Utilisation of Public Funds

6 UPSC Mains GS IV questions on Utilisation of Public Funds, 2019 to 2025, newest first, as UPSC set them. See also practice questions on Utilisation of Public Funds toppers answered.

1. 2025 Q6(b)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 ?10 marks · 150 words
2. 2025 Q10Rajesh is a Group A officer with nine years of service. He is posted as Administrative Officer in an Oil Public Sector undertaking. As an Administrative Officer he is responsible for managing and coordinating various administrative tasks to ensure smooth functioning of office. He also manages office supplies, equipment etc. Rajesh is now sufficient senior and is expecting his next promotion in JAG (Junior Administrative Grade) in the next one or two years. He knows that promotion is based on examination of ACRs/Performance Appraisal of last few years (5 years or so) of an officer by a DPC (Departmental Promotion Committee) and an officer lacking requisite grading of ACRs may not be found fit for promotion. Consequences of losing promotion may entail financial and reputational loss and set-back for career progression. Though he also puts his best efforts in official discharge of his duties, yet he is unsure of assessment by his superior officer. He is now putting extra efforts so that he gets thumping report at the end of financial year. As Administrative Officer, Rajesh is regularly interacting with his immediate boss, who is his reporting officer for writing his ACR. One day he calls Rajesh and wants him to buy computer-related stationery on priority from a particular vendor. Rajesh instructs his office to initiate action for procuring these items. During the day, the dealing Assistant brings an estimate of Rupees Thirty Five Lakhs covering all stationery items from the same vendor. It is noticed that as per delegated financial powers, as provided in the GFR (General Financial Rules) as applicable in that Organisation, expenditure for office items exceeding Rupees Thirty Lakhs requires sanction of the next higher authority (boss in the present case). Rajesh knows that immediate superior would expect all these purchases should be done at his level and may not appreciate such lack of initiative on his part. During discussions with office, he learns that common practice of splitting of expenditure (where large order is divided into a series of smaller ones) is followed to avoid obtaining sanction from higher authority. This practice is against the rules and may come to the adverse notice of Audit. Rajesh is perturbed. He is unsure of taking decision in the matter.20 marks · 250 words · Case study
3. 2025 Q11Mahatma Gandhi National Rural Employment Guarantee Program, MGNREGA was earlier known as National Rural Employment Scheme, NREGA. It is an Indian Social Welfare Program that aimed at fulfilling the ‘Right to Work’ provisions made in the Constitution. MGNREGA was launched in 2006 under Rural Employment Sector by the Ministry of Rural Development. Main objective of the program is to give legal guarantee of wage employment to the adult members of rural households who are willing to do unskilled manual labour work subject to a maximum of 100 days per year for every household. Every rural household has the right to register under the scheme, job card is issued to the registered, Job Card holder can seek employment; State Government shall pay 25% of minimum wage for the first 30 days as compensatory daily unemployment allowance to the families and of wage for remaining period of the year. MGNREGA work was undertaken by various Gram Panchayats. You have been appointed as an Administrator Incharge of the District. You have been given the responsibility of monitoring MGNREGA work undertaken by various Gram Panchayats. You are also given the authority to give technical sanctions to all MGNREGA works. In one of the Panchayats in your jurisdiction, you notice that your predecessor has mismanaged the Program in terms of : (i) Money not disbursed to actual job-seekers. (ii) Muster Rolls of the Labourers not properly maintained. (iii) Mismatch between the work done and payments made. (iv) Payments made to fictitious persons. (v) Job Cards were given without looking into the need of person. (vi) Mismanagement of funds and to the extent of siphoning of funds. (vii) Approved works that never existed.20 marks · 250 words · Case study
4. 2023 Q7You are working as an executive in a nationalised bank for several years. One day one of your close colleagues tells you that her father is suffering from heart disease and needs surgery immediately to survive. She also tells you that she has no insurance and the operation will cost about ₹ 10 lakh. You are also aware of the fact that her husband is no more and that she is from a lower middle class family. You are empathetic about her situation. However, apart from expressing your sympathy, you do not have the resources to fund her. A few weeks later, you ask her about the well-being of her father and she informs you about his successful surgery and that he is recovering. She then confides in you that the bank manager was kind enough to facilitate the release of ₹ 10 lakh from a dormant account of someone to pay for the operation with a promise that it should be confidential and be repaid at the earliest. She has already started paying it back and will continue to do so until it is all returned.20 marks · 250 words · Case study
5. 2020 Q7Rajesh Kumar is a senior public servant, with a reputation of honesty and forthrightness, currently posted in the Finance Ministry as Head of the Budget Division. His department is presently busy in organising the budgetary support to the states, four of which are due to go to the polls within the financial year. This year's annual budget had allotted ₹ 8300 crores for National Housing Scheme (NHS), a centrally sponsored social housing scheme for the weaker sections of society. ₹ 775 crores have been drawn for NHS till June. The Ministry of Commerce had long been pursuing a case for setting up a Special Economic Zone (SEZ) in a southern state to boost exports. After two years of detailed discussions between the centre and state, the Union Cabinet approved the project in August. Process was initiated to acquire the necessary land. Eighteen months ago a leading Public Sector Unit (PSU) had projected the need for setting up a large natural gas processing plant in a northern state for the regional gas grid. The required land is already in possession of the PSU. The gas grid is an essential component of the national energy security strategy. After three rounds of global bidding the project was allotted to an MNC, M/s XYZ Hydrocarbons. The first tranche of payment to the MNC is scheduled to be made in December. Finance Ministry was asked for a timely allocation of an additional ₹ 6000 crores for these two developmental projects. It was decided to recommend re-appropriation of this entire amount from the NHS allocation. The file was forwarded to Budget Department for their comments and further processing. On studying the case file, Rajesh Kumar realized that this re-appropriation may cause inordinate delay in the execution of NHS, a project much publicized in the rallies of senior politicians. Correspondingly, non-availability of finances would cause financial loss in the SEZ and national embarrassment due to delayed payment in an international project. Rajesh Kumar discussed the matter with his seniors. He was conveyed that this politically sensitive situation needs to be processed immediately. Rajesh Kumar realized that diversion of funds from NHS could raise difficult questions for the government in the Parliament. Discuss the following with reference to this case :20 marks · 250 words · Case study
6. 2019 Q2(a)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.10 marks · 150 words

Source: UPSC, Civil Services (Main) Examination question papers, upsc.gov.in. Topics are by UPSC Grade, not by UPSC.