GoI amends General Financial Rules
On May 21, 2020, the Government of India amended General Financial Rules to make sure the goods and services that are of value less than Rs 200 crores are procured from domestic firms.
The GFR 2017 (General Financial Rules) have been amended by the Central Government. Under the new amendment, global tenders henceforth will be disallowed in government procurement that are of value Rs 200 crores. This was announced in Atma Nirbhar Bharat Abhiyan.
General Financial Rules
The GFR are set of rules that deal with matters that involve public finances. They were first issued in 1947 bringing together all the existing orders. They are instructions that pertain to financial matters.
The GFRs were modified in 1963 and 2005.
The GFR 2017 was revised in 2017 to make sure an organization manages its business without compromising its flexibility.
Tendering is a process where bids for a project are accepted. Now, global tendering is tenders from foreign countries or through foreign investment. “Disallowing Global Tenders” is stopping foreign investments to a particular threshold to boost indigenous companies.
Categories: Economy & Banking Current Affairs