Economy

Centre to modify GFR to further facilitate ease of doing business

PTI New Delhi | Updated on January 18, 2018 Published on July 31, 2016

In a major move, General Financial Rules (GFR) will be modified to further facilitate the ease of doing business.

GFR acts as a guiding framework for dealing with financial matters and adherence to it is mandatory.

“We have decided to revise GFR as well as the manuals. The draft of both will be put up for public consultations in the month of August itself,” a senior central government official said on the condition of anonymity.

The Centre also plans to come out with a manual on procurement of goods, he said.

Formulation of a new set of GFR has been necessitated by numerous changes brought by the Narendra Modi government in existing rules and regulations related to trade, the official said.

GFR, first issued in 1947, was in the form of executive instructions which was later modified in 1963.

Changed economic situation prompted further revision and the last GFR was issued in 2005.

Official sources said the draft of new GFR will be first put up for public consultations and wide-ranging discussions will also be held with the Central Vigilance Commission (CVC) and experts.

Over 1,000 archaic and redundant laws have been scrapped by the government. There are a few other rules which need to be revisited as far as financial propriety is concerned and the new GFR, as and when it comes, will be in line with the policy of the government to promote trade and business, the sources said.

CVC is in the process of finalising a discussion paper to look at all aspects of tendering and will recommend comprehensive guidelines.

About 30 per cent of India’s Gross Domestic Product (GDP) of about Rs 25 lakh crore comes from tendering of goods and services being procured by the government.

Published on July 31, 2016
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