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.

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)