Introduction

India’s economic growth is a promising indicator of progress, but the misuse and underutilisation of public funds in several sectors undermine the potential for inclusive development. Public servants have a duty to ensure accountability, transparency, and efficiency in the use of taxpayer money. Ethical governance demands the application of integrity, responsibility, and social justice in managing public funds to meet national development goals.

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Specific Measures for Ensuring Accountability and Proper Utilisation of Public Funds

• Implementing Real-Time Monitoring Systems: Use of digital platforms and real-time monitoring systems to track fund allocation and usage.
  • Eg: PFMS (Public Financial Management System) tracks fund usage in schemes like MGNREGA and ensures timely disbursement and proper usage.
• Conducting Regular Audits: Regular internal and external audits of public expenditure to assess fund allocation and use.
  • Eg: The Comptroller and Auditor General (CAG) audits government spending, such as the 2G spectrum audit, which led to reforms and exposed fund mismanagement.
• Ensuring Transparent Public Procurement: E-procurement systems to make procurement processes transparent and ensure that funds are used appropriately.
  • Eg: GeM (Government e-Marketplace) ensures transparency in procurement and reduces corruption in the purchase of goods and services.
• Social and Performance Audits: Social audits and performance audits to engage citizens in verifying the correct implementation of schemes.
  • Eg: MGNREGA uses social audits to monitor how funds are utilized and whether they reach the intended beneficiaries.
• Strengthening Whistleblower Protection: Implement whistleblower protection mechanisms to allow employees and citizens to report misuse or underutilisation of funds without fear of retaliation.
  • Eg: Tata Group has a whistleblower policy that protects employees who report unethical practices, encouraging transparency.
• Establishing Clear Fund Allocation and Budgeting Guidelines: Ensuring that funds are earmarked for specific projects with clear budgeting guidelines and timelines for their proper use.
  • Eg: PMAY (Pradhan Mantri Awas Yojana) allocates funds specifically for affordable housing, with clear targets and monitoring mechanisms in place.
• Promoting Citizen Participation in Governance: Encourage public involvement in decision-making and monitoring, enhancing accountability.
  • Eg: RTI (Right to Information) empowers citizens to inquire about government expenditures, ensuring transparency in how funds are spent.
• Training Public Servants in Financial Integrity and Ethics: Regular training programs for civil servants on financial management, ethics, and compliance to improve competence and reduce mismanagement of funds.
  • Eg: LBSNAA (Lal Bahadur Shastri National Academy of Administration) includes modules on ethics and financial responsibility in its training for IAS officers.

Conclusion

To ensure the proper utilisation of public funds, it is crucial to implement measures such as digital monitoring, regular audits, transparent procurement, and citizen involvement. These measures help prevent misuse, reduce inefficiency, and promote a culture of accountability in public administration, fostering trust in government systems.

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