PAC Flags Poor Implementation of SANKALP Scheme After CAG Audit

Recently, the Public Accounts Committee (PAC) criticised the poor implementation of the SANKALP scheme after a CAG report flagged delays and underutilisation.

Key Issues Highlighted in CAG Report

• Financial Underutilisation: Only 44% of the allocated funds were disbursed between 2017-18 and 2023-24, indicating persistent financial underperformance.
• Weak Implementation & Preparedness: The Ministry utilised only ₹850.71 crore out of ₹1,606.15 crore disbursed (86%) by the World Bank, reflecting non-preparedness and weak monitoring mechanisms.

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About SANKALP Scheme

• Skill Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) is a World Bank-assisted programme aimed at strengthening India’s skill development ecosystem.
• Nodal Ministry: Implemented by the Ministry of Skill Development and Entrepreneurship.
• Launch: Launched on January 19, 2018, SANKALP was approved in October 2017.
• Budget: Total outlay of ₹4,455 crore.
• Implementation period: It was extended from its original March 2023 deadline to March 2024.
• Objectives:
  • Improve short-term skill training quality, 
  • Enhance institutional capacity, 
  • Strengthen industry linkages, and 
  • Promote inclusion of marginalised communities.

About the Comptroller and Auditor General (CAG)

• The CAG of India is the supreme audit authority responsible for safeguarding public finances at Union and State levels.
• Constitutional Provision: Article 148 of the Constitution establishes the CAG as an independent constitutional authority.
• Appointment: The President appoints the CAG for six years or until age 65
• Removal: Removal requires a parliamentary process similar to that of a Supreme Court judge.
• Role and Functions: The CAG audits government receipts and expenditure and reports findings to Parliament and State legislatures to ensure financial accountability.

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About the Public Accounts Committee (PAC)

• The PAC, first introduced in 1921 under the Government of India Act, 1919, examines government expenditure based on CAG reports.
• Composition: It comprises 22 members (15 from Lok Sabha and 7 from Rajya Sabha) elected annually, with the Chairperson appointed by the Lok Sabha Speaker.
• Role and Nature: The PAC scrutinises public expenditure for financial propriety and efficiency, but its recommendations are advisory, not executive.

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