This is Set 8 of 48 in the smartvidya question bank on the General Financial Rules (GFR) 2017, updated up to 31.01.2026. Part II: Budget formulation and implementation. This set covers Rules 61 to 70: excess expenditure, surrender, New Service, re-appropriation, supplementary grants, Contingency Fund and Chief Accounting Authority.
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 8: Excess, Savings, Re-appropriation and Contingency Fund
1. The Accounts Officer shall not allow payment against sanctions in excess of Budget provisions unless there is specific approval of
(a) the Head of Office
(b) the vendor's bank
(c) the Chief Accounting Authority
(d) the CAG
Ans. (c) the Chief Accounting Authority — Explanation: Rule 61 requires Chief Accounting Authority approval for excess payments. [Ref: Rule 61]
2. Before concurring in an excess under any head, the FA and Chief Accounting Authority must ensure availability of funds through
(a) the Public Account
(b) user charges
(c) borrowing from banks
(d) re-appropriation or Supplementary Demands for Grants
Ans. (d) re-appropriation or Supplementary Demands for Grants — Explanation: Rule 61 requires funds to be ensured through these routes. [Ref: Rule 61]
3. Anticipated savings in grants must be surrendered to the Finance Ministry
(a) after the close of the year
(b) only if the CAG objects
(c) by the dates prescribed, before the close of the financial year
(d) never, as they lapse automatically
Ans. (c) by the dates prescribed, before the close of the financial year — Explanation: Rule 62(1) requires surrender before the close of the year. [Ref: Rule 62(1)]
4. Funds provided during a financial year and not utilised before its close
(a) lapse at the close of the financial year
(b) are carried forward automatically
(c) are kept as deposits
(d) are transferred to the Contingency Fund
Ans. (a) lapse at the close of the financial year — Explanation: Rule 62(1) states unutilised funds lapse at year end. [Ref: Rule 62(1)]
5. Under Rule 62(2), savings should be surrendered
(a) only if above Rupees one crore
(b) only in March
(c) immediately when foreseen, without waiting for the end of the year
(d) only after audit
Ans. (c) immediately when foreseen, without waiting for the end of the year — Explanation: No savings may be held in reserve for possible future excesses. [Ref: Rule 62(2)]
6. Rush of expenditure in the closing months of the financial year is regarded as
(a) permitted for capital works
(b) a breach of financial propriety
(c) good financial management
(d) mandatory
Ans. (b) a breach of financial propriety — Explanation: Rule 62(3) treats it as a breach and requires adherence to expenditure plans. [Ref: Rule 62(3)]
7. Expenditure on a "New Service" not contemplated in the Budget can be incurred only after obtaining
(a) CAG approval
(b) re-appropriation from savings
(c) Head of Department approval
(d) a supplementary grant or an advance from the Contingency Fund
Ans. (d) a supplementary grant or an advance from the Contingency Fund — Explanation: Rule 63 requires a supplementary grant or Contingency Fund advance during that year. [Ref: Rule 63]
8. Guidelines for determining cases of "New Service"/"New Instrument of Service" are in
(a) Appendix 10
(b) Annexure-1 to Appendix 3
(c) Appendix 1
(d) Form GFR 1
Ans. (b) Annexure-1 to Appendix 3 — Explanation: Rule 63 refers to Annexure-1 to Appendix 3 of GFR 2017. [Ref: Rule 63]
9. A Disbursing Officer called upon to honour a claim certain to cause excess over his allotment must
(a) refuse it permanently
(b) pay from his own pocket
(c) pay it and report later
(d) take orders of the administrative authority before authorising payment
Ans. (d) take orders of the administrative authority before authorising payment — Explanation: Rule 64(2) requires orders of the administrative authority, which arranges funds. [Ref: Rule 64(2)]
10. Re-appropriation of funds within a grant may be sanctioned at any time
(a) after the close of the year
(b) before the close of the financial year to which the grant relates
(c) within three months of the year end
(d) only in the first quarter
Ans. (b) before the close of the financial year to which the grant relates — Explanation: Rule 65(1) permits re-appropriation before the close of the financial year. [Ref: Rule 65(1)]
11. For re-appropriation, the primary unit is the final unit of appropriation, namely
(a) the Minor Head
(b) the Major Head
(c) the Object Head of account
(d) the Demand
Ans. (c) the Object Head of account — Explanation: Rule 65(1) defines the primary unit as the Object Head. [Ref: Rule 65(1)]
12. Funds shall NOT be re-appropriated from a unit with the intention of
(a) avoiding a supplementary grant
(b) restoring the diverted appropriation later when savings arise elsewhere
(c) meeting an unforeseen excess
(d) using genuine savings
Ans. (b) restoring the diverted appropriation later when savings arise elsewhere — Explanation: Rule 65(3) prohibits such temporary diversion. [Ref: Rule 65(3)]
13. Applications for re-appropriation are ordinarily supported by a statement in
(a) Form GFR 1
(b) Form GFR 9
(c) Form GFR 3
(d) Form GFR 8
Ans. (a) Form GFR 1 — Explanation: Rule 65(4) prescribes Form GFR 1 showing how the excess is to be met. [Ref: Rule 65(4)]
14. In orders sanctioning re-appropriation, reasons must be stated for savings and excess of
(a) Rupees 1 crore or over
(b) Rupees 1 lakh or over
(c) Rupees 10 lakh or over
(d) Rupees 10,000 or over
Ans. (b) Rupees 1 lakh or over — Explanation: Rule 65(4) requires reasons for saving and excess of Rupees 1 lakh or more. [Ref: Rule 65(4)]
15. Supplementary Grants are obtained in accordance with
(a) Article 267(1) of the Constitution
(b) Article 115(1) of the Constitution
(c) Article 116 of the Constitution
(d) Article 112(3) of the Constitution
Ans. (b) Article 115(1) of the Constitution — Explanation: Rule 66 refers to Article 115(1); procedure is in Appendix 5 of GFR 2017. [Ref: Rule 66]
16. An advance from the Contingency Fund is obtained when unforeseen expenditure arises and
(a) the CAG approves
(b) the expenditure is below Rupees one lakh
(c) savings are available within the grant
(d) there is not sufficient time for voting of a Supplementary Demand before the close of the year
Ans. (d) there is not sufficient time for voting of a Supplementary Demand before the close of the year — Explanation: Rule 67(1) covers unforeseen excess or new service where time does not permit a Supplementary Demand. [Ref: Rule 67(1)]
17. An advance from the Contingency Fund is also obtained to meet expenditure in excess of provisions included in
(a) the Finance Accounts
(b) an Appropriation (Vote on Account) Act
(c) the Outcome Budget
(d) the Finance Act
Ans. (b) an Appropriation (Vote on Account) Act — Explanation: Rule 67(2) covers expenditure in excess of Vote on Account provisions. [Ref: Rule 67(2)]
18. The procedure for obtaining and recouping advances from the Contingency Fund is laid down in
(a) the DFPR 2024
(b) the Government Accounting Rules, 1990
(c) the Contingency Fund of India (Amendment) Rules, 2021
(d) the Treasury Rules
Ans. (c) the Contingency Fund of India (Amendment) Rules, 2021 — Explanation: Rule 67(4) refers to these rules, published vide G.S.R. 721(E) dated 4 October 2021 and placed at Appendix 6 of GFR 2017. [Ref: Rule 67(4)]
19. Money indisputably payable by Government shall not ordinarily be left unpaid, subject to
(a) Article 114(3) of the Constitution
(b) Article 266(2) of the Constitution
(c) Article 284 of the Constitution
(d) Article 150 of the Constitution
Ans. (a) Article 114(3) of the Constitution — Explanation: Rule 68(i) deals with inevitable payments. [Ref: Rule 68(i)]
20. The Chief Accounting Authority of a Ministry or Department is
(a) the Financial Adviser
(b) the Principal Chief Controller of Accounts
(c) the Minister
(d) the Secretary of the Ministry or Department
Ans. (d) the Secretary of the Ministry or Department — Explanation: Rule 70 names the Secretary as the Chief Accounting Authority. [Ref: Rule 70]
21. Which of the following is a duty of the Chief Accounting Authority under Rule 70?
(a) To appear before the Committee on Public Accounts and other Parliamentary Committees
(b) To approve the Union Budget
(c) To prepare the Finance Accounts of the Union
(d) To audit the accounts of other Ministries
Ans. (a) To appear before the Committee on Public Accounts and other Parliamentary Committees — Explanation: Rule 70(iv) includes appearing before the PAC and other Parliamentary Committees. [Ref: Rule 70(iv)]
22. The Chief Accounting Authority must ensure that procurement of works, services and supplies is implemented in a manner that is
(a) fair, equitable, transparent, competitive and cost-effective
(b) confined to known vendors
(c) fastest regardless of cost
(d) decided by the vendor
Ans. (a) fair, equitable, transparent, competitive and cost-effective — Explanation: Rule 70(viii) lays down these procurement principles. [Ref: Rule 70(viii)]
23. The extract on check against provision of funds as part of pre-check of bills is placed at
(a) Appendix 10
(b) Appendix 2
(c) Appendix 5
(d) Appendix 6
Ans. (a) Appendix 10 — Explanation: Rule 69 refers to Appendix 10 of GFR 2017. [Ref: Rule 69]
24. Where any excess over allotment is apprehended, the subordinate authority must
(a) incur it and seek regularisation later
(b) stop all expenditure for the year
(c) obtain additional allotment before incurring the excess expenditure
(d) borrow from another office
Ans. (c) obtain additional allotment before incurring the excess expenditure — Explanation: Rule 64(1) requires additional allotment in advance, using a Liability Register in Form GFR 3 (GFR 2017). [Ref: Rule 64(1)]
25. Financial Advisers must ensure adherence to the stipulated
(a) recruitment plans
(b) vendor delivery schedules
(c) audit calendars
(d) Monthly and Quarterly Expenditure Plans
Ans. (d) Monthly and Quarterly Expenditure Plans — Explanation: Rule 62(3) and (4) require FAs to ensure adherence to Monthly and Quarterly Expenditure Plans. [Ref: Rule 62(3) and (4)]
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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.