Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 30 of 44, covering Appendix I, Annexure A. 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 Annexure A, all new services, except new 'Works' under the Capital section, are considered New Service and need
(a) Only the Secretary's approval
(b) Only FA approval
(c) Prior approval of Parliament
(d) Only reporting to Parliament
Ans. (c) Prior approval of Parliament — Explanation: Para 1 of Annexure A states that all new services (except new 'Works' under Capital section) shall be considered 'New Service' under Article 115 and need prior approval of Parliament. [Ref: Appendix I, Annexure A, para 1]
2. For new works under the Capital section, the reporting limit for 'New Service' is
(a) Above Rs. 25 crore
(b) Above Rs. 50 crore but not exceeding Rs. 100 crore, subject to savings within the same section of the Grant
(c) Up to Rs. 50 crore
(d) Above Rs. 100 crore
Ans. (b) Above Rs. 50 crore but not exceeding Rs. 100 crore, subject to savings within the same section of the Grant — Explanation: For new works in the Capital section, the reporting limit is above Rs. 50 crore but not exceeding Rs. 100 crore, subject to savings within the same section of the Grant. [Ref: Appendix I, Annexure A, para 2]
3. For new works under the Capital section, prior approval of Parliament as 'New Service' is required when the expenditure is
(a) Above Rs. 500 crore
(b) Above Rs. 15 crore
(c) Above Rs. 50 crore
(d) Above Rs. 100 crore, subject to savings within the same section of the Grant
Ans. (d) Above Rs. 100 crore, subject to savings within the same section of the Grant — Explanation: Annexure A requires prior approval of Parliament for new works above Rs. 100 crore, subject to savings within the same section of the Grant. [Ref: Appendix I, Annexure A, para 2]
4. Which of the following Object Heads is covered by the 'New Service' limits for new works under the Capital section?
(a) Salaries
(b) Scholarships
(c) Office Expenses
(d) Buildings and Structures
Ans. (d) Buildings and Structures — Explanation: The heads are Machinery & Equipment, ICT Equipment, Building and Structure, Infrastructural Assets, Arms and Ammunitions and Land. [Ref: Appendix I, Annexure A, para 2]
5. How many Object Heads are listed for the 'New Service' limits applicable to new works under the Capital section?
(a) Six
(b) Twelve
(c) Four
(d) Eight
Ans. (a) Six — Explanation: Six heads are listed: Machinery & Equipment, ICT Equipment, Building and Structure, Infrastructural Assets, Arms and Ammunitions, and Land. [Ref: Appendix I, Annexure A, para 2]
6. The reporting limit for 'New Instrument of Service' is
(a) Above Rs. 100 crore
(b) Up to Rs. 15 crore
(c) Up to 20% of the original appropriation or up to Rs. 100 crore, whichever is higher, subject to savings within the same section of the Grant
(d) Up to 10% of the original appropriation or Rs. 50 crore, whichever is lower
Ans. (c) Up to 20% of the original appropriation or up to Rs. 100 crore, whichever is higher, subject to savings within the same section of the Grant — Explanation: For NIS, the reporting limit is up to 20% of the original appropriation or up to Rs. 100 crore, whichever is higher, subject to savings within the same section of the Grant. [Ref: Appendix I, Annexure A, para 3]
7. Prior approval of Parliament for 'New Instrument of Service' is required when the augmentation is
(a) Above 20% of the original appropriation (15-digit line item) or above Rs. 100 crore, whichever is higher
(b) Above 10% of the original appropriation
(c) Above Rs. 50 crore
(d) Above Rs. 15 crore
Ans. (a) Above 20% of the original appropriation (15-digit line item) or above Rs. 100 crore, whichever is higher — Explanation: For NIS, prior approval of Parliament is needed above 20% of the original appropriation (15-digit line item) or above Rs. 100 crore, whichever is higher. [Ref: Appendix I, Annexure A, para 3]
8. How many Object Heads are listed for the 'New Instrument of Service' limits?
(a) Six
(b) Ten
(c) Twelve
(d) Eight
Ans. (c) Twelve — Explanation: Twelve heads are listed: Investment, Loans and advances, Subsidies, Machinery and equipment, ICT Equipment, Building and Structures, Infrastructure assets, Arms and ammunitions, Land, GIA Capex, GIA General and GIA Salary. [Ref: Appendix I, Annexure A, para 3]
9. Which of the following Object Heads is listed for NIS limits but NOT for NS limits for new works?
(a) Buildings and Structures
(b) ICT Equipment
(c) Land
(d) Subsidies
Ans. (d) Subsidies — Explanation: Subsidies, Investment, Loans and advances and the three GIA heads appear only in the NIS list. Land, ICT Equipment and Buildings appear in both lists. [Ref: Appendix I, Annexure A, paras 2–3]
10. For Object Heads not listed in the NS/NIS tables, Annexure A says
(a) Each case is to be decided on merits
(b) They always need prior approval of Parliament
(c) They are always exempt
(d) They are always within the reporting limit
Ans. (a) Each case is to be decided on merits — Explanation: Annexure A states: "All other Object Heads – Each case to be decided on merits (see para 2 & 3 of the OM)". [Ref: Appendix I, Annexure A]
11. The original appropriation of a line item for 'Subsidies' is Rs. 300 crore. An augmentation of Rs. 90 crore through re-appropriation (with savings available) would be
(a) Exempt from any reporting
(b) Within the reporting limit, since it does not exceed the higher of 20% (Rs. 60 crore) and Rs. 100 crore
(c) A New Service needing prior approval
(d) Beyond the reporting limit, needing prior approval of Parliament
Ans. (b) Within the reporting limit, since it does not exceed the higher of 20% (Rs. 60 crore) and Rs. 100 crore — Explanation: For NIS, the reporting limit is up to 20% or Rs. 100 crore, whichever is higher. The higher of Rs. 60 crore and Rs. 100 crore is Rs. 100 crore, so Rs. 90 crore is within the reporting limit and is reported to Parliament. [Ref: Appendix I, Annexure A, para 3]
12. The original appropriation of a line item for 'Loans and Advances' is Rs. 1,000 crore. An augmentation of Rs. 250 crore would require
(a) No action
(b) Prior approval of Parliament, as it exceeds 20% (Rs. 200 crore), which is higher than Rs. 100 crore
(c) Only the Secretary's approval
(d) Only reporting to Parliament
Ans. (b) Prior approval of Parliament, as it exceeds 20% (Rs. 200 crore), which is higher than Rs. 100 crore — Explanation: 20% of Rs. 1,000 crore is Rs. 200 crore, which is higher than Rs. 100 crore. An augmentation of Rs. 250 crore exceeds this and requires prior approval of Parliament. [Ref: Appendix I, Annexure A, para 3]
13. A new building work under the Capital section costing Rs. 80 crore, with savings in the same section, would
(a) Fall within the reporting limit (above Rs. 50 crore up to Rs. 100 crore) and be reported to Parliament
(b) Need no reporting
(c) Need prior approval of Parliament
(d) Need Cabinet approval only
Ans. (a) Fall within the reporting limit (above Rs. 50 crore up to Rs. 100 crore) and be reported to Parliament — Explanation: For new works under the Capital section, above Rs. 50 crore up to Rs. 100 crore is within the reporting limit, subject to savings in the same section. [Ref: Appendix I, Annexure A, para 2]
14. If sufficient savings are available within the same section of the grant for additional NS/NIS expenditure within the reporting limit (column 2 of Annex A),
(a) Contingency Fund advance is mandatory
(b) Re-appropriation can be made, subject to report to Parliament
(c) Re-appropriation is barred
(d) A Supplementary Grant is mandatory
Ans. (b) Re-appropriation can be made, subject to report to Parliament — Explanation: Para 7(i) states that if sufficient savings are available within the same section, re-appropriation can be made, subject to report to Parliament. [Ref: Appendix I, para 7(i)]
15. Reports to Parliament of NS/NIS re-appropriations should ordinarily be made through
(a) The ensuing batch of Supplementary Demands for Grants, failing which by an Annex in the Detailed Demands of the ensuing year
(b) The Appropriation Accounts
(c) The Budget Speech
(d) The Economic Survey
Ans. (a) The ensuing batch of Supplementary Demands for Grants, failing which by an Annex in the Detailed Demands of the ensuing year — Explanation: Para 7(ii) says the report should ordinarily be made through the ensuing batch of Supplementary Demands for Grants, failing which by adding an Annex in the Detailed Demands of the Ministry for the ensuing year. [Ref: Appendix I, para 7(ii)]
16. Is depiction of augmented provisions in the Revised Estimates sufficient authority to incur NS/NIS expenditure?
(a) Yes, depiction in RE is enough
(b) Yes, if the amount is below Rs. 500 crore
(c) No, where NS/NIS limits are attracted, Parliament's approval through Supplementary Demands must be obtained
(d) Yes, if the FA agrees
Ans. (c) No, where NS/NIS limits are attracted, Parliament's approval through Supplementary Demands must be obtained — Explanation: Para 7(iv) states that mere depiction of augmented provisions in the RE will not be adequate; where NS/NIS limits are attracted, approval of Parliament may be obtained through Supplementary Demands. [Ref: Appendix I, para 7(iv)]
17. Expenditure on a New Service during the Vote on Account period can be incurred only by
(a) Borrowing from the Public Account
(b) Obtaining an advance from the Contingency Fund
(c) Approval of the Secretary
(d) Re-appropriating from other heads
Ans. (b) Obtaining an advance from the Contingency Fund — Explanation: Para 7(v) states that in cases of urgency, expenditure on a New Service during the Vote on Account period can be incurred only by obtaining an advance from the Contingency Fund. [Ref: Appendix I, para 7(v)]
18. Contingency Fund advances for a New Service during the Vote on Account period are resumed to the Fund on
(a) Audit by the C&AG
(b) Enactment of the Appropriation Act for the whole year
(c) Presentation of the Economic Survey
(d) The end of the first quarter
Ans. (b) Enactment of the Appropriation Act for the whole year — Explanation: Para 7(v) says such advances will be resumed to the Contingency Fund on enactment of the Appropriation Act in respect of expenditure for the whole year. [Ref: Appendix I, para 7(v)]
19. A suitable write-up of cases of NS/NIS may also be made, where possible, in
(a) The Notes on Demands for Grants of the Ministry
(b) The Finance Bill
(c) The Outcome Budget only
(d) The Gazette
Ans. (a) The Notes on Demands for Grants of the Ministry — Explanation: Para 7(iii) says a suitable write-up of such cases may also be made in the Notes on Demands for Grants of the Ministry/Department. [Ref: Appendix I, para 7(iii)]
20. The words "whichever is higher" in the NIS reporting limit mean
(a) Both conditions must be exceeded together
(b) The larger of 20% of original appropriation and Rs. 100 crore is the threshold
(c) Only the percentage applies
(d) The smaller of the two is the threshold
Ans. (b) The larger of 20% of original appropriation and Rs. 100 crore is the threshold — Explanation: For NIS, the limit is 20% of the original appropriation or Rs. 100 crore, whichever is higher, so the threshold is the larger of the two amounts. [Ref: Appendix I, Annexure A, para 3]
21. The NS/NIS limits apply subject to
(a) Contingency Fund balance
(b) Savings in any other grant
(c) Approval of the State Government
(d) Savings being available within the same section of the Grant
Ans. (d) Savings being available within the same section of the Grant — Explanation: Each limit in Annexure A is stated "subject to savings within same section of the Grant". [Ref: Appendix I, Annexure A]
22. The reference to "Rule 8 of the Delegation of Financial Powers as amended through Ministry of Finance Gazette Notification dated 16.12.2022" in Annexure A relates to
(a) The waiver of recovery
(b) Write-off of losses
(c) Contract powers
(d) Classification of new works under the Capital section (Land/Building/Machine)
Ans. (d) Classification of new works under the Capital section (Land/Building/Machine) — Explanation: Para 2 of Annexure A refers to new works under the Capital section, currently classified as Land/Building/Machine in line with Rule 8 of DFPR as amended by notification dated 16.12.2022. [Ref: Appendix I, Annexure A, para 2]
23. GIA Capex, GIA General and GIA Salary in the NIS list correspond to which Object Heads respectively?
(a) 35, 36 and 31
(b) 31, 35 and 36
(c) 35, 31 and 36
(d) 36, 31 and 35
Ans. (c) 35, 31 and 36 — Explanation: GIA Capex is 35 Grants for creation of Capital Assets, GIA General is 31 Grants-in-aid – General and GIA Salary is 36 Grants-in-aid – Salaries. [Ref: Appendix I, Annexure A; Annexure-I]
24. A new machinery purchase under the Capital section costing Rs. 120 crore (a new service) requires
(a) Only FA concurrence
(b) Prior approval of Parliament
(c) Only reporting to Parliament
(d) Only the Minister's approval
Ans. (b) Prior approval of Parliament — Explanation: For new works in the Capital section (including Machinery & Equipment), expenditure above Rs. 100 crore requires prior approval of Parliament. [Ref: Appendix I, Annexure A, para 2]
25. The reporting and prior approval limits of NS/NIS are intended to protect
(a) Private investors
(b) State Governments' shares
(c) The C&AG's audit powers
(d) Parliament's control over expenditure from the Consolidated Fund
Ans. (d) Parliament's control over expenditure from the Consolidated Fund — Explanation: Para 4 stresses that no expenditure on NS/NIS can be incurred from the Consolidated Fund of India without prior approval of Parliament, and the limits determine when reporting or prior approval is needed. [Ref: Appendix I, paras 4 and 7]
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