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Past Questions — 2025
What is the time-limit for execution of a contract document after issue of letter of acceptance?
A)
30 days
B)
18 days
C)
21 days
D)
14 days
In the context of government procurement and contract management (specifically following the standard guidelines used in CPWD and various state public works departments which form the basis for MCS departmental exams), the 'Letter of Acceptance' (LoA) is the formal notification to the successful bidder. Once the LoA is issued, the contractor is required to sign the formal contract agreement. The standard prescribed time limit for the execution/signing of the contract document after the issuance of the Letter of Acceptance is 21 days. If the contractor fails to sign within this period, the authority may reserve the right to cancel the award or forfeit the earnest money deposit (EMD). Options a, b, and d are incorrect as they do not align with the standard regulatory timeframe for contract execution in these administrative frameworks.
For projects up to Rs. 100 crores, powers are vested with the Administrative/ Ministry / Department to accept a variation in the approved estimate within-
A)
10%
B)
20%
C)
30%
D)
40%
In the context of government financial rules and project management guidelines (specifically those aligned with General Financial Rules and Departmental guidelines for project estimates), there is a standard threshold for 'Variation' or 'Cost Overrun' that can be approved at the administrative level without seeking fresh approval from the higher financial authority (such as the Finance Department or the Cabinet). For projects up to Rs. 100 crores, the Administrative Ministry or Department is typically vested with the power to accept a variation in the approved estimate up to 10%. If the variation exceeds this 10% limit, the revised estimate must be submitted to the competent financial authority for revised administrative approval and expenditure sanction. Options b, c, and d (20%, 30%, and 40%) exceed the standard delegated financial powers for administrative-level variation approvals.
Cheques shall be payable at any time within _______ after the month of issue.
A)
six months
B)
sixty days
C)
one year
D)
three months
Under the standard Treasury Rules and General Financial Rules (GFR) applicable to government accounting in India (which the Mizoram PSC follows), government cheques are subject to a specific validity period to ensure financial discipline and accurate accounting of lapsed payments. A government cheque is typically valid for a period of six months from the date of issue. After this period, the cheque becomes 'stale' and cannot be encashed; the payee must then apply for a duplicate or a fresh issue after the original amount is credited back to the government account. Therefore, option (a) is correct. Options (b), (c), and (d) do not align with the standard statutory validity period for government treasury cheques.
Which of the following sentence is not correct with respect to reappropriation of funds?
A)
Funds shall not be reappropriated between votable expenditure and charged expenditure
B)
No reappropriation shall be made from primary unit “Major works” to any other unit
C)
Funds shall not be reappropriated to meet expenditure not sanctioned
D)
none of the above
In government accounting and financial rules (specifically those governing the General Financial Rules and State Budgetary controls), reappropriation is the transfer of funds from one unit of appropriation to another.
1. Option (a) is CORRECT: Funds cannot be reappropriated between 'Voted' expenditure (which is subject to legislative vote) and 'Charged' expenditure (which is not), as these have different legal statuses in the Consolidated Fund.
2. Option (b) is CORRECT: To prevent the diversion of capital assets funding toward revenue or administrative expenses, rules generally prohibit reappropriating funds from 'Major Works' (capital expenditure) to other units.
3. Option (c) is CORRECT: Reappropriation is intended to manage existing sanctioned expenditures; it cannot be used to create or fund a new expenditure that was not originally sanctioned by the competent authority/legislature.
Since options (a), (b), and (c) are all correct statements regarding the rules of reappropriation, the only correct choice for the question 'Which of the following sentence is NOT correct' is 'none of the above'.
No permanent post should be created without the approval of
A)
President of India
B)
Council of minister
C)
Ministry of Finance
D)
Department of Personnel & Training
In the context of government administration and financial rules (such as the General Financial Rules - GFR), the creation of a permanent post involves a recurring financial commitment (salary, allowances, and pensions) on the Consolidated Fund. Therefore, no permanent post can be created without the concurrence/approval of the Ministry of Finance. While the Department of Personnel & Training (DoPT) may handle the administrative aspects of cadre strength and recruitment rules, the financial sanctioning authority for the creation of a permanent liability is the Ministry of Finance. The President of India is the formal appointing authority for certain high-level posts, and the Council of Ministers provides policy direction, but the specific procedural approval for post creation rests with the Finance Ministry to ensure budgetary availability.
An arrear claim of a Government servant shall be settled by the DDO, if preferred within _______ of its becoming due.
A)
Two years
B)
One year
C)
Three years
D)
Four years
In accordance with the financial rules and treasury guidelines applicable to Government servants (specifically under the Mizoram Financial Handbook and general government accounting principles), there is a prescribed time limit for the settlement of arrear claims. An arrear claim is considered 'current' and can be settled directly by the Drawing and Disbursing Officer (DDO) if it is preferred within three years of the date it became due. Claims that exceed this three-year window typically require higher administrative sanction or a more rigorous audit process to ensure the validity of the claim and the availability of funds from previous budget years. Therefore, option (c) is the correct regulatory timeframe.
Contingency Fund of India is defined under Article _______ of Indian Constitution.
A)
266
B)
267
C)
290
D)
295
Step-by-step reasoning:
1. The Constitution of India provides for different funds to manage the finances of the Union.
2. Article 266 deals with the Consolidated Fund of India and the Public Account of India. The Consolidated Fund is where all revenues received by the government are credited.
3. Article 267 specifically establishes the 'Contingency Fund of India'. This is an imprest account placed at the disposal of the President of India to enable him to make advances to meet unforeseen expenditure pending authorization by Parliament.
4. Article 290 relates to the transition of certain laws and adaptations regarding the financial provisions of the Constitution.
5. Article 295 deals with other funds (such as public accounts) existing before the commencement of the Constitution.
Therefore, the Contingency Fund of India is defined under Article 267.
When will a sanction of Provident Fund Advance / withdrawal lapse?
A)
On the expiry of 6 months
B)
On the expiry of 3 months
C)
On the expiry of 4 months
D)
On the expiry of 5 months
In accordance with the General Provident Fund (GPF) rules applicable to government employees (which are generally standardized across state governments in India, including Mizoram), a sanction for a Provident Fund advance or withdrawal is valid for a specific period. If the amount is not drawn by the subscriber within the stipulated timeframe, the sanction lapses. The standard regulatory period for the validity of such a sanction is 3 months from the date of issue. Therefore, if the employee fails to draw the sanctioned amount within 3 months, the sanction expires and a fresh application must be submitted. Options a, c, and d are incorrect as they do not align with the standard financial rules governing GPF sanctions.
When will the utilization certificate be submitted by the institution or organization regarding non-recurring grants to the Ministry?
A)
Within six months of the closure of the financial year
B)
Within ten months of the closure of the financial year
C)
Within twelve months of the closure of the financial year
D)
Within four months of the closure of the financial year
In the context of government grants (specifically under the General Financial Rules - GFR), there is a distinction between recurring and non-recurring grants regarding the submission of Utilization Certificates (UCs).
1. Recurring Grants: These are typically submitted within a shorter timeframe (often 6 to 12 months depending on the specific scheme) to ensure the continuity of funding.
2. Non-Recurring Grants: These are provided for specific assets or one-time projects. Because these projects may span longer durations or require a final audit after the asset is commissioned, the standard rule for non-recurring grants is that the Utilization Certificate must be submitted within twelve months of the closure of the financial year in which the grant was released, or upon completion of the project, whichever is earlier.
Therefore, option (c) is the correct regulatory requirement for non-recurring grants.
When challan is submitted in quadruplicate, the challan which is marked _______ should be returned to the tenderer of challan
A)
duplicate
B)
triplicate
C)
original
D)
quadruplicate
In government treasury procedures, when a challan is submitted in quadruplicate (four copies), each copy serves a specific administrative purpose to ensure a proper audit trail of the money deposited. The standard distribution is as follows: 1. The Original is retained by the Treasury for accounting purposes. 2. The Duplicate is sent to the Head of Office/Department. 3. The Triplicate is kept as a record or sent to the Accountant General. 4. The Quadruplicate is stamped and returned to the tenderer (the person depositing the money) as a formal receipt/acknowledgment of the payment. Therefore, the copy marked 'quadruplicate' is the one returned to the tenderer.
Who is authorized to distribute the sanctioned funds to controlling and disbursing officers as per DFP Rules?
A)
Head of Department
B)
Ministry of Finance
C)
Head of Office
D)
Administrative Head of the Ministry
Under the Delegation of Financial Powers (DFP) Rules, the Head of Department (HoD) is the primary authority responsible for the overall management of the budget allocated to their department. Once the government sanctions funds, the HoD is authorized to distribute these funds among the various Controlling Officers and Disbursing Officers within their jurisdiction to ensure the smooth execution of departmental activities.
- Option (b) Ministry of Finance: The Finance Ministry sanctions the overall budget but does not handle the granular distribution to individual disbursing officers.
- Option (c) Head of Office: The Head of Office typically manages the funds allocated to a specific office but does not distribute funds to other controlling officers.
- Option (d) Administrative Head of the Ministry: While they oversee policy and administration, the specific financial distribution to disbursing officers is a delegated function of the Head of Department.
Pension can not be drawn for the day of pensioner’s death.
A)
True
B)
False
Under standard government pension rules (including those applicable to State Civil Services and Central Civil Services), pension is payable for the entire month in which the pensioner dies. Specifically, the pension is considered payable up to and including the date of death. Therefore, the statement 'Pension can not be drawn for the day of pensioner’s death' is incorrect. The pension for the day of death is legally due to the pensioner (and subsequently payable to the legal heirs or nominee if not already drawn).
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.
Monthly pay bills of Government servants may be signed at any time not earlier than _______ before the last working day of the month.
A)
seven days
B)
five days
C)
three days
D)
ten days
According to the standard financial rules and payroll guidelines governing Government servants (typically aligned with the General Financial Rules and State Treasury Codes), monthly pay bills are prepared toward the end of the month to ensure that any changes in pay, allowances, or deductions (such as leave without pay or recovery of dues) are accurately captured. The regulation specifies that these bills may be signed and submitted not earlier than five days before the last working day of the month. This window ensures the bill is current while allowing sufficient time for the Treasury to process the payment by the end of the month. Options a, c, and d are incorrect as they do not align with the prescribed statutory timeframe for the signing of monthly pay bills.
The Head of Office should verify the cash balance in the cash book _______.
A)
at the end of each month
B)
at the end of each quarter
C)
regularly
D)
none of these
In government accounting and financial management (specifically under General Financial Rules - GFR), the Head of Office is responsible for the safe custody of public money. To prevent embezzlement, errors, or misappropriation, the Head of Office is required to verify the cash balance in the cash book 'regularly' (often interpreted as daily or at frequent intervals) by physically counting the cash on hand and comparing it with the balance shown in the cash book. While monthly and quarterly reconciliations occur for reporting purposes, the internal control mechanism for cash verification must be a regular, ongoing process to ensure immediate detection of discrepancies.
Which of the following comes under primary units of appropriation?
A)
Voted expenditure
B)
Pensionary Charges
C)
Charged expenditure
D)
all the above
In the context of government accounting and the Appropriation Act, 'Appropriation' refers to the legal authorization to spend public funds from the Consolidated Fund. The primary units or categories of appropriation are divided based on how the expenditure is authorized and charged:
1. **Charged Expenditure**: These are expenditures that are not put to vote in the legislature (e.g., salaries of the President/Governor, Judges of the High Court). They are 'charged' directly upon the Consolidated Fund.
2. **Voted Expenditure**: These are expenditures that must be approved by the legislature through a voting process before they can be spent.
3. **Pensionary Charges**: These typically fall under the category of 'Charged' expenditure (as pensions are often guaranteed and charged to the Consolidated Fund to ensure security for retirees), but they represent a distinct primary unit of appropriation in budgetary classification.
Since all three options (Voted, Charged, and Pensionary charges) are fundamental components of how appropriations are categorized and managed in government finance, the correct answer is 'all the above'.
The primary unit of appropriation can include only voted expenditures.
A)
True
B)
False
In government accounting and financial management (specifically under the Appropriation Act and Budgetary rules), 'Appropriation' refers to the legal authority to spend public funds. While the majority of expenditures are 'Voted' (meaning they require the approval of the legislature), the primary unit of appropriation is not limited to voted expenditures alone. It also includes 'Charged' expenditures. Charged expenditures are those that are not put to vote in the legislature (such as salaries of the President/Governor, judges of the High Court, and debt charges) but are still part of the Consolidated Fund and must be appropriated to be spent. Therefore, stating that appropriation can include ONLY voted expenditures is incorrect.
Who is a subordinate authority as per DFPR?
A)
Any officer working under the Governor/President with delegated powers
B)
An officer who exercises statutory powers
C)
The head of a subordinate office
D)
An officer working under a Controlling Officer in the same office
Under the Delegation of Financial Power Rules (DFPR), the structure of financial authority is divided between the 'Competent Authority' and 'Subordinate Authorities'. A Subordinate Authority is generally defined as any officer to whom financial powers have been delegated by the Governor (for State government) or the President (for Central government), or by a higher authority acting under such delegation.
- Option (a) is correct because it accurately describes the nature of delegated financial authority within the DFPR framework.
- Option (b) is incorrect because exercising statutory powers refers to legal/legislative authority, which is distinct from the administrative delegation of financial powers.
- Option (c) is incorrect because being the 'head of a subordinate office' is a designation of office hierarchy, not necessarily the definition of a 'subordinate authority' in the context of financial delegation rules.
- Option (d) is incorrect because while they may be subordinate in rank, the term 'Subordinate Authority' in DFPR specifically refers to the delegation of financial powers rather than simple office reporting lines.
Can powers under the Delegation of Financial Powers Rules be delegated to non- gazetted officers?
A)
Yes
B)
No
C)
Yes, but with the approval of the Government
Under the Delegation of Financial Powers Rules (DFPR), financial powers are delegated to specific authorities based on their rank, designation, and official status. A fundamental principle of financial administration in government rules is that financial accountability and the power to sanction expenditure are vested in Gazetted Officers. Non-gazetted officers do not possess the legal status or the administrative authority to exercise delegated financial powers; they may process files or initiate proposals, but the actual 'power' to sanction or delegate further must reside with a Gazetted Officer. Therefore, powers under DFPR cannot be delegated to non-gazetted officers.
What is the period for a financial year in India?
A)
1st April to 31st March
B)
1st April to the last working day of March
C)
The first working day of April to the last working day of March
D)
The forenoon of 31st March to the midnight of the 31st March of the next year
In India, the financial year (also known as the fiscal year) is the period used for calculating annual financial statements, government budgeting, and tax filings. According to the Government of India's accounting standards and the Income Tax Act, the financial year begins on the 1st of April of one year and ends on the 31st of March of the following year.
Analysis of options:
- Option (a) is correct as it defines the standard calendar dates for the financial cycle.
- Option (b) and (c) are incorrect because the financial year is defined by calendar dates, not 'working days'.
- Option (d) is incorrect as it describes a specific time window that does not align with the standard definition of a full year.
The difference between two stage bidding and two bid system is:
A)
They are the same
B)
Two-Stage Bidding is mandatory for all consultancy contracts, while the Two-Bid System is used for procurement of major works
C)
In two-stage bidding, technical bids are revised after discussions before financial bids are invited. In two-bid system, technical and financial bids are submitted simultaneously
D)
In two-stage bidding, technical bids are evaluated first, followed by evaluation of financial bids. In two bid system, both are evaluated by the Bid Evaluation Committee simultaneously
In public procurement, it is crucial to distinguish between 'Two-Stage Bidding' and a 'Two-Bid System' (often called Two-Envelope System):
1. **Two-Stage Bidding**: This is used for complex requirements where the buyer cannot precisely define the specifications. In the first stage, bidders submit technical proposals without prices. The buyer discusses these proposals with bidders and may refine the specifications. In the second stage, bidders are invited to submit a revised technical proposal and a financial bid based on the finalized specifications.
2. **Two-Bid System (Two-Envelope System)**: This is used when specifications are clearly defined. Bidders submit two separate sealed envelopes (Technical and Financial) simultaneously. The technical bid is opened first; only those who qualify technically have their financial bids opened. There is no negotiation or revision of specifications between the two bids.
Analysis of options:
- Option (a) is incorrect because they are fundamentally different processes.
- Option (b) is incorrect as neither is 'mandatory' for all consultancy or works; the choice depends on the complexity of the requirement.
- Option (d) is incorrect because in a Two-Bid system, financial bids are NOT evaluated simultaneously with technical bids; they are opened only after technical qualification.
- Option (c) correctly identifies the iterative nature of Two-Stage Bidding versus the simultaneous submission of the Two-Bid System.
A YMA branch was given funds for the purchase of an ambulance out of Grants-in- Aid provided by your department. Choose the correct action for protecting public interest.
A)
The YMA must promise to never sell the asset
B)
The YMA must be made to notify the government after the ambulance is no longer in use
C)
The YMA must abide by the condition that they will not sell the ambulance without the prior approval of the department
D)
They must use the ambulance only for ST/SC community
In the administration of Grants-in-Aid, when public funds are used to acquire a capital asset (like an ambulance) for a non-governmental organization or a voluntary agency, the government must ensure that the asset continues to serve the public purpose for which the grant was intended.
1. **Asset Control**: To protect public interest and prevent the misappropriation of government funds, a standard condition of such grants is that the asset cannot be sold, leased, mortgaged, or transferred without the explicit prior approval of the sanctioning authority (the Department).
2. **Why 'a' is incorrect**: A permanent ban on selling is impractical. Assets depreciate and eventually become obsolete; the government needs a mechanism to approve disposal or replacement.
3. **Why 'b' is incorrect**: Simply notifying the government after the asset is no longer in use is a post-facto action and does not prevent the unauthorized sale or misuse of the asset while it is still functional.
4. **Why 'd' is incorrect**: While grants may have target beneficiaries, restricting the use of an emergency vehicle (ambulance) solely to specific communities may violate general public interest and administrative guidelines unless specifically mandated by the grant's primary objective, whereas the restriction on sale is a universal financial propriety rule for all Grants-in-Aid.
What is the cardinal principle governing the assessment of responsibility of an officer regarding responsibility for losses to government?
A)
That losses are unavoidable and may be pardoned if the officer acted quickly.
B)
That responsibility arises only when the loss is reported by Audit.
C)
That every Government servant must exercise the same vigilance, care, and prudence in handling public funds as a person of ordinary prudence would exercise in handling their own money.
D)
That responsibility is fixed upon the officer who directly handles cash
The cardinal principle for assessing the responsibility of a government officer regarding losses to the government is based on the 'Standard of Ordinary Prudence.' According to the General Financial Rules (GFR) and established government accounting principles, a government servant is expected to manage public money with the same level of care and diligence that a reasonable person would apply to their own personal finances.
- Option (a) is incorrect because losses are not automatically 'unavoidable' or 'pardoned' simply because an officer acted quickly; responsibility is based on negligence or failure of duty.
- Option (b) is incorrect because responsibility exists from the moment the loss occurs due to negligence, regardless of whether it was discovered by an internal check or an external Audit.
- Option (d) is incorrect because responsibility is not limited solely to the person handling cash; it can extend to supervising officers who failed to implement proper controls or oversight.
When is price variation clause allowed in contract management?
A)
In contracts where the market value of the goods fluctuates
B)
Only in short-term contracts of less than 6 months
C)
In long-term contracts where significant cost escalation risks exist
D)
Only when the contractor demands it at the time of tendering
A Price Variation Clause (PVC) is a risk-management tool used in contract management to protect both the buyer and the seller from unpredictable fluctuations in costs (such as raw materials, labor, or fuel) over the duration of a contract.
1. Why Option 'c' is correct: PVCs are primarily utilized in long-term contracts because the risk of significant cost escalation increases over time. In short-term contracts, price volatility is usually negligible or can be absorbed into the fixed price. By including a PVC, the parties mathematically allocate the risk of inflation or market volatility, ensuring the contract remains viable for the contractor and fair for the client.
2. Why Option 'a' is incorrect: While market fluctuations trigger the clause, the clause is not 'allowed' simply because goods fluctuate; it is specifically implemented in contracts where those fluctuations pose a significant financial risk over a prolonged period.
3. Why Option 'b' is incorrect: Short-term contracts (less than 6 months) typically use fixed-price agreements because the window for significant price variation is too small to justify the administrative complexity of a PVC.
4. Why Option 'd' is incorrect: The inclusion of a PVC is a matter of contract strategy and risk allocation decided during the drafting phase (often by the procuring entity), not merely a result of a contractor's demand at the time of tendering.
A government security is:
A)
A certificate issued by a nationalised bank guaranteeing repayment of a fixed deposit.
B)
A tradable debt instrument issued by the Government acknowledging its debt obligation.
C)
A security pass issued to officials for entry into government buildings.
D)
A document issued by the Treasury for withdrawal of money.
Step-by-step reasoning:
1. **Definition of Government Security (G-Sec):** A government security is a financial instrument issued by the central or state government to raise funds from the public or institutional investors. It acts as a formal acknowledgment of a debt obligation, where the government promises to pay a fixed amount of interest (coupon) and repay the principal amount upon maturity.
2. **Tradability:** G-Secs are 'tradable,' meaning they can be bought and sold in the secondary market (such as the NDS-OM platform in India), which distinguishes them from simple fixed deposits.
3. **Evaluating Option (a):** This describes a bank guarantee or a fixed deposit receipt. Nationalised banks are intermediaries or buyers of G-Secs, but they do not issue 'government securities' on behalf of the state; the government issues them.
4. **Evaluating Option (c):** This describes a physical security badge or access permit, which is a literal interpretation of the word 'security' but unrelated to financial instruments.
5. **Evaluating Option (d):** This describes a treasury challan or a withdrawal slip, which is an administrative document for fund movement, not a debt instrument.
Therefore, option (b) is the only technically accurate definition of a government security in the context of public finance.