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?

Resource stewardship is the hallmark of good governance and is essential for translating fiscal resources into social welfare. Its poor utilisation violates the “trusteeship” principle (Locke)

Reasons for Under-Utilization

Late fund release lead to “March Rush”

Capacity Constraints- Local bodies lack technical staff to draft Detailed Project Reports (DPRs).

One-size-fits-all guidelines limits flexibility. Eg- CSS

Land acquisition delays stalls major infrastructure projects.

Low accountability- lack of real-time tracking of funds

Fear of the “3 Cs”(CBI, CVC, CAG) causes bureaucratic paralysis

Reasons for Mis-Utilization

Corruption through ghost beneficiaries. Eg- over 10 lakh fake accounts in Ayushman Bharat (CAG)

Political populism – Diverting long-term developmental funds into short-term electoral “gifts”.

Poor accountability mechanisms. Eg- lack of social audits

Absence of Outcome Budgeting- Focus on “outlays” rather than “impact” (lives changed).

Institutionalized Rent-Seeking- The presence of middlemen in every stage of fund dispersal.

Politician-bureaucrat-corporate nexus (Vohra committee) – leads to culture of impunity

Measures needed

Performance-Linked Promotions- Incorporate “Fund Utilization Efficiency” as a key metric in the Annual Confidential Reports (ACR) of IAS and IPS officers.

Implement a financial incentive and protection program for whistleblowers. (US Model)

Ensuring the independence and resource-sufficiency of bodies like Lokpal, Lokayukta and CVC

Adoption of the “Hong Kong Model” (ICAC) to tackle corruption – three-pronged strategy of Investigation, Prevention, and Community Education

E-Governance to reduce human discretion and the “gatekeeper” effect. Eg- GeM

Citizens’ Charters- Mandating clear timelines for service delivery. Eg- SAKALA (Karnataka Guarantee of Services Act)

Moving beyond a “Rule-based” conduct code (what not to do) to a “Value-based” code of ethics (what to strive for) (2nd ARC).

Competency-linked training under Mission Karmayogi to ensure civil servants are not only skilled but also ethically grounded.

Legal backing to Social Audits. (Meghalaya Act)

Real-time Public Dashboards- Eg- “Jan Soochna” portals to track spending and report misuse.

Ensuring transparency in electoral funding to prevent the “quid-pro-quo” culture at top.

Efficiency in spending is as important as expansion of spending for Viksit Bharat @2047.

Contribution of moral thinkers