FREE ELECTRONIC LIBRARY - Abstracts, books, theses

Pages:     | 1 |   ...   | 12 | 13 || 15 | 16 |   ...   | 26 |

«Government of India Ministry of Finance Department of Expenditure General Financial Rules, 2005* (* Amendments issued upto March 2010 have been added as ...»

-- [ Page 14 ] --

(2) General Principles for award of Grants-in-aid for Centrally Sponsored Schemes : The following principles should be kept in view by Ministries/Departments of the Central Government at the time of designing Centrally Sponsored Schemes for implementation in States Governments or Union Territories and approving and releasing assistance to State Governments or Union Territories for such schemes: i) Every Centrally Sponsored Scheme should be treated as a Project with time bound targets for monitoring, midterm evaluation and detailed impact studies.

(ii) The scheme should be designed in consultation with individual States or Union Territories and the outlays should be demand driven. States should be delegated adequate powers to change the details of the schemes to suit local conditions, subject to reporting such changes to the concerned Ministry or Department.

(iii) Where plan schemes are in operation with similar objectives targeting the same population, the schemes should be converged and the schemes not yielding results should be weeded out.

(iv) To ensure monitoring and effective control over such schemes, the number of schemes should be restricted, so that the gain from the expenditure on such schemes is maximized. The role of the Central Ministries or Departments should be capacity building, inter-sectoral coordination and detailed monitoring.

(v) Apart from making provisions in the budget and releasing funds, the Ministries or Departments should establish a mechanism to ensure that the funds earlier released have been effectively utilised and that the data and facts reported by the State Governments or Union Territories relating to physical and financial performance are correct. Before releasing further funds, it should also be ensured that the State Governments or Union Territories have the capacity to actually spend the balance from the previous years and the releases during the current year.

(vi) The Ministries or Departments should focus attention on the attainment of the objectives and not on expenditure only. A mechanism for avoiding release of large part of funds towards the end of the year should be devised and incorporated in the Scheme design itself.

(vii) An evaluation mechanism should be built into the Project, providing for concurrent reviews and applying, mid-course corrections where necessary.

(viii) A post-completion review of every Centrally Sponsored Scheme should be undertaken by the State Government(s) or Union Territories implementing the scheme, highlighting the time and cost overruns, if any, and suggestions for formulating and implementing future schemes. A copy of the review should be obtained by the Ministry concerned and kept in view while formulating new Centrally Sponsored Schemes.

(3) Funding of Sponsored Projects or Schemes :Ministries or Departments of Government sponsor projects or schemes to be undertaken by Universities, Indian Institutes of Technology and other similar autonomous organizations such as ICAR, CSIR, ICMR, etc., the results from which are expected to be in national interest. Normally the entire expenditure on such projects or schemes including capital expenditure, is funded by the Ministry or Department. The funds released for such projects or schemes in one or more installments are not treated as grants-inaid in the books of the implementing agency. Apart from the requirement of submission of technical and financial reports on completion of the project or scheme, a stipulation should be made in such cases that the ownership in the physical and intellectual assets created or acquired out of such funds shall vest in the sponsor. While the Project or Scheme is ongoing, the recipients should not treat such assets as their own assets in their Books of Accounts but should disclose their holding and using such assets in the Notes to Accounts specifically.

2) On completion of the Projects or Schemes and the receipt of technical and financial reports, the Ministries or Departments should decide and communicate to the implementing agencies whether the assets should be returned, sold or retained by them.

3) If the assets are to be sold, the proceeds therefrom should be credited to account of the sponsor. If the assets are allowed to be retained by the Institution/Organisation, the implementing agency should include the assets at book value in their own accounts.

–  –  –

Rule 216. The rules in this section shall be observed by all authorities competent to sanction loans of public moneys to State Governments, Local Administrations of Union Territories, local bodies, private individuals, institutions and others.

Rule 217. Powers and Procedure for sanction of loans : The powers of Departments of the Central Government and Administrators as well as other subordinate authorities to sanction loans are contained in Rule 20 of the Delegation of Financial Powers Rules, 1978 and other general and special orders issued under that rule.

Rule 218. All sanctions of loans issued by a Department of Central Government or an Administrator in exercise of their powers under Rule 20 of the Delegation of Financial Powers Rules, 1978, should include a suitable certificate to the effect that the same is in accordance with the rules or principles prescribed with the previous consent of the Ministry of Finance and that the rate of interest on the loan and the period of repayment thereof have been fixed with the approval of that Ministry.

Rule 219.

(1) All sanctions to loans shall be subject to proviso (b) to Rule 20 of the Delegation of Financial Powers Rules, 1978, and shall specify the terms and conditions relating to them including the terms and conditions of their repayment and payment of interest.

(2) Borrowers shall be required to adhere strictly to the terms settled for the loans made to them. Modifications of these terms in their favour can be made subsequently only for very special reasons.

Rule 220.

(1) General conditions for regulating all loans : All loans, other than loans to cultivators, etc., which are governed by special rules, should be regulated by the following general conditions :i) A specific term should be fixed which should be as short as possible, within which each loan should be fully repaid with interest due. The terms may, in very special cases, extend to thirty years.

(ii) The term is to be calculated from the date on which the loan is completely drawn or declared by competent authority to be closed.

(iii) The repayment of loans should be effected by installments, which should ordinarily be fixed on annual basis, due dates of payment being specially prescribed.

(iv) Any installment paid before its due date may be taken entirely towards the principal, provided it is accompanied by payment toward interest due up-to-date of actual payment of installment; if not, the amount of the installment will first be adjusted towards the interest due for preceding and current periods and the balance, if any, will alone be applied towards the principal. If, however, the payment of the installment is in advance of the due date by fourteen days or less, interest for the full period (halfyear or full year, as the case may be) will be payable.

(v) When the due date of repayment of any installment of principal or interest falls on a Sunday or a public holiday, the payment made on the next working day following the Sunday or the public holiday, shall be regarded as payment on the due date and no interest shall be charged for the day or days by which the recovery is so postponed.

Exception. –If an installment of principal or interest is payable on the thirty-first March of a year, and if that day happens to be a public holiday the recoveries should be made on the immediately preceding working day. In case, the due date for the repayment of a loan or payment of interest falls on a holiday observed by the Reserve Bank of India, at which the effective credit is to take place this should be shifted to the next working day, except when the due date is thirty-first March.

(vi) The payment of interest and the repayment of principal of a loan are always to be made with reference to the calendar date on which the loan in question is paid. However, where payment of installment is in advance of the due date by fourteen days or less, interest for the full year or half year (depending on the prescribed mode of recovery) will be charged thereon. In the case of a loan sanctioned by the Central Government to a State Government on or before thirty-first March of a year, which is adjusted in the books of the Reserve Bank of India in the month of April but in the accounts of the previous year the installment of principal and/or interest will fall due for payment on the thirty-first March of the succeeding year and not on the anniversaries of the calendar date in April on which the interGovernmental adjustment was carried out.

(vii) The date of drawal of a loan by a State Government will be determined as indicated below – (a) When monetary settlement is involved -Normally the calendar date on which amount of a loan is actually credited to the account of the State Government by the Reserve Bank is to be treated as the date of its drawal.

This position will also hold in cases where adjustment in accounts is made in one month but date of adjustment in the books of the Reserve Bank of India falls in the following calendar month. The calendar date on which the credit is actually afforded to the State Government in the books of the Reserve Bank of India in such cases will be treated as the date of its drawal.

Exception. –An exception to this arrangement is in the case of loans for which credit is afforded to the recipient State Government in the month of April by the Reserve Bank of India but in the accounts of previous year. In such cases, a loan should be deemed to have been paid on the thirty-first March of the financial year in the accounts of which the payment is adjusted. Consequently, payment of annual interest as also repayment of installment of principal in respect of such loans will fall due on the thirty-first March of the succeeding years and not on the anniversaries of the calendar date in April on which inter-Governmental adjustment on account of such loans was carried out in the books of the Reserve Bank of India.

(b) Where no monetary settlement is involved. –In regard to cases where adjustment in the books of the Accounts Offices are only involved and actual credit through the Reserve Bank of India is not necessary, the last date on the month of account in which the adjustment is effected should be taken as the date of drawal of loan for purposes of repayment and charging interest.

(viii) In order to avoid any default in the payment of loan, the Principal Accounts Officers or Pay and Accounts Officers who maintain the detailed accounts of loans, should issue notices in Form GFR-36 to the loanees (other than State and Union Territory Governments) i.e. Public Sector Undertakings, statutory bodies and institutions etc., say, a month in advance of the due date for the repayment of any installment of the principal and/ or interest thereon. However, omission to give notice does not give the loanees any claim to exemption from the consequences of default in the repayment of the principal and/or interest thereon.

(2) Before sanctioning a loan to private Institutions the lending Ministry or Department should ensure that such private institution has the necessary adequate managerial ability and experience.

(3) (i) Before considering a loan application from parties other than State Governments and Local Administrations of Union Territories, the following requirements should be fulfilled:a) it should be seen that there is adequate budget provision;

(b) it should be seen whether the grant of the loan would be in accordance with approved Government policy and accepted patterns of assistance.

(ii) Before approving the loan, the applicant should be asked to furnish the following materials and information:a) copies of profit and loss (or income and expenditure) accounts and balance sheets for the last 3 years;

(b) the main sources of income and how the loan is proposed to be repaid within the stipulated period;

(c) the security proposed to be offered for the loan together with a valuation of the security offered by an independent authority and a certificate to the effect that the asset offered as security is not already encumbered.

(d) Details of loan or loans taken from the Central Government or a State Government in the past, indicating amount, purpose, rate of interest, stipulated period of repayment, date of original loan and amount outstanding against the loan(s) on the date of the application and the assets, if any, given as security;

(e) a complete list of all other loans, outstanding on the date of application and the assets given as security against them;

(f) the purpose for which the loan is proposed to be utilized and the economics of the scheme.

NOTE. – Where the loan is to be given to an institution on the strength of a guarantee given by the trust managing it, similar information should be called for in respect of the trust also.

(iii) On receipt of the information called for as mentioned in (ii) above, confidential enquiries should be made from the other Departments of the Central Government or State Governments from which the party has taken loans, to judge the performance in regard to the previous loans. If the replies indicate that the performance was not satisfactory, the loan should be refused. It must be analysed that the financial position of the party is sound. It should also be ensured that the security offered is adequate and its value is at least thirty-three and one-third per cent. above the amount of the loan. If possible, an independent valuation of the security offered should be obtained. The applicant for the loan must satisfy both the criteria for financial soundness and adequacy of security before a loan is sanctioned.

(iv) In the case of institutions which receive grants-in-aid from Government to meet a part of their deficits and the balance is met by the State Government and the Trustees of Management, it should be ensured– (a) that in computing the deficit for purpose of the grant-in-aid, the income from the scheme, if any, earmarked for servicing the loan and the installment of repayment of the loan and interest (if any) is not included;

(b) that as far as possible the scheme for which the loan is given is self-financing and does not throw an additional burden on the general income of the institutions, e.g., in the case of hostels for colleges that the rents proposed are adequate;

(c) the institution produces an undertaking from the State Government or the Management that any shortfall towards repayment of the loan and interest will be made good by them. In the latter case the financial position of the Management (Trust) should be investigated after calling for information on the lines of Rule 220. (3) (i) above.

(v) Ministries or Departments of the Central Government should lay down a procedure for periodical review of the old loans so that prompt action can be taken, if necessary, for enforcing regular payments.

(4) The detailed procedure to be followed in connection with the grant of loans to local bodies will be regulated by the provisions of the Local Authorities Loans Act and other special Acts and by rules made thereunder.

Rule 221. Interest on Loans :

(1) Interest shall be charged at the rate prescribed by the Government for any particular loan or for the class of loans concerned.

(2) A loan shall bear interest for the day of payment but not for the day of repayment. Interest for any shorter period than a complete year shall be calculated as – Number of days X Yearly rate of interest 365 (366 in case of Leap Year) unless any other method of calculation is prescribed in any particular case of class of cases.

Rule 222.

(1) Procedure to be followed for recovery of loans and interest thereon and grant of moratorium: (i) The instructions issued by the Ministry of Finance from time to time prescribing the interest rates and other terms and conditions of loans to State and Union Territory Governments, Local Bodies, Statutory Corporations, financial, industrial and commercial undertakings in the Public Sector, Private institutions or parties and individuals, should be strictly followed.

Pages:     | 1 |   ...   | 12 | 13 || 15 | 16 |   ...   | 26 |

Similar works:

«Journal of Financial Economics 50 (1998) 125—150 The relation between implied and realized volatility B.J. Christensen, N.R. Prabhala * School of Economics and Management, University of Aarhus, DK-8000 Aarhus C, Denmark Yale School of Management, Yale University, New Haven, CT 06511, USA Received 10 October 1996; received in revised form 29 December 1997 Abstract Previous research finds the volatility implied by S&P 100 index option prices to be a biased and inefficient forecast of future...»

«2005] THE ECONOMICS OF COMPUTER HACKING Peter T. Leeson, Ph.D.* & Christopher Coyne, Ph.D.** J.ABSTRACT This paper considers various classes of computer hackers, with a special emphasis on fame-driven versus profit-driven hackers. We use simple economic analysis to examine how each of these hacking markets work. The resulting framework is employed to evaluate current U.S. policy aimed at reducing the threat of computer hacking and shows that this policy is largely effective. We consider policy...»

«ORGANIZATIONAL 2016 – 2017 Amended Adopted Budget Approved by the Milwaukee Board of School Directors on October 27, 2016 Fiscal Year: July 1, 2016 – June 30, 2017 • • Office of Finance 5225 W. Vliet St., Milwaukee, WI 53208 mps.milwaukee.k12.wi.us Table of Contents – Organizational Section School District Structure and Organization Map 2.1 County of Milwaukee Map 2.2 MPS Regional System of School Support Milwaukee Board of School Directors President Mark Sain, District 1 Director...»

«K N E’ K AT I IPE K S NE’K AT PEK IK SI Table of Contents 2 Background 3 Chief’s Annual Report 4 Director of Operations Annual Report 5 Executive Finance Officer Annual Report 7 After School Program Annual Report 8 Sipeken’katik Gas Station/Business Ventures Annual Report 17 Health Centre Annual Report 31 Sipekne’katik Security Annual Report 32 Sipekne’katik Education 35 Lands/By-Law Annual Report 38 Annual Recreation Report 42 Social & Social Development Annual Report 43...»

«The East Asian Financial Crisis: Diagnosis, Remedies, Prospects Steven Radelet Jeffrey Sachs Harvard Institute for International Development April 20, 1998 We are grateful for excellent research assistance from Mumtaz Hussain, Dilip Parajuli, Amar Hamoudi, and Gopal Garuda, and for valuable inputs from Frank Flatters. We also thank very much our discussants, Richard Cooper and Barry Bosworth, for their comments and suggestions. Partially sponsored by the Office of Emerging Markets, Economic...»

«Biddestone Broadsheet Oct 2012 No 391 Page 1 Biddestone and Slaughterford Parish Council Notes from the meeting of 28th August 2012 Six Parish Councillors attended the meeting. It was noted that the Wiltshire Council order regarding dog fouling comes into force at the beginning of September, the implications of which will be published in the Broadsheet. The proposal for realignment of the Cuttle Lane/ Giddea Hall Junction has been passed by the Chippenham Area Transport Group to the Area Board...»

«Conceptual foundations of safety culture and safety climate measurement: A snapshot review Trang Vu and Helen De Cieri 3 December 2015 Research report#: 060-1215-R04 This research report was prepared by Dr Trang Vu and Professor Helen De Cieri, Monash Business School, Monash University, P O Box 197, Caulfield East, Victoria 3145. For WorkSafe Victoria.This report is a companion to: Vu, T., & De Cieri, H. (2015). Safety culture and safety climate measurement tools: A systematic review....»

«INSTITUTE FOR REGIONAL STUDIES CENTRE FOR ECONOMIC AND REGIONAL STUDIES HUNGARIAN ACADEMY OF SCIENCES DISCUSSION PAPERS No. 93 From spatial research to regional science (A draft of Eastern and Central European science history) by Gyula HORVÁTH Series editor Gábor LUX Pécs Research for this publication has been supported under OTKA – Hungarian Scientific Research Fund grant No. 104985 (New driving forces of spatial restructuring and regional development paths in Eastern Europe at the...»

«International Journal of Social Science and Economic Research ISSN: 2455-8834 Volume:01, Issue:09 REGIONAL DEVELOPMENT AGENCY EXPERIENCES IN UK Dr. Fatih EREN Selcuk University Faculty of Architecture, Department of City and Regional Planning, Aleaddin Keykubat Campus, Selcuklu-Konya, TURKEY.ABSTRACT UK has experienced a very interesting and teaching regional governance between 1998 – 2010. UK Government took a radical decision for following spatial development strategy of EU, also solving...»

«Do changes in reimbursement fees affect hospital prioritization? Hans Olav Melberg Department of Health Management and Health Economics, University of Oslo Kine Pedersen Department of Health Management and Health Economics, University of Oslo UNIVERSITY OF OSLO HEALTH ECONOMICS RESEARCH NETWORK Working paper 2015: 1 HERO Do changes in reimbursement fees affect hospital prioritization? January 2015 Hans Olav Melberg and Kine Pedersen Department of Health Management and Health Economics,...»

«Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C. Gauging the Ability of the FOMC to Respond to Future Recessions David Reifschneider 2016-068 Please cite this paper as: Reifschneider, David (2016). “Gauging the Ability of the FOMC to Respond to Future Recessions,” Finance and Economics Discussion Series 2016-068. Washington: Board of Governors of the Federal Reserve System,...»

«This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and Germany Volume Author/Editor: Mervyn A. King and Don Fullerton, eds. Volume Publisher: University of Chicago Press Volume ISBN: 0-226-43630-6 Volume URL: http://www.nber.org/books/king84-1 Publication Date: 1984 Chapter Title: The Theoretical Framework Chapter Author: Mervyn...»

<<  HOME   |    CONTACTS
2017 www.sa.i-pdf.info - Abstracts, books, theses

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.