Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 29 of 44, covering Appendix I (Budget Division OM dated 23.02.2024). 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. The OM on revised financial limits for New Service/New Instrument of Service placed at Appendix-I was issued by
(a) Budget Division, Department of Economic Affairs
(b) Department of Expenditure
(c) Controller General of Accounts
(d) Public Accounts Committee
Ans. (a) Budget Division, Department of Economic Affairs — Explanation: Appendix-I is OM No. F.1(22)-B(AC)/2022 of the Ministry of Finance, Department of Economic Affairs (Budget Division), dated 23rd February, 2024. [Ref: Appendix I]
2. The number of the OM on NS/NIS limits placed at Appendix-I is
(a) F.1(23)-B(AC)/2005
(b) 24(35)/PF-II/2012
(c) 01(14)/2016-E.II(A)
(d) F.1(22)-B(AC)/2022
Ans. (d) F.1(22)-B(AC)/2022 — Explanation: The OM is No. F.1(22)-B(AC)/2022 dated 23.02.2024. It supersedes OM No. F.1(23)-B(AC)/2005 dated 25th May 2006. [Ref: Appendix I]
3. The revised NS/NIS limits were issued in pursuance of approval by the PAC in its
(a) First Report (Eighteenth Lok Sabha)
(b) One hundred third Report (Seventeenth Lok Sabha) (2023-24)
(c) Fourth Report (Sixth Lok Sabha)
(d) Hundredth Report (Sixteenth Lok Sabha)
Ans. (b) One hundred third Report (Seventeenth Lok Sabha) (2023-24) — Explanation: The OM states the revision follows approval by the Public Accounts Committee vide its One hundred third Report (Seventeenth Lok Sabha) (2023-24). [Ref: Appendix I, para 1]
4. The OM of 23.02.2024 supersedes which earlier OM on NS/NIS?
(a) OM No. 24(35)/PF-II/2012 dated 5th August 2016
(b) OM No. 1(5)/2016-E II(A) dated 15th September 2016
(c) DoP&T OM dated 2nd March 2016
(d) OM No. F.1(23)-B(AC)/2005 dated 25th May 2006
Ans. (d) OM No. F.1(23)-B(AC)/2005 dated 25th May 2006 — Explanation: The revised limits are conveyed in supersession of OM No. F.1(23)-B(AC)/2005 dated 25th May 2006. [Ref: Appendix I, para 1]
5. According to Appendix-I, "New Service" as in Article 115(1)(a) refers to expenditure arising out of
(a) Salaries of new employees
(b) Normal administrative expenditure
(c) Relatively large expenditure from important expansion of an existing activity
(d) A new policy decision not brought to the notice of Parliament earlier, including a new activity or a new form of investment
Ans. (d) A new policy decision not brought to the notice of Parliament earlier, including a new activity or a new form of investment — Explanation: Para 2(i) defines New Service as expenditure arising out of a new policy decision, not brought to the notice of Parliament earlier, including a new activity or a new form of investment. [Ref: Appendix I, para 2(i)]
6. "New Instrument of Service" refers to
(a) Expenditure on a new policy not brought to the notice of Parliament
(b) Grants to international bodies
(c) Relatively large expenditure arising out of important expansion of an existing activity
(d) Expenditure on salaries
Ans. (c) Relatively large expenditure arising out of important expansion of an existing activity — Explanation: Para 2(ii) defines New Instrument of Service as relatively large expenditure arising out of important expansion of an existing activity. [Ref: Appendix I, para 2(ii)]
7. The concept of "New Service" is derived from which Article of the Constitution?
(a) Article 114
(b) Article 115(1)(a)
(c) Article 267
(d) Article 112
Ans. (b) Article 115(1)(a) — Explanation: Para 2(i) refers to "New Service" as in Article 115(1)(a) of the Constitution, which deals with supplementary grants for a new service not contemplated in the Annual Financial Statement. [Ref: Appendix I, para 2(i)]
8. The NS/NIS limits in the OM dated 23.02.2024 apply to
(a) Only civil Ministries excluding Railways and Defence
(b) All Ministries including Ministry of Railways, Ministry of Defence and Department of Post
(c) Only the Department of Post
(d) Only State Governments
Ans. (b) All Ministries including Ministry of Railways, Ministry of Defence and Department of Post — Explanation: Para 3(ii) states that the limits shall be applicable to all ministries including Ministry of Railways, Ministry of Defence and Department of Post. [Ref: Appendix I, para 3(ii)]
9. For applicability of NS/NIS limits, the nature of transactions has been aligned strictly with
(a) The Demand for Grants number
(b) The Minor Head
(c) The object head of account, treated as the Primary Unit of Appropriation
(d) The Major Head
Ans. (c) The object head of account, treated as the Primary Unit of Appropriation — Explanation: Para 3(iii) states that the nature of transactions has been aligned strictly with the 'object head of account', which is treated as the Primary Unit of Appropriation. [Ref: Appendix I, para 3(iii)]
10. For civil Ministries, the NS/NIS guidelines correspond to the original appropriation at the level of
(a) The 4-digit Major Head
(b) The 15-digit numeric code
(c) The Demand level
(d) The 7-digit Minor Head
Ans. (b) The 15-digit numeric code — Explanation: Para 3(iv) says the guidelines correspond to the original appropriation at the level of the 15-digit numeric code for civil ministries and the final unit of appropriation in the Detailed Demands for non-civil ministries. [Ref: Appendix I, para 3(iv)]
11. For non-civil Ministries, the NS/NIS limits refer to
(a) The final unit of appropriation available in the Detailed Demand for Grants
(b) The Budget at a Glance
(c) The 15-digit code
(d) The Major Head
Ans. (a) The final unit of appropriation available in the Detailed Demand for Grants — Explanation: Para 3(iv) and the footnote to Annexure A refer to the final unit of appropriation in the Detailed Demands for Grants in respect of non-civil ministries. [Ref: Appendix I, para 3(iv)]
12. No expenditure can be incurred from the Consolidated Fund of India on a New Service or New Instrument of Service without
(a) Approval of the C&AG
(b) Approval of the Cabinet Secretary
(c) Prior approval of Parliament through supplementary demands for grants
(d) Approval of the Finance Minister
Ans. (c) Prior approval of Parliament through supplementary demands for grants — Explanation: Para 4 states that no expenditure can be incurred from the Consolidated Fund of India on NS/NIS without prior approval of Parliament through supplementary demands for grants. [Ref: Appendix I, para 4]
13. In an emergent NS/NIS case where waiting for Parliament's approval is not possible, expenditure may be met from
(a) The Reserve Bank
(b) Savings of other grants
(c) The Public Account
(d) The Contingency Fund of India, pending authorisation by Parliament
Ans. (d) The Contingency Fund of India, pending authorisation by Parliament — Explanation: Para 5 says the Contingency Fund of India can be drawn upon in such emergent cases, pending authorisation by Parliament. [Ref: Appendix I, para 5]
14. Recourse to the Contingency Fund for NS/NIS should normally be taken only when
(a) The Finance Minister is abroad
(b) The financial year has ended
(c) Parliament is in session
(d) Parliament is not in session
Ans. (d) Parliament is not in session — Explanation: Para 5 states that recourse to this arrangement should normally be taken only when Parliament is not in session. [Ref: Appendix I, para 5]
15. Advances taken from the Contingency Fund for NS/NIS are recouped to the Fund by
(a) Borrowing from the market
(b) Obtaining a Supplementary Grant
(c) Transferring savings from other grants
(d) Writing off the amount
Ans. (b) Obtaining a Supplementary Grant — Explanation: Para 5 states that such advances are required to be recouped to the Fund by obtaining a Supplementary Grant. [Ref: Appendix I, para 5]
16. When Parliament is in session, before incurring expenditure on NS/NIS, a Department should preferably
(a) Re-appropriate savings
(b) Seek the C&AG's approval
(c) Draw from the Contingency Fund
(d) Obtain a Supplementary Grant
Ans. (d) Obtain a Supplementary Grant — Explanation: Para 5 says that when Parliament is in session, a Supplementary Grant should preferably be obtained before incurring expenditure; recourse to the Contingency Fund is only for extreme urgency. [Ref: Appendix I, para 5]
17. The procedure of the Minister making a statement in the Lok Sabha before a Contingency Fund withdrawal was recommended by
(a) The Sixth Lok Sabha Committee on Papers Laid on the Table, in its 4th Report
(b) The Estimates Committee
(c) The Committee on Public Undertakings
(d) The PAC in its 103rd Report
Ans. (a) The Sixth Lok Sabha Committee on Papers Laid on the Table, in its 4th Report — Explanation: Para 5 cites the procedure recommended by the Sixth Lok Sabha Committee on Papers Laid on the Table in their 4th Report. [Ref: Appendix I, para 5]
18. In emergent cases where Members cannot be informed in advance, the Contingency Fund withdrawal may be made and
(a) Soon thereafter a statement may be laid on the Table of the Lok Sabha
(b) A press release is issued instead
(c) The matter need never be reported
(d) The C&AG informs Parliament
Ans. (a) Soon thereafter a statement may be laid on the Table of the Lok Sabha — Explanation: Para 5 says the withdrawal may be made from the Contingency Fund and soon thereafter a statement may be laid on the Table of the Lok Sabha. [Ref: Appendix I, para 5]
19. Which Secretariat suggested that the Contingency Fund statement procedure also be observed in Rajya Sabha?
(a) The President's Secretariat
(b) The Lok Sabha Secretariat
(c) The Rajya Sabha Secretariat
(d) The Cabinet Secretariat
Ans. (c) The Rajya Sabha Secretariat — Explanation: Para 5 notes that the Rajya Sabha Secretariat suggested the procedure may also be observed in Rajya Sabha. [Ref: Appendix I, para 5]
20. The OM of 23.02.2024 on NS/NIS was signed by
(a) Avinash K. Nilankar, Deputy Secretary
(b) Vishnukanth P.B., Director (Budget)
(c) A.K. Jain, Deputy Secretary
(d) Arunish Chawla, Joint Secretary
Ans. (b) Vishnukanth P.B., Director (Budget) — Explanation: The OM is signed by Vishnukanth P.B., Director (Budget). [Ref: Appendix I]
21. The OM of 23.02.2024 on NS/NIS was issued with the approval of
(a) The Finance Minister
(b) The Speaker of Lok Sabha
(c) The Prime Minister
(d) The Finance Secretary and Secretary (Expenditure)
Ans. (d) The Finance Secretary and Secretary (Expenditure) — Explanation: Para 13 states that the OM issues with the approval of the Finance Secretary and Secretary Expenditure. [Ref: Appendix I, para 13]
22. According to the OM, the extant NS/NIS guidelines were revised to ensure
(a) Higher expenditure
(b) Abolition of supplementary demands
(c) Centralisation of powers in PAC
(d) Systemic uniformity, consistency, administrative efficiency and financial discipline
Ans. (d) Systemic uniformity, consistency, administrative efficiency and financial discipline — Explanation: Para 1 states the guidelines were revised to ensure systemic uniformity, consistency, administrative efficiency and financial discipline. [Ref: Appendix I, para 1]
23. Appendix-I to DFPR 2024 is linked to which rule?
(a) Rule 10
(b) Rule 8
(c) Rule 15
(d) Rule 16
Ans. (a) Rule 10 — Explanation: Appendix-I carries the note "(See Rule 10)", as Rule 10(1) refers to the NS/NIS limits prescribed by the Budget Division. [Ref: Appendix I; Rule 10(1)]
24. Which statement best distinguishes New Service from New Instrument of Service?
(a) NS relates to capital and NIS to revenue expenditure
(b) NS is charged and NIS is voted expenditure
(c) There is no distinction
(d) NS arises from a new policy or activity not earlier brought to Parliament's notice, while NIS is relatively large expenditure from important expansion of an existing activity
Ans. (d) NS arises from a new policy or activity not earlier brought to Parliament's notice, while NIS is relatively large expenditure from important expansion of an existing activity — Explanation: Para 2 of Appendix-I defines NS as expenditure from a new policy decision (including a new activity or form of investment) and NIS as relatively large expenditure from important expansion of an existing activity. [Ref: Appendix I, para 2]
25. The provisions in a "Vote on Account" are
(a) Not intended to be used for expenditure on any New Service
(b) Available for any New Service
(c) Used only for salaries of new posts
(d) Available only for New Instrument of Service
Ans. (a) Not intended to be used for expenditure on any New Service — Explanation: Para 7(v) states that provisions in the Vote on Account are not intended to be used for expenditure on any New Service. [Ref: Appendix I, para 7(v)]
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