By: Satyavan ‘Saurabh
A properly managed accounting system helps in ensuring proper control over funds. Accounting policies and procedures are designed to compile accounts that meet the legal/procedural requirements governing financial controls. Accounts are an essential part of the financial management of activities. Based on accounts, the government controls the size of its fiscal and fiscal policies. The judicious use of financial resources to meet the needs of the present society requires the efficient use of public money in such a way that it does not compromise the ability of future generations of societies to meet their own needs.
Legal and institutional measures to ensure effective use of public money in India: An appropriately managed accounting system helps in ensuring proper control over money. Accounts are an essential part of the financial management of activities. Based on accounts, the government controls the size of its fiscal and fiscal policies. Based on accounts, the government controls the size of its fiscal and fiscal policies.
All debts raised by the government by issuing public notification, treasury bills (internal debt), and loans received from foreign governments and international institutions (external debt) are credited to the Consolidated Fund of India. All expenditure of the Government is met from the Consolidated Fund of India and no amount can be withdrawn from the Fund without the permission of Parliament. Contingency Fund of India records the transactions involving the Contingency Fund as prescribed by the Government of India under Article 267 of the Constitution of India. This fund works more or less like an impending account of the Government of India and is held by the Secretary to the Government of India, Ministry of Finance, Department of Economic Affairs on behalf of the President.
In the Public Account constituted under Article 266(2) of the Constitution, transactions relate to debts other than those included in the Consolidated Fund of India. Receipts under Public Account are not ordinary receipts of the Government. Therefore, there is no need for parliamentary authorization for payment from a public account.
The CAG protects the public money from the access of arbitrary power and in this sense, is an important and most useful dignitary of the state. The Pension Fund Regulatory and Development Authority (PFRDA) is the only regulator of the pension industry in India. Its main objective is to provide income security to the aged by regulating and developing pension funds and to protect the interests of the subscribers of pension schemes.
Systemic weakness, lack of trained, regular staff for various critical roles such as program management, finance/accounts, and frontline service provision have weakened the capabilities of the government machinery in the states for implementation of schemes. Lack of adequate staff in government offices, improper technical penetration at the grassroots level or ineffective decentralization of financial power, poor accountability mechanisms to prevent corruption and their effective monitoring and use due to diversion of funds to unauthorized sources, ineffective decentralization of power, Populist politics in the country, crony capitalism, favoritism and abuse of office, lack of coordination in planning and rush of expenditure during March, popularly known as ‘March Rush’, led to the accumulation of unutilized and unutilized funds. This leads to unplanned and unreasonable fund expenditure to avoid lapse.
There are deficiencies in decentralized planning being carried out in plans, resulting in inadequate staff to carry out planning activities, inadequate attention to their capacity building, and minimal role of community participation in the planning process. Good governance for efficient use of public money requires several reforms such as decentralization of power, removal of legislative loopholes, strengthening public institutions like CVC and RTI, increasing administrative accountability, and making the society more democratic. These reforms can make society more sustainable in the long run.
The writer is Research scholar, poet, freelance journalist, columnist and All India Radio & TV Panelist.
