Multiple choice questions on the Delegation of Financial Powers Rules, 2024 (DFPR 2024) with answers and explanations. This is Set 31 of 44, covering Appendix I, paras 6–12 and Annexure B. 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 para 6(i) of the NS/NIS OM, who should record a specific certificate in each case involving augmentation of sanctioned provision?
(a) The Head of Office
(b) Integrated Finance Division / Budget Unit
(c) The Minister
(d) The C&AG
Ans. (b) Integrated Finance Division / Budget Unit — Explanation: Para 6(i) requires the IFD/Budget Unit to record a specific certificate that the proposed augmentation attracts or does not attract NS/NIS limits. [Ref: Appendix I, para 6(i)]
2. Under para 6(ii), each expenditure sanction is to be examined from the NS/NIS angle by
(a) The Pay and Accounts Officers
(b) The Heads of Offices
(c) The DDOs
(d) The Internal Audit Wing
Ans. (a) The Pay and Accounts Officers — Explanation: Para 6(ii) states that each expenditure sanction is to be examined by PAOs from the NS/NIS angle keeping in view the financial limits. [Ref: Appendix I, para 6(ii)]
3. Where any doubt arises about applying NS/NIS limits, the PAO would seek a decision from
(a) The Controller General of Accounts
(b) The Financial Adviser of appropriate jurisdiction
(c) The Minister
(d) The C&AG
Ans. (b) The Financial Adviser of appropriate jurisdiction — Explanation: Para 6(iii) says the PAO would seek decision from the Financial Advisor of appropriate jurisdiction. [Ref: Appendix I, para 6(iii)]
4. Which of the following, as per para 8(i), may broadly NOT attract NS/NIS limits?
(a) A new form of investment
(b) A new scheme not earlier brought to Parliament's notice
(c) Normal administrative expenditure, including that resulting from reorganisation of Ministries
(d) Important expansion of an existing activity involving large expenditure
Ans. (c) Normal administrative expenditure, including that resulting from reorganisation of Ministries — Explanation: Para 8(i) lists normal activities of Government such as normal administrative expenditure (including reorganisation), conferences, seminars, exhibitions, surveys, feasibility studies, assistance to foreign Governments, contributions to international bodies and fulfilment of Government guarantees. [Ref: Appendix I, para 8(i)]
5. Fulfilment of a Government guarantee on its invocation
(a) Always needs prior approval of Parliament as a New Service
(b) Is charged expenditure
(c) Is barred
(d) May not attract NS/NIS limits, being a normal activity of Government
Ans. (d) May not attract NS/NIS limits, being a normal activity of Government — Explanation: Para 8(i) lists fulfilment of Government guarantee on its invocation among normal activities that may not attract NS/NIS limits. [Ref: Appendix I, para 8(i)]
6. Transfers to State and Union Territory Governments are exempt from NS/NIS limits provided
(a) The scheme is not new
(b) The amount is below Rs. 100 crore
(c) The State consents
(d) The Finance Commission recommends it
Ans. (a) The scheme is not new — Explanation: Para 8(ii) says transfers to State and UT Governments are exempt from these limits provided the scheme is not new. [Ref: Appendix I, para 8(ii)]
7. The NS/NIS limits are applicable only to expenditure which is
(a) Met from the Public Account
(b) Met from the Contingency Fund
(c) Subject to vote of Parliament
(d) Charged on the Consolidated Fund
Ans. (c) Subject to vote of Parliament — Explanation: Para 8(iii) states that these limits are applicable only to expenditure which is subject to Vote of Parliament. [Ref: Appendix I, para 8(iii)]
8. In case of disagreement between the Integrated Finance Wing and the PAO on NS/NIS, the Ministry sends a self-contained communication to
(a) The Cabinet Secretary
(b) The PAC
(c) The C&AG
(d) The Budget Division, Ministry of Finance, whose decision is final
Ans. (d) The Budget Division, Ministry of Finance, whose decision is final — Explanation: Para 10 says the Ministry may send a self-contained communication to the Budget Division, incorporating the FA's views. The Budget Division's decision will be final. [Ref: Appendix I, para 10]
9. The PAC, in its 103rd Report, expected which officers to ensure that no violation occurs in implementing the revised NS/NIS limits?
(a) Pay and Accounts Officers only
(b) Financial Advisers of all Ministries
(c) State Finance Secretaries
(d) Heads of Offices
Ans. (b) Financial Advisers of all Ministries — Explanation: Para 11 quotes the PAC: "The Committee also expect the Financial Advisors of all the Ministries/Departments to ensure that no violation occur in implementation of the revised limits." [Ref: Appendix I, para 11]
10. Which Department was to issue further orders on amendments to Annexure I to Appendix 3 of GFR 2017 consequent to the revision of NS/NIS limits?
(a) Department of Personnel and Training
(b) Department of Economic Affairs
(c) Department of Expenditure
(d) Department of Legal Affairs
Ans. (c) Department of Expenditure — Explanation: Para 12 states that the Department of Expenditure will issue further orders related to amendments in Annexure I to Appendix 3 of GFR 2017. [Ref: Appendix I, para 12]
11. In the Object Head-wise Matrix (Annexure B), Salaries, Wages and Allowances are shown as
(a) Requiring prior approval of Parliament
(b) Exempted, as falling within the concept of Normal Establishment Expenditure
(c) All cases to be decided on merits
(d) Not Applicable
Ans. (b) Exempted, as falling within the concept of Normal Establishment Expenditure — Explanation: Annexure B marks Salaries, Wages, Rewards, Medical Treatment, Allowances, LTC, Training, Pensionary Charges, travel, Office Expenses, Rent etc. as Exempted, falling within Normal Establishment Expenditure. [Ref: Appendix I, Annexure B]
12. In Annexure B, 45 Interest Payments and 56 Repayment of borrowings are exempted because they are
(a) Accounting adjustments
(b) Charged expenditure
(c) Capital expenditure
(d) Normal establishment expenditure
Ans. (b) Charged expenditure — Explanation: Annexure B marks Interest Payments and Repayment of borrowings as Exempted with the remark "Charged Expenditure". NS/NIS limits apply only to voted expenditure. [Ref: Appendix I, Annexure B]
13. In Annexure B, 32 Contribution is exempted with the remark
(a) Falling under existing exemption
(b) To be decided on merits
(c) Charged Expenditure
(d) Accounting Adjustments head
Ans. (a) Falling under existing exemption — Explanation: Object Head 32 Contribution is marked Exempted with the remark "Falling under existing exemption", consistent with para 8(i) which exempts contributions to international bodies. [Ref: Appendix I, Annexure B]
14. For which of the following Object Heads does Annexure B say "All cases – To be decided on merits"?
(a) 13 Office Expenses
(b) 26 Advertising and Publicity
(c) 24 Fuels and Lubricants
(d) 01 Salaries
Ans. (b) 26 Advertising and Publicity — Explanation: Advertising and Publicity, Royalty, Printing and Publication, Rent for others, Digital Equipment, Professional Services, Awards and Prizes, Scholarships, Motor Vehicles and several others are "All cases – To be decided on merits". [Ref: Appendix I, Annexure B]
15. In Annexure B, 51 Motor Vehicles is shown as
(a) Not Applicable
(b) Reporting limit above Rs. 50 crore
(c) All cases – To be decided on merits
(d) Exempted
Ans. (c) All cases – To be decided on merits — Explanation: Annexure B marks 51 Motor Vehicles as "All cases – To be decided on merits". [Ref: Appendix I, Annexure B]
16. In Annexure B, which Object Heads have both NS and NIS limits specified?
(a) Salaries and Wages
(b) Suspense and Deduct Recoveries
(c) Machinery and Equipment, ICT Equipment, Buildings and Structures, Infrastructural Assets, Arms and Ammunitions (Capital) and Land
(d) Office Expenses and Travel
Ans. (c) Machinery and Equipment, ICT Equipment, Buildings and Structures, Infrastructural Assets, Arms and Ammunitions (Capital) and Land — Explanation: Annexure B specifies both NS limits (above Rs. 50 crore up to Rs. 100 crore reporting; above Rs. 100 crore prior approval) and NIS limits for heads 52, 71, 72, 73, 75 and 78. [Ref: Appendix I, Annexure B]
17. In Annexure B, 34 Scholarships is shown as
(a) All cases – To be decided on merits
(b) Exempted
(c) Having NIS limits of 20% or Rs. 100 crore
(d) Not Applicable
Ans. (a) All cases – To be decided on merits — Explanation: Annexure B marks 34 Scholarships as "All cases – To be decided on merits". [Ref: Appendix I, Annexure B]
18. In Annexure B, 21 Materials and Supplies is shown as
(a) Exempted, falling within the concept of Normal Establishment Expenditure
(b) Having NS limits
(c) All cases – To be decided on merits
(d) Not Applicable
Ans. (a) Exempted, falling within the concept of Normal Establishment Expenditure — Explanation: Annexure B marks 21 Materials and Supplies as Exempted, falling within the concept of Normal Establishment Expenditure. [Ref: Appendix I, Annexure B]
19. In Annexure B, 41 Secret Service Expenditure is shown as
(a) Charged Expenditure
(b) All cases – To be decided on merits
(c) Exempted
(d) Not Applicable
Ans. (b) All cases – To be decided on merits — Explanation: Annexure B marks 41 Secret Service Expenditure as "All cases – To be decided on merits". [Ref: Appendix I, Annexure B]
20. In Annexure B, 44 Loss in Exchange is shown as
(a) All cases – to be decided on merits
(b) Exempted, falling within the concept of Normal Establishment Expenditure
(c) Not Applicable
(d) Charged Expenditure
Ans. (b) Exempted, falling within the concept of Normal Establishment Expenditure — Explanation: Annexure B marks 44 Loss in Exchange as Exempted, falling within the concept of Normal Establishment Expenditure. [Ref: Appendix I, Annexure B]
21. In Annexure B, 27 Minor Civil and Electric Works is shown as
(a) Having NS limits of Rs. 50–100 crore
(b) Charged Expenditure
(c) All cases – to be decided on merits
(d) Exempted, falling within Normal Establishment Expenditure
Ans. (d) Exempted, falling within Normal Establishment Expenditure — Explanation: Annexure B marks 27 Minor civil and electric works as Exempted, falling within the concept of Normal Establishment Expenditure. [Ref: Appendix I, Annexure B]
22. In Annexure B, 31 Grants-in-aid – General, 33 Subsidies and 35 Grants for creation of Capital Assets carry
(a) Exemption
(b) Not Applicable
(c) NIS limits of up to 20% of original appropriation or Rs. 100 crore (reporting) and above that (prior approval), with "All cases" under NS
(d) Charged Expenditure remarks
Ans. (c) NIS limits of up to 20% of original appropriation or Rs. 100 crore (reporting) and above that (prior approval), with "All cases" under NS — Explanation: For these heads, Annexure B shows "All cases" under New Service and NIS limits of up to 20% or Rs. 100 crore, whichever is higher, for reporting, and above that for prior approval. [Ref: Appendix I, Annexure B]
23. Holding of conferences, seminars, exhibitions, surveys and feasibility studies is treated under para 8(i) of the NS/NIS OM as
(a) A New Instrument of Service
(b) A normal activity of Government which may not attract NS/NIS limits
(c) Charged expenditure
(d) A New Service
Ans. (b) A normal activity of Government which may not attract NS/NIS limits — Explanation: Para 8(i) lists these among normal activities of Government which may not attract NS/NIS limits. [Ref: Appendix I, para 8(i)]
24. The Object Head-wise Matrix of NS/NIS limits is given for
(a) Only charged expenditure
(b) Ease of understanding and guidance, while bearing in mind the definitions and PAC limits
(c) Replacing the definitions of NS/NIS
(d) Only the Railways
Ans. (b) Ease of understanding and guidance, while bearing in mind the definitions and PAC limits — Explanation: Para 9 states the matrix is enclosed for ease of understanding and guidance, but the definitions of NS/NIS and the limits prescribed by PAC shall be borne in mind while applying them. [Ref: Appendix I, para 9]
25. In Annexure B, 29 Repair and Maintenance and 39 Bank and Agency Charges are shown as
(a) Having NIS limits
(b) Exempted, falling within Normal Establishment Expenditure
(c) All cases – to be decided on merits
(d) Not Applicable
Ans. (b) Exempted, falling within Normal Establishment Expenditure — Explanation: Annexure B marks both 29 Repair and Maintenance and 39 Bank and Agency Charges as Exempted, falling within the concept of Normal Establishment Expenditure. [Ref: Appendix I, Annexure B]
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