This is Set 1 of 48 in the smartvidya question bank on the General Financial Rules (GFR) 2017, updated up to 31.01.2026. Part I: Introduction and general system of financial management. This set covers Rules 1 to 6: title, application and definitions.
Try each question first, then tap Show answer to see the correct option, a short explanation and the rule reference. The questions are useful for departmental examinations, SAS, JAO and AAO examinations, LDCE and promotion tests, and for officers dealing with finance and procurement.
Set 1: Introduction and Definitions
1. The General Financial Rules, 2017 are applicable to
(a) all Central Government Ministries/Departments, attached and subordinate bodies
(b) only Ministries and Departments, not their attached offices
(c) only State Governments
(d) only Central Public Sector Enterprises
Ans. (a) all Central Government Ministries/Departments, attached and subordinate bodies — Explanation: Rule 1 makes GFR 2017 applicable to all Central Government Ministries and Departments and their attached and subordinate bodies, and they came into force at once. [Ref: Rule 1]
2. The provisions of GFRs are deemed to apply to Autonomous Bodies
(a) in no case
(b) except to the extent their bye-laws provide separate Financial Rules approved by the Government
(c) only if the Autonomous Body passes a resolution adopting them
(d) only in respect of procurement of goods
Ans. (b) except to the extent their bye-laws provide separate Financial Rules approved by the Government — Explanation: Rule 1 deems GFRs applicable to Autonomous Bodies except where the bye-laws of the body provide for separate Financial Rules approved by the Government. [Ref: Rule 1]
3. Under Rule 2, "Accounts Officer" means
(a) the Drawing and Disbursing Officer
(b) any officer who maintains cash books
(c) the Head of an Office of Audit
(d) the Head of an Office of Accounts or the Head of a Pay and Accounts Office set up under departmentalization of accounts
Ans. (d) the Head of an Office of Accounts or the Head of a Pay and Accounts Office set up under departmentalization of accounts — Explanation: The Head of an Office of Audit is the Audit Officer; the Accounts Officer heads an Office of Accounts or a Pay and Accounts Office. [Ref: Rule 2(i)]
4. "Audit Officer" under GFR 2017 means
(a) the Internal Auditor of a Ministry
(b) the Controller General of Accounts
(c) the Head of an Office of Audit
(d) the Head of a Pay and Accounts Office
Ans. (c) the Head of an Office of Audit — Explanation: Rule 2(iv) defines the Audit Officer as the Head of an Office of Audit. [Ref: Rule 2(iv)]
5. "Appropriation" is defined in GFR 2017 as
(a) the assignment, to meet specified expenditure, of funds included in a primary unit of appropriation
(b) the surrender of savings at the end of the year
(c) the transfer of funds from one primary unit to another
(d) an advance from the Contingency Fund
Ans. (a) the assignment, to meet specified expenditure, of funds included in a primary unit of appropriation — Explanation: Transfer between primary units is re-appropriation; appropriation is the assignment of funds in a primary unit to meet specified expenditure. [Ref: Rule 2(iii)]
6. "Re-appropriation" means
(a) the transfer of funds from one primary unit of appropriation to another such unit
(b) the release of funds to a State Government
(c) obtaining a supplementary grant
(d) the assignment of funds to a primary unit
Ans. (a) the transfer of funds from one primary unit of appropriation to another such unit — Explanation: Rule 2(xxvi) defines re-appropriation as transfer of funds between primary units of appropriation. [Ref: Rule 2(xxvi)]
7. The Consolidated Fund of India is referred to in
(a) Article 266(1) of the Constitution
(b) Article 112 of the Constitution
(c) Article 267(1) of the Constitution
(d) Article 266(2) of the Constitution
Ans. (a) Article 266(1) of the Constitution — Explanation: Article 266(1) refers to the Consolidated Fund, Article 266(2) to the Public Account and Article 267(1) to the Contingency Fund. [Ref: Rule 2(vii)]
8. The Contingency Fund of India was established under the Contingency Fund of India Act of
(a) 1947
(b) 1983
(c) 1963
(d) 1950
Ans. (d) 1950 — Explanation: Rule 2(ix) refers to the Contingency Fund established under the Contingency Fund of India Act, 1950, in terms of Article 267(1). [Ref: Rule 2(ix)]
9. The Public Account of India is referred to in
(a) Article 266(1) of the Constitution
(b) Article 266(2) of the Constitution
(c) Article 267(1) of the Constitution
(d) Article 150 of the Constitution
Ans. (b) Article 266(2) of the Constitution — Explanation: Rule 2(xxiv) defines the Public Account as the Public Account of India referred to in Article 266(2). [Ref: Rule 2(xxiv)]
10. A "Controlling Officer" under GFR 2017 is
(a) an officer who only audits accounts
(b) any Gazetted Officer of a Department
(c) an officer entrusted by a Department with controlling the incurring of expenditure and/or collection of revenue
(d) the Head of a Pay and Accounts Office
Ans. (c) an officer entrusted by a Department with controlling the incurring of expenditure and/or collection of revenue — Explanation: The term Controlling Officer also includes a Head of Department and an Administrator. [Ref: Rule 2(x)]
11. The term "Controlling Officer" includes
(a) only the Pay and Accounts Officer
(b) only the Financial Adviser
(c) only the Secretary of the Ministry
(d) a Head of Department and an Administrator
Ans. (d) a Head of Department and an Administrator — Explanation: Rule 2(x) specifically states that the term includes a Head of Department and also an Administrator. [Ref: Rule 2(x)]
12. A "Head of the Department" under GFR 2017 must not be below the rank of
(a) Director to the Government of India
(b) Under Secretary to the Government of India
(c) Joint Secretary to the Government of India
(d) Deputy Secretary to the Government of India
Ans. (d) Deputy Secretary to the Government of India — Explanation: Rule 2(xvii) defines a Head of Department as an authority not below the rank of Deputy Secretary declared as such by the Department. [Ref: Rule 2(xvii)]
13. "Drawing and Disbursing Officer" means
(a) only the Pay and Accounts Officer
(b) a Head of Office and any other Gazetted Officer so designated to draw bills and make payments on behalf of the Central Government
(c) only the Head of the Department
(d) any officer who signs a sanction order
Ans. (b) a Head of Office and any other Gazetted Officer so designated to draw bills and make payments on behalf of the Central Government — Explanation: The term also includes a Head of Department or Administrator where he himself discharges such function. [Ref: Rule 2(xii)]
14. The Financial Year, as defined in GFR 2017, begins on
(a) 1st July and ends on 30th June following
(b) 1st October and ends on 30th September following
(c) 1st April and ends on 31st March following
(d) 1st January and ends on 31st December
Ans. (c) 1st April and ends on 31st March following — Explanation: Rule 2(xiv) and Rule 42 define the financial year as 1st April to 31st March of the following year. [Ref: Rule 2(xiv)]
15. "Government Account" means the account relating to
(a) the Public Account only
(b) the accounts of Central Public Sector Enterprises
(c) the Consolidated Fund only
(d) the Consolidated Fund, the Contingency Fund and the Public Account
Ans. (d) the Consolidated Fund, the Contingency Fund and the Public Account — Explanation: Rule 2(xvi) defines Government Account as covering all three: Consolidated Fund, Contingency Fund and Public Account. [Ref: Rule 2(xvi)]
16. "Local Fund" under GFR 2017 means a local fund as defined in
(a) the Government Accounting Rules, 1990
(b) Rule 3 of the Delegation of Financial Powers Rules
(c) Article 266 of the Constitution
(d) Rule 652 of the Treasury Rules
Ans. (d) Rule 652 of the Treasury Rules — Explanation: Rule 2(xx) refers to the definition of local fund in Rule 652 of the Treasury Rules. [Ref: Rule 2(xx)]
17. "Recurring expenditure" means expenditure
(a) incurred at periodical intervals for the same purpose
(b) charged on the Consolidated Fund
(c) incurred only once for a project
(d) incurred from the Contingency Fund
Ans. (a) incurred at periodical intervals for the same purpose — Explanation: Rule 2(xxvii) defines recurring expenditure; expenditure other than recurring is non-recurring expenditure. [Ref: Rule 2(xxvii)]
18. The term "Public Works" under GFR 2017 includes
(a) only repair works
(b) civil and electrical works, including public buildings, public services and transport infrastructure, both original and repair works
(c) only roads and bridges
(d) only new buildings
Ans. (b) civil and electrical works, including public buildings, public services and transport infrastructure, both original and repair works — Explanation: Rule 2(xxv) defines public works broadly to include original and repair works and any project, including infrastructure, for the use of the general public. [Ref: Rule 2(xxv)]
19. In the CAPEX model of procurement,
(a) the buyer uses capital expenditure to purchase goods outright and later arranges consumables, maintenance and disposal
(b) goods are only leased for a year
(c) the seller provides, maintains and takes back the goods
(d) expenditure is made in a staggered manner as per contract terms
Ans. (a) the buyer uses capital expenditure to purchase goods outright and later arranges consumables, maintenance and disposal — Explanation: Rule 2(xxxi) describes CAPEX as outright purchase followed by procurement of consumables, comprehensive maintenance after warranty and disposal after useful life. [Ref: Rule 2(xxxi)]
20. In the OPEX model,
(a) the buyer purchases goods outright with capital funds
(b) the buyer must dispose of the goods
(c) the seller provides the goods, maintains them, supplies consumables and takes back the goods after the contracted life
(d) no contract is required
Ans. (c) the seller provides the goods, maintains them, supplies consumables and takes back the goods after the contracted life — Explanation: Under Rule 2(xxxii), expenditure in the OPEX model is made by the buyer in a staggered manner as per the contract. [Ref: Rule 2(xxxii)]
21. When a subject concerns more than one Department, no order shall be issued until
(a) the Ministry of Finance alone approves
(b) the CAG approves
(c) all such Departments have concurred, or failing that, a decision is taken by or under the authority of the Cabinet
(d) the Secretary of the originating Department approves
Ans. (c) all such Departments have concurred, or failing that, a decision is taken by or under the authority of the Cabinet — Explanation: Rule 3 on interdepartmental consultations requires concurrence of all concerned Departments or a Cabinet decision. [Ref: Rule 3]
22. Departmental regulations that embody orders of a financial character must be made
(a) by the Head of Department alone
(b) by the Department of Personnel and Training
(c) by, or with the approval of, the Ministry of Finance
(d) by the Comptroller and Auditor General
Ans. (c) by, or with the approval of, the Ministry of Finance — Explanation: Rule 4 requires such regulations to be made by or with the approval of the Ministry of Finance. [Ref: Rule 4]
23. Where a doubt arises about the interpretation of any provision of GFR 2017, the matter shall be referred to
(a) the Ministry of Law and Justice
(b) the Comptroller and Auditor General
(c) the Cabinet Secretariat
(d) the Ministry of Finance
Ans. (d) the Ministry of Finance — Explanation: Rule 5 (Removal of Doubts) requires reference to the Ministry of Finance for decision. [Ref: Rule 5]
24. The systems and procedures established by GFRs may be modified by any other authority
(a) by the Secretary of the Ministry on his own
(b) only with the express approval of the Ministry of Finance
(c) by a resolution of the Autonomous Body
(d) by the Head of Department at any time
Ans. (b) only with the express approval of the Ministry of Finance — Explanation: Rule 6 permits modification by other authorities only with the express approval of the Ministry of Finance. [Ref: Rule 6(ii)]
25. "Primary unit of appropriation" in GFR 2017 refers to the unit mentioned in
(a) Rule 652 of the Treasury Rules
(b) Rule 3 of the Delegation of Financial Powers Rules
(c) Rule 65 of GFR 2017 only
(d) Article 114 of the Constitution
Ans. (b) Rule 3 of the Delegation of Financial Powers Rules — Explanation: Rule 2(xxiii) defines primary unit of appropriation by reference to Rule 3 of the DFPR. [Ref: Rule 2(xxiii)]
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Next: Set 2. See all sets under the label GFR 2017. For exam preparation, attempt the full set before checking answers and revise the topic of every question you miss.
These questions are prepared for practice from the General Financial Rules 2017 as updated by the Department of Expenditure up to 31.01.2026. Always check the latest Office Memorandums of the Department of Expenditure before relying on a limit or procedure.