Comprehensive Summary: Amendments to the Delegation of Financial Power Rules, 2024

The Ministry of Finance's Department of Expenditure issued an Office Memorandum on June 9, 2026, outlining amendments to the Delegation of Financial Power Rules (DFPRs), 2024. Scheduled to take effect in the Financial Year 2027-28, this order updates the Primary Units of Appropriation (Standard Object Heads) to harmonize the structure across Union and State Governments.

Detailed Breakdown of Revised Object Heads:

The revised Annexure-I categorizes expenditures into three primary classifications:

1. Revenue Expenditure

• Compensation to Employees: Includes Salaries, Wages, Rewards, Medical Treatment, Allowances, Travel Leave Concession, and Training Expenses.
• Social Security: Covers Pensionary Charges, including contributions to the National Pension System (NPS) and Unified Pension Scheme (UPS).
• Goods and Services: A broad category covering Domestic/Foreign Travel Expenses, Office Expenses, Rent, Royalty, Digital Equipment, Materials/Supplies, Fuels, Professional Services, and Bank/Agency Charges.
• Aid and Assistance: Includes Grants-in-Aid, Subsidies, Scholarships, and Grants for the creation of Capital Assets.

2. Capital Expenditure (Assets)

• Non-Financial Assets: Covers major procurements like Motor Vehicles, Machinery & Equipment, ICT Equipment, Buildings & Structures, Infrastructural Assets, and Land. Note: Items like office/ICT equipment exceeding ₹1 Lakh or a 3-year useful life are generally classified here rather than as revenue expenses.
• Financial Assets: Encompasses Investments, Loans and Advances, Repayment of Borrowings, and Subscriptions.

3. Accounting Adjustments

• Includes procedural heads for Suspense, Depreciation, Reserves, Inter Account Transfers, Write Off of Losses, and Deduct Receipts/Recoveries.