Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 4 of 44, covering Rules 4–7. 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 4, amounts authorised by Parliament become available to Departments after
(a) The Appropriation Bill is passed by Parliament and assented to by the President
(b) The Demands for Grants are laid on the Table
(c) The Budget speech is delivered
(d) The Finance Bill is introduced
Ans. (a) The Appropriation Bill is passed by Parliament and assented to by the President — Explanation: Rule 4 states that after the Appropriation Bill is passed by Parliament and assented to by the President, the amounts so authorised become available to the Departments to meet sanctioned expenditure. [Ref: Rule 4]
2. Rule 4 of DFPR 2024 deals with
(a) Provision of funds by Parliament
(b) Allotment of funds
(c) Residuary financial powers
(d) Primary unit of appropriation
Ans. (a) Provision of funds by Parliament — Explanation: Rule 4 is titled "Provision of funds by Parliament". [Ref: Rule 4]
3. Rule 7 (Provision of funds by Parliament) of DFPR 1978 has been shifted in DFPR 2024 as
(a) Rule 7
(b) Rule 4
(c) Rule 6
(d) Rule 9
Ans. (b) Rule 4 — Explanation: The Concordance Table shows Rule 7 of DFPR 1978 (Provision of funds by Parliament) shifted as Rule 4 of DFPR 2024. [Ref: Concordance Table]
4. Under Rule 5(1), no authority shall sanction expenditure or advances without the previous consent of the Finance Ministry if it involves
(a) Payment of salaries of existing staff
(b) The introduction of a new principle or practice likely to lead to increased expenditure in future
(c) Expenditure within the budget provision
(d) Payment of electricity bills
Ans. (b) The introduction of a new principle or practice likely to lead to increased expenditure in future — Explanation: Rule 5(1) requires previous consent of the Finance Ministry where sanction of expenditure or advances involves the introduction of a new principle or practice likely to lead to increased expenditure in future. [Ref: Rule 5(1)]
5. Rule 5(2) provides that a Subordinate Authority shall exercise the power to sanction expenditure subject to
(a) No conditions at all
(b) Any general or special order or direction issued by the authority delegating or re-delegating such power
(c) Approval of Parliament in every case
(d) Approval of the C&AG in every case
Ans. (b) Any general or special order or direction issued by the authority delegating or re-delegating such power — Explanation: Rule 5(2) says a Subordinate Authority shall exercise the power to sanction expenditure subject to any general or special order or direction which the authority delegating or re-delegating such power may issue or prescribe from time to time. [Ref: Rule 5(2)]
6. Rule 4 (General Limitation on power to sanction expenditure) of DFPR 1978 corresponds to which rule of DFPR 2024?
(a) Rule 4
(b) Rule 7
(c) Rule 6
(d) Rule 5
Ans. (d) Rule 5 — Explanation: As per the Concordance Table, Rule 4 of DFPR 1978 has been shifted as Rule 5 (General conditions on powers to sanction expenditure) of DFPR 2024. [Ref: Concordance Table]
7. Under Rule 6 of DFPR 2024, all financial powers not specifically delegated to any authority vest in
(a) The Cabinet
(b) The President
(c) The Administrative Ministry
(d) The Finance Ministry
Ans. (d) The Finance Ministry — Explanation: Rule 6 (Residuary financial powers) provides that all financial powers not specifically delegated to any authority by these rules, including creation and abolition of posts, shall vest in the Finance Ministry. [Ref: Rule 6]
8. Which power is specifically mentioned in Rule 6 as vesting in the Finance Ministry as a residuary power?
(a) Write-off of losses up to Rs. 5,000
(b) Condemnation of vehicles
(c) Creation and abolition of posts
(d) Re-appropriation within the same object head
Ans. (c) Creation and abolition of posts — Explanation: Rule 6 expressly includes "creation and abolition of posts" among financial powers not specifically delegated, which vest in the Finance Ministry. [Ref: Rule 6]
9. Rule 5 (Residuary Financial Powers) of DFPR 1978 has been shifted in DFPR 2024 as
(a) Rule 5
(b) Rule 6
(c) Rule 4
(d) Rule 12
Ans. (b) Rule 6 — Explanation: The Concordance Table shows Rule 5 of DFPR 1978 shifted as Rule 6 of DFPR 2024. [Ref: Concordance Table]
10. According to Rule 7(1), all expenditure requires
(a) Both sanction and appropriation
(b) Only sanction
(c) Only appropriation
(d) Only approval of the Head of Office
Ans. (a) Both sanction and appropriation — Explanation: Rule 7(1) states that all expenditure shall require both sanction and appropriation. [Ref: Rule 7(1)]
11. Expenditure can be incurred against a sanction only when
(a) Funds are made available by valid appropriation or re-appropriation
(b) The sanction is signed by a Joint Secretary
(c) The Minister approves the file
(d) The PAO issues a letter of credit
Ans. (a) Funds are made available by valid appropriation or re-appropriation — Explanation: Rule 7(1) says expenditure can be incurred against a sanction only when funds are made available to meet the expenditure or liability by valid appropriation or re-appropriation. [Ref: Rule 7(1)]
12. Under Rule 7(2), a sanction to recurring expenditure becomes operative when
(a) It is signed by the sanctioning authority
(b) It is published in the Gazette
(c) Funds to meet the expenditure of the first year are made available by valid appropriation, re-appropriation or an advance from the Contingency Fund
(d) Audit accepts it
Ans. (c) Funds to meet the expenditure of the first year are made available by valid appropriation, re-appropriation or an advance from the Contingency Fund — Explanation: Rule 7(2) states that a sanction to recurring expenditure becomes operative when funds for the first year are made available by valid Appropriation or Re-appropriation or by an advance from the Contingency Fund. [Ref: Rule 7(2)]
13. Once operative, a sanction to recurring expenditure remains effective for subsequent years
(a) Without any further appropriation
(b) Only for three years
(c) Only if re-issued every year
(d) Subject to appropriation in such years and the terms of the sanction
Ans. (d) Subject to appropriation in such years and the terms of the sanction — Explanation: Rule 7(2) provides that it remains effective for each subsequent year subject to appropriation in such years and also subject to the terms of the sanction. [Ref: Rule 7(2)]
14. Rule 6 (Effect of sanction) of DFPR 1978 has become which rule in DFPR 2024?
(a) Rule 20
(b) Deleted
(c) Rule 6
(d) Rule 7 (Sanction of expenditure)
Ans. (d) Rule 7 (Sanction of expenditure) — Explanation: The Concordance Table shows Rule 6 (Effect of sanction) of DFPR 1978 shifted as Rule 7 of DFPR 2024. [Ref: Concordance Table]
15. Rule 7 of DFPR 2024 is titled
(a) Provision of funds by Parliament
(b) Allotment of funds
(c) Residuary financial powers
(d) Sanction of expenditure
Ans. (d) Sanction of expenditure — Explanation: Rule 7 is titled "Sanction of expenditure"; it lays down that expenditure needs both sanction and appropriation. [Ref: Rule 7]
16. Which source of funds is expressly mentioned in Rule 7(2), besides appropriation and re-appropriation, for making a recurring sanction operative?
(a) An advance from the Contingency Fund
(b) Grants from States
(c) Public Account deposits
(d) A loan from the Reserve Bank
Ans. (a) An advance from the Contingency Fund — Explanation: Rule 7(2) mentions "an advance from the Contingency Fund" as one of the ways funds for the first year can be made available. [Ref: Rule 7(2)]
17. A Department sanctions a new allowance with no precedent that will increase expenditure in future. Under DFPR 2024 this requires
(a) Previous consent of the Finance Ministry
(b) Only approval of the Head of Office
(c) Only approval of the PAO
(d) No approval since funds are available
Ans. (a) Previous consent of the Finance Ministry — Explanation: Rule 5(1) requires previous consent of the Finance Ministry for sanctions involving introduction of a new principle or practice likely to lead to increased expenditure in future. [Ref: Rule 5(1)]
18. Rule 5 of DFPR 2024 is titled
(a) Power to relax
(b) General conditions on powers to sanction expenditure
(c) Sanction of expenditure
(d) Residuary financial powers
Ans. (b) General conditions on powers to sanction expenditure — Explanation: Rule 5 is titled "General conditions on powers to sanction expenditure". [Ref: Rule 5]
19. According to Rule 4, amounts authorised by Parliament become available to meet
(a) Any expenditure whether sanctioned or not
(b) Sanctioned expenditure
(c) Only capital expenditure
(d) Only charged expenditure
Ans. (b) Sanctioned expenditure — Explanation: Rule 4 states that the amounts so authorised become available to the concerned Departments to meet sanctioned expenditure. [Ref: Rule 4]
20. Which of the following statements is correct under DFPR 2024?
(a) Contingency Fund advances cannot make a sanction operative
(b) A sanction alone, without funds, does not permit expenditure to be incurred
(c) Appropriation is not required for recurring expenditure after the first year
(d) Funds alone, without sanction, permit expenditure to be incurred
Ans. (b) A sanction alone, without funds, does not permit expenditure to be incurred — Explanation: Rule 7(1) requires both sanction and appropriation, and expenditure can be incurred only when funds are available by valid appropriation or re-appropriation. [Ref: Rule 7]
21. The Preface describes delegation of financial powers as an important determinant of
(a) Tax collection
(b) Efficiency in large organisations
(c) Monetary policy
(d) Parliamentary control over States
Ans. (b) Efficiency in large organisations — Explanation: The Preface opens by stating that delegation in general, and delegation of financial powers in particular, is an important determinant of efficiency in large organisations. [Ref: Preface]
22. Which assent is required for the Appropriation Bill before funds become available under Rule 4?
(a) Assent of the Speaker
(b) Assent of the Finance Minister
(c) Assent of the C&AG
(d) Assent of the President
Ans. (d) Assent of the President — Explanation: Rule 4 requires the Appropriation Bill to be passed by Parliament and assented to by the President. [Ref: Rule 4]
23. The powers not specifically delegated under DFPR 2024 are called
(a) Plenary powers
(b) Discretionary powers
(c) Emergency powers
(d) Residuary financial powers
Ans. (d) Residuary financial powers — Explanation: Rule 6 is titled "Residuary financial powers" and vests all powers not specifically delegated in the Finance Ministry. [Ref: Rule 6]
24. A subordinate authority exercising delegated power must follow directions of
(a) The Election Commission
(b) The authority delegating or re-delegating such power
(c) The State Finance Department
(d) The Public Accounts Committee directly
Ans. (b) The authority delegating or re-delegating such power — Explanation: Rule 5(2) makes the subordinate authority's power subject to any general or special order or direction issued by the authority delegating or re-delegating the power. [Ref: Rule 5(2)]
25. Rules 11 (Creation of posts) and 12 (Abolition of posts) of DFPR 1978 have been
(a) Deleted
(b) Shifted to Annexure II
(c) Retained as Rules 11 and 12
(d) Merged into Rule 16
Ans. (a) Deleted — Explanation: The Concordance Table shows Rules 11 and 12 of DFPR 1978 as deleted. Under Rule 6 of DFPR 2024, creation and abolition of posts vest in the Finance Ministry as residuary powers. [Ref: Concordance Table; Rule 6]
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