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Past Questions
Which of the following can be classified as recurring expenditure?
A)
water & electricity charges
B)
purchase of vehicle
C)
purchase of photocopier machine
D)
all the above
In government accounting and expenditure classification, expenditures are broadly divided into Revenue (Recurring) and Capital (Non-recurring) expenditures.
1. Recurring Expenditure (Revenue Expenditure): These are ongoing, repetitive costs required for the day-to-day operation of an organization. They do not result in the creation of a permanent asset. 'Water & electricity charges' are utility bills that must be paid regularly (monthly/quarterly) to maintain operations, making them a classic example of recurring expenditure.
2. Non-recurring Expenditure (Capital Expenditure): These are one-time investments used to acquire fixed assets that provide benefits over several years.
- 'Purchase of vehicle' (Option b) is a capital expenditure because a vehicle is a long-term asset.
- 'Purchase of photocopier machine' (Option c) is also a capital expenditure as it is equipment/machinery.
Since options b and c are capital expenditures, option d is incorrect. Therefore, only option a fits the definition of recurring expenditure.
What should be the validity period of performance security beyond the date of completion of all contractual obligations?
A)
Forty-five days
B)
Sixty days
C)
Six months
D)
Thirty days
In government procurement guidelines (specifically following the General Financial Rules (GFR) and the Manual for Procurement of Goods/Works adopted by various state and central government bodies in India), Performance Security is required to ensure the contractor fulfills all contractual obligations. To protect the procuring entity against any latent defects or pending claims that may arise immediately after the completion of the work, the Performance Security must remain valid for a specific period beyond the date of completion of all contractual obligations. The standard prescribed period for this extended validity is 60 days. This allows the department sufficient time to verify the final deliverables and process the release of the security deposit. Therefore, option (b) is the correct answer.
State the monetary limit up to which any loss of immovable property by fire, flood, etc., can be reported by a subordinate authority to the next higher authority-
A)
Up to Rs. 5,00,000
B)
Up to Rs. 1,00,000
C)
Up to Rs. 2,50,000
D)
Up to Rs. 50,000
Under the General Financial Rules (GFR) and the corresponding financial regulations governing the reporting of losses, there are specific thresholds for reporting losses of government property. For losses caused by unforeseen circumstances such as fire, flood, or natural calamities, the reporting structure is tiered based on the monetary value of the loss. According to the standard financial guidelines applicable to departmental examinations of this nature, losses of immovable property (or assets) up to Rs. 1,00,000 can be reported by a subordinate authority to the next higher authority for necessary action and recording. Losses exceeding this limit typically require reporting to higher administrative levels or the Finance Department for formal write-off or sanction. Therefore, option (b) is the correct threshold.
What is the percentage of bid security required to be furnished by bidders in the case of Limited or Advertised tender enquiry?
A)
1 to 3 per cent
B)
3 to 6 per cent
C)
4 to 7 per cent
D)
2 to 5 per cent
In government procurement and public works guidelines (which form the basis for the Mizoram PSC MCS Departmental Examinations), Bid Security (also known as Earnest Money Deposit or EMD) is required to ensure that the bidder is serious about their offer and does not withdraw the bid before the validity period expires. For Limited or Advertised tender enquiries, the standard prescribed range for Bid Security is typically between 2% and 5% of the estimated value of the tender.
- Option (a) 1 to 3% is generally too low for standard advertised tenders.
- Option (b) 3 to 6% and (c) 4 to 7% exceed the standard regulatory ceiling for EMD in most general procurement manuals, as excessively high bid security can discourage competition and restrict the number of eligible bidders.
Minor Head in classification of Government Accounts should be-
A)
four digits
B)
two digits
C)
three digits
D)
one digit
In the standard classification of Government Accounts (as per the List of Major and Minor Heads of Account maintained by the Controller General of Accounts, India), the structure is hierarchical. The 'Major Head' is a four-digit code that represents the main function of the government. The 'Minor Head' is also a four-digit code that provides a more detailed breakdown of the expenditure or receipt under a specific Sub-Major Head. While Sub-Major Heads are typically two digits, the Minor Head specifically follows a four-digit format to ensure unique identification of the specific program or scheme across different departments. Therefore, option (a) is correct.
In case of service pension, pension which remains undrawn for three years or more can not be resumed or arrears could be paid without the authority of _______.
A)
Finance Department
B)
Treasury Officer
C)
Accounts & Treasuries
D)
Accountant -General
Under the standard Pension Rules (which are generally based on the Central Civil Services Pension Rules and adopted by State Governments like Mizoram), there are strict guidelines regarding 'undrawn pensions'. If a pension remains undrawn for a period of three years or more, it is typically treated as a lapsed amount. To resume the payment of such a pension or to authorize the payment of the accumulated arrears, the sanction of the Accountant General (AG) is mandatory. The Treasury Officer (Option b) only executes payments based on authority; the Finance Department (Option a) handles policy; and Accounts & Treasuries (Option c) is a general administrative category. The Accountant General is the statutory authority responsible for the audit and authorization of pension disbursements.
Money may not be withdrawn from the Government Account except by presentation of _______.
A)
challan
B)
bill
C)
cheque
D)
voucher
Under the standard Government Treasury Rules (which are generally uniform across Indian states and based on the General Financial Rules), the fundamental principle of government accounting is that no money shall be withdrawn from the Government Account (Treasury) unless it is supported by a formal claim for payment. This claim is known as a 'bill'. A bill is a document that specifies the amount to be paid, the head of account from which it is to be debited, and the authority that has sanctioned the expenditure.
Why other options are incorrect:
- a. Challan: A challan is primarily used for depositing money INTO the government account, not for withdrawing it.
- c. Cheque: While cheques are used in commercial banking, government withdrawals from the treasury are initiated via bills which are then processed into payments (which may be via cheque or electronic transfer), but the primary instrument for the request of withdrawal is the bill.
- d. Voucher: A voucher is a supporting document or a record of a transaction that has already occurred; the 'bill' is the specific instrument used to initiate the withdrawal process from the treasury.
Non-Gazetted officer can also be appointed as Head of Office with the approval of Ministry of Finance.
A)
True
B)
False
Under the Delegation of Financial Powers (DFP) Rules and the General Financial Rules (GFR) governing government administration, the 'Head of Office' is typically a Gazetted Officer. However, there is a provision for flexibility in specific administrative circumstances. If a particular office does not have a Gazetted Officer available or if the nature of the office warrants it, a Non-Gazetted officer can be appointed as the Head of Office, provided that the Ministry of Finance (or the competent financial authority) grants specific approval for such an appointment. This ensures that financial accountability is maintained even when a non-gazetted official is exercising the powers of a Head of Office.
Reappropriation means transfer of fund from one major head to another.
A)
True
B)
False
In government accounting and financial rules (such as the General Financial Rules), 'Reappropriation' is defined as the transfer of funds from one unit of appropriation (such as a sub-head or detailed head) to another unit of appropriation within the same grant. Crucially, reappropriation cannot be made from one Major Head to another, nor can it be made between different grants, as this would change the nature of the expenditure approved by the legislature. Transferring funds between different Major Heads typically requires a 'Supplementary Grant' or 'Additional Grant' approved by the legislative body, not a simple administrative reappropriation.
Receipts for some above Rs. _______ required the signature of the Treasury Officer before credit into Government account.
A)
5000
B)
2000
C)
1500
D)
2500
According to the standard Treasury Rules applicable to state governments (which govern the procedures for the receipt and payment of government money), there are specific internal control mechanisms to prevent fraud and ensure accountability. For receipts exceeding a certain threshold, the Treasury Officer must verify and sign the receipt before the amount is formally credited to the Government account. In the context of the prescribed Treasury Rules for this administrative framework, the threshold for this mandatory signature is Rs. 2,000. Amounts below this limit may be processed through standard accounting entries, but higher amounts require the higher-level authorization of the Treasury Officer to ensure the integrity of the revenue collection process.
Proposals for waiving of the recovery of overpayments, which are within the powers of the Competent Authority, should not be referred to the Finance Ministry for concurrence.
A)
True
B)
False
In the context of Delegation of Financial Powers (DFP) and government accounting rules, the principle of 'Delegation' implies that once a specific authority (the Competent Authority) has been granted the power to approve or waive a certain amount or type of recovery, they are empowered to make that decision independently. Referring such cases to the Finance Ministry would defeat the purpose of delegation, lead to unnecessary administrative delays, and increase the workload of the Ministry. Therefore, if the waiver falls within the delegated financial powers of the Competent Authority, it should be decided at that level without seeking further concurrence from the Finance Ministry.
Which of the following items are not included in the definition of goods in the General Financial Rules, 2017?
A)
Livestock
B)
Raw materials
C)
Books and periodicals for library
D)
Machinery
Under the General Financial Rules (GFR) 2017, specifically within the context of procurement and the definition of 'goods', the rules distinguish between general goods and specific categories of items. According to the definitions provided in the GFR 2017 (and aligned with the General Financial Rules framework for procurement), 'Goods' typically include livestock, raw materials, machinery, equipment, and other tangible items. However, 'Books and periodicals for library' are generally treated as a separate category of expenditure or handled under specific library procurement rules rather than being lumped into the general definition of 'goods' for standard procurement processes. Therefore, among the given options, books and periodicals are the items not included in the standard definition of goods.
A bank treasury is:
A)
The special account opened by government officers in any commercial bank for keeping office savings.
B)
The treasury in which the cash business is conducted by the Bank
C)
A treasury in which the cash business is conducted by the treasury itself
D)
A treasury other than a non-bank treasury
In the context of Government Treasury Rules (SR/Treasury Rules), a 'Bank Treasury' refers to a specific administrative arrangement where the actual handling of cash, receipts, and payments (the cash business) is outsourced to or conducted through a designated commercial bank (usually the State Bank of India or other authorized banks) rather than being handled by a dedicated government treasury office with its own cash chest.
- Option (a) is incorrect because it describes a personal or office savings account, not a Treasury system.
- Option (c) describes a 'Non-Bank Treasury' or a traditional treasury where the government maintains its own cash office.
- Option (d) is a tautology and does not provide a definition.
Therefore, a Bank Treasury is defined by the fact that the banking institution manages the cash operations on behalf of the government.
Which of the following is PFMS not used for?
A)
Bill processing
B)
Payment
C)
Direct Benefit Transfer
D)
E-tendering
PFMS (Public Financial Management System) is a comprehensive platform designed by the Government of India to improve the efficiency of public financial management.
1. **Bill Processing (Option a):** PFMS is used for the electronic processing of bills, ensuring that expenditures are tracked and validated against budgets.
2. **Payment (Option b):** PFMS facilitates the actual disbursement of funds to vendors and agencies through electronic payments.
3. **Direct Benefit Transfer (Option c):** One of the primary functions of PFMS is to enable DBT, ensuring that subsidies and benefits reach the bank accounts of beneficiaries directly without intermediaries.
4. **E-tendering (Option d):** E-tendering is the process of inviting and receiving bids electronically for procurement. This is handled by specialized portals like the Central Public Procurement Portal (CPPP) or GeM (Government e-Marketplace), not by PFMS. PFMS comes into play *after* the tender is awarded and the payment process begins.
Who is Head of Office as per DFPR?
A)
any officer who is authorised to operate a bank account for the department.
B)
an officer declared as such by the competent authority and responsible for the financial and administrative control of an office
C)
the senior-most officer present in an office on a given day.
D)
an officer who sanctions all types of expenditure without any delegation.
Under the Delegation of Financial Power Rules (DFPR), the 'Head of Office' is not merely the person with the highest rank or the person who operates a bank account, but a specific designation. A Head of Office is an officer who has been formally declared as such by the competent authority. This officer is vested with the responsibility for the administrative and financial management of the office, including the power to sanction certain expenditures within the delegated limits provided by the DFPR.
Why other options are incorrect:
- Option (a) is incorrect because operating a bank account is a function of a Drawing and Disbursing Officer (DDO), which may or may not be the Head of Office.
- Option (c) is incorrect because seniority on a specific day does not grant the legal status or delegated financial powers of a Head of Office.
- Option (d) is incorrect because no single officer sanctions 'all types' of expenditure without delegation; all powers in a government setup are derived from a specific delegation of authority.
As per the General Financial Rules, where should interests on Grants-in-Aid provided by the Government of India be remitted to?
A)
The Public Accounts of India
B)
The State Treasury
C)
The Consolidated Fund of India
D)
The Nodal Ministry
According to the General Financial Rules (GFR) 2017, specifically under the rules governing Grants-in-Aid, any interest earned on grants-in-aid provided by the Government of India must be remitted to the Consolidated Fund of India. This is because grants-in-aid are public funds provided for specific purposes, and any incidental income (like interest) generated from these funds belongs to the Government of India and must be credited back to the central treasury.
- Option (a) is incorrect because the Public Account is used for funds held in trust, not for general government revenue/remittances of this nature.
- Option (b) is incorrect because the State Treasury would only be applicable if the grant were provided by a State Government, not the Government of India.
- Option (d) is incorrect because the Nodal Ministry is the administrative authority, not the financial repository for government revenue.
The accounts of the Union Government are kept in a form on the advice of
A)
The President
B)
The Comptroller and Auditor General of India
C)
The Finance Ministry
D)
The Controller General of Accounts
According to Article 150(1) of the Constitution of India, the accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor General of India (CAG), prescribe. While the President officially prescribes the form, the constitutional authority and technical expertise for determining that form reside with the CAG. Therefore, the 'advice' is provided by the CAG.
- Option (a) is incorrect because the President acts on the advice of the CAG; he is not the advisor.
- Option (c) is incorrect because while the Finance Ministry manages the budget and expenditure, the constitutional mandate for the 'form of accounts' is linked to the CAG.
- Option (d) is incorrect because the CGA is the principal accounting officer and manages the accounting operations, but the overarching form of accounts is prescribed based on the CAG's advice.
Which one of the conditions is not a requirement for necessitating a reservation for ST/SC/OBC for agencies receiving grants-in-aid?
A)
The body employs more than twenty persons on a regular basis
B)
At least half of its recurring expenditure is funded by the government
C)
The body is a registered society or a co-operative institution
D)
The agency is a non-profit organisation
In the context of government grants-in-aid and the application of reservation policies (ST/SC/OBC), the government typically mandates that agencies receiving substantial public funding adhere to state reservation norms to ensure social equity. The standard criteria for necessitating these reservations usually include: 1) The size of the workforce (e.g., employing more than 20 persons), 2) The level of financial dependence on the government (e.g., at least 50% of recurring expenditure funded by the government), and 3) The legal status of the entity (e.g., being a registered society or co-operative). While most agencies receiving such grants are indeed non-profit organisations, the 'non-profit' status itself is a general characteristic of the agency, not a specific 'trigger condition' or 'requirement' that necessitates the implementation of reservation quotas. The reservation is triggered by the scale of employment and the degree of government funding, regardless of whether the entity is a non-profit or another form of registered body.
Can funds provided for charged expenditure be used to meet votable expenditure under DFPR?
A)
Yes
B)
No
C)
Yes, but only after re-appropriation
D)
Approval of Finance Department is required
Under the Delegation of Financial Power Rules (DFPR) and general government accounting principles (based on the Constitution and General Financial Rules), expenditures are categorized into 'Charged' and 'Votable'.
1. **Charged Expenditure**: These are expenditures that are not submitted to the vote of the Legislature (e.g., salaries of the Speaker, High Court judges, etc.). They are mandatory payments.
2. **Votable Expenditure**: These are expenditures that are voted upon by the Legislature.
According to the rules of financial propriety and budgetary control, funds allocated for 'Charged' expenditure are specifically earmarked for those non-votable purposes. Using funds meant for Charged expenditure to meet Votable expenditure is strictly prohibited because it would bypass the legislative authority of the House to vote on and control the spending of public money. Re-appropriation is generally permitted within the same category (Votable to Votable), but not from Charged to Votable.
Who gives authorization for drawing of cheques from the treasury for cheque drawing departments?
A)
The Treasury Officer
B)
The Accountant General
C)
The Reserve Bank of India
D)
The Secretary of the Department
In the context of Treasury Rules and Government Accounting, 'Cheque Drawing Departments' are specific offices authorized to draw funds directly from the treasury via cheques rather than through traditional bills. This authorization is a matter of financial control and accounting oversight. The Accountant General (AG), as the principal accounting authority of the state, is responsible for maintaining the accounts of the government and authorizing which departments are permitted to operate as cheque-drawing offices to ensure fiscal discipline and proper auditing.
- Option (a) The Treasury Officer executes the payment but does not grant the initial authorization for a department to become a cheque-drawing office.
- Option (c) The Reserve Bank of India manages the government's banking accounts at the macro level but does not authorize individual departmental drawing powers.
- Option (d) The Secretary of the Department manages the administration but must seek authorization from the accounting authority (AG) to operate under this specific financial mechanism.
Which of the following is not a feature of a supernumerary post?
A)
It is a shadow post
B)
It is a permanent post
C)
The duties of the post are well defined
D)
It is personal for whom the post is created
A supernumerary post is a post created additionally to the sanctioned strength of a department to accommodate a specific officer without displacing another officer from an existing post.
1. **Option (a) is a feature**: It is often called a 'shadow post' because it exists on paper to provide a legal status/salary to an officer, but it does not represent a new functional requirement of the organization.
2. **Option (b) is a feature**: In administrative law and service rules, a supernumerary post is technically a permanent post in terms of its nature, although it is intended to be abolished once the incumbent retires or is absorbed elsewhere.
3. **Option (d) is a feature**: These posts are typically created 'personally' for a specific individual (e.g., to protect the seniority or pay of an officer during a reorganization).
4. **Option (c) is NOT a feature**: Because a supernumerary post is created for the person and not for the work, it lacks a distinct set of functional duties. The officer holding a supernumerary post usually performs the duties of another existing post or is attached to a department without a specific, well-defined job description unique to that supernumerary slot.
You are posted at the Secretariat of a department which oversees several autonomous organisations. What type of review will you set up to monitor the performance of the autonomous organisations as per General Financial Rules?
A)
Internal audit review
B)
Peer review mechanism
C)
Performance budgeting review
D)
Financial propriety review
Under the General Financial Rules (GFR) 2017, the monitoring of autonomous bodies and the allocation of grants-in-aid are increasingly tied to the concept of 'Outcome Budgeting' and 'Performance Budgeting'.
1. **Performance Budgeting Review (Correct):** GFR 2017 emphasizes that the grant-in-aid provided to autonomous bodies should be based on the performance of the organization. The government monitors these bodies through performance reviews to ensure that the funds provided are achieving the intended outcomes and targets. This aligns with the shift from traditional input-based budgeting to outcome-based budgeting.
2. **Internal Audit Review (Incorrect):** While internal audits are mandatory for financial discipline, they focus on the legality and regularity of transactions rather than the overall 'performance' and achievement of goals of the autonomous organization.
3. **Peer Review Mechanism (Incorrect):** Peer review is a quality assurance process common in academia or specific technical fields, but it is not a prescribed regulatory mechanism under GFR for the administrative monitoring of autonomous bodies by a Secretariat.
4. **Financial Propriety Review (Incorrect):** Financial propriety refers to the standard of prudence (spending public money as a person of ordinary prudence would spend their own). While it is a guiding principle in GFR, it is a standard of conduct for expenditure, not a structured 'review system' set up to monitor the performance of an entire organization.
Which of the following best defines a personal advance?
A)
An advance granted to a contractor for starting a government work.
B)
An interest-free advance given to a department for petty contingent expenses.
C)
A recoverable advance granted to a Government servant for meeting personal requirements.
D)
A temporary advance sanctioned to a DDO for disbursing salaries.
In the context of Treasury Rules and Government Accounting, advances are categorized based on their purpose and the entity receiving them.
1. **Personal Advance (Option c):** This is a recoverable amount granted to a government employee to meet specific personal needs (such as festival advances, house building advances, or medical advances). These are strictly recoverable from the employee's salary in installments.
2. **Why other options are incorrect:**
- **Option a** describes a 'Mobilization Advance' or 'Work Advance' given to contractors, which is a commercial/contractual transaction, not a personal advance.
- **Option b** describes a 'Permanent Advance' or 'Imprest', which is provided to an office for day-to-day contingent expenditure, not for a person's private use.
- **Option d** describes a 'Temporary Advance' or 'Salary Advance' given to a Drawing and Disbursing Officer (DDO) for official disbursement purposes, which is an administrative tool rather than a personal loan.
Which type of procurement is quality cum cost based selection (QCBS) method mostly used for?
A)
Procurement of high precision medical equipments
B)
Procurement of services
C)
Procurement of major works
D)
For entering into rate contracts
Quality and Cost Based Selection (QCBS) is a procurement method used primarily for the selection of consultants or the procurement of services where the quality of the output is as important as, or more important than, the cost. In QCBS, a weighted score is assigned to both the technical proposal (quality) and the financial proposal (cost) to determine the winning bidder.
Why other options are incorrect:
- Option (a) Procurement of high precision medical equipment: This usually follows a 'Least Cost' or 'Quality-based' selection for goods, often involving technical specifications and bidding, but QCBS is specifically a framework for services/consultancy.
- Option (c) Procurement of major works: Major works (like building bridges or roads) typically use 'Least Cost' or 'Quality-based' selection for contractors, or specific bidding processes for civil engineering, rather than the QCBS consultancy model.
- Option (d) For entering into rate contracts: Rate contracts are generally based on the lowest price for standardized goods or services over a period, not a weighted quality-cost evaluation of a specific project proposal.
What is a personal deposit account?
A)
A savings account opened by a Government servant in a nationalised bank
B)
A device in which public money is credited and from which payments are made for specific purposes
C)
A fixed deposit held by the Government for contingency needs
D)
A personal ledger account maintained by Audit for each DDO.
In the context of Treasury Rules and Government Accounting, a Personal Deposit (PD) Account is a mechanism used by the government to allow specific funds to be credited to the treasury for a particular purpose. These funds are then drawn from the account for that specific purpose, subject to the rules and sanctions of the government.
Why other options are incorrect:
- Option (a) describes a private savings account, which is unrelated to government treasury operations.
- Option (c) describes a Fixed Deposit, which is an investment vehicle, whereas a PD account is a current-style account for operational expenditure.
- Option (d) describes a Personal Ledger Account (PLA), which is a different accounting tool used primarily for the tracking of advances and expenditures by a Drawing and Disbursing Officer (DDO), whereas a PD account is specifically for funds credited for a designated purpose.