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Question

India is an emerging economic power of the world as it has recently secured the status of fourth largest economy of the world as per IMF projection. However, it has been observed that in some sectors, allocated funds remain either under-utilised or misutilised. What specific measures would you recommend for ensuring accountability in this regard to stop leakages and gaining the status of third largest economy of the world in near future?

This question was previously asked in
UPSC CSE 2025 (Prelims) CSAT Official Paper (25-May-2025)

To ensure proper fund utilization and plug leakages, a combination of technological, administrative, and social measures is essential. I would recommend the following:

  1. Technology-Leveraged Tracking: Mandate the use of the Public Financial Management System (PFMS) for all schemes to enable real-time tracking of funds from source to beneficiary. Expand the Direct Benefit Transfer (DBT) system to minimise intermediaries.
  2. Outcome-Based Budgeting: Shift from merely allocating funds (outlays) to budgeting based on measurable performance indicators and results (outcomes). Future funding should be linked to past performance.
  3. Mandatory Social Audits: Empower local communities to audit the implementation and expenditure of public schemes. This creates grassroots-level accountability and transparency.
  4. Strengthening Anti-Corruption Bodies: Provide greater autonomy and resources to institutions like the Central Vigilance Commission and Lokpal to ensure swift and strict action against misappropriation.
  5. Capacity Building: Train officials in modern financial management and project implementation to address the issue of under-utilisation due to a lack of administrative capacity.

Answered By:

Sakshi Negi

Sakshi Negi is a Delhi-based journalist and content specialist with expertise in educational content and digital media, focusing particularly on government exam preparation and career guidance. With a degree in Journalism and Mass Communication from NRAI School of Mass Communication and her background as a Kendriya Vidyalaya alumna, she brings unique insights into the Indian education system and government sector opportunities.

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