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 mis-utilised. 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? (Answer in 150 Words)

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 mis-utilised. 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? (Answer in 150 Words)

Introduction

India’s recent achievement of becoming the fourth-largest economy (IMF, 2024 projection) reflects its growing global economic stature. However, fund misutilization and underutilization in several sectors—such as health, rural development, and infrastructure—undermine developmental outcomes. Ensuring accountability in public expenditure is essential to stop leakages and move toward the goal of becoming the third-largest economy.

 

Challenges in Fund Utilization

1. Bureaucratic Delays – Slow approval and disbursement processes.
2. Leakages and Corruption – Diversion of funds at multiple levels.
3. Capacity Deficit – Weak local-level institutions with limited technical expertise.
4. Lack of Monitoring – Poor tracking and audit of expenditure.
5. Political Interference – Populist spending without outcome focus.

 

Specific Measures for Ensuring Accountability

1. Strengthening Monitoring and Transparency

• Digital dashboards for real-time tracking of fund allocation and utilization (like PFMS – Public Financial Management System).
• Geo-tagging of projects (roads, schools, health centers) to verify on-ground implementation.

2. Outcome-Oriented Budgeting

• Shift from input-based allocation to outcome-based budgeting where ministries are evaluated on tangible results.
• Example: Linking rural health fund utilization with indicators like IMR reduction.

3. Social Audit and Citizen Participation

• Empower Gram Sabhas, SHGs, and civil society to conduct audits of schemes like MGNREGA, PM Awas Yojana.
• Publish utilization reports in public domain for accountability.

4. Robust Audit and Vigilance Mechanisms

• Strengthen CAG audits and mandate third-party performance audits for large projects.
• Establish sector-specific vigilance cells to check leakages.

5. Capacity Building of Implementing Agencies

• Train officials at district and block levels in financial management and e-governance tools.
• Use PPP models to leverage private expertise in fund management.

6. Incentive-Disincentive Framework

• Introduce ranking of states/ministries based on effective fund utilization.
• Penalize delays and misappropriation; reward timely, efficient usage.

7. Use of Technology for Direct Delivery

• DBT (Direct Benefit Transfer) to minimize middlemen and leakages in subsidies, pensions, and scholarships.
• Blockchain-based fund transfer mechanisms for high-value infrastructure projects.

Conclusion

For India to transform from the fourth to the third-largest economy, growth must be backed by efficient, transparent, and accountable governance. By adopting technology-driven monitoring, outcome-based budgeting, and citizen participation, India can plug leakages, optimize fund utilization, and accelerate inclusive development. This will not only enhance economic status but also strengthen public trust in governance.