as transfer "by a Competent Authority" of funds from one primary unit of appropriation to another. [Ref: Rule 3(1)(k)]
16. The phrase "delivering goods or, services or both" appears in the definition of
(a) Appropriation
(b) Schemes
(c) Projects
(d) Head of Office
Ans. (b) Schemes — Explanation: Rule 3(1)(m) defines Schemes as programmes through which Departments spend resources for delivering goods or, services or both. [Ref: Rule 3(1)(m)]
17. The words "financial or economic returns or both" appear in the definition of
(a) Competent Authority
(b) Schemes
(c) Projects
(d) Recurring expenditure
Ans. (c) Projects — Explanation: Rule 3(1)(j) defines Projects as one-time expenditure which could yield financial or economic returns or both. [Ref: Rule 3(1)(j)]
18. According to Appendix III (OM dated 05.08.2016), Schemes are
(a) Loans to public sector undertakings only
(b) One-time capital expenditure only
(c) Grants to international organisations
(d) Program-based cost centres through which Ministries and Departments spend budgetary and extra-budgetary resources for delivery of public goods and services
Ans. (d) Program-based cost centres through which Ministries and Departments spend budgetary and extra-budgetary resources for delivery of public goods and services — Explanation: Para 2 of the OM dated 05.08.2016 (Appendix III) describes Schemes as program-based cost centres through which Ministries/Departments spend their budgetary and extra-budgetary resources for delivery of public goods and services to citizens. [Ref: Appendix III, para 2]
19. The two types of Schemes described in Appendix III are
(a) Central Sector Schemes and Centrally Sponsored Schemes
(b) Revenue Schemes and Capital Schemes
(c) State Schemes and District Schemes
(d) Plan Schemes and Non-Plan Schemes
Ans. (a) Central Sector Schemes and Centrally Sponsored Schemes — Explanation: Para 2 of Appendix III describes two types: Central Sector Schemes, implemented by Central Ministries through designated agencies, and Centrally Sponsored Schemes, implemented within the National Development Agenda. [Ref: Appendix III, para 2]
20. Which statement about the "Head of Office" is correct under DFPR 2024?
(a) He is subordinate to Administrators and Heads of Departments
(b) He must be of the rank of Secretary
(c) He is superior to the Head of the Department
(d) He is declared by the C&AG
Ans. (a) He is subordinate to Administrators and Heads of Departments — Explanation: Rule 3(1)(h) states that a Head of Office is a Gazetted Officer designated as such, subordinate to Administrators and Heads of Departments. [Ref: Rule 3(1)(h)]
21. Which term is defined in DFPR 2024 as "the lowest unit of accounting classification denoting the objects of expenditure"?
(a) Minor Head
(b) Primary unit of appropriation
(c) Detailed Head
(d) Major Head
Ans. (b) Primary unit of appropriation — Explanation: Rule 8(1) states that the primary unit of appropriation is the lowest unit of accounting classification denoting the objects of expenditure. [Ref: Rule 8(1)]
22. Which of the following terms is NOT defined in Rule 3(1) of DFPR 2024?
(a) New Service
(b) Schemes
(c) Recurring expenditure
(d) Re-appropriation
Ans. (a) New Service — Explanation: "New Service" is not defined in Rule 3. It is explained in the Budget Division OM dated 23.02.2024 (Appendix I) with reference to Article 115(1)(a) of the Constitution. [Ref: Rule 3(1); Appendix I]
23. Under DFPR 2024, re-appropriation within the same Section means
(a) Capital to Revenue only
(b) Revenue to Revenue or Capital to Capital within the grant
(c) One grant to another grant
(d) Revenue to Capital only
Ans. (b) Revenue to Revenue or Capital to Capital within the grant — Explanation: Re-appropriation is within the same Section (Revenue or Capital) of the grant. Rule 10(6) further bars re-appropriation from Capital to Revenue Section or vice versa. [Ref: Rule 3(1)(k); Rule 10(6)]
24. The definition of "Projects" in DFPR 2024 includes creation of capital assets "or otherwise". This implies
(a) A project must always create capital assets
(b) A project need not always result in creation of capital assets
(c) A project must always yield financial returns
(d) A project is always recurring
Ans. (b) A project need not always result in creation of capital assets — Explanation: The words "resulting in creation of capital assets or otherwise" show that a project may involve one-time expenditure even without creating a capital asset. [Ref: Rule 3(1)(j)]
25. Which clause of Rule 3(1) defines "Ministry of Finance"?
(a) Clause (e)
(b) Clause (i)
(c) Clause (d)
(d) Clause (f)
Ans. (b) Clause (i) — Explanation: Clause (f) defines "Finance Ministry" (Department of Expenditure) and clause (i) defines "Ministry of Finance" as the Departments concerned with the subject matter in the Ministry of Finance. [Ref: Rule 3(1)(i)]
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