1. OVERVIEW OF WEST BENGAL FINANCIAL RULE
Sib Sankar Banik, W.B.A&A.S

2. Essential condition governing expenditure from public fund
No authority may incur expenditure or enter into any liability involving expenditure from public fund until it has been sanctioned by the general or special order of the Governor or any authority on his behalf.
The expenditure should also be provided for in authorised grants and appropriation for the year
(Rule – 34)

3. Standard of Financial propriety set by F.R (Rule – 35)
Every public officer is expected to exercise same vigilance at the time of incurring public money as a person of ordinary prudence would exercise while spending his own money.
The expenditure should not be prima facie more than the occasion demands.
No authority should exercise powers of sanctioning expenditure for his own advantage
Public money should not be spent for the benefit of particular section of people unless provided for.
The amount of allowance granted should be so regulated that it does not become of source of profit to the recipient.

4. Control of expenditure (Rule – 37)
Duties of controlling officer are:-
Total expenditure is kept within the limit of authorised appropriation.
Funds allotted to the spending units are expended in the public interest and upon objects for which it was sanctioned.
He must be aware of the total expenditure so far made, commitment and liabilities and amounts to be incurred about these.
He is responsible for any instance of excess or financial irregularities brought to notice by audit scrutiny or otherwise.

5. Defalcation, Losses, Accidents in Government Office(Rule – 39 to 42)
Any loss of public money, revenues or receipts, stamps etc held on behalf of the Govt. caused by defalcation or otherwise in a treasury or office should immediately be brought to the notice of superior officers, Fin. Deptt and A.G, WB. Such report must be sent as soon as a suspicion arises that there has been a loss.
Then the matter should be fully investigated and complete report should be submitted. FIR should also be lodged with the police.

6. Responsibility of losses etc (Rule – 42)
Every Govt. Officer should realise fully and clearly that he will be held responsible personally for any loss sustained by the Govt through fraud or negligence on his part.

7. Reasons leads to defalcation
Cash Book is not written daily.
Physical verification of cash balance is not made regularly.
Entries in cash book are signed without verifying original supporting documents.
Funds are drawn to avoid lapse of allotment resulting in retention of heavy undisbursed cash.
Cash and accounts are handled by same person.

8. Purchase Procedure
Cash transaction upto to Rs 10000/- may be made without quotation or tender.
Transaction above Rs 10000/- up to Rs /- shall be made after inviting quotation from at least 4 reliable firms.
Open Tender shall be invited for supply of articles or stores or execution of works and services above Rs /-

9. Contracts and Tenders (Rule – 47 duly modified)
Salient features:-
No contract shall be made by a subordinate authority which has not been directed under the order of Governors.
Terms of Contracts should be precise and definite. There should not be any room for ambiguity.
Terms of a contract, once settled, should not be materially varied without previous consent of the authority and if permitted reasons should be recorded in writing.

10. Contracts and Tenders (Rule – 47 duly modified) contd….
Salient features:-
All contract should have a clause for liquidated damages for default on part of contractor.
Cost plus contract should be avoided.
Quantity of work to be done should be expressed clearly.
There should be a provision for security deposit.
High value contract should be invited in consultation with the Law Officers.

11. Following points to be noted while making purchases
Registered SSI units of WB are to be given 15% price preference in comparison to large, medium industrial unit.
All industrial units owned or managed by Govt. of WB should be given 10% price preference.
State based medium scale units shall be given 10% price preference vis-à-vis large industrial unit and SSI of other states.
If Govt. stationary office fails to supply stationary articles same can be purchased from Co-operative Societies without tender or quotation like Confed, Samabayika etc.

12. Items to be purchased from WBSIDC, Khadi Industries, WB Handloom and Powerloon Development Corpn., CADC etc
A- I
A – II
A – III
A – IV, V, VI, VII AND VII OF 1500-F dated

13. It is absolutely necessary that all purchases should be made within delegated financial powers of Head of the Office.

14. Earnest money - exemption
Suppliers registered with DGS&D, Govt. of India.
SSI registered with Dte. Of SSI, Govt. of West Bengal
RIC
Lighthouse for the blind
Trading Corporation of India Ltd
Labour Co-operative Societies
M/s Mackintosh Burn Ltd.

15. Selection of Tender
Following points should be kept in kind in selecting the lowest bidder:-
No. of tenderers should be at least three. Otherwise re-tendering should be done.
The bid should be opened in the presence of members of Selection Committee
Comparative analysis of rate and value.
Lowest tenderer should be awarded order. If not, reason should be specified.
Credentials and turnover of the firm.

16. TDS (Tax Deduction at Source)
It is the duty of the DDO to see that taxes are deducted as per provisions of the following sections of I.T Act:-
Sec – 192 (TDS from Salaries).
Sec – 194C (TDS from Contractor).
Sec – 194J (TDS from Profession Service)

17. Loans and advances to the Govt. employee F.R 308 to 318
Types of Loans:-
House Building Adv. Since withdrawn (3368-F dtd )
Advances for purchase of Motor Car – admissible to employees drawing pay of Rs 10500/- p.m (unrevised) : 1. Rs /-, month’s pay whichever is less.
Motor cycle, Scooter Adv:- Rs 30000/- or 6 month’s pay whichever is less – Recovery 20 instalment

18. Loans and advances to the Govt. employee F.R 308 to 318
Types of Loans:-
Computer advance – pay must be above Rs 8000/- loan up to Rs 50000/- or 6 months pay
Marriage or Illness Adv:- upto Rs 7500/-, confirmed employee, basic pay not exceeding Rs 8000/-

19. Delegation of Financial Power Rule, 1977
It mainly deals with the financial power of various administrative authority to incur expenses under the head office expenses, other charges etc. It also deals with delegation of DDO’s role by Head of Office.

20. Some important rules Rules 16 – Reappropriation – conditions are
Total grants not to be exceeded
Charged to voted not allowed
New service head is not involved
Provision of plan head, central head should not be diverted

21. Some important rules Rules 17 – Communication of sanction
Approval of Fin. Deptt is required in any financial sanction. Draft sanction is shown by the Admn. Deptt before issue and a sentence is to be noted therein:-
This memo issued with the concurrence of Finance Deptt/ Fin. Advisor’s unofficial no ____________ dtd ________
401 – Lapse of Sanction
A sanction is valid for one year from the date of issue.