Govt to unveil e-surveillance of funds for flagship schemes

Castigated by CAG for stepping away from protocol in releasing over Rs 50,000 crore meant for welfare schemes, the government is proposing electronic surveillance of flow of funds earmarked for flagship schemes.     

While CAG, the top auditor of government accounts, made note of the deviation in funds allocation, the government's chief accountant - Controller General of Accounts (CGA) - has prepared the blueprint for monitoring flow of funds worth Rs 200,000 crore per annum to over 20,000 implementing agencies.     

The blueprint is expected to be unveiled by Finance Minister Pranab Mukherjee in his budget for 2009-10. He had made a mention of it in the interim budget in February.     

The mechanism will capture all data related to centrally sponsored and central sector schemes right from funds earmarked, sanctions, sub-sanctions to the names of implementing agencies at each level, details of associated bank accounts and payment to the ultimate beneficiary.     

It will also track state-wise, district-wise and lower level allocation of funds under 1258 Plan schemes. Pilot programmes are already on.     

"We are implementing the Central Plan Schemes Monitoring System (CPSMS) and have successfully carried out two pilot projects in Punjab and Karnataka for tracking releases and utilisation at ground level for establishment of a comprehensive Decision Support System and Management Information System," a source told PTI.

"There are some glitches in the present system which need to be ironed out as multiple registrations were being recorded as there are agencies involved in several schemes and receiving funds from various ministries resulting in duplicity of agencies. Also many sanctions were not being captured. We are working to streamline the flaws," the source said.     

The official said that once the corrections are made they would be in a position to capture all minute details of fund flow including release and utilisation without hassles.     

The initiative assumes special significance in the light of major increase in the social sector spending by the Government.     

The CAG, in its latest report, has said, "For the year 2007-08, Union Government made a provision for transfer of central plan assistance of Rs 51,259.85 crore (as per revised estimates) directly to state/district level autonomous bodies and authorities, societies, non governmental organisations etc for implementation of centrally sponsored schemes...The aggregate amount of the unspent balances in the accounts of the implementing agencies kept outside government accounts is not readily ascertainable."     

Sources said Ministry of Finance and Planning Commission officials had a meeting with the CGA last week to assess the progress of the system.