Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 9 of 44, covering Rule 10 – Government of India's Decision (1). 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 the revised guidelines on re-appropriation under Rule 10, no re-appropriation shall be made during which period without prior approval of the Ministry of Finance?
(a) The period of Vote on Account only
(b) The month of March only
(c) The first quarter of a financial year
(d) The last quarter of a financial year
Ans. (c) The first quarter of a financial year — Explanation: Para 3(i) of the Government of India's Decision (1) under Rule 10 states that no re-appropriation shall be made during the first quarter of a financial year without prior approval of the Ministry of Finance. [Ref: Rule 10, GoI Decision (1), para 3(i)]
2. Re-appropriation from savings under Central Schemes or Centrally Sponsored Schemes to augment Establishment Expenditure of a Ministry
(a) Requires prior approval of the Ministry of Finance
(b) Is freely permitted
(c) Requires approval of NITI Aayog only
(d) Is permitted up to Rs. 15 crore without approval
Ans. (a) Requires prior approval of the Ministry of Finance — Explanation: Para 3(ii) states that no re-appropriation shall be made from savings under Central Schemes or CSS to augment the provisions of Establishment Expenditure without prior approval of the Ministry of Finance. [Ref: Rule 10, GoI Decision (1), para 3(ii)]
3. The mandatory provision earmarked for the northeast areas referred to in the re-appropriation guidelines is
(a) 5%
(b) 20%
(c) 10%
(d) 15%
Ans. (c) 10% — Explanation: Para 3(iii) refers to savings under the "mandatory 10% provision earmarked for the northeast areas". [Ref: Rule 10, GoI Decision (1), para 3(iii)]
4. Normally, savings under the mandatory northeast provision are
(a) Surrendered to the Contingency Fund
(b) Freely available for any purpose
(c) Transferred to the Ministry of DoNER
(d) Not available for re-appropriation to meet additionalities under non-northeast expenditure
Ans. (d) Not available for re-appropriation to meet additionalities under non-northeast expenditure — Explanation: Para 3(iii) says that normally savings under the mandatory 10% provision for the northeast are not available for re-appropriation to meet other additionalities under non-northeast expenditure. [Ref: Rule 10, GoI Decision (1), para 3(iii)]
5. When may savings under the northeast provision be used to meet additionalities under other items?
(a) Only in the first quarter
(b) Never
(c) Whenever the Secretary decides
(d) When there has been an overall reduction in the total expenditure ceiling of the Ministry at the Revised Estimates stage and northeast savings are available as a corollary
Ans. (d) When there has been an overall reduction in the total expenditure ceiling of the Ministry at the Revised Estimates stage and northeast savings are available as a corollary — Explanation: Para 3(iii) allows such use if there has been an overall reduction in the total expenditure ceiling at RE stage and savings under northeast areas are available as a corollary, to avoid bloating of appropriations. [Ref: Rule 10, GoI Decision (1), para 3(iii)]
6. Re-appropriation proposals requiring MoF approval that relate to establishment-related expenditure are referred to
(a) Budget Division, Department of Economic Affairs
(b) Department of Personnel and Training
(c) Pers. Division of the Department of Expenditure
(d) Controller General of Accounts
Ans. (c) Pers. Division of the Department of Expenditure — Explanation: Para 3(iv) states that proposals relating to establishment-related expenditure are referred to the Pers. Division of the Department of Expenditure, while all other proposals may be referred to the Budget Division, DEA. [Ref: Rule 10, GoI Decision (1), para 3(iv)]
7. Re-appropriation proposals requiring MoF approval, other than those relating to establishment expenditure, are referred to
(a) Pers. Division, Department of Expenditure
(b) Chief Controller of Accounts
(c) Budget Division, Department of Economic Affairs
(d) Plan Finance Division
Ans. (c) Budget Division, Department of Economic Affairs — Explanation: Para 3(iv) says all other proposals may be referred to the Budget Division, Department of Economic Affairs. [Ref: Rule 10, GoI Decision (1), para 3(iv)]
8. The delegated re-appropriation power of an Administrative Ministry for Office Expenses, Other Revenue Expenditure, Domestic Travel Expenses and Foreign Travel Expenses is up to
(a) Rs. 15 crore
(b) Rs. 1 crore
(c) Rs. 2 crore
(d) Rs. 5 crore
Ans. (c) Rs. 2 crore — Explanation: The table of monetary limits in para 3(v) gives Administrative Ministries power up to Rs. 2 crore for these establishment object heads. [Ref: Rule 10, GoI Decision (1), para 3(v)]
9. The delegated re-appropriation power for object heads like Minor Works, Professional Services, Rewards, Training Expenses and Materials and Supplies is up to
(a) Rs. 2 crore
(b) Rs. 15 crore
(c) Rs. 5 crore
(d) Rs. 10 crore
Ans. (c) Rs. 5 crore — Explanation: Para 3(v) gives power up to Rs. 5 crore for Minor Works, Professional Services, Rewards, Leave Travel Expenses, Training Expenses, Materials and Supplies, Cost of Ration, Fuels and Lubricants, Minor Civil and Electric Works, Repair and Maintenance, Bank and Agency Charges and Loss in Exchange. [Ref: Rule 10, GoI Decision (1), para 3(v)]
10. The delegated re-appropriation power for Non-Establishment Expenditure (all other object heads) is up to
(a) Rs. 100 crore
(b) Rs. 15 crore
(c) Rs. 25 crore
(d) Rs. 5 crore
Ans. (b) Rs. 15 crore — Explanation: Para 3(v) gives Administrative Ministries power up to Rs. 15 crore for Non-Establishment Expenditure (all other object heads). [Ref: Rule 10, GoI Decision (1), para 3(v)]
11. Under the monetary limits for re-appropriation, 'Foreign Travel Expenses' falls in which slab?
(a) Up to Rs. 2 crore
(b) Up to Rs. 15 crore
(c) Up to Rs. 5 crore
(d) No delegated power
Ans. (a) Up to Rs. 2 crore — Explanation: Office Expenses, Other Revenue Expenditure, Domestic Travel Expenses and Foreign Travel Expenses are all in the Rs. 2 crore slab. [Ref: Rule 10, GoI Decision (1), para 3(v)]
12. 'Repair and Maintenance' falls in which slab of delegated re-appropriation power?
(a) Up to Rs. 1 crore
(b) Up to Rs. 2 crore
(c) Up to Rs. 5 crore
(d) Up to Rs. 15 crore
Ans. (c) Up to Rs. 5 crore — Explanation: Repair and Maintenance is listed among heads with power up to Rs. 5 crore. [Ref: Rule 10, GoI Decision (1), para 3(v)]
13. 'Bank and Agency Charges and Loss in Exchange' carry delegated re-appropriation power of
(a) Up to Rs. 15 crore
(b) Up to Rs. 2 crore
(c) Up to Rs. 5 crore
(d) Full powers
Ans. (c) Up to Rs. 5 crore — Explanation: Bank and Agency Charges and Loss in Exchange are in the Rs. 5 crore slab of establishment expenditure. [Ref: Rule 10, GoI Decision (1), para 3(v)]
14. 'Other Revenue Expenditure' is in which slab of delegated re-appropriation power?
(a) Up to Rs. 15 crore
(b) Up to Rs. 2 crore
(c) Up to Rs. 5 crore
(d) Up to Rs. 25 crore
Ans. (b) Up to Rs. 2 crore — Explanation: Other Revenue Expenditure is grouped with Office Expenses and travel expenses in the Rs. 2 crore slab. [Ref: Rule 10, GoI Decision (1), para 3(v)]
15. Which slab applies to 'Fuels and Lubricants' for re-appropriation?
(a) Up to Rs. 15 crore
(b) Up to Rs. 5 crore
(c) Up to Rs. 50 lakh
(d) Up to Rs. 2 crore
Ans. (b) Up to Rs. 5 crore — Explanation: Fuels and Lubricants are in the Rs. 5 crore slab along with Cost of Ration, Materials and Supplies, etc. [Ref: Rule 10, GoI Decision (1), para 3(v)]
16. The classification of object heads as Establishment Expenditure for the monetary limits follows
(a) Annexure B to the Ministry of Finance OM No. 1(22)-B(AC)/2022 dated 23.02.2024
(b) The Allocation of Business Rules
(c) The Fundamental Rules
(d) Annexure-II to DFPR 2024
Ans. (a) Annexure B to the Ministry of Finance OM No. 1(22)-B(AC)/2022 dated 23.02.2024 — Explanation: The footnote to the table says establishment expenditure is as per Annexure B to MoF OM No. 1(22)-B(AC)/2022 dated 23.02.2024, placed at Appendix-I. [Ref: Rule 10, GoI Decision (1), para 3(v) footnote]
17. In the table of re-appropriation limits, "Minor Works" refers to
(a) Works of temporary structures
(b) Works below Rs. 1 lakh
(c) Minor Civil & Electrical Works
(d) Minor Heads of account
Ans. (c) Minor Civil & Electrical Works — Explanation: The footnote (**) to the table explains that Minor Works means Minor Civil & Electrical Works. [Ref: Rule 10, GoI Decision (1), para 3(v) footnote]
18. A re-appropriation order increasing a line item ending at an object head by more than what threshold must be reported to Parliament?
(a) Rs. 15 crore
(b) 25% of Budget Estimates
(c) 10% of Budget Estimates or Rs. 50 crore, whichever is less
(d) 20% of Budget Estimates or Rs. 100 crore, whichever is more
Ans. (d) 20% of Budget Estimates or Rs. 100 crore, whichever is more — Explanation: Para 4 of the guidelines requires any re-appropriation order increasing the budget provision under a line item ending at an object head by more than 20% of BE or Rs. 100 crore, whichever is more, to be reported to Parliament. [Ref: Rule 10, GoI Decision (1), para 4]
19. Such re-appropriation orders exceeding the reporting limit are reported to Parliament along with
(a) The last batch of Supplementary Demands of the financial year
(b) The first batch of Supplementary Demands
(c) The Appropriation Accounts
(d) The Annual Financial Statement of the next year
Ans. (a) The last batch of Supplementary Demands of the financial year — Explanation: Para 4 says they shall be reported to Parliament along with the last batch of Supplementary Demands of the financial year. [Ref: Rule 10, GoI Decision (1), para 4]
20. If a re-appropriation order exceeding the reporting limit is issued after the last batch of supplementary demands, the Department must obtain
(a) No approval
(b) Approval of the Speaker
(c) Prior approval of the Department of Expenditure
(d) Approval of the C&AG
Ans. (c) Prior approval of the Department of Expenditure — Explanation: Para 4 states that if such an order is issued after the last batch of supplementary demands, prior approval of the Department of Expenditure shall be obtained. [Ref: Rule 10, GoI Decision (1), para 4]
21. The revised re-appropriation guidelines (GoI Decision (1) under Rule 10) were issued vide DoE OM No. 01(14)/2016-E.II(A)(Part-III) dated
(a) 01.04.2024
(b) 23.02.2024
(c) 22.03.2024
(d) 03.06.2024
Ans. (a) 01.04.2024 — Explanation: The guidelines cite MoF DoE O.M. No. 01(14)/2016-E.II(A)(Part-III), dated 01.04.2024. [Ref: Rule 10, GoI Decision (1)]
22. According to the revised re-appropriation guidelines, what happens to all previous orders on re-appropriation of funds?
(a) They continue alongside the new norms
(b) They apply only in the first quarter
(c) They apply only to Railways
(d) They become null and void from the date of issue of the OM
Ans. (d) They become null and void from the date of issue of the OM — Explanation: Para 2 of the Decision states that all previous orders/instructions in this regard will become null and void from the date of issue of the OM. [Ref: Rule 10, GoI Decision (1), para 2]
23. A Ministry's BE for a line item is Rs. 300 crore. Re-appropriation raises it by Rs. 80 crore. Must it be reported to Parliament?
(a) Yes, because it exceeds Rs. 50 crore
(b) No, because the increase is not more than the higher of 20% of BE (Rs. 60 crore) and Rs. 100 crore
(c) Yes, because it exceeds 20% of BE
(d) Yes, because every re-appropriation is reported
Ans. (b) No, because the increase is not more than the higher of 20% of BE (Rs. 60 crore) and Rs. 100 crore — Explanation: The reporting limit is 20% of BE or Rs. 100 crore, whichever is more. Here 20% of BE is Rs. 60 crore, so the threshold is Rs. 100 crore. An increase of Rs. 80 crore does not exceed it. [Ref: Rule 10, GoI Decision (1), para 4]
24. A Ministry's BE for a line item is Rs. 1,000 crore. Re-appropriation raises it by Rs. 150 crore. Must it be reported to Parliament?
(a) It needs prior approval of Parliament
(b) No, because the threshold is Rs. 200 crore (20% of BE, being more than Rs. 100 crore)
(c) Yes, because it exceeds 10% of BE
(d) Yes, because it exceeds Rs. 100 crore
Ans. (b) No, because the threshold is Rs. 200 crore (20% of BE, being more than Rs. 100 crore) — Explanation: The threshold is 20% of BE (Rs. 200 crore) or Rs. 100 crore, whichever is more, i.e. Rs. 200 crore. An increase of Rs. 150 crore is within this. [Ref: Rule 10, GoI Decision (1), para 4]
25. The purpose of the revised re-appropriation guidelines, as stated in the Decision, is to
(a) Centralise all re-appropriation in the Budget Division
(b) Bring more flexibility so Ministries can manage their budget and decide the nature and limit of expenditure
(c) Abolish re-appropriation
(d) Transfer re-appropriation powers to States
Ans. (b) Bring more flexibility so Ministries can manage their budget and decide the nature and limit of expenditure — Explanation: The Decision says the Department decided to propose revised norms to bring more flexibility, to enable Ministries to manage their budget and decide on the nature and limit of expenditure. [Ref: Rule 10, GoI Decision (1)]
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