BS EDIT: Efficient cash management can boost economic outcomes

By Business StandardPublished On Mar 4, 2025

The Need for Efficiency

Unused government funds can be redirected to improve economic outcomes

SNA System: A Game Changer

Launched in 2021, the SNA system streamlines fund releases and enhances transparency

Impact on Government Schemes

Despite saving Rs 11,000 crore, Rs 1 trillion remains unspent in states’ accounts

Fiscal Deficit Concerns

Idle funds increase borrowing costs, making efficient cash management crucial

Balancing Priorities

States seek more flexibility, while the Centre aims for accountability

The Road Ahead

Better transparency and fund management can drive stronger economic growth