Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 6 of 44, covering Rule 10(1)–(8). 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 10(1), funds shall not be appropriated or re-appropriated to meet expenditure on a New Service or New Instrument of Service without
(a) Prior approval of Parliament
(b) Approval of the Secretary of the Department
(c) Approval of the Finance Minister
(d) Approval of the C&AG
Ans. (a) Prior approval of Parliament — Explanation: Rule 10(1) states that, save with prior approval of Parliament, funds shall not be appropriated or re-appropriated to meet expenditure on a New Service or New Instrument of Service (NS or NIS) not contemplated in the budget approved by Parliament. [Ref: Rule 10(1)]
2. For deciding whether a case relates to a New Service or New Instrument of Service, the financial limits prescribed by whom are to be referred to?
(a) Department of Expenditure
(b) Public Accounts Committee alone
(c) Budget Division, Department of Economic Affairs
(d) Controller General of Accounts
Ans. (c) Budget Division, Department of Economic Affairs — Explanation: Rule 10(1) says the financial limits prescribed by the Budget Division, Department of Economic Affairs, from time to time shall be referred to. [Ref: Rule 10(1)]
3. Under Rule 10(2), funds shall not be appropriated or re-appropriated to meet expenditure which
(a) Relates to salaries
(b) Has not been sanctioned by an authority competent to sanction it
(c) Is recurring in nature
(d) Is below Rs. 1 lakh
Ans. (b) Has not been sanctioned by an authority competent to sanction it — Explanation: Rule 10(2) prohibits appropriation or re-appropriation to meet expenditure which has not been sanctioned by an authority competent to sanction it. [Ref: Rule 10(2)]
4. Under Rule 10(3), funds shall not be appropriated or re-appropriated to any work which has not received
(a) Audit clearance
(b) Administrative approval and technical sanction
(c) Approval of Parliament
(d) Approval of the Cabinet
Ans. (b) Administrative approval and technical sanction — Explanation: Rule 10(3) prohibits appropriation or re-appropriation to any work which has not received administrative approval and technical sanction as prescribed by Government of India. [Ref: Rule 10(3)]
5. Which statement is correct regarding charged and voted expenditure under Rule 10(4)?
(a) Funds for charged expenditure cannot be used for voted expenditure and vice versa
(b) Funds for charged expenditure can be freely used for voted expenditure
(c) Funds for voted expenditure can be used for charged expenditure with FA approval
(d) Only the President can transfer voted funds to charged
Ans. (a) Funds for charged expenditure cannot be used for voted expenditure and vice versa — Explanation: Rule 10(4) provides that funds for charged expenditure shall not be appropriated or re-appropriated to meet voted expenditure, and funds for voted expenditure shall not be used for charged expenditure. [Ref: Rule 10(4)]
6. Under Rule 10(5), re-appropriation from one grant (or appropriation for charged expenditure) to another is
(a) Permitted with FA concurrence
(b) Permitted up to 20%
(c) Permitted with approval of the Secretary
(d) Not permitted
Ans. (d) Not permitted — Explanation: Rule 10(5) states that no re-appropriation shall be made from one grant or appropriation for charged expenditure to another grant or appropriation. [Ref: Rule 10(5)]
7. Re-appropriation from the Capital Section to the Revenue Section of a grant is
(a) Not permitted under Rule 10(6)
(b) Permitted with approval of the Head of Department
(c) Permitted with approval of the Secretary
(d) Permitted up to Rs. 15 crore
Ans. (a) Not permitted under Rule 10(6) — Explanation: Rule 10(6) states that no re-appropriation can be made from Capital to Revenue Section of the grant or vice versa. [Ref: Rule 10(6)]
8. Under Rule 10(7), no re-appropriation can be made from an appropriation which has already been
(a) Surrendered to the Finance Ministry
(b) Audited by the C&AG
(c) Reduced at the Revised Estimates stage
(d) Augmented through a Supplementary Demand for Grant passed by Parliament or under the provisions of this rule
Ans. (d) Augmented through a Supplementary Demand for Grant passed by Parliament or under the provisions of this rule — Explanation: Rule 10(7) bars re-appropriation from an appropriation already augmented through a Supplementary Demand for Grant passed by Parliament or under the provisions of this rule. [Ref: Rule 10(7)]
9. Under Rule 10(8), no re-appropriation can be made from savings under an activity for which
(a) The Minister has approved expenditure
(b) The budget has been fully spent
(c) Posts have been created
(d) A Contingency Fund advance has already been obtained during the financial year
Ans. (d) A Contingency Fund advance has already been obtained during the financial year — Explanation: Rule 10(8) prohibits re-appropriation from savings under an activity for which a Contingency Fund Advance has already been obtained during the course of the financial year. [Ref: Rule 10(8)]
10. How many general restrictions on appropriation and re-appropriation are listed in sub-rules (1) to (8) of Rule 10?
(a) Eight
(b) Nine
(c) Six
(d) Five
Ans. (a) Eight — Explanation: Rule 10 lists eight general restrictions in sub-rules (1) to (8), before listing the powers of Administrative Ministries in sub-rule (9). [Ref: Rule 10(1)–(8)]
11. NS and NIS stand for
(a) New Sanction and New Item of Supply
(b) Non-Salary and Non-Infrastructure Spending
(c) New Service and New Instrument of Service
(d) National Scheme and National Investment Scheme
Ans. (c) New Service and New Instrument of Service — Explanation: Rule 10(1) uses NS and NIS for New Service and New Instrument of Service. [Ref: Rule 10(1)]
12. A Department wants to transfer savings from Grant No. 10 to Grant No. 11. Under DFPR 2024 this is
(a) Permissible with approval of the FA
(b) Permissible up to 20% of the grant
(c) Not permissible by re-appropriation
(d) Permissible with approval of the Secretary
Ans. (c) Not permissible by re-appropriation — Explanation: Rule 10(5) bars re-appropriation from one grant to another grant. Re-appropriation is only within the same Section of a grant. [Ref: Rule 10(5)]
13. Savings under "Machinery and Equipment" (Capital) are proposed to be used for "Office Expenses" (Revenue). Under Rule 10 this is
(a) Not permissible
(b) Permissible with approval of the FA only
(c) Permissible up to Rs. 2 crore
(d) Permissible with approval of the Head of Department
Ans. (a) Not permissible — Explanation: Rule 10(6) prohibits re-appropriation from the Capital Section to the Revenue Section of the grant or vice versa. [Ref: Rule 10(6)]
14. A work lacking technical sanction cannot receive funds through re-appropriation because of
(a) Rule 10(5)
(b) Rule 10(3)
(c) Rule 11(2)
(d) Rule 10(8)
Ans. (b) Rule 10(3) — Explanation: Rule 10(3) requires administrative approval and technical sanction before funds are appropriated or re-appropriated to a work. [Ref: Rule 10(3)]
15. If an activity has received an advance from the Contingency Fund during the year, savings under that activity
(a) Cannot be re-appropriated to other units
(b) Can be re-appropriated with FA concurrence
(c) Can be used for any charged expenditure
(d) Must be surrendered to the Contingency Fund only
Ans. (a) Cannot be re-appropriated to other units — Explanation: Rule 10(8) prohibits re-appropriation from savings under an activity for which a Contingency Fund advance has already been obtained during the financial year. [Ref: Rule 10(8)]
16. A New Service or New Instrument of Service is one
(a) Not contemplated in the budget as approved by Parliament
(b) Relating only to Defence
(c) Relating only to salaries
(d) Contemplated in the budget as approved by Parliament
Ans. (a) Not contemplated in the budget as approved by Parliament — Explanation: Rule 10(1) refers to expenditure on a New Service or New Instrument of Service "not contemplated in the budget as approved by Parliament". [Ref: Rule 10(1)]
17. Whether prior approval of Parliament is required, or the case is to be reported to Parliament with the next batch of supplementary demands, is determined by
(a) The Allocation of Business Rules
(b) The discretion of the Head of Office
(c) The C&AG's audit report
(d) The financial limits prescribed by the Budget Division, DEA
Ans. (d) The financial limits prescribed by the Budget Division, DEA — Explanation: Rule 10(1) says that for deciding whether a case is NS/NIS and whether prior approval or reporting is needed, the limits prescribed by the Budget Division, DEA from time to time shall be referred to. [Ref: Rule 10(1)]
18. Rule 10 of DFPR 1978 (Appropriation and Re-appropriation – General Restrictions) corresponds to
(a) Rule 12 of DFPR 2024
(b) Deleted
(c) Rule 16 of DFPR 2024
(d) Rule 10 of DFPR 2024
Ans. (d) Rule 10 of DFPR 2024 — Explanation: The Concordance Table maps Rule 10 of DFPR 1978 to Rule 10 of DFPR 2024. [Ref: Concordance Table]
19. The restriction that funds shall not be used for expenditure "not sanctioned by an authority competent to sanction it" is contained in
(a) Rule 10(4)
(b) Rule 10(1)
(c) Rule 10(2)
(d) Rule 10(7)
Ans. (c) Rule 10(2) — Explanation: Rule 10(2) states that funds shall not be appropriated or re-appropriated to meet expenditure which has not been sanctioned by a competent authority. [Ref: Rule 10(2)]
20. The restriction on re-appropriation between Capital and Revenue Sections is contained in
(a) Rule 10(4)
(b) Rule 10(8)
(c) Rule 10(6)
(d) Rule 10(5)
Ans. (c) Rule 10(6) — Explanation: Rule 10(6) says no re-appropriation can be made from Capital to Revenue Section of the grant or vice versa. [Ref: Rule 10(6)]
21. Which of the following re-appropriations is permissible in principle under Rule 10?
(a) From charged to voted expenditure
(b) From one object head to another within the Revenue Section of the same grant, subject to other conditions
(c) From one grant to another grant
(d) From Capital Section to Revenue Section
Ans. (b) From one object head to another within the Revenue Section of the same grant, subject to other conditions — Explanation: Re-appropriation is transfer between primary units within the same Section of a grant (Rule 3(1)(k)). Transfers between charged and voted, between grants, or between Capital and Revenue are barred by Rule 10(4), (5) and (6). [Ref: Rule 3(1)(k); Rule 10(4)–(6)]
22. Under Rule 10, savings in an appropriation which was itself augmented by Supplementary Demands during the year
(a) Can be re-appropriated with FA approval
(b) Must be re-appropriated to Salaries
(c) Can be re-appropriated to another grant
(d) Cannot be re-appropriated elsewhere
Ans. (d) Cannot be re-appropriated elsewhere — Explanation: Rule 10(7) prohibits re-appropriation from an appropriation already augmented through a Supplementary Demand for Grant or under the provisions of this rule. [Ref: Rule 10(7)]
23. The rule that voted funds cannot meet charged expenditure reflects the constitutional distinction that
(a) Voted expenditure is met from the Contingency Fund
(b) Charged expenditure is not submitted to the vote of Parliament while voted expenditure is
(c) Charged expenditure is always capital in nature
(d) Charged expenditure needs no appropriation
Ans. (b) Charged expenditure is not submitted to the vote of Parliament while voted expenditure is — Explanation: Rule 10(4) keeps charged and voted provisions separate because charged expenditure is not voted by Parliament whereas voted expenditure is authorised by vote. The two are shown separately in each primary unit under Rule 8(2). [Ref: Rule 10(4); Rule 8(2)]
24. Who has the powers listed in Rule 10(9) regarding re-appropriation?
(a) Chief Accounting Authorities of Administrative Ministries or Departments
(b) Pay and Accounts Officers
(c) The Controller General of Accounts
(d) Heads of Offices
Ans. (a) Chief Accounting Authorities of Administrative Ministries or Departments — Explanation: Rule 10(9) states that, subject to the restrictions above, Chief Accounting Authorities of Administrative Ministries or Departments shall have the listed powers. [Ref: Rule 10(9)]
25. The Secretary of a Ministry, as the authority responsible for its grant's accounts, is referred to in Rule 10(9) as the
(a) Principal Accounts Officer
(b) Chief Controlling Officer of Audit
(c) Chief Disbursing Officer
(d) Chief Accounting Authority
Ans. (d) Chief Accounting Authority — Explanation: Rule 10(9) confers re-appropriation powers on "Chief Accounting Authorities of Administrative Ministries or Departments", the role held by the Secretary under the GFR. [Ref: Rule 10(9)]
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