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General Financial Rules

Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

General Financial Rules

What to study?

For Prelims: Objectives of GFR, overview and recent amendments.

For Mains: Significance of these rules, need for and implications.

Context: The government has notified amendments to General Financial Rules (GFR) to ensure that goods and services valued less than Rs 200 crore are being procured from domestic firms, a move which will benefit MSMEs.

Implications:

The amendments ensure that henceforth global tenders will be disallowed in government procurement up to Rs 200 crore, as announced in the Atma Nirbhar Bharat Package.

What are GFRs?

The General Financial Rules (GFRs) are set of rules that deal with matters that involve public finances. They were first issued in 1947 bringing together all the existing orders. They are instructions that pertain to financial matters.

They lay down the general rules applicable to Ministries / Departments, and detailed instructions relating to procurement of goods are issued by the procuring departments broadly in conformity with the general rules, while maintaining flexibility to deal with varied situations.

Sources: pib.