UPSC Mains 2019 · GS IV · Q2(a) · 10 marks · 150 words

Effective utilization of public funds is crucial to meet development goals. Critically examine the reasons for under-utilization and mis-utilization of public funds and their implications.

हिन्दी में

लोक निधियों का प्रभावी उपयोग विकास के लक्ष्यों को प्राप्त करने हेतु निर्णायक है । लोक निधियों के अल्प उपयोग एवं दुरुपयोग के कारणों का समालोचनात्मक परीक्षण करते हुए उनके निहितार्थों की समीक्षा कीजिए ।

Utilisation of Public Funds

How a topper answered the closest question

Toppers wrote this one in a test series: “Effective utilisation of public funds is not merely an administrative requirement but a moral responsibility of those entrusted with public office. However, instances of funds allocated to government schemes lying idle or being diverted towards extraneous purposes continue to be reported across the country. Examine the reasons for under-utilization and mis utilization of public funds and their implications.”

Gaurav KumarAIR 34 · CSE 2017 · 166 wordsTheir whole copy

Opening · a figure

Construction workers fund have > 50,000 crore rupee underutilised // & MNREGA funds are misallocated (West Bengal: MGNREGA fund). This show the ineffective public fund utilisation.

Body · points

Effective Utilisation of public fund :

  1. Fulfill the 'Samvodaya dream' effective delivery of public services (eg: Divya Mittal IAS, Irrigation work)
  2. Builds credibility of 'economy' of offices
  3. Helps improve 'ease of doing business'
  4. Boost the morale of public - their funds are utilised over them
  5. Reduces inter departmental, inter state centre state conflict (eg: Samagra)

Sikshe, pm-shravan funds (Tamilnadu)

(6) Ethical ground : Increased transparency in money trail (taxpayer money)

→ Citizen charter : public fund over designated services eg MeeSeva (Andhra)

→ Increase responsibility of offices over corruption & embezzlement-

How to effectively use

(1) Reduced discretion : DMF discretion of DM, very low utilisation

(2) Technology - DBT, direct transfer eg Pahal LPG (JAM trinity)

(3) Information management system

(4) Reduce extravagant expenditure → Compels Budget management

(5) Election freebies (Punjab in debt)

Close · no separate close

None written.

2 more toppers’ answers to this question, part by part, and how they all approached it: open the question.

Toppers’ answers to other close questions

Source: UPSC, Civil Services (Main) Examination 2019, General Studies Paper IV, Q2(a). The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.