The union government has notified amendments to General Financial Rules (GFR) to ensure that goods and services valued less than Rs 200 crore are being procured from domestic firms, a move which will benefit MSMEs.
Possible mains question:
Q. Discuss how the nationwide lockdown to control the coronavirus outbreak has led to the resurfacing of inherent bottlenecks in India’s MSME Sector.
What are the General Financial Rules (GFRs)?
- The GFRs are a compilation of rules and orders of the Government of India to be followed by all while dealing with matters involving public finances.
- They are instructions that pertain to financial matters.
- They lay down the general rules applicable to Ministries / Departments, and detailed instructions relating to the procurement of goods.
- They are issued by the procuring departments broadly in conformity with the general rules while maintaining the flexibility to deal with varied situations.
Also read:
[Burning Issues] Fiscal Push for MSME Sector of India (Part I)
